Texas Property Code 114.085 – Partnerships
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(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.
Terms Used In Texas Property Code 114.085
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Trustee: A person or institution holding and administering property in trust.
(c) If another provision of this subtitle conflicts with this section, this section controls. This section does not exonerate a trustee from liability for negligence.