Learn About Fiduciary Duty in Texas

Robert Ray

Fiduciary responsibility in Texas – Fiduciary is a general term. A fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence. It includes executors, administrators, holders of powers of attorney and others who have custody and control of the property or affairs of others or in whom someone has placed trust and confidence. A fiduciary duty is the most exacting civil duty recognized by law. The fiduciary owes the beneficiaries the duties of loyalty and good faith, integrity of the strictest kind, fair, honest dealing and the duty not to conceal matters which might influence his actions to his principal’s prejudice.

The law often imposes the obligation on the fiduciary to place the interest of the beneficiary before the fiduciary’s own interest. This is in addition to the fiduciary’s duty of good faith and fair dealing.

When a fiduciary duty is imposed, equity requires a stricter standard of behavior than the comparable tortious duty of care at common law. It is said the fiduciary has a duty not to be in a situation where personal interests and fiduciary duty conflict, a duty not to be in a situation where his fiduciary duty conflicts with another fiduciary duty, and a duty not to profit from his fiduciary position without express knowledge and consent. A fiduciary cannot have a conflict of interest. It has been said that fiduciaries must conduct themselves “at a level higher than that trodden by the crowd” and that “[t]he distinguishing or overriding duty of a fiduciary is the obligation of undivided loyalty.”

While there are some relationships on which the law imposes a fiduciary duty such as executors, administrators, holders of powers of attorney, etc., not all relationships of trust create fiduciary duties. Mere subjective trust alone is not enough to transform arm’s-length dealing into a fiduciary relationship. Businessmen generally do trust one another, and their dealings are frequently characterized by cordiality. To create a fiduciary relationship, however, there must be more than mere subjective feelings on one side.

Your Privacy

We take your privacy very seriously. We are keenly aware of the trust you place in us and our responsibility to protect your privacy. We treat all information provided to us with care and discretion.

Robert Ray is Board Certified

Robert Ray is the Editor and owner of this site. Board Certified, Personal Injury Trial Law — Texas Board of Legal Specialization.

We handle cases throughout Texas. Our principal office is in Lantana, Texas (DFW area).

Robert Ray Texas Inheritance

Click here to email us or to go to the contact form if you want to contact us about a Texas inheritance dispute.

UPDATES

There are new cases all the time that clarify or change the law on inheritance disputes. Keep up-to-date by subscribing to our blog.

'

Subscribe

Recent Posts

Learn When an Executor or Other Fiduciary Must make an Accounting.

In Texas, an executor or administrator, like a trustee has to account for the property that comes into his possession. The accounting obligations of a trustee are discussed here. This article will discuss the accounting obligations of an executor or an administrator...

Learn how to Make a Trustee Reveal the Trust Assets and his Actions.

A fiduciary has an affirmative duty to make a full and accurate disclosure of all material facts that might affect the beneficiary’s rights. The trust accounting is the primary way that the beneficiary obtains information that will allow him to protect his rights. The...

Does a Trustee Have to Make an Accounting?

Trustee Accounting One of the primary duties of a trustee is to keep full, accurate and orderly records concerning the status of the trust estate and all acts performed by him. He is charged with maintaining an accurate account of all the transactions relating to the...

The Author

Robert Ray

Robert Ray handles inheritance disputes of all kinds. He takes cases throughout Texas.
© Copyright 2022 | All Rights Reserved.

Pin It on Pinterest

Share This