What Is Fiduciary Litigation in Texas?

When someone manages property, money, or other assets for another, the law requires them to act in that person’s best interests. A fiduciary has a legal responsibility to do what’s right. But sometimes they fall short in fulfilling their duties, and litigation is necessary to address the problem.

Fiduciary litigation in Texas happens when a fiduciary fails to meet their responsibilities, making legal action necessary to protect the property’s owner. These lawsuits often involve questions about mismanagement, self-dealing, or refusal to follow the terms of a trust or estate plan.

With nearly a decade of legal experience, Samantha Lewis at Lewis Law Firm PLLC focuses on estate and legacy planning. We help families of every size plan for the future, decide how to pass on their property to the ones they care about the most, and protect their interests should something go wrong. If a dispute happens, we’re ready to help you resolve it empathetically, strategically, and with clear communication.

What Is a Fiduciary?

A fiduciary is a person or entity that agrees to act in someone else’s best interests. Fiduciaries must prioritize the interests of beneficiaries, who are the people or organizations that benefit from the property the fiduciary manages.

Types of Fiduciaries

Several roles in Texas law create fiduciary relationships. Common roles include:

• Trustees managing and distributing property for beneficiaries under a trust, which is a legal arrangement that holds and manages property for others;
• Executors or administrators responsible for fulfilling the terms of a will or managing an estate during probate;
• Guardians appointed to manage the personal or financial affairs of a minor or incapacitated adult;
• Agents under power of attorney designated to make decisions and manage financial or health matters for another person; and
• Financial advisors and brokers, when managing investments or giving financial advice.

While these roles vary, they all share the same foundation: a legal obligation to act in the beneficiary’s best interests.

Fiduciary Duties

Fiduciary duties are the obligations a fiduciary owes to their beneficiaries. These duties are generally consistent across different types of relationships and include:

• Duty of loyalty. Fiduciaries must act in the beneficiaries’ best financial or legal interests, avoiding self-dealing and conflicts of interest.
• Duty of care. Fiduciaries must manage assets prudently and responsibly, with the same care and attention a reasonable person would use when managing someone else’s money.
• Duty of impartiality. When multiple beneficiaries exist, fiduciaries must treat them fairly and not favor one over another, unless the terms of the arrangement direct them to.
• Duty to inform and account. Fiduciaries must keep beneficiaries reasonably informed about their property and provide accurate records of how they manage assets.
• Duty to follow terms. Fiduciaries must follow the instructions of the governing documents, which are the will, trust, or other legal papers that set the rules of the arrangement.

For example, the fiduciary duties of a trustee generally include:

• Ensuring wise investment of trust money, rather than leaving it idle or placing it in risky ventures;
• Distributing funds to beneficiaries according to the trust’s schedule, rather than withholding them without reason;
• Treating all beneficiaries fairly, such as dividing assets evenly among siblings unless the trust directs otherwise;
• Providing regular accountings to show how trust funds have been used, including income, expenses, and distributions; and
• Following the written terms of the trust, such as selling property when the trust requires it, or limiting the use of funds to specific purposes.

Trustees who fail in their trustee responsibilities can cause real financial harm, and Texas law gives beneficiaries the right to challenge misconduct through fiduciary litigation.

What Does Fiduciary Litigation in Texas Involve?

If you are unsure what to do if a trustee or another type of fiduciary fails to meet its obligations, fiduciary litigation may be the answer. This involves filing a lawsuit or legal action against a fiduciary when they do not meet their legal duties.

Common disputes include:

• Failure to distribute funds on the correct schedule or failure to distribute funds at all;
• Mismanagement of assets, such as making reckless investments, mixing unrelated funds, or failing to safeguard property;
• Conflict of interest, where a fiduciary allows their personal interests to compete with the beneficiaries’ interests; and
• Lack of transparency, such as failure to provide a complete accounting or hiding information.

Typically, these legal claims take shape as a breach of fiduciary duty case. Sometimes, if removing the executor of an estate is necessary, you need to file your claim as part of the estate case in probate court. If the fiduciary caused harm, you may be able to recover damages to compensate for part or all of those losses.

How to Remove a Trustee or Executor

Texas law allows beneficiaries to seek the removal of a trustee or executor if they fail in their responsibilities. In Texas, removing a trustee or executor requires those seeking removal to submit a formal petition to the probate court. The process generally includes:

• Filing a petition. A beneficiary or other interested party files a written request with the court explaining why removal is necessary.
• Notice to the fiduciary. The trustee or executor receives notice of the petition and has the right to respond or defend their actions.
• Court hearing. A judge reviews the evidence, hears testimony, and determines whether the fiduciary has violated their duties or is otherwise unfit to serve.
• Court order. Should the court agree that removal is justified, the judge signs an order removing the fiduciary, appoints a successor, and could require the fiduciary to pay restitution for losses caused by their misconduct.

This process is formal and often contested, so the assistance of a knowledgeable, experienced attorney is essential.

Protect Your Rights

If you believe a fiduciary has violated their responsibilities, we can help. Fiduciary litigation in Texas requires careful preparation, probate and trust law knowledge, and strong courtroom advocacy. At Lewis Law Firm PLLC, we guide clients through fiduciary conflicts with clear communication and practical solutions.

We serve clients across Texas and believe every family deserves protection, clarity, and peace of mind. If you have questions about fiduciary litigation, call us today to schedule a consultation and learn how we can help protect your rights.