Houston Trust Litigation Attorneys

Texas Attorneys Protecting Your Interests in a Trust Dispute

If you’re a trustee or a trust beneficiary in Texas with concerns about the management, modification, or distribution of a trust, there are remedies available. 

Our Houston trust litigation attorneys represent parties on both sides of the table – trustees or beneficiaries – with an interest in providing guidance on trust rights and obligations while seeking a reasonable and cost-effective resolution to trust contests.

What Is A Trust?

A trust is a legal arrangement where one party (the trustee) holds and manages property or other assets for the benefit of another party (the beneficiary). The trustee is responsible for managing the assets for the beneficiaries of the trust. The trustee must place the interest of the beneficiaries above the trustee’s personal interests.

Trusts are used in estate planning to simplify the inheritance process after the trustor’s death. They can also protect assets from creditors or manage money for people who can’t manage it themselves.

In Texas, trusts are governed by the Texas Trust Code.

Common Trust Disputes That We Handle

Trust disputes tend to fall into two categories: disputes about the trust itself, and disputes about the trustee’s management of the trust.

Here are some typical trust disputes that we handle:

Disputes About the Trustee’s Conduct

Trustees have a fiduciary duty: they must manage trust assets in the beneficiaries’ best interest. If a trustee acts against the beneficiaries’ interest, the trustee might be personally liable for damages. 

Breaches of fiduciary duty include (but are not limited to):

• Mismanaging trust funds or neglecting trust property
• Commingling personal assets with trust assets
• Embezzling from the trust
• Excessive trustee compensation
• Favoring certain beneficiaries over others
• Failure to provide proper accountings

Trustees also have a legal duty to communicate with beneficiaries of issues that impact beneficiaries’ rights, and a duty to keep clear, accurate records. When trustees are not transparent, beneficiaries may suspect funds are being mismanaged, even if that is not the case.

Disputes About The Validity Of The Trust

Trust validity challenges address whether the trust should have been created. Common validity challenges include:

• Mental incapacity: The trustor was not legally competent when the trust was created. For instance, the trustor might be living with advanced Alzheimer’s disease or dementia.
• Undue influence: The trustor was manipulated into creating the trust, usually by someone who would gain financially. 
• Improper execution: The trustor’s signature was forged, the trustor signed without witnesses present, or some other signing rule was not followed.

Even if everyone agrees the trust is valid, the language of the trust might be unclear. How trust assets should be distributed and what rights the beneficiaries have are common areas of disagreement. 

Disputes About Interpretation Of The Trust

Disputes may arise over the interpretation of the trust documents, such as:

• Ambiguous trust language leading to different interpretations 
• Questions about beneficiary rights and distributions 
• Disagreements over trustee powers and limitations 
• Conflicts over trust amendment provisions 

Disputes About The Administration Of The Trust

Beneficiaries may have concerns about how the trustee is managing and administering trust assets. Disputes may arise over investments and accounting, trustee compensation, or how distributions are managed.

Common disputes among beneficiaries or co-trustees over the administration of a trust include: 

• Challenges to trust expenditures 
• Failure to maintain accurate records 
• Investment strategy disagreements 
• Requests to modify trust terms due to changed circumstances 
• Communication breakdowns between trustees and beneficiaries

What Are The Remedies Available For Trust Disputes?

On the petition of a trustee or a beneficiary, Texas courts have the power to:

• Modify, reform, or terminate a trust; 
• Remove a trustee;
• Adjust, deny, or order disgorgement of a trustee's compensation if the trustee commits a breach of trust; or
• Make an award of costs and attorney's fees.

Your attorney can help you pursue the best possible remedy for your situation. 

How a Texas Trust Dispute or Probate Attorney Can Help

Trust dispute or probate attorneys can:

• Review trust documents and financial records
• Investigate claims of trustee misconduct or breach of fiduciary duty 
• Analyze the strength of legal claims and advise you on potential legal actions
• Recommend options for resolving the dispute. Mediation and negotiation are the most common ways to resolve disputes. Litigation may also be an option. 
• Develop and pursue a legal strategy to represent your best interests. 

The lawyer who created the trust (typically, an estate planning attorney) may not be a trust litigation attorney, which requires dispute resolution and trial experience.

Who Pays Trust Litigation Attorney Fees?

In Texas, the payment of trust litigation attorney fees is governed by both the Texas Trust Code and common law principles.

The trust estate often pays reasonable and necessary attorney fees when:

• The litigation benefits the trust as a whole
• The trustee is defending the trust in good faith
• Actions involve trust administration or interpretation
• The trustee prevails in litigation related to their fiduciary duties

Parties may have to pay their own attorney fees when:

• They bring unsuccessful claims against the trust
• Their actions are found to be in bad faith
• They pursue purely personal interests rather than trust interests
• The court finds their litigation did not benefit the trust

When trustees are defendants:

• They may use trust funds for defense if acting in good faith
• Must reimburse the trust if found to have breached fiduciary duties
• May recover fees personally if they successfully defend against claims

Texas courts have significant discretion to award attorney fees and can order fees to be paid by any party to the litigation, split fees among multiple parties, or deny fee recovery entirely if the claimant’s actions were unreasonable.

Attorney’s fees may also be addressed in the terms of the trust document itself. 

A trust litigation attorney can review all applicable documents and advise you on the reasonableness of your claim and help you understand the circumstances under which attorney fees will be borne by the trust, the individual making the claim, or the trustee.

When to Contact a Trust Dispute Attorney

If you’re a trust beneficiary, consider contacting a Houston trust dispute attorney when:

• You suspect something is wrong with how the trust was created.
• You don’t agree with the trustee about how to interpret the trust document.
• You believe the trustee is not acting in your best interest.
• You can’t get clear answers from the trustee about the trust.

If you are a trustee, a trust dispute attorney might be able to help you if:

• You are sued by a beneficiary. 
• You cannot agree with beneficiaries about a major issue.

It’s important to act promptly to protect your rights when there is a trust dispute. Don’t delay getting legal advice.

Our Experience in Trust Dispute Resolution

The Houston trust dispute attorneys at Hendershot Cowart P.C. handle dozens of Texas trust and probate disputes every year. Our clients have praised us for our honesty, work ethic, and efficiency, as well as our attention to minimizing expenses. Contact us for an assessment of your trust dispute and advice about how to protect your rights.