Berry v. Berry, No. 13-18-00169-CV, 2020 WL 1060576 (Tex. App.—Corpus Christi-Edinburg Mar. 5, 2020, no pet. h.).

Trusts

Standing

An unnamed contingent beneficiary of a trust attempted to bring various actions regarding the trust such as to require an accounting, remove the trustee, and seek recovery for breach of fiduciary duty. The court determined that she lacked standing despite Property Code § 111.006(4) which includes within the scope of an interested person someone who has a “contingent” interest. The court said her interest was no greater than that of an heir apparent or beneficiary of a person who is still alive.

Comment: It is this author’s opinion that this case was incorrectly decided. Unlike an heir apparent or beneficiary of a person who is still alive, a contingent beneficiary of a trust currently owns a contingent interest in the trust.

Moral:  A contingent beneficiary may lack standing to pursue claims against the trustee.

 

 



Back