Trustee Responsibilities & Compliance Support

The Heights Office of the Law Office of Bryan Fagan, PLLC proudly supports trustees throughout The Heights, Houston, and the greater Harris County area as they carry out the significant legal responsibilities required during trust administration in Texas. Whether you are serving as a trustee for the first time or have prior experience, administering a trust is a serious fiduciary obligation that requires organization, transparency, diligence, and strict compliance with the Texas Trust Code.

Many trustees accept this role out of loyalty to a loved one but are often unfamiliar with the legal standards imposed on them. Errors such as poor communication with beneficiaries, improper asset management, or misinterpreting trust terms can lead to disputes, court intervention, or even personal liability. Our Heights Trust Administration team helps trustees understand and fulfill their duties correctly, ensuring the trust is administered efficiently and in full compliance with Texas law.

Core Trustee Responsibilities Under Texas Law

Trustees in Texas are required to uphold several fiduciary duties designed to protect beneficiaries and preserve the integrity of the trust.

Duty to Follow the Trust Document

The trust document controls every aspect of administration. Trustees must:

• Follow all written instructions exactly
• Distinguish between mandatory and discretionary provisions
• Seek legal guidance when trust language is unclear
• Avoid actions not authorized by the trust

Failure to comply with the trust’s terms can result in disputes, court action, or removal of the trustee.

Duty of Loyalty to Beneficiaries

Trustees must act solely in the best interests of the beneficiaries, which includes:

• Avoiding conflicts of interest
• Refraining from self-dealing
• Treating all beneficiaries fairly and impartially
• Acting with honesty and transparency

Even when a trustee is also a beneficiary, impartial treatment of all beneficiaries is legally required.

Duty of Care – Texas Prudent Investor Rule

Trustees managing trust assets must comply with the Texas Prudent Investor Rule, which requires:

• Informed and conservative investment decisions
• Appropriate diversification of assets
• Avoidance of unnecessary or speculative risk
• Ongoing monitoring of investment performance
• Consulting qualified financial professionals when appropriate

Violations of this duty may expose trustees to personal financial liability.

Duty to Maintain Accurate Records

Trustees must maintain thorough and accurate documentation of all trust activity, including:

• Income and expenses
• Property maintenance and valuations
• Investment decisions
• Beneficiary communications
• Tax filings
• Receipts and invoices
• Distributions and asset transfers

Under Texas law, beneficiaries may request a formal accounting at any time.

Duty to Inform & Communicate

Trustees are legally required to keep beneficiaries informed, which includes:

• Notifying beneficiaries of the trust’s existence
• Providing copies of the trust upon request
• Communicating major trust actions and timelines
• Explaining distribution plans
• Responding promptly to reasonable questions

Inadequate communication is one of the most common causes of trust-related litigation.

Duty to Distribute Trust Assets Properly

Trustees must:

• Follow distribution instructions exactly
• Calculate beneficiary shares correctly
• Transfer assets without unnecessary delay
• Provide documentation for all distributions
• Treat beneficiaries consistently and fairly

Improper or delayed distributions can result in legal challenges and liability.

Duty to Comply With All Applicable Laws

Trustees must ensure compliance with:

• The Texas Trust Code
• IRS trust tax requirements (including Form 1041)
• Property transfer laws in Harris County
• Texas Department of Motor Vehicles title transfer rules
• Required notices, disclosures, and reporting obligations

Our Heights Office helps trustees meet these requirements and avoid costly compliance mistakes.

How Our Heights Office Supports Trustees

Our Heights Trust Administration team provides trustees with:

• Clear interpretation of trust terms
• Step-by-step compliance checklists
• Financial documentation and accounting support
• Assistance with beneficiary communication and dispute resolution
• Coordination of appraisals and asset transfers
• Support with tax filings and government notifications
• Legal strategies to reduce risk and avoid liability
• Ongoing guidance from initial administration through final distribution

Our goal is to protect trustees while ensuring fair, lawful, and efficient trust administration