When Fiduciaries Face Personal Liability: What Texas Law Requires

Serving as a fiduciary—whether as an executor, trustee, administrator, power of attorney, or guardian—comes with significant responsibility. Many fiduciaries assume they are protected simply because they were appointed by a court or named in a will or trust. However, Texas law makes clear that fiduciaries can be held personally liable when they fail to meet their legal duties.

At Barr Law, PLLC, we regularly handle disputes involving alleged fiduciary misconduct. Understanding when personal liability arises can help fiduciaries avoid costly mistakes and help beneficiaries recognize when their rights may have been violated.

What Does Personal Liability Mean for a Fiduciary?

Personal liability means a fiduciary may be required to repay losses out of their own funds, not estate or trust assets. Courts may impose liability when a fiduciary’s actions—or inaction—cause harm.

Common Situations That Lead to Fiduciary Liability

Fiduciaries may face personal liability or removal from their position for:

  • Failing to keep accurate financial records
  • Making unauthorized distributions
  • Missing court deadlines or accounting requirements
  • Co-mingling personal and estate or trust funds
  • Showing favoritism among beneficiaries in violation of the terms of the order or instrument
  • Ignoring court orders or statutory duties


Even unintentional mistakes can result in consequences if they violate fiduciary obligations.

Why Courts Take Fiduciary Duties Seriously

Fiduciaries are entrusted with managing assets that belong to others. Texas courts enforce fiduciary standards strictly to protect beneficiaries, wards, and principals. When duties are breached, courts may order:

  • Removal of the fiduciary
  • Repayment of mismanaged funds
  • Interest, penalties, or attorneys’ fees

What Beneficiaries Should Know

Beneficiaries have the right to:

  • Request accountings
  • Ask questions about administration
  • Petition the court if concerns arise
  • Seek removal or surcharge of a fiduciary


If something does not feel right, beneficiaries should not ignore warning signs.

Barr Law, PLLC: Litigation-Focused Fiduciary Representation

Whether you are a fiduciary concerned about meeting your obligations or a beneficiary questioning how an estate or trust is being managed, Barr Law, PLLC provides experienced representation in contested probate, trust, and fiduciary matters.