Litigation Between Trustee and Beneficiaries Attorney in Dallas, TX

When a trustee and beneficiaries cannot resolve a dispute on their own, litigation may be the only way to protect the trust and the people it was meant to serve. These conflicts can involve allegations of mismanagement, self-dealing, failure to distribute assets, or breach of fiduciary duty. Texas courts have broad authority to intervene, and beneficiaries have real legal options when a trustee is not fulfilling their obligations. 

At Ford + Bergner, LLP, our attorneys handle trust disputes and fiduciary litigation across Texas. If you are a trustee facing a lawsuit or a beneficiary whose interests are being ignored, contact us online or call (214) 389-0887 to speak with our team.

What Causes Litigation Between a Trustee and Beneficiaries

Trust disputes rarely arise from a single incident. More often, they develop over time as a trustee makes questionable decisions, communicates poorly, or places personal interests ahead of the people the trust was created to benefit. Both trustees and beneficiaries benefit from knowing what typically pushes a conflict toward court. Common causes include:

• Breach of fiduciary duty: Failing to act in the best interest of the beneficiaries as required by the trust terms and Texas law.
• Self-dealing: Using trust assets for personal gain or entering transactions that benefit the trustee at the trust’s expense.
• Failure to distribute: Withholding distributions required by the trust without a legitimate legal basis.
• Lack of accounting: Refusing to provide beneficiaries with records or documentation of trust activity.
• Mismanagement of assets: Making imprudent investments or allowing trust property to lose value through neglect.
• Conflicts of interest: Favoring one beneficiary over others or allowing outside relationships to compromise the trustee’s neutrality.

The Legal Framework for Trust Disputes in Texas

Trust litigation in Texas is governed primarily by the Texas Trust Code, found in the Texas Property Code. The Trust Code outlines the duties a trustee owes to beneficiaries, the standards by which conduct is judged, and the remedies available when those duties are breached. Under Texas Property Code § 114.001, a trustee who commits a breach of trust is chargeable with any damages resulting from that breach. Remedies a court may order include:

• Compelling the trustee to perform neglected duties
• Restraining the trustee from taking actions that could further harm the trust
• Removing the trustee and appointing a successor
• Ordering the trustee to restore lost or misappropriated assets
• Surcharging the trustee for financial harm caused to the trust

Selecting the right remedy depends on the trust document, the trustee’s specific conduct, and the full scope of harm the beneficiaries have suffered. Not every situation calls for removal. Sometimes, compelling an accounting or freezing trust assets is the more immediate priority. An attorney can evaluate the facts of your case and identify which remedies are available and most likely to protect the trust.

What Beneficiaries Can Do When a Trustee Is Not Acting in Their Interest

Texas law gives beneficiaries the right to petition the court, request a formal accounting, and seek a trustee’s removal when their conduct warrants it. Start by reviewing any trust documents you have access to and documenting the specific decisions or conduct that concern you. Request a formal accounting in writing if you have not already received one, and keep a record of all communications with the trustee. 

When a Trustee Faces Claims From Beneficiaries

Not every claim against a trustee reflects actual misconduct. Beneficiary disputes sometimes stem from misunderstandings about the trust’s terms, disagreements over distributions, or family conflict that has little to do with how the trust is being managed. A trustee who is carrying out their duties correctly still needs legal support when a petition is filed or litigation is threatened. Our attorneys represent trustees as well as beneficiaries, and trust litigation in Texas can move quickly once filed, making early counsel a meaningful advantage.

Why Choose Ford + Bergner, LLP for Trust Litigation in Dallas

Ford + Bergner, LLP has spent 25 years representing clients on both sides of trustee-beneficiary disputes in Texas courts. Our attorneys understand the fiduciary obligations trustees carry and what it takes to prove a breach, or to defend against an unfounded claim. We handle cases that require courtroom litigation, not just demand letters, and we prepare every case as though it will go to trial. When a trust dispute threatens what a loved one worked a lifetime to build, our team is ready to act.

Frequently Asked Questions About Trustee-Beneficiary Litigation in Texas

Can a Beneficiary Sue a Trustee in Texas?

Yes. A beneficiary can file a petition in Texas probate court alleging breach of fiduciary duty, mismanagement, or other misconduct. The court has the authority to order a range of remedies depending on the severity of the breach and the losses involved. An attorney can help you assess whether your claim has the documentation needed to move forward.

How Do Texas Courts Decide Whether to Remove a Trustee?

Courts look at whether the trustee’s conduct has harmed or threatens to harm the trust or its beneficiaries. Grounds for removal under Texas Property Code § 113.082 include serious breach of trust, unfitness to serve, persistent failure to administer the trust, and substantial conflict of interest. The court weighs the evidence and may also consider whether removal itself would cause harm to the trust.

What Is a Trustee’s Duty of Loyalty?

The duty of loyalty requires a trustee to administer the trust solely in the interest of the beneficiaries, without favoring their own interests or those of third parties. It is one of the most fundamental obligations a trustee carries under Texas law, and violations of it are among the most common bases for trust litigation.

Contact a Dallas Trust Litigation Attorney at Ford + Bergner, LLP

If you are involved in a dispute between a trustee and beneficiaries, how quickly you act and how well your case is prepared can shape the outcome. At Ford + Bergner, LLP, our attorneys handle trust litigation across Texas. Fill out an online contact form or call (214) 389-0887 to speak with our team about your situation and your options.