Tex. Property Code § 114.031
This is the official text of Tex. Property Code § 114.031, part of Texas’s Property Code — governs real property, landlord-tenant law, and property transactions.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§ 114.031. LIABILITY OF BENEFICIARY TO TRUSTEE.
Official statutory text
(a) A beneficiary is liable for loss to the trust if the beneficiary has:
(1) misappropriated or otherwise wrongfully dealt with the trust property;
(2) expressly consented to, participated in, or agreed with the trustee to be liable for a breach of trust committed by the trustee;
(3) failed to repay an advance or loan of trust funds;
(4) failed to repay a distribution or disbursement from the trust in excess of that to which the beneficiary is entitled; or
(5) breached a contract to pay money or deliver property to the trustee to be held by the trustee as part of the trust.
(b) Unless the terms of the trust provide otherwise, the trustee is authorized to offset a liability of the beneficiary to the trust estate against the beneficiary's interest in the trust estate, regardless of a spendthrift provision in the trust.
(1) misappropriated or otherwise wrongfully dealt with the trust property;
(2) expressly consented to, participated in, or agreed with the trustee to be liable for a breach of trust committed by the trustee;
(3) failed to repay an advance or loan of trust funds;
(4) failed to repay a distribution or disbursement from the trust in excess of that to which the beneficiary is entitled; or
(5) breached a contract to pay money or deliver property to the trustee to be held by the trustee as part of the trust.
(b) Unless the terms of the trust provide otherwise, the trustee is authorized to offset a liability of the beneficiary to the trust estate against the beneficiary's interest in the trust estate, regardless of a spendthrift provision in the trust.
Status: in_force · Read it on the official government site
Dealing with a real estate matter in Texas?
See all Texas Real Estate lawyers
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.