Texas Property Code

§ 114.085 — PARTNERSHIPS

PR § 114.085Title 9. TRUSTS · Part B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS · Ch. 114. LIABILITIES, RIGHTS, AND REMEDIES OF TRUSTEES, BENEFICIARIES, AND THIRD PERSONS · Art. D. THIRD PERSONS

Statute text

View on source

(a)To the extent allowed by law, a trustee who takes the place of a deceased partner in a general partnership in accordance with the articles of partnership is liable to third persons only to the extent of the:

(1)deceased partner's capital in the partnership; and

(2)trust funds held by the trustee.

(b)A trustee who contracts to enter a general partnership in its capacity as trustee shall limit, to the extent allowed by law, the trust's liability to:

(1)the trust assets contributed to the partnership; and

(2)other assets of the trust under the management of the contracting trustee.

…

Legislative history

Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.