PROPERTY CODE
CHAPTER 115. JURISDICTION, VENUE, AND PROCEEDINGS
SUBCHAPTER A. JURISDICTION AND VENUE
§ 115.001. JURISDICTION. (a) Except as provided by
Subsection (d) of this section, a district court has original and
exclusive jurisdiction over all proceedings concerning trusts,
including proceedings to:
(1) construe a trust instrument;
(2) determine the law applicable to a trust
instrument;
(3) appoint or remove a trustee;
(4) determine the powers, responsibilities, duties,
and liability of a trustee;
(5) ascertain beneficiaries;
(6) make determinations of fact affecting the
administration, distribution, or duration of a trust;
(7) determine a question arising in the administration
or distribution of a trust;
(8) relieve a trustee from any or all of the duties,
limitations, and restrictions otherwise existing under the terms of
the trust instrument or of this subtitle;
(9) require an accounting by a trustee, review trustee
fees, and settle interim or final accounts; and
(10) surcharge a trustee.
(b) The district court may exercise the powers of a court of
equity in matters pertaining to trusts.
(c) Unless specifically directed by a written order of the
court, a proceeding does not result in continuing supervision by
the court over the administration of the trust.
(d) The jurisdiction of the district court over proceedings
concerning trusts is exclusive except for jurisdiction conferred by
law on a statutory probate court or a court that creates a trust
under Section 867, Texas Probate Code.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2,
eff. Jan. 1, 1984; Acts 1997, 75th Leg., ch. 1375, § 5, eff.
Sept. 1, 1997.
§ 115.002. VENUE. (a) The venue of an action under
Section 115.001 of this Act is determined according to this
section.
(b) If there is a single, noncorporate trustee, an action
shall be brought in the county in which:
(1) the trustee resides or has resided at any time
during the four-year period preceding the date the action is filed;
or
(2) the situs of administration of the trust is
maintained or has been maintained at any time during the four-year
period preceding the date the action is filed.
(c) If there are multiple trustees or a corporate trustee,
an action shall be brought in the county in which the situs of
administration of the trust is maintained or has been maintained at
any time during the four-year period preceding the date the action
is filed, provided that an action against a corporate trustee as
defendant may be brought in the county in which the corporate
trustee maintains its principal office in this state.
(d) For just and reasonable cause, including the location of
the records and the convenience of the parties and witnesses, the
court may transfer an action from a county of proper venue under
this section to another county of proper venue:
(1) on motion of a defendant or joined party, filed
concurrently with or before the filing of the answer or other
initial responsive pleading, and served in accordance with law; or
(2) on motion of an intervening party, filed not later
than the 20th day after the court signs the order allowing the
intervention, and served in accordance with law.
(e) Notwithstanding any other provision of this section, on
agreement by all parties the court may transfer an action from a
county of proper venue under this section to any other county.
(f) For the purposes of this section:
(1) "Corporate trustee" means an entity organized as a
financial institution or a corporation with the authority to act in
a fiduciary capacity.
(2) "Principal office" means an office of a corporate
trustee in this state where the decision makers for the corporate
trustee within this state conduct the daily affairs of the
corporate trustee. The mere presence of an agent or representative
of the corporate trustee does not establish a principal office. The
principal office of the corporate trustee may also be but is not
necessarily the same as the situs of administration of the trust.
(3) "Situs of administration" means the location in
this state where the trustee maintains the office that is primarily
responsible for dealing with the settlor and beneficiaries of the
trust. The situs of administration may also be but is not
necessarily the same as the principal office of a corporate
trustee.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2,
eff. Jan. 1, 1984; Acts 1999, 76th Leg., ch. 344, § 4.026, eff.
Sept. 1, 1999; Acts 1999, 76th Leg., ch. 933, § 1, eff. Sept. 1,
1999.
SUBCHAPTER B. PARTIES, PROCEDURE, AND JUDGMENTS
§ 115.011. PARTIES. (a) Any interested person may
bring an action under Section 115.001 of this Act.
(b) Contingent beneficiaries designated as a class are not
necessary parties to an action under Section 115.001 of this Act.
The only necessary parties to such an action are:
(1) a beneficiary on whose act or obligation the
action is predicated;
(2) a person designated by name in the instrument
creating the trust; and
(3) a person who is actually receiving distributions
from the trust estate at the time the action is filed.
(c) The attorney general shall be given notice of any
proceeding involving a charitable trust as provided by Chapter 123
of this code.
(d) A beneficiary of a trust may intervene and contest the
right of the plaintiff to recover in an action against the trustee
as representative of the trust for a tort committed in the course of
the trustee's administration or on a contract executed by the
trustee.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2,
eff. Jan. 1, 1984; Acts 1995, 74th Leg., ch. 172, § 1, eff. Sept.
1, 1995.
§ 115.012. RULES OF PROCEDURE. Except as otherwise
provided, all actions instituted under this subtitle are governed
by the Texas Rules of Civil Procedure and the other statutes and
rules that are applicable to civil actions generally.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2,
eff. Jan. 1, 1984.
§ 115.013. PLEADINGS AND JUDGMENTS. (a) Actions and
proceedings involving trusts are governed by this section.
(b) An affected interest shall be described in pleadings
that give reasonable information to an owner by name or class, by
reference to the instrument creating the interest, or in other
appropriate manner.
(c) A person is bound by an order binding another in the
following cases:
(1) an order binding the sole holder or all coholders
of a power of revocation or a presently exercisable general power of
appointment, including one in the form of a power of amendment,
binds other persons to the extent their interests, as objects,
takers in default, or otherwise are subject to the power;
(2) to the extent there is no conflict of interest
between them or among persons represented:
(A) an order binding a guardian of the estate or a
guardian ad litem binds the ward; and
(B) an order binding a trustee binds
beneficiaries of the trust in proceedings to review the acts or
accounts of a prior fiduciary and in proceedings involving
creditors or other third parties;
(3) if there is no conflict of interest and no guardian
of the estate or guardian ad litem has been appointed, a parent may
represent his minor child as guardian ad litem or as next friend;
and
(4) an unborn or unascertained person who is not
otherwise represented is bound by an order to the extent his
interest is adequately represented by another party having a
substantially identical interest in the proceeding.
(d) Notice under Section 115.014 of this Act shall be given
either to a person who will be bound by the judgment or to one who
can bind that person under this section, and notice may be given to
both. Notice may be given to unborn or unascertained persons who
are not represented under Subdivision (1) or (2) of Subsection (c)
by giving notice to all known persons whose interests in the
proceedings are substantially identical to those of the unborn or
unascertained persons.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2,
eff. Jan. 1, 1984.
§ 115.014. GUARDIAN AD LITEM. (a) At any point in a
proceeding a court may appoint a guardian ad litem to represent the
interest of a minor, an incapacitated, unborn, or unascertained
person, or person whose identity or address is unknown, if the court
determines that representation of the interest otherwise would be
inadequate. If there is not a conflict of interests, a guardian ad
litem may be appointed to represent several persons or interests.
(b) A court shall appoint a guardian ad litem to defend an
action under Section 114.083 of this Act for a beneficiary of the
trust who is a minor or who has been adjudged incompetent.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2,
eff. Jan. 1, 1984.
§ 115.015. NOTICE TO BENEFICIARIES OF TORT OR CONTRACT
PROCEEDING. (a) A court may not render judgment in favor of a
plaintiff in an action on a contract executed by the trustee or in
an action against the trustee as representative of the trust for a
tort committed in the course of the trustee's administration unless
the plaintiff proves that before the 31st day after the date the
action began or within any other period fixed by the court that is
more than 30 days before the date of the judgment, the plaintiff
gave notice of the existence and nature of the action to:
(1) each beneficiary known to the trustee who then had
a present or contingent interest; or
(2) in an action on a contract involving a charitable
trust, the attorney general and any corporation that is a
beneficiary or agency in the performance of the trust.
(b) The plaintiff shall give the notice required by
Subsection (a) of this section by registered mail or by certified
mail, return receipt requested, addressed to the party to be
notified at the party's last known address. The trustee shall give
the plaintiff a list of the beneficiaries or persons having an
interest in the trust estate and their addresses, if known to the
trustee, before the 11th day after the date the plaintiff makes a
written request for the information.
(c) The plaintiff satisfies the notice requirements of this
section by notifying the persons on the list provided by the
trustee.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2,
eff. Jan. 1, 1984.
§ 115.016. NOTICE. (a) If notice of hearing on a
motion or other proceeding is required, the notice may be given in
the manner prescribed by law or the Texas Rules of Civil Procedure,
or, alternatively, notice may be given to any party or to his
attorney if the party has appeared by attorney or requested that
notice be sent to his attorney.
(b) If the address or identity of a party is not known and
cannot be ascertained with reasonable diligence, on order of the
court notice may be given by publishing a copy of the notice at
least three times in a newspaper having general circulation in the
county where the hearing is to be held. The first publication of
the notice must be at least 10 days before the time set for the
hearing. If there is no newspaper of general circulation in the
county where the hearing is to be held, the publication shall be
made in a newspaper of general circulation in an adjoining county.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2, eff.
Jan. 1, 1984.
§ 115.017. WAIVER OF NOTICE. A person, including a
guardian of the estate, a guardian ad litem, or other fiduciary, may
waive notice by a writing signed by the person or his attorney and
filed in the proceedings.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, § 2, eff.
Jan. 1, 1984.
