Benge v. Roberts: But an enforceable exculpatory clause in a trust should not always be the last word

Charles E. Rounds, Jr. - Suffolk University Law School

In Benge v. Roberts, No. 03-19-00719-CV, 2020 Tex. App. LEXIS 6335 (Tex. App.—Austin August 12, 2020), inception trustee allegedly commits breach of trust and dies. Successor trustees allegedly participated in breach. Successors decline to bring an action against inception trustee’s estate. Trust’s exculpatory clause provides that “no successor Trustee shall have…any duty…or liability whatever for acts, defaults, or omissions of any predecessor Trustee, but successor Trustee shall be liable only for its own acts and defaults…” Beneficiary brings removal action against successors. Invoking exculpatory clause court denies relief. But a knowing participation in a prior trustee’s breach by his successor would be an independent wrong perpetrated by the successor. See Loring and Rounds: A Trustee’s Handbook §7.2.9 (2020), which is reproduced below in its entirety.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Charles E. Rounds, Jr. - Suffolk University Law School | Attorney Advertising

Written by:

Charles E. Rounds, Jr. - Suffolk University Law School

Charles E. Rounds, Jr. - Suffolk University Law School on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.