Tenn. Code Ann. § 35-15-701 — TN Code / Title 35 / Chapter 15 / Section 35-15-701
Accepting or declining trusteeship
Status: in_force

(a) Except as otherwise provided in subsection (c), a person designated as trustee accepts the trusteeship: (1) By substantially complying with a method of acceptance provided in the terms of the trust; or (2) If the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship. (b) A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation and the assets comprising the trust is deemed to have rejected the trusteeship. (c) A person designated as trustee, without accepting the trusteeship, may: (1) Act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to a qualified beneficiary; and (2) Inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose. Acts 2004, ch. 537, § 51.
(a) Except as otherwise provided in subsection (c), a person designated as trustee accepts the trusteeship: (1) By substantially complying with a method of acceptance provided in the terms of the trust; or (2) If the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
(1) By substantially complying with a method of acceptance provided in the terms of the trust; or
(2) If the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
(b) A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation and the assets comprising the trust is deemed to have rejected the trusteeship.
(c) A person designated as trustee, without accepting the trusteeship, may: (1) Act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to a qualified beneficiary; and (2) Inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose.
(1) Act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to a qualified beneficiary; and
(2) Inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose.
Acts 2004, ch. 537, § 51.
Tenn. Code Ann. § 35-15-111 — TN Code / Title 35 / Chapter 15 / Section 35-15-111
Nonjudicial settlement agreements
Status: in_force

(a) Except as otherwise provided in subsection (b), the trustee and the qualified beneficiaries may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust. (b) A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes terms and conditions that could be properly approved by the court under this chapter or other applicable law. (c) Matters that may be resolved by a nonjudicial settlement agreement include, but are not limited to: (1) The interpretation or construction of the terms of the trust; (2) The approval of a trustee's report or accounting; (3) Direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power; (4) The resignation or appointment of a trustee and the determination of a trustee's compensation; (5) Transfer of a trust's principal place of administration; (6) Liability of a trustee for an action relating to the trust; (7) The extent or waiver of bond of a trustee; (8) The governing law of the trust; (9) The criteria for distribution to a beneficiary where the trustee is given discretion; (10) The resignation, appointment, and establishment of the powers and duties of trust protectors or trust advisors; and (11) The approval of an investment decision, delegation, policy, plan, or program. (d) Any qualified beneficiary or trustee may request the court to approve a nonjudicial settlement agreement, to determine whether the representation as provided in part 3 of this chapter was adequate, and to determine whether the agreement contains terms and conditions the court could have properly approved. Amended by 2021 Tenn. Acts, ch. 420, s 6, eff. 7/1/2021. Acts 2004, ch. 537, § 12; 2007 , ch. 24, §§ 7 - 9.
(a) Except as otherwise provided in subsection (b), the trustee and the qualified beneficiaries may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust.
(b) A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes terms and conditions that could be properly approved by the court under this chapter or other applicable law.
(c) Matters that may be resolved by a nonjudicial settlement agreement include, but are not limited to: (1) The interpretation or construction of the terms of the trust; (2) The approval of a trustee's report or accounting; (3) Direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power; (4) The resignation or appointment of a trustee and the determination of a trustee's compensation; (5) Transfer of a trust's principal place of administration; (6) Liability of a trustee for an action relating to the trust; (7) The extent or waiver of bond of a trustee; (8) The governing law of the trust; (9) The criteria for distribution to a beneficiary where the trustee is given discretion; (10) The resignation, appointment, and establishment of the powers and duties of trust protectors or trust advisors; and (11) The approval of an investment decision, delegation, policy, plan, or program.
(1) The interpretation or construction of the terms of the trust;
(2) The approval of a trustee's report or accounting;
(3) Direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power;
(4) The resignation or appointment of a trustee and the determination of a trustee's compensation;
(5) Transfer of a trust's principal place of administration;
(6) Liability of a trustee for an action relating to the trust;
(7) The extent or waiver of bond of a trustee;
(8) The governing law of the trust;
(9) The criteria for distribution to a beneficiary where the trustee is given discretion;
(10) The resignation, appointment, and establishment of the powers and duties of trust protectors or trust advisors; and
(11) The approval of an investment decision, delegation, policy, plan, or program.
(d) Any qualified beneficiary or trustee may request the court to approve a nonjudicial settlement agreement, to determine whether the representation as provided in part 3 of this chapter was adequate, and to determine whether the agreement contains terms and conditions the court could have properly approved.
Amended by 2021 Tenn. Acts, ch. 420, s 6, eff. 7/1/2021.
Acts 2004, ch. 537, § 12; 2007 , ch. 24, §§ 7 - 9.
Tenn. Code Ann. § 35-7-120 — TN Code / Title 35 / Chapter 7 / Section 35-7-120
Accounting by and determination of liability of custodian
Status: in_force

(a) A minor who has attained fourteen (14) years of age, the minor's guardian or conservator of the person or legal representative, an adult member of the minor's family, a transferor, or a transferor's legal representative may petition the court: (1) For an accounting by the custodian or the custodian's legal representative; or (2) For a determination of responsibility, as between the custodial property and the custodian personally, for claims against the custodial property unless the responsibility has been adjudicated in an action under § 35-7-118 , to which the minor or the minor's legal representative was a party. (b) A successor custodian may petition the court for an accounting by the predecessor custodian. (c) The court, in a proceeding under this chapter or in any other proceeding, may require or permit the custodian or the custodian's legal representative to account. (d) If a custodian is removed under § 35-7-119(f) , the court shall require an accounting and order delivery of the custodial property and records to the successor custodian and the execution of all instruments required for transfer of the custodial property. Acts 1992, ch. 664, § 1; T.C.A. § 35-7-220.
(a) A minor who has attained fourteen (14) years of age, the minor's guardian or conservator of the person or legal representative, an adult member of the minor's family, a transferor, or a transferor's legal representative may petition the court: (1) For an accounting by the custodian or the custodian's legal representative; or (2) For a determination of responsibility, as between the custodial property and the custodian personally, for claims against the custodial property unless the responsibility has been adjudicated in an action under § 35-7-118 , to which the minor or the minor's legal representative was a party.
(1) For an accounting by the custodian or the custodian's legal representative; or
(2) For a determination of responsibility, as between the custodial property and the custodian personally, for claims against the custodial property unless the responsibility has been adjudicated in an action under § 35-7-118 , to which the minor or the minor's legal representative was a party.
(b) A successor custodian may petition the court for an accounting by the predecessor custodian.
(c) The court, in a proceeding under this chapter or in any other proceeding, may require or permit the custodian or the custodian's legal representative to account.
(d) If a custodian is removed under § 35-7-119(f) , the court shall require an accounting and order delivery of the custodial property and records to the successor custodian and the execution of all instruments required for transfer of the custodial property.
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-220.
Tenn. Code Ann. § 35-15-817 — TN Code / Title 35 / Chapter 15 / Section 35-15-817
Distribution upon termination, partial termination, or fiduciary removal or resignation - Discharge of fiduciary liability - Notice
Status: in_force

(a) Upon the occurrence of an event terminating or partially terminating a trust, or upon the trustee's removal or resignation, the trustee shall proceed to distribute the trust property to the persons entitled to it within a reasonable period of time, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, attorney fees, and taxes. (b) A trustee may send a notice pursuant to this section seeking to be relieved from liability upon such trustee's removal or resignation, or upon the full or partial termination of the trust. (c) A notice sent by a trustee under this section must include: (1) A statement of the fair market value of the trust's assets and the trust's liabilities, known to the trustee, as of a date specified in the notice, which date must not be more than thirty (30) days prior to the date the notice is sent; (2) (A) A statement of the following during the time period determined under subdivisions (c)(2)(B)-(D): (i) The trust's receipts, including the source and the amount of each receipt; (ii) The amount and recipient of each trust disbursement, including: (a) Distributions to or for the benefit of one (1) or more beneficiaries; and (b) All fees, expenses, and taxes paid; and (iii) A reasonable estimate of the remaining fees and costs to be paid by the trust prior to the removal, resignation, or termination of the trustee sending the notice, as applicable; (B) A statement required under subdivision (c)(2)(A) must cover the time period that begins with the most recent of: (i) The date of acceptance of the trusteeship by the trustee sending the notice; (ii) The ending date of the period for which an accounting was last approved by the court pursuant to § 35-15-205 ; and (iii) If a notice was previously sent in compliance with this section by the trustee sending the notice, then the date upon which the time period under subsection (f) terminated and no person timely objected in a writing delivered to the trustee, or, to the extent an objection was timely made in a writing and delivered to the trustee, then the date on which the objections were resolved by nonjudicial settlement agreement under § 35-15-111 ; (C) The ending date of the time period covered by a statement required under subdivision (c)(2)(A) must not be more than thirty (30) days prior to the date the notice is sent; and (D) The time period covered by a statement required under subdivision (c)(2)(A) must not exceed three (3) years; (3) The beginning and ending dates of the time period covered by the statement required under subdivision (c)(2)(A); (4) A proposal for distribution; (5) Notice that the trust is terminating in whole or in part, or that the trustee has resigned or has been removed; (6) Notice that claims against a trustee under §§ 35-15-604 and 35-15-1005 , as applicable, are barred if no objections specifically referencing the notice are received in writing by the trustee within forty-five (45) days after receipt of the notice by the person designated in subsections (d) and (e); (7) If the trustee sending the notice is an individual trustee, the name, telephone number, and mailing or electronic mail address of the trustee sending the notice; and (8) If the trustee sending the notice is a corporate trustee, the name, telephone number, and mailing or electronic mail address of a representative of the corporate trustee who may be contacted for additional information. (d) A notice sent by a trustee under this section must be sent to: (1) The grantor, if living; (2) Each qualified beneficiary or such qualified beneficiary's representative under part 3 of this chapter to the extent there is no material conflict of interest; and (3) All other then-serving trustees, trust advisors, and trust protectors known to the trustee sending the notice. (e) The trustee may also provide the notice to a person not described in subsection (d) whom the trustee reasonably believes may also have an interest in the trust. (f) The right of any person described in subsection (d), or to whom the trustee sent a notice pursuant to subsection (e), to object to the notice under this section terminates if the person does not notify the trustee in writing of an objection within forty-five (45) days after the person received the notice. (g) If the trustee sending the notice complies with this section, and if a person described in subsection (d), or to whom the trustee sent a notice pursuant to subsection (e), does not object within the time period prescribed in subsection (f), then the trustee shall, within a reasonable period of time following the expiration of such period, distribute the trust's assets as provided in the proposal for distribution included in the notice. (h) If the trustee sending the notice complies with this section, and if a person described in subsection (d) or a person to whom the trustee has distributed a notice pursuant to subsection (e) does not object within the time period prescribed in subsection (f), then the trustee sending the notice is relieved from any liability for the most recent continuous period that the trustee served as trustee of the trust, and the persons who received notice under this section are time barred from: (1) Commencing a judicial proceeding to contest the validity of the trust, except as otherwise provided in § 35-15-604 ; (2) Commencing a judicial proceeding for a claim of breach of trust against the trustee to the same extent and with the same preclusive effect as if the court had entered a final order approving the trustee's account under § 35-15-205 ; and (3) Commencing a judicial proceeding for a claim of breach of fiduciary duty against a co-trustee, trust advisor, or trust protector for failure to object to the trustee's notice under this section. (i) A trustee may rely upon the written statement of a person indicating no objection to the notice as a failure to object within the time period prescribed in subsection (f), regardless of whether the time period has terminated. (j) If the trustee receives a written objection within the period prescribed in subsection (f) from a person to whom the trustee sent a notice, then the trustee may resolve the objection by nonjudicial settlement agreement under § 35-15-111 or seek judicial relief under § 35-15-205 . (k) For the purpose of determining the date a notice was received, if the confirmation of the date of receipt is unavailable, then the notice is presumed to have been received ten (10) business days after the date of mailing. (l) This section does not preclude a trustee from proceeding under § 35-15-205 to have the trustee's accounts reviewed and settled by the court. (m) If the person entitled to the trust property under subsection (a) is the trustee of another trust, or the successor trustee of the same trust, and there is a vacancy in the office of that trustee, then the otherwise applicable provisions of this chapter apply, including §§ 35-15-704 and 35-15-707 . A vacancy in the office of a trustee, as described in this subsection (m), does not change the notice and time periods required by this section. Amended by 2023 Tenn. Acts, ch. 166, s 15, eff. 4/17/2023. Amended by 2022 Tenn. Acts, ch. 877, s 8, eff. 4/14/2022. Amended by 2019 Tenn. Acts, ch. 340, s 11, eff. 5/10/2019. Acts 2004, ch. 537, § 75.
(a) Upon the occurrence of an event terminating or partially terminating a trust, or upon the trustee's removal or resignation, the trustee shall proceed to distribute the trust property to the persons entitled to it within a reasonable period of time, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, attorney fees, and taxes.
(b) A trustee may send a notice pursuant to this section seeking to be relieved from liability upon such trustee's removal or resignation, or upon the full or partial termination of the trust.
(c) A notice sent by a trustee under this section must include: (1) A statement of the fair market value of the trust's assets and the trust's liabilities, known to the trustee, as of a date specified in the notice, which date must not be more than thirty (30) days prior to the date the notice is sent; (2) (A) A statement of the following during the time period determined under subdivisions (c)(2)(B)-(D): (i) The trust's receipts, including the source and the amount of each receipt; (ii) The amount and recipient of each trust disbursement, including: (a) Distributions to or for the benefit of one (1) or more beneficiaries; and (b) All fees, expenses, and taxes paid; and (iii) A reasonable estimate of the remaining fees and costs to be paid by the trust prior to the removal, resignation, or termination of the trustee sending the notice, as applicable; (B) A statement required under subdivision (c)(2)(A) must cover the time period that begins with the most recent of: (i) The date of acceptance of the trusteeship by the trustee sending the notice; (ii) The ending date of the period for which an accounting was last approved by the court pursuant to § 35-15-205 ; and (iii) If a notice was previously sent in compliance with this section by the trustee sending the notice, then the date upon which the time period under subsection (f) terminated and no person timely objected in a writing delivered to the trustee, or, to the extent an objection was timely made in a writing and delivered to the trustee, then the date on which the objections were resolved by nonjudicial settlement agreement under § 35-15-111 ; (C) The ending date of the time period covered by a statement required under subdivision (c)(2)(A) must not be more than thirty (30) days prior to the date the notice is sent; and (D) The time period covered by a statement required under subdivision (c)(2)(A) must not exceed three (3) years; (3) The beginning and ending dates of the time period covered by the statement required under subdivision (c)(2)(A); (4) A proposal for distribution; (5) Notice that the trust is terminating in whole or in part, or that the trustee has resigned or has been removed; (6) Notice that claims against a trustee under §§ 35-15-604 and 35-15-1005 , as applicable, are barred if no objections specifically referencing the notice are received in writing by the trustee within forty-five (45) days after receipt of the notice by the person designated in subsections (d) and (e); (7) If the trustee sending the notice is an individual trustee, the name, telephone number, and mailing or electronic mail address of the trustee sending the notice; and (8) If the trustee sending the notice is a corporate trustee, the name, telephone number, and mailing or electronic mail address of a representative of the corporate trustee who may be contacted for additional information.
(1) A statement of the fair market value of the trust's assets and the trust's liabilities, known to the trustee, as of a date specified in the notice, which date must not be more than thirty (30) days prior to the date the notice is sent;
(2) (A) A statement of the following during the time period determined under subdivisions (c)(2)(B)-(D): (i) The trust's receipts, including the source and the amount of each receipt; (ii) The amount and recipient of each trust disbursement, including: (a) Distributions to or for the benefit of one (1) or more beneficiaries; and (b) All fees, expenses, and taxes paid; and (iii) A reasonable estimate of the remaining fees and costs to be paid by the trust prior to the removal, resignation, or termination of the trustee sending the notice, as applicable; (B) A statement required under subdivision (c)(2)(A) must cover the time period that begins with the most recent of: (i) The date of acceptance of the trusteeship by the trustee sending the notice; (ii) The ending date of the period for which an accounting was last approved by the court pursuant to § 35-15-205 ; and (iii) If a notice was previously sent in compliance with this section by the trustee sending the notice, then the date upon which the time period under subsection (f) terminated and no person timely objected in a writing delivered to the trustee, or, to the extent an objection was timely made in a writing and delivered to the trustee, then the date on which the objections were resolved by nonjudicial settlement agreement under § 35-15-111 ; (C) The ending date of the time period covered by a statement required under subdivision (c)(2)(A) must not be more than thirty (30) days prior to the date the notice is sent; and (D) The time period covered by a statement required under subdivision (c)(2)(A) must not exceed three (3) years;
(A) A statement of the following during the time period determined under subdivisions (c)(2)(B)-(D): (i) The trust's receipts, including the source and the amount of each receipt; (ii) The amount and recipient of each trust disbursement, including: (a) Distributions to or for the benefit of one (1) or more beneficiaries; and (b) All fees, expenses, and taxes paid; and (iii) A reasonable estimate of the remaining fees and costs to be paid by the trust prior to the removal, resignation, or termination of the trustee sending the notice, as applicable;
(i) The trust's receipts, including the source and the amount of each receipt;
(ii) The amount and recipient of each trust disbursement, including: (a) Distributions to or for the benefit of one (1) or more beneficiaries; and (b) All fees, expenses, and taxes paid; and
(a) Distributions to or for the benefit of one (1) or more beneficiaries; and
(b) All fees, expenses, and taxes paid; and
(iii) A reasonable estimate of the remaining fees and costs to be paid by the trust prior to the removal, resignation, or termination of the trustee sending the notice, as applicable;
(B) A statement required under subdivision (c)(2)(A) must cover the time period that begins with the most recent of: (i) The date of acceptance of the trusteeship by the trustee sending the notice; (ii) The ending date of the period for which an accounting was last approved by the court pursuant to § 35-15-205 ; and (iii) If a notice was previously sent in compliance with this section by the trustee sending the notice, then the date upon which the time period under subsection (f) terminated and no person timely objected in a writing delivered to the trustee, or, to the extent an objection was timely made in a writing and delivered to the trustee, then the date on which the objections were resolved by nonjudicial settlement agreement under § 35-15-111 ;
(i) The date of acceptance of the trusteeship by the trustee sending the notice;
(ii) The ending date of the period for which an accounting was last approved by the court pursuant to § 35-15-205 ; and
(iii) If a notice was previously sent in compliance with this section by the trustee sending the notice, then the date upon which the time period under subsection (f) terminated and no person timely objected in a writing delivered to the trustee, or, to the extent an objection was timely made in a writing and delivered to the trustee, then the date on which the objections were resolved by nonjudicial settlement agreement under § 35-15-111 ;
(C) The ending date of the time period covered by a statement required under subdivision (c)(2)(A) must not be more than thirty (30) days prior to the date the notice is sent; and
(D) The time period covered by a statement required under subdivision (c)(2)(A) must not exceed three (3) years;
(3) The beginning and ending dates of the time period covered by the statement required under subdivision (c)(2)(A);
(4) A proposal for distribution;
(5) Notice that the trust is terminating in whole or in part, or that the trustee has resigned or has been removed;
(6) Notice that claims against a trustee under §§ 35-15-604 and 35-15-1005 , as applicable, are barred if no objections specifically referencing the notice are received in writing by the trustee within forty-five (45) days after receipt of the notice by the person designated in subsections (d) and (e);
(7) If the trustee sending the notice is an individual trustee, the name, telephone number, and mailing or electronic mail address of the trustee sending the notice; and
(8) If the trustee sending the notice is a corporate trustee, the name, telephone number, and mailing or electronic mail address of a representative of the corporate trustee who may be contacted for additional information.
(d) A notice sent by a trustee under this section must be sent to: (1) The grantor, if living; (2) Each qualified beneficiary or such qualified beneficiary's representative under part 3 of this chapter to the extent there is no material conflict of interest; and (3) All other then-serving trustees, trust advisors, and trust protectors known to the trustee sending the notice.
(1) The grantor, if living;
(2) Each qualified beneficiary or such qualified beneficiary's representative under part 3 of this chapter to the extent there is no material conflict of interest; and
(3) All other then-serving trustees, trust advisors, and trust protectors known to the trustee sending the notice.
(e) The trustee may also provide the notice to a person not described in subsection (d) whom the trustee reasonably believes may also have an interest in the trust.
(f) The right of any person described in subsection (d), or to whom the trustee sent a notice pursuant to subsection (e), to object to the notice under this section terminates if the person does not notify the trustee in writing of an objection within forty-five (45) days after the person received the notice.
(g) If the trustee sending the notice complies with this section, and if a person described in subsection (d), or to whom the trustee sent a notice pursuant to subsection (e), does not object within the time period prescribed in subsection (f), then the trustee shall, within a reasonable period of time following the expiration of such period, distribute the trust's assets as provided in the proposal for distribution included in the notice.
(h) If the trustee sending the notice complies with this section, and if a person described in subsection (d) or a person to whom the trustee has distributed a notice pursuant to subsection (e) does not object within the time period prescribed in subsection (f), then the trustee sending the notice is relieved from any liability for the most recent continuous period that the trustee served as trustee of the trust, and the persons who received notice under this section are time barred from: (1) Commencing a judicial proceeding to contest the validity of the trust, except as otherwise provided in § 35-15-604 ; (2) Commencing a judicial proceeding for a claim of breach of trust against the trustee to the same extent and with the same preclusive effect as if the court had entered a final order approving the trustee's account under § 35-15-205 ; and (3) Commencing a judicial proceeding for a claim of breach of fiduciary duty against a co-trustee, trust advisor, or trust protector for failure to object to the trustee's notice under this section.
(1) Commencing a judicial proceeding to contest the validity of the trust, except as otherwise provided in § 35-15-604 ;
(2) Commencing a judicial proceeding for a claim of breach of trust against the trustee to the same extent and with the same preclusive effect as if the court had entered a final order approving the trustee's account under § 35-15-205 ; and
(3) Commencing a judicial proceeding for a claim of breach of fiduciary duty against a co-trustee, trust advisor, or trust protector for failure to object to the trustee's notice under this section.
(i) A trustee may rely upon the written statement of a person indicating no objection to the notice as a failure to object within the time period prescribed in subsection (f), regardless of whether the time period has terminated.
(j) If the trustee receives a written objection within the period prescribed in subsection (f) from a person to whom the trustee sent a notice, then the trustee may resolve the objection by nonjudicial settlement agreement under § 35-15-111 or seek judicial relief under § 35-15-205 .
(k) For the purpose of determining the date a notice was received, if the confirmation of the date of receipt is unavailable, then the notice is presumed to have been received ten (10) business days after the date of mailing.
(l) This section does not preclude a trustee from proceeding under § 35-15-205 to have the trustee's accounts reviewed and settled by the court.
(m) If the person entitled to the trust property under subsection (a) is the trustee of another trust, or the successor trustee of the same trust, and there is a vacancy in the office of that trustee, then the otherwise applicable provisions of this chapter apply, including §§ 35-15-704 and 35-15-707 . A vacancy in the office of a trustee, as described in this subsection (m), does not change the notice and time periods required by this section.
Amended by 2023 Tenn. Acts, ch. 166, s 15, eff. 4/17/2023.
Amended by 2022 Tenn. Acts, ch. 877, s 8, eff. 4/14/2022.
Amended by 2019 Tenn. Acts, ch. 340, s 11, eff. 5/10/2019.
Acts 2004, ch. 537, § 75.
Tenn. Code Ann. § 35-3-108 — TN Code / Title 35 / Chapter 3 / Section 35-3-108
Railroad obligations
Status: in_force

(a) Investments may be made in the following railroad obligations: (1) Obligations issued, assumed or guaranteed as to principal and interest by endorsement, or so guaranteed, which guaranty has been assumed; (2) Obligations for the payment of the principal and interest of which a railroad corporation such as is described in this section is obligated under the terms of a lease made or assumed; or (3) Equipment trust obligations in respect of which liability has been incurred by a railroad corporation incorporated under the laws of the United States, or any state of the United States, and owning and operating within the United States not less than five hundred (500) miles of standard-gauge railroad line, exclusive of sidings, or if the mileage so owned is less than five hundred (500) miles, the railroad operating revenues from the operation of all railroads operated by it, including the revenues from the operation of all railroads controlled through ownership of all, except directors' qualifying shares, of the voting stock of the owning corporation, was not less than ten million dollars ($10,000,000) each year for at least five (5) of the six (6) fiscal years next preceding the investment. (b) Provided, that: (1) In each year for at least five (5) of the six (6) fiscal years and in the last fiscal year next preceding the investment, the amount of income of such railroad corporation available for its fixed charges, as defined in subsection (c), was not less than one and one-half (1½) times its fixed charges, as defined in subsection (c); (2) In each year for at least five (5) of the six (6) fiscal years next preceding the investment, the railroad corporation has paid dividends in cash upon its capital stock equivalent to at least one-fourth (¼) of its fixed charges, or if the railroad corporation has not paid such dividends, that the amount of income available for its fixed charges was not less than one and one-half (1½) times its fixed charges for at least nine (9) of the ten (10) fiscal years and in the last fiscal year next preceding the investment; (3) At no time within the period of six (6) years has the railroad corporation failed regularly and punctually to pay the matured principal and interest of all its mortgage indebtedness; and (4) The security, if any, for the obligations shall be property wholly or in part within the United States and the obligations shall be: (A) Fixed interest-bearing bonds secured by direct mortgage on railroad owned or operated by the railroad corporation; (B) Bonds secured by first mortgage upon terminal, depot or tunnel property, including lands, buildings and appurtenances, used in the service of transportation by one (1) or more railroad corporations; provided, that the bonds are the direct obligation of, or that payment of principal and interest of the bonds are guaranteed by, endorsement by or guaranteed by endorsement, which guaranty has been assumed by, one (1) or more railroad corporations; (C) Equipment trust obligations, comprising bonds, notes and certificates, issued in connection with the purchase for use on railroads of new standard-gauge rolling stock through the medium of an equipment trust agreement, and which obligations, so long as any of them are outstanding and unpaid or unprovided for, shall be secured by an instrument: (i) Vesting title to the equipment in a trustee free of encumbrance; or (ii) Creating a first lien on the equipment, or, pending the vesting of title, by the deposit of cash in trust to an amount equal to the face amount of the obligations issued in respect of the equipment, title to which is not yet so vested; provided, that the maximum amount of the obligations so issuable shall not exceed eighty percent (80%) of the cost of the equipment; and provided further, that the owner, purchaser or lessee, or the owners, purchasers or lessees, of the equipment shall be obligated by the terms of the obligations or of the instrument to: (a) Maintain the equipment in proper repair; (b) Replace any of the equipment that may be destroyed or released with other equipment of equal value, or, if released in connection with a sale of the equipment, to deposit the proceeds of the sale in trust for the benefit of the holders of the obligations pending replacement of the equipment; (c) Pay any and all taxes or other governmental charges that may be required by law to be paid upon the equipment; (d) Pay, in accordance with the provisions of the obligations or of the instrument, to holders, or to the trustee for the benefit of holders, of the obligations the amount of interest due on the obligations or of the dividends payable in respect of the obligations; and (e) Pay the amount of the entire issue of the obligations in annual or semiannual installments each year throughout a period of not exceeding fifteen (15) years from the first date of issue of any of the obligations that the amount of the respective unmatured installments at any time outstanding shall be approximately equal; provided, that unless the owner, purchaser or lessee of the equipment, or one (1) or more of the owners, purchasers or lessees shall be a railroad corporation as is described in and meets the requirements of this section preceding subdivision (b)(4)(A), the obligations shall be guaranteed by endorsements as to principal and as to interest or dividends by the railroad corporation; (D) Bonds of the railroad corporation secured by irrevocable pledge as collateral under a trust agreement of other railroad bonds that are legal investment for fiduciaries under this section, have a maturity not earlier than the bonds that they secure and of a total face amount not less than the total face amount of the bonds that they secure; or (E) Fixed interest-bearing mortgage bonds other than those described in subdivisions (b)(4)(A) and (B), income mortgage bonds, collateral trust bonds or obligations other than those described in subdivision (b)(4)(D), or unsecured bonds or obligations, issued, assumed or guaranteed as to principal and interest by endorsement by, or so guaranteed, which guaranty has been assumed by, the railroad corporation; provided, that in each year for at least five (5) of the six (6) fiscal years and in the last fiscal year next preceding the investment: (i) The amount of income of the railroad corporation available for its fixed charges, as defined in subsection (c), was not less than twice the sum of: (a) Its fixed charges, as defined in subsection (c); and (b) Full interest on the income mortgage bonds, if any; (ii) The net income of which after deductions was not less than ten thousand dollars ($10,000); and (iii) The railroad corporation has made the dividend and principal and interest payments required by subdivisions (b)(4)(C)(ii)( d ) and ( e ). (c) The amount of income available for fixed charges shall be the amount obtained by deducting from gross income all items deductible in ascertaining net income other than contingent income interest and those constituting fixed charges. Fixed charges shall be rent for leased roads, miscellaneous rents, fixed interest on funded debt, interest on unfunded debt and amortization of discount on funded debt. (d) Accounting terms used in this section shall be deemed to refer to those used in the accounting reports prescribed by the accounting regulations for common carriers subject to the Interstate Commerce Act (U.S.C. Title 49). If the interstate commerce commission prescribes accounting regulations in which are defined the terms "income available for fixed charges" and "fixed charges," the definitions of those terms as so prescribed shall be taken and used in lieu of the definitions set forth in subsection (c) for all purposes. (e) For purposes of this section, the revenues, earnings, income and fixed charges of, and dividends paid by, any railroad corporation, all or substantially all of the railroad lines of which have been acquired through merger, consolidations, conveyance or lease by another railroad corporation and remain in its possession, shall be deemed to be revenues, earnings, income and fixed charges of, and dividends paid by, the latter corporation. (f) Not more than twenty-five percent (25%) of the assets of any trust shall be loaned or invested in the bonds, notes and certificates in this section defined, and not more than ten percent (10%) of the assets shall be invested in such bonds, notes and certificates for which any one (1) railroad corporation shall be obligated. Acts 1931, ch. 100, § 1(g); C. Supp. 1950, § 9596.1(F); modified; T.C.A. (orig. ed.), § 35-308.
(a) Investments may be made in the following railroad obligations: (1) Obligations issued, assumed or guaranteed as to principal and interest by endorsement, or so guaranteed, which guaranty has been assumed; (2) Obligations for the payment of the principal and interest of which a railroad corporation such as is described in this section is obligated under the terms of a lease made or assumed; or (3) Equipment trust obligations in respect of which liability has been incurred by a railroad corporation incorporated under the laws of the United States, or any state of the United States, and owning and operating within the United States not less than five hundred (500) miles of standard-gauge railroad line, exclusive of sidings, or if the mileage so owned is less than five hundred (500) miles, the railroad operating revenues from the operation of all railroads operated by it, including the revenues from the operation of all railroads controlled through ownership of all, except directors' qualifying shares, of the voting stock of the owning corporation, was not less than ten million dollars ($10,000,000) each year for at least five (5) of the six (6) fiscal years next preceding the investment.
(1) Obligations issued, assumed or guaranteed as to principal and interest by endorsement, or so guaranteed, which guaranty has been assumed;
(2) Obligations for the payment of the principal and interest of which a railroad corporation such as is described in this section is obligated under the terms of a lease made or assumed; or
(3) Equipment trust obligations in respect of which liability has been incurred by a railroad corporation incorporated under the laws of the United States, or any state of the United States, and owning and operating within the United States not less than five hundred (500) miles of standard-gauge railroad line, exclusive of sidings, or if the mileage so owned is less than five hundred (500) miles, the railroad operating revenues from the operation of all railroads operated by it, including the revenues from the operation of all railroads controlled through ownership of all, except directors' qualifying shares, of the voting stock of the owning corporation, was not less than ten million dollars ($10,000,000) each year for at least five (5) of the six (6) fiscal years next preceding the investment.
(b) Provided, that: (1) In each year for at least five (5) of the six (6) fiscal years and in the last fiscal year next preceding the investment, the amount of income of such railroad corporation available for its fixed charges, as defined in subsection (c), was not less than one and one-half (1½) times its fixed charges, as defined in subsection (c); (2) In each year for at least five (5) of the six (6) fiscal years next preceding the investment, the railroad corporation has paid dividends in cash upon its capital stock equivalent to at least one-fourth (¼) of its fixed charges, or if the railroad corporation has not paid such dividends, that the amount of income available for its fixed charges was not less than one and one-half (1½) times its fixed charges for at least nine (9) of the ten (10) fiscal years and in the last fiscal year next preceding the investment; (3) At no time within the period of six (6) years has the railroad corporation failed regularly and punctually to pay the matured principal and interest of all its mortgage indebtedness; and (4) The security, if any, for the obligations shall be property wholly or in part within the United States and the obligations shall be: (A) Fixed interest-bearing bonds secured by direct mortgage on railroad owned or operated by the railroad corporation; (B) Bonds secured by first mortgage upon terminal, depot or tunnel property, including lands, buildings and appurtenances, used in the service of transportation by one (1) or more railroad corporations; provided, that the bonds are the direct obligation of, or that payment of principal and interest of the bonds are guaranteed by, endorsement by or guaranteed by endorsement, which guaranty has been assumed by, one (1) or more railroad corporations; (C) Equipment trust obligations, comprising bonds, notes and certificates, issued in connection with the purchase for use on railroads of new standard-gauge rolling stock through the medium of an equipment trust agreement, and which obligations, so long as any of them are outstanding and unpaid or unprovided for, shall be secured by an instrument: (i) Vesting title to the equipment in a trustee free of encumbrance; or (ii) Creating a first lien on the equipment, or, pending the vesting of title, by the deposit of cash in trust to an amount equal to the face amount of the obligations issued in respect of the equipment, title to which is not yet so vested; provided, that the maximum amount of the obligations so issuable shall not exceed eighty percent (80%) of the cost of the equipment; and provided further, that the owner, purchaser or lessee, or the owners, purchasers or lessees, of the equipment shall be obligated by the terms of the obligations or of the instrument to: (a) Maintain the equipment in proper repair; (b) Replace any of the equipment that may be destroyed or released with other equipment of equal value, or, if released in connection with a sale of the equipment, to deposit the proceeds of the sale in trust for the benefit of the holders of the obligations pending replacement of the equipment; (c) Pay any and all taxes or other governmental charges that may be required by law to be paid upon the equipment; (d) Pay, in accordance with the provisions of the obligations or of the instrument, to holders, or to the trustee for the benefit of holders, of the obligations the amount of interest due on the obligations or of the dividends payable in respect of the obligations; and (e) Pay the amount of the entire issue of the obligations in annual or semiannual installments each year throughout a period of not exceeding fifteen (15) years from the first date of issue of any of the obligations that the amount of the respective unmatured installments at any time outstanding shall be approximately equal; provided, that unless the owner, purchaser or lessee of the equipment, or one (1) or more of the owners, purchasers or lessees shall be a railroad corporation as is described in and meets the requirements of this section preceding subdivision (b)(4)(A), the obligations shall be guaranteed by endorsements as to principal and as to interest or dividends by the railroad corporation; (D) Bonds of the railroad corporation secured by irrevocable pledge as collateral under a trust agreement of other railroad bonds that are legal investment for fiduciaries under this section, have a maturity not earlier than the bonds that they secure and of a total face amount not less than the total face amount of the bonds that they secure; or (E) Fixed interest-bearing mortgage bonds other than those described in subdivisions (b)(4)(A) and (B), income mortgage bonds, collateral trust bonds or obligations other than those described in subdivision (b)(4)(D), or unsecured bonds or obligations, issued, assumed or guaranteed as to principal and interest by endorsement by, or so guaranteed, which guaranty has been assumed by, the railroad corporation; provided, that in each year for at least five (5) of the six (6) fiscal years and in the last fiscal year next preceding the investment: (i) The amount of income of the railroad corporation available for its fixed charges, as defined in subsection (c), was not less than twice the sum of: (a) Its fixed charges, as defined in subsection (c); and (b) Full interest on the income mortgage bonds, if any; (ii) The net income of which after deductions was not less than ten thousand dollars ($10,000); and (iii) The railroad corporation has made the dividend and principal and interest payments required by subdivisions (b)(4)(C)(ii)( d ) and ( e ).
(1) In each year for at least five (5) of the six (6) fiscal years and in the last fiscal year next preceding the investment, the amount of income of such railroad corporation available for its fixed charges, as defined in subsection (c), was not less than one and one-half (1½) times its fixed charges, as defined in subsection (c);
(2) In each year for at least five (5) of the six (6) fiscal years next preceding the investment, the railroad corporation has paid dividends in cash upon its capital stock equivalent to at least one-fourth (¼) of its fixed charges, or if the railroad corporation has not paid such dividends, that the amount of income available for its fixed charges was not less than one and one-half (1½) times its fixed charges for at least nine (9) of the ten (10) fiscal years and in the last fiscal year next preceding the investment;
(3) At no time within the period of six (6) years has the railroad corporation failed regularly and punctually to pay the matured principal and interest of all its mortgage indebtedness; and
(4) The security, if any, for the obligations shall be property wholly or in part within the United States and the obligations shall be: (A) Fixed interest-bearing bonds secured by direct mortgage on railroad owned or operated by the railroad corporation; (B) Bonds secured by first mortgage upon terminal, depot or tunnel property, including lands, buildings and appurtenances, used in the service of transportation by one (1) or more railroad corporations; provided, that the bonds are the direct obligation of, or that payment of principal and interest of the bonds are guaranteed by, endorsement by or guaranteed by endorsement, which guaranty has been assumed by, one (1) or more railroad corporations; (C) Equipment trust obligations, comprising bonds, notes and certificates, issued in connection with the purchase for use on railroads of new standard-gauge rolling stock through the medium of an equipment trust agreement, and which obligations, so long as any of them are outstanding and unpaid or unprovided for, shall be secured by an instrument: (i) Vesting title to the equipment in a trustee free of encumbrance; or (ii) Creating a first lien on the equipment, or, pending the vesting of title, by the deposit of cash in trust to an amount equal to the face amount of the obligations issued in respect of the equipment, title to which is not yet so vested; provided, that the maximum amount of the obligations so issuable shall not exceed eighty percent (80%) of the cost of the equipment; and provided further, that the owner, purchaser or lessee, or the owners, purchasers or lessees, of the equipment shall be obligated by the terms of the obligations or of the instrument to: (a) Maintain the equipment in proper repair; (b) Replace any of the equipment that may be destroyed or released with other equipment of equal value, or, if released in connection with a sale of the equipment, to deposit the proceeds of the sale in trust for the benefit of the holders of the obligations pending replacement of the equipment; (c) Pay any and all taxes or other governmental charges that may be required by law to be paid upon the equipment; (d) Pay, in accordance with the provisions of the obligations or of the instrument, to holders, or to the trustee for the benefit of holders, of the obligations the amount of interest due on the obligations or of the dividends payable in respect of the obligations; and (e) Pay the amount of the entire issue of the obligations in annual or semiannual installments each year throughout a period of not exceeding fifteen (15) years from the first date of issue of any of the obligations that the amount of the respective unmatured installments at any time outstanding shall be approximately equal; provided, that unless the owner, purchaser or lessee of the equipment, or one (1) or more of the owners, purchasers or lessees shall be a railroad corporation as is described in and meets the requirements of this section preceding subdivision (b)(4)(A), the obligations shall be guaranteed by endorsements as to principal and as to interest or dividends by the railroad corporation; (D) Bonds of the railroad corporation secured by irrevocable pledge as collateral under a trust agreement of other railroad bonds that are legal investment for fiduciaries under this section, have a maturity not earlier than the bonds that they secure and of a total face amount not less than the total face amount of the bonds that they secure; or (E) Fixed interest-bearing mortgage bonds other than those described in subdivisions (b)(4)(A) and (B), income mortgage bonds, collateral trust bonds or obligations other than those described in subdivision (b)(4)(D), or unsecured bonds or obligations, issued, assumed or guaranteed as to principal and interest by endorsement by, or so guaranteed, which guaranty has been assumed by, the railroad corporation; provided, that in each year for at least five (5) of the six (6) fiscal years and in the last fiscal year next preceding the investment: (i) The amount of income of the railroad corporation available for its fixed charges, as defined in subsection (c), was not less than twice the sum of: (a) Its fixed charges, as defined in subsection (c); and (b) Full interest on the income mortgage bonds, if any; (ii) The net income of which after deductions was not less than ten thousand dollars ($10,000); and (iii) The railroad corporation has made the dividend and principal and interest payments required by subdivisions (b)(4)(C)(ii)( d ) and ( e ).
(A) Fixed interest-bearing bonds secured by direct mortgage on railroad owned or operated by the railroad corporation;
(B) Bonds secured by first mortgage upon terminal, depot or tunnel property, including lands, buildings and appurtenances, used in the service of transportation by one (1) or more railroad corporations; provided, that the bonds are the direct obligation of, or that payment of principal and interest of the bonds are guaranteed by, endorsement by or guaranteed by endorsement, which guaranty has been assumed by, one (1) or more railroad corporations;
(C) Equipment trust obligations, comprising bonds, notes and certificates, issued in connection with the purchase for use on railroads of new standard-gauge rolling stock through the medium of an equipment trust agreement, and which obligations, so long as any of them are outstanding and unpaid or unprovided for, shall be secured by an instrument: (i) Vesting title to the equipment in a trustee free of encumbrance; or (ii) Creating a first lien on the equipment, or, pending the vesting of title, by the deposit of cash in trust to an amount equal to the face amount of the obligations issued in respect of the equipment, title to which is not yet so vested; provided, that the maximum amount of the obligations so issuable shall not exceed eighty percent (80%) of the cost of the equipment; and provided further, that the owner, purchaser or lessee, or the owners, purchasers or lessees, of the equipment shall be obligated by the terms of the obligations or of the instrument to: (a) Maintain the equipment in proper repair; (b) Replace any of the equipment that may be destroyed or released with other equipment of equal value, or, if released in connection with a sale of the equipment, to deposit the proceeds of the sale in trust for the benefit of the holders of the obligations pending replacement of the equipment; (c) Pay any and all taxes or other governmental charges that may be required by law to be paid upon the equipment; (d) Pay, in accordance with the provisions of the obligations or of the instrument, to holders, or to the trustee for the benefit of holders, of the obligations the amount of interest due on the obligations or of the dividends payable in respect of the obligations; and (e) Pay the amount of the entire issue of the obligations in annual or semiannual installments each year throughout a period of not exceeding fifteen (15) years from the first date of issue of any of the obligations that the amount of the respective unmatured installments at any time outstanding shall be approximately equal; provided, that unless the owner, purchaser or lessee of the equipment, or one (1) or more of the owners, purchasers or lessees shall be a railroad corporation as is described in and meets the requirements of this section preceding subdivision (b)(4)(A), the obligations shall be guaranteed by endorsements as to principal and as to interest or dividends by the railroad corporation;
(i) Vesting title to the equipment in a trustee free of encumbrance; or
(ii) Creating a first lien on the equipment, or, pending the vesting of title, by the deposit of cash in trust to an amount equal to the face amount of the obligations issued in respect of the equipment, title to which is not yet so vested; provided, that the maximum amount of the obligations so issuable shall not exceed eighty percent (80%) of the cost of the equipment; and provided further, that the owner, purchaser or lessee, or the owners, purchasers or lessees, of the equipment shall be obligated by the terms of the obligations or of the instrument to: (a) Maintain the equipment in proper repair; (b) Replace any of the equipment that may be destroyed or released with other equipment of equal value, or, if released in connection with a sale of the equipment, to deposit the proceeds of the sale in trust for the benefit of the holders of the obligations pending replacement of the equipment; (c) Pay any and all taxes or other governmental charges that may be required by law to be paid upon the equipment; (d) Pay, in accordance with the provisions of the obligations or of the instrument, to holders, or to the trustee for the benefit of holders, of the obligations the amount of interest due on the obligations or of the dividends payable in respect of the obligations; and (e) Pay the amount of the entire issue of the obligations in annual or semiannual installments each year throughout a period of not exceeding fifteen (15) years from the first date of issue of any of the obligations that the amount of the respective unmatured installments at any time outstanding shall be approximately equal; provided, that unless the owner, purchaser or lessee of the equipment, or one (1) or more of the owners, purchasers or lessees shall be a railroad corporation as is described in and meets the requirements of this section preceding subdivision (b)(4)(A), the obligations shall be guaranteed by endorsements as to principal and as to interest or dividends by the railroad corporation;
(a) Maintain the equipment in proper repair;
(b) Replace any of the equipment that may be destroyed or released with other equipment of equal value, or, if released in connection with a sale of the equipment, to deposit the proceeds of the sale in trust for the benefit of the holders of the obligations pending replacement of the equipment;
(c) Pay any and all taxes or other governmental charges that may be required by law to be paid upon the equipment;
(d) Pay, in accordance with the provisions of the obligations or of the instrument, to holders, or to the trustee for the benefit of holders, of the obligations the amount of interest due on the obligations or of the dividends payable in respect of the obligations; and
(e) Pay the amount of the entire issue of the obligations in annual or semiannual installments each year throughout a period of not exceeding fifteen (15) years from the first date of issue of any of the obligations that the amount of the respective unmatured installments at any time outstanding shall be approximately equal; provided, that unless the owner, purchaser or lessee of the equipment, or one (1) or more of the owners, purchasers or lessees shall be a railroad corporation as is described in and meets the requirements of this section preceding subdivision (b)(4)(A), the obligations shall be guaranteed by endorsements as to principal and as to interest or dividends by the railroad corporation;
(D) Bonds of the railroad corporation secured by irrevocable pledge as collateral under a trust agreement of other railroad bonds that are legal investment for fiduciaries under this section, have a maturity not earlier than the bonds that they secure and of a total face amount not less than the total face amount of the bonds that they secure; or
(E) Fixed interest-bearing mortgage bonds other than those described in subdivisions (b)(4)(A) and (B), income mortgage bonds, collateral trust bonds or obligations other than those described in subdivision (b)(4)(D), or unsecured bonds or obligations, issued, assumed or guaranteed as to principal and interest by endorsement by, or so guaranteed, which guaranty has been assumed by, the railroad corporation; provided, that in each year for at least five (5) of the six (6) fiscal years and in the last fiscal year next preceding the investment: (i) The amount of income of the railroad corporation available for its fixed charges, as defined in subsection (c), was not less than twice the sum of: (a) Its fixed charges, as defined in subsection (c); and (b) Full interest on the income mortgage bonds, if any; (ii) The net income of which after deductions was not less than ten thousand dollars ($10,000); and (iii) The railroad corporation has made the dividend and principal and interest payments required by subdivisions (b)(4)(C)(ii)( d ) and ( e ).
(i) The amount of income of the railroad corporation available for its fixed charges, as defined in subsection (c), was not less than twice the sum of: (a) Its fixed charges, as defined in subsection (c); and (b) Full interest on the income mortgage bonds, if any;
(a) Its fixed charges, as defined in subsection (c); and
(b) Full interest on the income mortgage bonds, if any;
(ii) The net income of which after deductions was not less than ten thousand dollars ($10,000); and
(iii) The railroad corporation has made the dividend and principal and interest payments required by subdivisions (b)(4)(C)(ii)( d ) and ( e ).
(c) The amount of income available for fixed charges shall be the amount obtained by deducting from gross income all items deductible in ascertaining net income other than contingent income interest and those constituting fixed charges. Fixed charges shall be rent for leased roads, miscellaneous rents, fixed interest on funded debt, interest on unfunded debt and amortization of discount on funded debt.
(d) Accounting terms used in this section shall be deemed to refer to those used in the accounting reports prescribed by the accounting regulations for common carriers subject to the Interstate Commerce Act (U.S.C. Title 49). If the interstate commerce commission prescribes accounting regulations in which are defined the terms "income available for fixed charges" and "fixed charges," the definitions of those terms as so prescribed shall be taken and used in lieu of the definitions set forth in subsection (c) for all purposes.
(e) For purposes of this section, the revenues, earnings, income and fixed charges of, and dividends paid by, any railroad corporation, all or substantially all of the railroad lines of which have been acquired through merger, consolidations, conveyance or lease by another railroad corporation and remain in its possession, shall be deemed to be revenues, earnings, income and fixed charges of, and dividends paid by, the latter corporation.
(f) Not more than twenty-five percent (25%) of the assets of any trust shall be loaned or invested in the bonds, notes and certificates in this section defined, and not more than ten percent (10%) of the assets shall be invested in such bonds, notes and certificates for which any one (1) railroad corporation shall be obligated.
Acts 1931, ch. 100, § 1(g); C. Supp. 1950, § 9596.1(F); modified; T.C.A. (orig. ed.), § 35-308.
Tenn. Code Ann. § 35-14-106 — TN Code / Title 35 / Chapter 14 / Section 35-14-106
Duties at inception of trusteeship
Status: in_force

Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust, and with the requirements of this chapter. Acts 2002, ch. 696, § 6.
Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust, and with the requirements of this chapter.
Acts 2002, ch. 696, § 6.
Tenn. Code Ann. § 35-15-412 — TN Code / Title 35 / Chapter 15 / Section 35-15-412
Modification or termination because of unanticipated circumstances or inability to administer trust effectively
Status: in_force

(a) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the extent practicable, the modification must be made in accordance with the settlor's probable intention. (b) The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the trust's administration. (c) Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust. Acts 2004, ch. 537, § 34.
(a) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the extent practicable, the modification must be made in accordance with the settlor's probable intention.
(b) The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the trust's administration.
(c) Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
Acts 2004, ch. 537, § 34.
Tenn. Code Ann. § 35-6-410 — TN Code / Title 35 / Chapter 6 / Section 35-6-410
Liquidating asset
Status: in_force

(a) In this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. Liquidating asset includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one (1) year under an arrangement that does not provide for the payment of interest on the unpaid balance. Liquidating asset does not include a payment subject to § 35-6-409 , resources subject to § 35-6-411 , timber subject to § 35-6-412 , an activity subject to § 35-6-414 , an asset subject to § 35-6-415 , or any asset for which the trustee establishes a reserve for depreciation under § 35-6-503 . (b) A trustee shall allocate to income ten percent (10%) of the receipts from a liquidating asset and the balance to principal. Acts 2000, ch. 829, § 1.
(a) In this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. Liquidating asset includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one (1) year under an arrangement that does not provide for the payment of interest on the unpaid balance. Liquidating asset does not include a payment subject to § 35-6-409 , resources subject to § 35-6-411 , timber subject to § 35-6-412 , an activity subject to § 35-6-414 , an asset subject to § 35-6-415 , or any asset for which the trustee establishes a reserve for depreciation under § 35-6-503 .
(b) A trustee shall allocate to income ten percent (10%) of the receipts from a liquidating asset and the balance to principal.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-6-408 — TN Code / Title 35 / Chapter 6 / Section 35-6-408
Insubstantial allocations not required
Status: in_force

If a trustee determines that an allocation between principal and income required by § 35-6-409 , § 35-6-410 , § 35-6-411 , § 35-6-412 , or § 35-6-415 is insubstantial, the trustee may allocate the entire amount to principal unless one (1) of the circumstances described in § 35-6-104(c) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in § 35-6-104(d) and may be released for the reasons and in the manner described in § 35-6-104(e) . An allocation is presumed to be insubstantial if: (1) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than ten percent (10%); or (2) The value of the asset producing the receipt for which the allocation would be made is less than ten percent (10%) of the total value of the trust's assets at the beginning of the accounting period. Acts 2000, ch. 829, § 1.
If a trustee determines that an allocation between principal and income required by § 35-6-409 , § 35-6-410 , § 35-6-411 , § 35-6-412 , or § 35-6-415 is insubstantial, the trustee may allocate the entire amount to principal unless one (1) of the circumstances described in § 35-6-104(c) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in § 35-6-104(d) and may be released for the reasons and in the manner described in § 35-6-104(e) . An allocation is presumed to be insubstantial if:
(1) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than ten percent (10%); or
(2) The value of the asset producing the receipt for which the allocation would be made is less than ten percent (10%) of the total value of the trust's assets at the beginning of the accounting period.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-50-120 — TN Code / Title 35 / Chapter 50 / Section 35-50-120
Blind trust
Status: in_force

(a) A trust shall be considered a "blind trust" if the trust is created to benefit an individual, the individual's spouse or any dependent child and is under the management and control of a trustee who is a bank or trust company authorized to exercise fiduciary powers, a licensed attorney or a broker who: (1) Is independent of and not associated with any party interested in the trust; (2) Is not or has not been an employee of any interested party or any organization affiliated with any interested party, and is not a partner of, or involved in any joint venture or other investment with any interested party; and (3) Is not a relative of any party. (b) There shall be no communications direct or indirect between the trustee and an interested party with respect to the trust unless the communication is in writing, except for communications that solely consist of requests for distributions of cash or other unspecified assets of the trust. The written communications shall be limited to the general financial interest and needs of the interested party including, but not limited to, an interest in maximizing income or long-term capital gain. (c) The interested parties shall make no effort to obtain information with respect to the holdings of the trust, including obtaining a copy of any trust tax return filed or any information relating to the trust, except as may be needed by the interested parties in order to file tax returns. (d) Any trustee of a trust as provided in this section for an interested party that is required to make disclosures under title 8, chapter 50, part 5, shall make to the best of the trustee's knowledge such disclosures as are required or be subject to the penalties provided in § 8-50-505 . (e) This section does not apply to any "blind trust" or other trust or financial arrangement or agreement having the same effect or status as a "blind trust" in existence prior to May 12, 1988. All such trusts, arrangements or agreements shall continue to operate in accordance with the terms and conditions under which they were created. Acts 1988, ch. 951, § 1.
(a) A trust shall be considered a "blind trust" if the trust is created to benefit an individual, the individual's spouse or any dependent child and is under the management and control of a trustee who is a bank or trust company authorized to exercise fiduciary powers, a licensed attorney or a broker who: (1) Is independent of and not associated with any party interested in the trust; (2) Is not or has not been an employee of any interested party or any organization affiliated with any interested party, and is not a partner of, or involved in any joint venture or other investment with any interested party; and (3) Is not a relative of any party.
(1) Is independent of and not associated with any party interested in the trust;
(2) Is not or has not been an employee of any interested party or any organization affiliated with any interested party, and is not a partner of, or involved in any joint venture or other investment with any interested party; and
(3) Is not a relative of any party.
(b) There shall be no communications direct or indirect between the trustee and an interested party with respect to the trust unless the communication is in writing, except for communications that solely consist of requests for distributions of cash or other unspecified assets of the trust. The written communications shall be limited to the general financial interest and needs of the interested party including, but not limited to, an interest in maximizing income or long-term capital gain.
(c) The interested parties shall make no effort to obtain information with respect to the holdings of the trust, including obtaining a copy of any trust tax return filed or any information relating to the trust, except as may be needed by the interested parties in order to file tax returns.
(d) Any trustee of a trust as provided in this section for an interested party that is required to make disclosures under title 8, chapter 50, part 5, shall make to the best of the trustee's knowledge such disclosures as are required or be subject to the penalties provided in § 8-50-505 .
(e) This section does not apply to any "blind trust" or other trust or financial arrangement or agreement having the same effect or status as a "blind trust" in existence prior to May 12, 1988. All such trusts, arrangements or agreements shall continue to operate in accordance with the terms and conditions under which they were created.
Acts 1988, ch. 951, § 1.
Tenn. Code Ann. § 35-6-401 — TN Code / Title 35 / Chapter 6 / Section 35-6-401
Character of receipts
Status: in_force

(a) In this section, "entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which § 35-6-402 applies, a business or activity to which § 35-6-403 applies, or an asset-backed security to which § 35-6-415 applies. (b) Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity. (c) A trustee shall allocate the following receipts from an entity to principal: (1) Property other than money; (2) Money received in one (1) distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity; (3) Money received in total or partial liquidation of the entity; and (4) Money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes. (d) Money is received in partial liquidation: (1) To the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation; or (2) If the total amount of money and property received in a distribution or series of related distributions is greater than twenty percent (20%) of the entity's gross assets, as shown by the entity's year-end financial statements or by an attestation by an officer of the entity's gross assets immediately preceding the initial receipt. If the total amount of money and property received in a distribution or series of related distributions is equal to or less than twenty percent (20%) of an entity's gross assets, then it is not a partial liquidation. (e) Money is not received in partial liquidation, nor may it be taken into account under subdivision (d)(2), to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the entity that distributes the money. (f) A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity's board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors. Amended by 2021 Tenn. Acts, ch. 420, s 1, eff. 7/1/2021. Acts 2000, ch. 829, § 1.
(a) In this section, "entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which § 35-6-402 applies, a business or activity to which § 35-6-403 applies, or an asset-backed security to which § 35-6-415 applies.
(b) Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.
(c) A trustee shall allocate the following receipts from an entity to principal: (1) Property other than money; (2) Money received in one (1) distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity; (3) Money received in total or partial liquidation of the entity; and (4) Money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.
(1) Property other than money;
(2) Money received in one (1) distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity;
(3) Money received in total or partial liquidation of the entity; and
(4) Money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.
(d) Money is received in partial liquidation: (1) To the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation; or (2) If the total amount of money and property received in a distribution or series of related distributions is greater than twenty percent (20%) of the entity's gross assets, as shown by the entity's year-end financial statements or by an attestation by an officer of the entity's gross assets immediately preceding the initial receipt. If the total amount of money and property received in a distribution or series of related distributions is equal to or less than twenty percent (20%) of an entity's gross assets, then it is not a partial liquidation.
(1) To the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation; or
(2) If the total amount of money and property received in a distribution or series of related distributions is greater than twenty percent (20%) of the entity's gross assets, as shown by the entity's year-end financial statements or by an attestation by an officer of the entity's gross assets immediately preceding the initial receipt. If the total amount of money and property received in a distribution or series of related distributions is equal to or less than twenty percent (20%) of an entity's gross assets, then it is not a partial liquidation.
(e) Money is not received in partial liquidation, nor may it be taken into account under subdivision (d)(2), to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the entity that distributes the money.
(f) A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity's board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors.
Amended by 2021 Tenn. Acts, ch. 420, s 1, eff. 7/1/2021.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-15-406 — TN Code / Title 35 / Chapter 15 / Section 35-15-406
Creation of trust induced by fraud, duress, or undue influence
Status: in_force

A trust is void to the extent its creation was induced by fraud, duress, or undue influence. Acts 2004, ch. 537, § 28.
A trust is void to the extent its creation was induced by fraud, duress, or undue influence.
Acts 2004, ch. 537, § 28.
Tenn. Code Ann. § 35-12-103 — TN Code / Title 35 / Chapter 12 / Section 35-12-103
Who may obtain beneficiary form - Owners hold as joint tenants
Status: in_force

Only individuals whose registration of a security shows sole ownership by one (1) individual or multiple ownership by two (2) or more with right of survivorship, rather than as tenants in common, may obtain registration in beneficiary form. Multiple owners of a security registered in beneficiary form hold as joint tenants with right of survivorship, as tenants by the entireties, or as owners of community property held in survivorship form, and not as tenants in common. Acts 1995, ch. 471, § 1.
Only individuals whose registration of a security shows sole ownership by one (1) individual or multiple ownership by two (2) or more with right of survivorship, rather than as tenants in common, may obtain registration in beneficiary form. Multiple owners of a security registered in beneficiary form hold as joint tenants with right of survivorship, as tenants by the entireties, or as owners of community property held in survivorship form, and not as tenants in common.
Acts 1995, ch. 471, § 1.
Tenn. Code Ann. § 35-3-118 — TN Code / Title 35 / Chapter 3 / Section 35-3-118
Stocks or bonds held by fiduciary in nominee's name
Status: in_force

(a) Trustees, guardians and other fiduciaries owning stocks or registered bonds may hold them in the name of a nominee without mention of the fiduciary relationship in the stock certificates, stock registration books, or registered bond or bond registry; provided, that: (1) The records and all reports and accounts rendered by the fiduciary clearly show the ownership of the stock or bond by the fiduciary, and the facts regarding its holding; and (2) The nominee deposits with the fiduciary a signed statement showing the fiduciary ownership, either endorses the stock certificate or registered bond in blank, or signs a transfer power in blank, and attach it to the certificate or bond, and does not have possession of or access to the stock certificate or bond, except under the immediate supervision of the fiduciary. (b) The fiduciary shall be personally liable for any loss resulting from any act of the nominee in connection with the securities so held. (c) This section shall apply to all such fiduciary relationships. Acts 1953, ch. 165, §§ 1, 3 (Williams, § 9596.8b); 1957, ch. 49, § 1; T.C.A. (orig. ed.), § 35-325.
(a) Trustees, guardians and other fiduciaries owning stocks or registered bonds may hold them in the name of a nominee without mention of the fiduciary relationship in the stock certificates, stock registration books, or registered bond or bond registry; provided, that: (1) The records and all reports and accounts rendered by the fiduciary clearly show the ownership of the stock or bond by the fiduciary, and the facts regarding its holding; and (2) The nominee deposits with the fiduciary a signed statement showing the fiduciary ownership, either endorses the stock certificate or registered bond in blank, or signs a transfer power in blank, and attach it to the certificate or bond, and does not have possession of or access to the stock certificate or bond, except under the immediate supervision of the fiduciary.
(1) The records and all reports and accounts rendered by the fiduciary clearly show the ownership of the stock or bond by the fiduciary, and the facts regarding its holding; and
(2) The nominee deposits with the fiduciary a signed statement showing the fiduciary ownership, either endorses the stock certificate or registered bond in blank, or signs a transfer power in blank, and attach it to the certificate or bond, and does not have possession of or access to the stock certificate or bond, except under the immediate supervision of the fiduciary.
(b) The fiduciary shall be personally liable for any loss resulting from any act of the nominee in connection with the securities so held.
(c) This section shall apply to all such fiduciary relationships.
Acts 1953, ch. 165, §§ 1, 3 (Williams, § 9596.8b); 1957, ch. 49, § 1; T.C.A. (orig. ed.), § 35-325.
Tenn. Code Ann. § 35-7-110 — TN Code / Title 35 / Chapter 7 / Section 35-7-110
Manner of creating custodial property and effecting transfer - Designation of initial custodian - Control
Status: in_force

(a) Custodial property is created and a transfer is made whenever: (1) An uncertificated security or a certificated security in registered form is either: (A) Registered in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or (B) Delivered if in certificated form, or any document necessary for the transfer of an uncertificated security is delivered, together with any necessary endorsement to an adult other than the transferor or to a trust company as custodian, accompanied by an instrument in substantially the form set forth in subsection (b); (2) Money is paid or delivered, or a security held in the name of a broker, financial institution, or its nominee is transferred, to a broker or financial institution for credit to an account in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; (3) The ownership of a life or endowment insurance policy or annuity contract is either: (A) Registered with the issuer in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or (B) Assigned in a writing delivered to an adult other than the transferor or to a trust company whose name in the assignment is followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; (4) An irrevocable exercise of a power of appointment or an irrevocable present right to future payment under a contract is the subject of a written notification delivered to the payor, issuer, or other obligor that the right is transferred to the transferor, an adult other than the transferor, or a trust company, whose name in the notification is followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; (5) A deed for an interest in real property is recorded in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; (6) A certificate of title issued by a department or agency of a state or of the United States which evidences title to tangible personal property is either: (A) Issued in the name of the transferor, an adult other than the transferor, or a trust company followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or (B) Delivered to an adult other than the transferor or to a trust company, endorsed to that person followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or (7) An interest in any property not described in subdivisions (a)(1)-(6) is transferred to an adult other than the transferor or to a trust company by a written instrument in substantially the form set forth in subsection (b). (b) An instrument in the following form satisfies the requirements of subdivisions (a)(1)(B) and (7): Click here to view form. (c) As an alternative to the form of transfer set out in subdivisions (a)(1)-(6), custodial property may be registered, held, recorded or otherwise created in the name of the minor, followed in substance by the words "minor, by ______________ (name of custodian or custodians) under the Tennessee Uniform Transfers to Minors Act". (d) A transferor shall place the custodian in control of the custodial property as soon as practicable. Acts 1992, ch. 664, § 1; 1996, ch. 593, § 2; T.C.A. § 35-7-210.
(a) Custodial property is created and a transfer is made whenever: (1) An uncertificated security or a certificated security in registered form is either: (A) Registered in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or (B) Delivered if in certificated form, or any document necessary for the transfer of an uncertificated security is delivered, together with any necessary endorsement to an adult other than the transferor or to a trust company as custodian, accompanied by an instrument in substantially the form set forth in subsection (b); (2) Money is paid or delivered, or a security held in the name of a broker, financial institution, or its nominee is transferred, to a broker or financial institution for credit to an account in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; (3) The ownership of a life or endowment insurance policy or annuity contract is either: (A) Registered with the issuer in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or (B) Assigned in a writing delivered to an adult other than the transferor or to a trust company whose name in the assignment is followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; (4) An irrevocable exercise of a power of appointment or an irrevocable present right to future payment under a contract is the subject of a written notification delivered to the payor, issuer, or other obligor that the right is transferred to the transferor, an adult other than the transferor, or a trust company, whose name in the notification is followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; (5) A deed for an interest in real property is recorded in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; (6) A certificate of title issued by a department or agency of a state or of the United States which evidences title to tangible personal property is either: (A) Issued in the name of the transferor, an adult other than the transferor, or a trust company followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or (B) Delivered to an adult other than the transferor or to a trust company, endorsed to that person followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or (7) An interest in any property not described in subdivisions (a)(1)-(6) is transferred to an adult other than the transferor or to a trust company by a written instrument in substantially the form set forth in subsection (b).
(1) An uncertificated security or a certificated security in registered form is either: (A) Registered in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or (B) Delivered if in certificated form, or any document necessary for the transfer of an uncertificated security is delivered, together with any necessary endorsement to an adult other than the transferor or to a trust company as custodian, accompanied by an instrument in substantially the form set forth in subsection (b);
(A) Registered in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or
(B) Delivered if in certificated form, or any document necessary for the transfer of an uncertificated security is delivered, together with any necessary endorsement to an adult other than the transferor or to a trust company as custodian, accompanied by an instrument in substantially the form set forth in subsection (b);
(2) Money is paid or delivered, or a security held in the name of a broker, financial institution, or its nominee is transferred, to a broker or financial institution for credit to an account in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act";
(3) The ownership of a life or endowment insurance policy or annuity contract is either: (A) Registered with the issuer in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or (B) Assigned in a writing delivered to an adult other than the transferor or to a trust company whose name in the assignment is followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act";
(A) Registered with the issuer in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or
(B) Assigned in a writing delivered to an adult other than the transferor or to a trust company whose name in the assignment is followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act";
(4) An irrevocable exercise of a power of appointment or an irrevocable present right to future payment under a contract is the subject of a written notification delivered to the payor, issuer, or other obligor that the right is transferred to the transferor, an adult other than the transferor, or a trust company, whose name in the notification is followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act";
(5) A deed for an interest in real property is recorded in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act";
(6) A certificate of title issued by a department or agency of a state or of the United States which evidences title to tangible personal property is either: (A) Issued in the name of the transferor, an adult other than the transferor, or a trust company followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or (B) Delivered to an adult other than the transferor or to a trust company, endorsed to that person followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or
(A) Issued in the name of the transferor, an adult other than the transferor, or a trust company followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or
(B) Delivered to an adult other than the transferor or to a trust company, endorsed to that person followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act"; or
(7) An interest in any property not described in subdivisions (a)(1)-(6) is transferred to an adult other than the transferor or to a trust company by a written instrument in substantially the form set forth in subsection (b).
(b) An instrument in the following form satisfies the requirements of subdivisions (a)(1)(B) and (7): Click here to view form.
Click here to view form.
(c) As an alternative to the form of transfer set out in subdivisions (a)(1)-(6), custodial property may be registered, held, recorded or otherwise created in the name of the minor, followed in substance by the words "minor, by ______________ (name of custodian or custodians) under the Tennessee Uniform Transfers to Minors Act".
(d) A transferor shall place the custodian in control of the custodial property as soon as practicable.
Acts 1992, ch. 664, § 1; 1996, ch. 593, § 2; T.C.A. § 35-7-210.
7_110_1 - Attachment
Tenn. Code Ann. § 35-10-110 — TN Code / Title 35 / Chapter 10 / Section 35-10-110
Uniformity of application and construction
Status: in_force

In applying and construing the uniform act set out in this chapter, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. Acts 2007, ch. 186, § 10; T.C.A. § 35-10-210 .
In applying and construing the uniform act set out in this chapter, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
Acts 2007, ch. 186, § 10; T.C.A. § 35-10-210 .
Tenn. Code Ann. § 35-5-110 — TN Code / Title 35 / Chapter 5 / Section 35-5-110
Bidding on land sales may be reopened by clerks - Court's power not abridged
Status: in_force

In all sales of land made under orders, and decrees of the circuit, probate, chancery, appeals and supreme courts where an advance bid of as much as ten percent (10%) of the original bid is made, the clerk, or clerk and master, of the court is empowered, at no additional fee, commission or cost, to accept the advance bid and reopen the biddings on the sale, and to receive additional bids, and to hold the sale open for advance bids to some day by the officer designated, and give the purchaser and the parties, or their attorneys of record, notice of the reopening of the biddings, and to report this action to the court for confirmation without any order or decree of the court authorizing the reopening first being had, unless the court's order or decree for the sale of the land specifically prohibits the acceptance of an advance bid; provided, that nothing in this section shall be construed as abridging the rights and jurisdiction of the court to reopen the biddings on such terms as the court may deem right. Amended by 2014 Tenn. Acts, ch. 930,s 1, eff. 5/16/2014. Acts 1899, ch. 37, § 1; Shan., § 3848a1; mod. Code 1932, §7804; T.C.A. (orig. ed.), § 35-511.
In all sales of land made under orders, and decrees of the circuit, probate, chancery, appeals and supreme courts where an advance bid of as much as ten percent (10%) of the original bid is made, the clerk, or clerk and master, of the court is empowered, at no additional fee, commission or cost, to accept the advance bid and reopen the biddings on the sale, and to receive additional bids, and to hold the sale open for advance bids to some day by the officer designated, and give the purchaser and the parties, or their attorneys of record, notice of the reopening of the biddings, and to report this action to the court for confirmation without any order or decree of the court authorizing the reopening first being had, unless the court's order or decree for the sale of the land specifically prohibits the acceptance of an advance bid; provided, that nothing in this section shall be construed as abridging the rights and jurisdiction of the court to reopen the biddings on such terms as the court may deem right.
Amended by 2014 Tenn. Acts, ch. 930,s 1, eff. 5/16/2014.
Acts 1899, ch. 37, § 1; Shan., § 3848a1; mod. Code 1932, §7804; T.C.A. (orig. ed.), § 35-511.
Tenn. Code Ann. § 35-6-201 — TN Code / Title 35 / Chapter 6 / Section 35-6-201
Determination and distribution of net income
Status: in_force

After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply: (1) A fiduciary of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received from property specifically given to a beneficiary under the rules in parts 3-5 of this chapter which apply to trustees and the rules in subdivision (5). The fiduciary shall distribute the net income and net principal receipts to the beneficiary who is to receive the specific property; (2) A fiduciary shall determine the remaining net income of a decedent's estate or a terminating income interest under the rules in parts 3-5 of this chapter which apply to trustees and by: (A) Including in net income all income from property used to discharge liabilities; (B) Paying from income or principal, in the fiduciary's discretion, fees of attorneys, accountants, and fiduciaries; court costs and other expenses of administration; and interest on death taxes; but the fiduciary may pay those expenses from income of property passing to a trust for which the fiduciary claims an estate tax marital or charitable deduction only to the extent that the payment of those expenses from income will not cause the reduction or loss of the deduction; and (C) Paying from principal all other disbursements made or incurred in connection with the settlement of a decedent's estate or the winding up of a terminating income interest, including debts, funeral expenses, disposition of remains, family allowances, and death taxes and related penalties that are apportioned to the estate or terminating income interest by the will, the terms of the trust, or applicable law; (3) A fiduciary shall distribute to a beneficiary who receives a pecuniary amount outright the interest or any other amount provided by the will, the terms of the trust, or applicable law from net income determined under subdivision (2) or from principal to the extent that net income is insufficient. If a beneficiary is to receive a pecuniary amount outright from a trust after an income interest ends and no interest or other amount is provided for by the terms of the trust or applicable law, the fiduciary shall distribute the interest or other amount to which the beneficiary would be entitled under applicable law if the pecuniary amount were required to be paid under a will; (4) A fiduciary shall distribute the net income remaining after distributions required by subdivision (3) of this section in the manner described in § 35-6-202 to all other beneficiaries, including a beneficiary who receives a pecuniary amount in trust, even if the beneficiary holds an unqualified power to withdraw assets from the trust or other presently exercisable general power of appointment over the trust; (5) A fiduciary may not reduce principal or income receipts from property described in subdivision (1) of this section because of a payment described in §§ 35-6-501 or 35-6-502 to the extent that the will, the terms of the trust, or applicable law requires the fiduciary to make the payment from assets other than the property or to the extent that the fiduciary recovers or expects to recover the payment from a third party. The net income and principal receipts from the property are determined by including all of the amounts the fiduciary receives or pays with respect to the property, whether those amounts accrued or became due before, on, or after the date of a decedent's death or an income interest's terminating event, and by making a reasonable provision for amounts that the fiduciary believes the estate or terminating income interest may become obligated to pay after the property is distributed. Acts 2000, ch. 829, § 1.
After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply:
(1) A fiduciary of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received from property specifically given to a beneficiary under the rules in parts 3-5 of this chapter which apply to trustees and the rules in subdivision (5). The fiduciary shall distribute the net income and net principal receipts to the beneficiary who is to receive the specific property;
(2) A fiduciary shall determine the remaining net income of a decedent's estate or a terminating income interest under the rules in parts 3-5 of this chapter which apply to trustees and by: (A) Including in net income all income from property used to discharge liabilities; (B) Paying from income or principal, in the fiduciary's discretion, fees of attorneys, accountants, and fiduciaries; court costs and other expenses of administration; and interest on death taxes; but the fiduciary may pay those expenses from income of property passing to a trust for which the fiduciary claims an estate tax marital or charitable deduction only to the extent that the payment of those expenses from income will not cause the reduction or loss of the deduction; and (C) Paying from principal all other disbursements made or incurred in connection with the settlement of a decedent's estate or the winding up of a terminating income interest, including debts, funeral expenses, disposition of remains, family allowances, and death taxes and related penalties that are apportioned to the estate or terminating income interest by the will, the terms of the trust, or applicable law;
(A) Including in net income all income from property used to discharge liabilities;
(B) Paying from income or principal, in the fiduciary's discretion, fees of attorneys, accountants, and fiduciaries; court costs and other expenses of administration; and interest on death taxes; but the fiduciary may pay those expenses from income of property passing to a trust for which the fiduciary claims an estate tax marital or charitable deduction only to the extent that the payment of those expenses from income will not cause the reduction or loss of the deduction; and
(C) Paying from principal all other disbursements made or incurred in connection with the settlement of a decedent's estate or the winding up of a terminating income interest, including debts, funeral expenses, disposition of remains, family allowances, and death taxes and related penalties that are apportioned to the estate or terminating income interest by the will, the terms of the trust, or applicable law;
(3) A fiduciary shall distribute to a beneficiary who receives a pecuniary amount outright the interest or any other amount provided by the will, the terms of the trust, or applicable law from net income determined under subdivision (2) or from principal to the extent that net income is insufficient. If a beneficiary is to receive a pecuniary amount outright from a trust after an income interest ends and no interest or other amount is provided for by the terms of the trust or applicable law, the fiduciary shall distribute the interest or other amount to which the beneficiary would be entitled under applicable law if the pecuniary amount were required to be paid under a will;
(4) A fiduciary shall distribute the net income remaining after distributions required by subdivision (3) of this section in the manner described in § 35-6-202 to all other beneficiaries, including a beneficiary who receives a pecuniary amount in trust, even if the beneficiary holds an unqualified power to withdraw assets from the trust or other presently exercisable general power of appointment over the trust;
(5) A fiduciary may not reduce principal or income receipts from property described in subdivision (1) of this section because of a payment described in §§ 35-6-501 or 35-6-502 to the extent that the will, the terms of the trust, or applicable law requires the fiduciary to make the payment from assets other than the property or to the extent that the fiduciary recovers or expects to recover the payment from a third party. The net income and principal receipts from the property are determined by including all of the amounts the fiduciary receives or pays with respect to the property, whether those amounts accrued or became due before, on, or after the date of a decedent's death or an income interest's terminating event, and by making a reasonable provision for amounts that the fiduciary believes the estate or terminating income interest may become obligated to pay after the property is distributed.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-6-412 — TN Code / Title 35 / Chapter 6 / Section 35-6-412
Timber
Status: in_force

(a) To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts to: (1) Income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest; (2) Principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber; (3) Between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in subdivisions (1) and (2); or (4) Principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to subdivision (1), (2), or (3). (b) In determining net receipts to be allocated pursuant to subsection (a), a trustee shall deduct and transfer to principal a reasonable amount for depletion. (c) This chapter applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust. (d) If a trust owns an interest in timberland on June 30, 1999, the trustee may allocate net receipts from the sale of timber and related products as provided in this chapter or in the manner used by the trustee before July 1, 1999. If the trust acquires an interest in timberland on or after July 1, 1999, the trustee shall allocate net receipts from the sale of timber and related products as provided in this chapter. Acts 2000, ch. 829, § 1.
(a) To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts to: (1) Income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest; (2) Principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber; (3) Between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in subdivisions (1) and (2); or (4) Principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to subdivision (1), (2), or (3).
(1) Income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;
(2) Principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;
(3) Between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in subdivisions (1) and (2); or
(4) Principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to subdivision (1), (2), or (3).
(b) In determining net receipts to be allocated pursuant to subsection (a), a trustee shall deduct and transfer to principal a reasonable amount for depletion.
(c) This chapter applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.
(d) If a trust owns an interest in timberland on June 30, 1999, the trustee may allocate net receipts from the sale of timber and related products as provided in this chapter or in the manner used by the trustee before July 1, 1999. If the trust acquires an interest in timberland on or after July 1, 1999, the trustee shall allocate net receipts from the sale of timber and related products as provided in this chapter.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-50-104 — TN Code / Title 35 / Chapter 50 / Section 35-50-104
Purchase of annuity contract
Status: in_force

(a) In order to relieve estates and trusts of the burden of an annuity, the chancery court, on petition of one (1) or more of the beneficiaries in remainder in the estate or trust, or any portion of the estate or trust, is empowered, when not in terms prohibited by the will or trust instrument, to decree the purchase, in behalf of the annuitant, of an annuity contract of some insurance company, or insurer, that will afford the accordant definite income, for the stated term of life, stipulated for the annuitant by the law, or provision of the will or trust. (b) The cost of the annuity contract shall be paid out of the funds of the estate or trust; provided, that the contract shall be purchased only from a company or insurer admitted to do business in the state; and provided further, that all persons in interest, including the trustee or other fiduciary, complainant or defendant, shall be parties to the petition, and that the annuitant shall consent to the purchase and to the release of the annuitant's claim upon the estate or trust; or the court in the annuitant's behalf, if the annuitant is a minor or incompetent. (c) The annuity contract shall be one issued by a company or insurer, selected by, or for as aforementioned, the annuitant and approved by the court. (d) Should any beneficiary of a remainder interest not concur, that person's interest in the estate or trust shall not be distributed until the death of the annuitant or expiration of the term stipulated, nor charged with any part of the cost of the contract. In that event, however, the beneficiary or beneficiaries of the remainder interest concurring shall be entitled to distribution of their respective interests, upon paying the cost of an annuity contract as will be productive of an income to the annuitant proportionate to their interest in the entire remainder estate, and paying all costs of the application. (e) Nothing in this section shall be construed to authorize the acceleration of distribution except where it appears to the court that the payment of an annuity, or its equivalent, is the sole remaining purpose of the trust's continuance. Acts 1929, ch. 23, §§ 1, 2; mod. Code 1932, §§8135-8138; T.C.A. (orig. ed.), §§ 35-603 -- 35-606.
(a) In order to relieve estates and trusts of the burden of an annuity, the chancery court, on petition of one (1) or more of the beneficiaries in remainder in the estate or trust, or any portion of the estate or trust, is empowered, when not in terms prohibited by the will or trust instrument, to decree the purchase, in behalf of the annuitant, of an annuity contract of some insurance company, or insurer, that will afford the accordant definite income, for the stated term of life, stipulated for the annuitant by the law, or provision of the will or trust.
(b) The cost of the annuity contract shall be paid out of the funds of the estate or trust; provided, that the contract shall be purchased only from a company or insurer admitted to do business in the state; and provided further, that all persons in interest, including the trustee or other fiduciary, complainant or defendant, shall be parties to the petition, and that the annuitant shall consent to the purchase and to the release of the annuitant's claim upon the estate or trust; or the court in the annuitant's behalf, if the annuitant is a minor or incompetent.
(c) The annuity contract shall be one issued by a company or insurer, selected by, or for as aforementioned, the annuitant and approved by the court.
(d) Should any beneficiary of a remainder interest not concur, that person's interest in the estate or trust shall not be distributed until the death of the annuitant or expiration of the term stipulated, nor charged with any part of the cost of the contract. In that event, however, the beneficiary or beneficiaries of the remainder interest concurring shall be entitled to distribution of their respective interests, upon paying the cost of an annuity contract as will be productive of an income to the annuitant proportionate to their interest in the entire remainder estate, and paying all costs of the application.
(e) Nothing in this section shall be construed to authorize the acceleration of distribution except where it appears to the court that the payment of an annuity, or its equivalent, is the sole remaining purpose of the trust's continuance.
Acts 1929, ch. 23, §§ 1, 2; mod. Code 1932, §§8135-8138; T.C.A. (orig. ed.), §§ 35-603 -- 35-606.
Tenn. Code Ann. § 35-15-1007 — TN Code / Title 35 / Chapter 15 / Section 35-15-1007
Event affecting administration or distribution
Status: in_force

If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the trustee's lack of knowledge. Acts 2004, ch. 537, § 83.
If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the trustee's lack of knowledge.
Acts 2004, ch. 537, § 83.
Tenn. Code Ann. § 35-15-504 — TN Code / Title 35 / Chapter 15 / Section 35-15-504
Discretionary interests - Effect thereof
Status: in_force

(a) A discretionary interest is neither a property interest nor an enforceable right; it is a mere expectancy. (b) Relative to a discretionary interest, whether or not a trust contains a spendthrift provision: (1) No creditor or assignee shall force or otherwise reach a distribution with regard to a discretionary interest; (2) No creditor or assignee shall require a trustee, cotrustee or other fiduciary to exercise the trustee's, cotrustee's or other fiduciary's discretion to make a distribution with regard to a discretionary interest; (3) Regardless of whether a beneficiary has any outstanding creditors or assignees, a trustee, cotrustee or other fiduciary of a discretionary interest may directly pay any expense on behalf of such beneficiary and may exhaust the income and principal of the trust for the benefit of such beneficiary; (4) No trustee, cotrustee or other fiduciary is liable to any creditor or assignee for paying the expenses of a beneficiary of a discretionary interest; (5) (A) Regardless of whether a beneficiary holding a discretionary interest is also a trustee, cotrustee or other fiduciary, subdivisions (b)(1)-(4) remain applicable if: (i) The beneficiary-fiduciary does not have the discretion to make or participate in making distributions to such beneficiary-fiduciary; (ii) The beneficiary-fiduciary's discretion to make or participate in making distributions to such beneficiary-fiduciary is limited by an ascertainable standard; or (iii) The beneficiary-fiduciary's discretion to make or participate in making distributions to such beneficiary-fiduciary is exercisable only with the consent of a cotrustee or another person holding an adverse interest; (B) A creditor or assignee may compel or otherwise reach a distribution only to the extent the creditor or assignee may compel or otherwise reach a distribution if the beneficiary was not acting as a trustee, cotrustee or other fiduciary. Amended by 2013 Tenn. Acts, ch. 390, s 17, eff. 7/1/2013. Acts 2004, ch. 537, § 43; 2007 , ch. 24, § 22.
(a) A discretionary interest is neither a property interest nor an enforceable right; it is a mere expectancy.
(b) Relative to a discretionary interest, whether or not a trust contains a spendthrift provision: (1) No creditor or assignee shall force or otherwise reach a distribution with regard to a discretionary interest; (2) No creditor or assignee shall require a trustee, cotrustee or other fiduciary to exercise the trustee's, cotrustee's or other fiduciary's discretion to make a distribution with regard to a discretionary interest; (3) Regardless of whether a beneficiary has any outstanding creditors or assignees, a trustee, cotrustee or other fiduciary of a discretionary interest may directly pay any expense on behalf of such beneficiary and may exhaust the income and principal of the trust for the benefit of such beneficiary; (4) No trustee, cotrustee or other fiduciary is liable to any creditor or assignee for paying the expenses of a beneficiary of a discretionary interest; (5) (A) Regardless of whether a beneficiary holding a discretionary interest is also a trustee, cotrustee or other fiduciary, subdivisions (b)(1)-(4) remain applicable if: (i) The beneficiary-fiduciary does not have the discretion to make or participate in making distributions to such beneficiary-fiduciary; (ii) The beneficiary-fiduciary's discretion to make or participate in making distributions to such beneficiary-fiduciary is limited by an ascertainable standard; or (iii) The beneficiary-fiduciary's discretion to make or participate in making distributions to such beneficiary-fiduciary is exercisable only with the consent of a cotrustee or another person holding an adverse interest; (B) A creditor or assignee may compel or otherwise reach a distribution only to the extent the creditor or assignee may compel or otherwise reach a distribution if the beneficiary was not acting as a trustee, cotrustee or other fiduciary.
(1) No creditor or assignee shall force or otherwise reach a distribution with regard to a discretionary interest;
(2) No creditor or assignee shall require a trustee, cotrustee or other fiduciary to exercise the trustee's, cotrustee's or other fiduciary's discretion to make a distribution with regard to a discretionary interest;
(3) Regardless of whether a beneficiary has any outstanding creditors or assignees, a trustee, cotrustee or other fiduciary of a discretionary interest may directly pay any expense on behalf of such beneficiary and may exhaust the income and principal of the trust for the benefit of such beneficiary;
(4) No trustee, cotrustee or other fiduciary is liable to any creditor or assignee for paying the expenses of a beneficiary of a discretionary interest;
(5) (A) Regardless of whether a beneficiary holding a discretionary interest is also a trustee, cotrustee or other fiduciary, subdivisions (b)(1)-(4) remain applicable if: (i) The beneficiary-fiduciary does not have the discretion to make or participate in making distributions to such beneficiary-fiduciary; (ii) The beneficiary-fiduciary's discretion to make or participate in making distributions to such beneficiary-fiduciary is limited by an ascertainable standard; or (iii) The beneficiary-fiduciary's discretion to make or participate in making distributions to such beneficiary-fiduciary is exercisable only with the consent of a cotrustee or another person holding an adverse interest; (B) A creditor or assignee may compel or otherwise reach a distribution only to the extent the creditor or assignee may compel or otherwise reach a distribution if the beneficiary was not acting as a trustee, cotrustee or other fiduciary.
(A) Regardless of whether a beneficiary holding a discretionary interest is also a trustee, cotrustee or other fiduciary, subdivisions (b)(1)-(4) remain applicable if: (i) The beneficiary-fiduciary does not have the discretion to make or participate in making distributions to such beneficiary-fiduciary; (ii) The beneficiary-fiduciary's discretion to make or participate in making distributions to such beneficiary-fiduciary is limited by an ascertainable standard; or (iii) The beneficiary-fiduciary's discretion to make or participate in making distributions to such beneficiary-fiduciary is exercisable only with the consent of a cotrustee or another person holding an adverse interest;
(i) The beneficiary-fiduciary does not have the discretion to make or participate in making distributions to such beneficiary-fiduciary;
(ii) The beneficiary-fiduciary's discretion to make or participate in making distributions to such beneficiary-fiduciary is limited by an ascertainable standard; or
(iii) The beneficiary-fiduciary's discretion to make or participate in making distributions to such beneficiary-fiduciary is exercisable only with the consent of a cotrustee or another person holding an adverse interest;
(B) A creditor or assignee may compel or otherwise reach a distribution only to the extent the creditor or assignee may compel or otherwise reach a distribution if the beneficiary was not acting as a trustee, cotrustee or other fiduciary.
Amended by 2013 Tenn. Acts, ch. 390, s 17, eff. 7/1/2013.
Acts 2004, ch. 537, § 43; 2007 , ch. 24, § 22.
Tenn. Code Ann. § 35-6-109 — TN Code / Title 35 / Chapter 6 / Section 35-6-109
Express total return unitrusts
Status: in_force

(a) This section shall apply to a trust that, by its governing instrument, requires or permits the distribution, at least annually, of a unitrust amount equal to a fixed percentage of not less than three percent (3%) nor more than five percent (5%) per year of the fair market value of the trust's assets, valued at least annually, such trust to be referred to in this section as an "express total return unitrust". (b) The unitrust amount for an express total return unitrust may be determined by reference to the fair market value of the trust's assets in one (1) year or more than one (1) year. (c) Distribution of such a fixed percentage unitrust amount is considered a distribution of all of the income of the express total return unitrust. (d) An express total return unitrust may or may not provide a mechanism for changing the unitrust percentage similar to the mechanism provided under § 35-6-108 , based upon the factors noted therein, and may or may not provide for a conversion from a unitrust to an income trust and/or a reconversion of an income trust to a unitrust similar to the mechanism under § 35-6-108 . (e) If an express total return unitrust does not specifically or by reference to § 35-6-108 deny a power to change the unitrust percentage or to convert to an income trust, then the trustee shall have such power and the express total return unitrust shall be deemed to be a "total return unitrust" within the meaning of § 35-6-108 for purposes of applying § 35-6-108 to the trust. (f) The distribution of a fixed percentage of not less than three percent (3%) nor more than five percent (5%) reasonably apportions the total return of an express total return unitrust. (g) The trust instrument may grant discretion to the trustee to adopt a consistent practice of treating capital gains as part of the unitrust distribution, to the extent that the unitrust distribution exceeds the net accounting income, or it may specify the ordering of such classes of income. (h) Unless the terms of the trust specifically provide otherwise, a distribution of the unitrust amount from an express total return unitrust shall be considered to have been made from the following sources in order of priority: (1) From net accounting income determined as if the trust were not a unitrust; (2) From ordinary income not allocable to net accounting income; (3) After calculating the trust's capital gain net income as described in 26 U.S.C. § 1222(9) , from net realized short-term capital gain as described in 26 U.S.C. § 1222(5) and then from net realized long-term capital gain described in 26 U.S.C. § 1222(7) ; and (4) From the principal of the trust. (i) The trust instrument may provide that assets: (1) For which a fair market value cannot be readily ascertained shall be valued using such valuation methods as are deemed reasonable and appropriate; and (2) Used by a trust beneficiary, such as a residence property or tangible personal property, may be excluded from the net fair market value for computing the unitrust amount. (j) In this section, "Internal Revenue Code" refers to the Internal Revenue Code of 1986 (U.S.C. title 26), and any references to a section thereof shall include any successor, substituted, or amended section of the Internal Revenue Code. Acts 2010, ch. 725, § 21.
(a) This section shall apply to a trust that, by its governing instrument, requires or permits the distribution, at least annually, of a unitrust amount equal to a fixed percentage of not less than three percent (3%) nor more than five percent (5%) per year of the fair market value of the trust's assets, valued at least annually, such trust to be referred to in this section as an "express total return unitrust".
(b) The unitrust amount for an express total return unitrust may be determined by reference to the fair market value of the trust's assets in one (1) year or more than one (1) year.
(c) Distribution of such a fixed percentage unitrust amount is considered a distribution of all of the income of the express total return unitrust.
(d) An express total return unitrust may or may not provide a mechanism for changing the unitrust percentage similar to the mechanism provided under § 35-6-108 , based upon the factors noted therein, and may or may not provide for a conversion from a unitrust to an income trust and/or a reconversion of an income trust to a unitrust similar to the mechanism under § 35-6-108 .
(e) If an express total return unitrust does not specifically or by reference to § 35-6-108 deny a power to change the unitrust percentage or to convert to an income trust, then the trustee shall have such power and the express total return unitrust shall be deemed to be a "total return unitrust" within the meaning of § 35-6-108 for purposes of applying § 35-6-108 to the trust.
(f) The distribution of a fixed percentage of not less than three percent (3%) nor more than five percent (5%) reasonably apportions the total return of an express total return unitrust.
(g) The trust instrument may grant discretion to the trustee to adopt a consistent practice of treating capital gains as part of the unitrust distribution, to the extent that the unitrust distribution exceeds the net accounting income, or it may specify the ordering of such classes of income.
(h) Unless the terms of the trust specifically provide otherwise, a distribution of the unitrust amount from an express total return unitrust shall be considered to have been made from the following sources in order of priority: (1) From net accounting income determined as if the trust were not a unitrust; (2) From ordinary income not allocable to net accounting income; (3) After calculating the trust's capital gain net income as described in 26 U.S.C. § 1222(9) , from net realized short-term capital gain as described in 26 U.S.C. § 1222(5) and then from net realized long-term capital gain described in 26 U.S.C. § 1222(7) ; and (4) From the principal of the trust.
(1) From net accounting income determined as if the trust were not a unitrust;
(2) From ordinary income not allocable to net accounting income;
(3) After calculating the trust's capital gain net income as described in 26 U.S.C. § 1222(9) , from net realized short-term capital gain as described in 26 U.S.C. § 1222(5) and then from net realized long-term capital gain described in 26 U.S.C. § 1222(7) ; and
(4) From the principal of the trust.
(i) The trust instrument may provide that assets: (1) For which a fair market value cannot be readily ascertained shall be valued using such valuation methods as are deemed reasonable and appropriate; and (2) Used by a trust beneficiary, such as a residence property or tangible personal property, may be excluded from the net fair market value for computing the unitrust amount.
(1) For which a fair market value cannot be readily ascertained shall be valued using such valuation methods as are deemed reasonable and appropriate; and
(2) Used by a trust beneficiary, such as a residence property or tangible personal property, may be excluded from the net fair market value for computing the unitrust amount.
(j) In this section, "Internal Revenue Code" refers to the Internal Revenue Code of 1986 (U.S.C. title 26), and any references to a section thereof shall include any successor, substituted, or amended section of the Internal Revenue Code.
Acts 2010, ch. 725, § 21.
Tenn. Code Ann. § 35-15-813 — TN Code / Title 35 / Chapter 15 / Section 35-15-813
Duty to inform and report
Status: in_force

(a) (1) A trustee shall keep the beneficiaries of the trust who are current mandatory or permissible distributees of trust income or principal, or both, reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests. If a trust is divided into separate shares for the sole benefit of a single beneficiary or a separate group of beneficiaries, the trustee's duty shall apply only to the beneficiary or beneficiaries of the separate share of the trust. (2) Unless unreasonable under the circumstances, a trustee shall respond in a reasonable amount of time to a qualified beneficiary's request for information related to the administration of the trust. Additionally, a qualified beneficiary shall reimburse the trustee for any reasonable expenses incurred in responding to requests for information. (3) The requirements of subdivisions (a)(1) and (2) shall also apply to the benefit of anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment. (b) (1) The trustee of an irrevocable or nongrantor trust within sixty (60) days after the acceptance and funding of a trust, excluding nominal funding for the trust to have corpus or the depositing of insurance policies on the life of a living person, shall notify each current income beneficiary, each vested ultimate beneficiary of a remainder interest and anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment, that the trust has been established. (2) The required notice shall: (A) Be sent by first class mail or personal delivery; and (B) Consist of either a complete copy of the document establishing the trust together with the trustee's name, address and telephone number or an abstract of the trust, whichever the trustee, in the trustee's absolute discretion, may choose. (3) The abstract shall contain: (A) The name, address and telephone number of each trustee; (B) If for a current income beneficiary: (i) The number of other current income beneficiaries; (ii) Whether distributions of income are required or discretionary; (iii) Whether distributions of principal are permitted and, if so, for what purpose or purposes; (iv) An estimate of the value of the trust at the date of the notice from which distributions may be made; and (v) An estimate of the income that may be distributable to the beneficiary; (C) If for a remainder beneficiary: (i) The number of other remainder beneficiaries; (ii) An estimate of the value of the trust at the date of the notice; and (iii) The conditions which must be met before the beneficiary's share is distributable; and (D) If for anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment, all of the information required by subdivisions (b)(3)(A)-(C) necessary or beneficial for that person to effectively determine whether or not to exercise that power of appointment. (c) Upon the termination of an interest of any one (1) or more of the current income beneficiaries: (1) The trustee shall similarly notify the income beneficiaries who are takers of the terminated interest of their interest by sending or delivering them the notice required in subsection (b); and (2) If at that time the period described in subsection (b) has lapsed, the trustee shall similarly notify anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment by sending or delivering to such person the notice required in subsection (b). (d) A beneficiary may waive the right to a trustee's report or other information otherwise required to be furnished under this section. A beneficiary, with respect to future reports and other information, may withdraw a waiver previously given. Anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment has the same power as provided a beneficiary in this subsection (d) to waive reports and other information and to withdraw a waiver previously given. During the time a beneficiary is represented by another pursuant to § 35-15-303 , a trustee shall send its report or other information otherwise required to be furnished under this section to the representative of the beneficiary, which has the same effect as sending the report or other information otherwise required to be furnished under this section to the beneficiary being represented. (e) Subsections (a) and (b) do not apply to the extent: (1) That the terms of the trust provide otherwise; or (2) The settlor of the trust, or a trust protector or trust advisor under part 12 of this chapter, that holds the power to so direct, directs otherwise in a writing delivered to the trustee. Directions made in a writing delivered to the trustee by the settlor, trust advisor, or trust protector as set forth in this subdivision (e)(2) remain in effect until and unless the settlor, trust advisor, or trust protector revokes the written instructions or is incapacitated. Additionally, the written directions remain in effect only while the trust advisor or trust protector providing the written directions is serving as the current trust advisor or trust protector. Unless otherwise specifically provided in the written directions, upon the death or incapacity of a settlor who provided the written directions described in this subdivision (e)(2), the directions are revoked. However, upon the death or incapacity of the settlor, a trust advisor or trust protector, if any, may further direct the trustee in writing pursuant to this subdivision (e)(2). Unless otherwise stated in the governing instrument, in the event of a conflict in the written directions, the written directions of the settlor control. Notwithstanding this subdivision (e)(2), during the time a settlor has designated a representative to represent and bind the interests of a beneficiary or beneficiaries under § 35-15-303 , a trustee shall send its report or other information otherwise required to be furnished under this section to the representative designated by the settlor until the settlor revokes the designation or until the designated representative ceases serving. Sending reports or other information otherwise required to be furnished to a designated representative has the same effect as sending the report or other information otherwise required to be furnished under this section to the beneficiary or beneficiaries being represented. To the extent a settlor, trust advisor, or trust protector directs a trustee not to send its report or other information otherwise required to be furnished under this section to a beneficiary or beneficiaries and does not designate a representative to receive the information, the trustee shall send the information it would otherwise be required to send to the beneficiary or beneficiaries to the settlor, trust advisor, or trust protector, which has the same effect as sending the report or other information otherwise required to be furnished under this section to the beneficiary or beneficiaries. (f) Subdivision (a)(1) and subsection (b) do not apply to a trust created under a trust agreement that became irrevocable before July 1, 2004. Trust law in effect prior to July 1, 2004, regarding the subject matter of subdivision (a)(1) and subsection (b) shall continue to apply to those trusts. (g) If the trustee of a trust is bound by any written confidentiality restrictions with respect to an asset of a trust, a trustee may require that any beneficiary who is eligible to receive information pursuant to this or any other section of this title about such asset shall agree in writing to be bound by the confidentiality restrictions that bind the trustee before receiving such information from the trustee. (h) A trust advisor, trust protector, or other fiduciary designated by the terms of the trust shall keep each excluded fiduciary designated by the terms of the trust reasonably informed about: (1) The administration of the trust with respect to any specific duty or function being performed by the trust advisor, trust protector, or other fiduciary to the extent that the duty or function would normally be performed by the excluded fiduciary or to the extent that providing such information to the excluded fiduciary is reasonably necessary for the excluded fiduciary to perform its duties; and (2) Any other material information that the excluded fiduciary would be required to disclose to the specified beneficiaries under subsection (a) regardless of whether the terms of the trust relieve the excluded fiduciary from providing such information to qualified beneficiaries. Neither the performance nor the failure to perform of a trust advisor, trust protector, or other fiduciary designated by the terms of the trust as provided in this subsection (h) shall affect the limitation on the liability of any excluded fiduciary provided by part 12 of this chapter. Amended by 2022 Tenn. Acts, ch. 877, s 1, eff. 4/14/2022. Amended by 2021 Tenn. Acts, ch. 420, s 11, eff. 7/1/2021. Amended by 2021 Tenn. Acts, ch. 420, s 10, eff. 7/1/2021. Amended by 2019 Tenn. Acts, ch. 197, s 6, eff. 4/25/2019. Amended by 2013 Tenn. Acts, ch. 390, s 32, eff. 7/1/2013. Acts 2004, ch. 537, § 71; 2007 , ch. 24, §§ 28 - 30; 2010 , ch. 725, § 9.
(a) (1) A trustee shall keep the beneficiaries of the trust who are current mandatory or permissible distributees of trust income or principal, or both, reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests. If a trust is divided into separate shares for the sole benefit of a single beneficiary or a separate group of beneficiaries, the trustee's duty shall apply only to the beneficiary or beneficiaries of the separate share of the trust. (2) Unless unreasonable under the circumstances, a trustee shall respond in a reasonable amount of time to a qualified beneficiary's request for information related to the administration of the trust. Additionally, a qualified beneficiary shall reimburse the trustee for any reasonable expenses incurred in responding to requests for information. (3) The requirements of subdivisions (a)(1) and (2) shall also apply to the benefit of anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment.
(1) A trustee shall keep the beneficiaries of the trust who are current mandatory or permissible distributees of trust income or principal, or both, reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests. If a trust is divided into separate shares for the sole benefit of a single beneficiary or a separate group of beneficiaries, the trustee's duty shall apply only to the beneficiary or beneficiaries of the separate share of the trust.
(2) Unless unreasonable under the circumstances, a trustee shall respond in a reasonable amount of time to a qualified beneficiary's request for information related to the administration of the trust. Additionally, a qualified beneficiary shall reimburse the trustee for any reasonable expenses incurred in responding to requests for information.
(3) The requirements of subdivisions (a)(1) and (2) shall also apply to the benefit of anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment.
(b) (1) The trustee of an irrevocable or nongrantor trust within sixty (60) days after the acceptance and funding of a trust, excluding nominal funding for the trust to have corpus or the depositing of insurance policies on the life of a living person, shall notify each current income beneficiary, each vested ultimate beneficiary of a remainder interest and anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment, that the trust has been established. (2) The required notice shall: (A) Be sent by first class mail or personal delivery; and (B) Consist of either a complete copy of the document establishing the trust together with the trustee's name, address and telephone number or an abstract of the trust, whichever the trustee, in the trustee's absolute discretion, may choose. (3) The abstract shall contain: (A) The name, address and telephone number of each trustee; (B) If for a current income beneficiary: (i) The number of other current income beneficiaries; (ii) Whether distributions of income are required or discretionary; (iii) Whether distributions of principal are permitted and, if so, for what purpose or purposes; (iv) An estimate of the value of the trust at the date of the notice from which distributions may be made; and (v) An estimate of the income that may be distributable to the beneficiary; (C) If for a remainder beneficiary: (i) The number of other remainder beneficiaries; (ii) An estimate of the value of the trust at the date of the notice; and (iii) The conditions which must be met before the beneficiary's share is distributable; and (D) If for anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment, all of the information required by subdivisions (b)(3)(A)-(C) necessary or beneficial for that person to effectively determine whether or not to exercise that power of appointment.
(1) The trustee of an irrevocable or nongrantor trust within sixty (60) days after the acceptance and funding of a trust, excluding nominal funding for the trust to have corpus or the depositing of insurance policies on the life of a living person, shall notify each current income beneficiary, each vested ultimate beneficiary of a remainder interest and anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment, that the trust has been established.
(2) The required notice shall: (A) Be sent by first class mail or personal delivery; and (B) Consist of either a complete copy of the document establishing the trust together with the trustee's name, address and telephone number or an abstract of the trust, whichever the trustee, in the trustee's absolute discretion, may choose.
(A) Be sent by first class mail or personal delivery; and
(B) Consist of either a complete copy of the document establishing the trust together with the trustee's name, address and telephone number or an abstract of the trust, whichever the trustee, in the trustee's absolute discretion, may choose.
(3) The abstract shall contain: (A) The name, address and telephone number of each trustee; (B) If for a current income beneficiary: (i) The number of other current income beneficiaries; (ii) Whether distributions of income are required or discretionary; (iii) Whether distributions of principal are permitted and, if so, for what purpose or purposes; (iv) An estimate of the value of the trust at the date of the notice from which distributions may be made; and (v) An estimate of the income that may be distributable to the beneficiary; (C) If for a remainder beneficiary: (i) The number of other remainder beneficiaries; (ii) An estimate of the value of the trust at the date of the notice; and (iii) The conditions which must be met before the beneficiary's share is distributable; and (D) If for anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment, all of the information required by subdivisions (b)(3)(A)-(C) necessary or beneficial for that person to effectively determine whether or not to exercise that power of appointment.
(A) The name, address and telephone number of each trustee;
(B) If for a current income beneficiary: (i) The number of other current income beneficiaries; (ii) Whether distributions of income are required or discretionary; (iii) Whether distributions of principal are permitted and, if so, for what purpose or purposes; (iv) An estimate of the value of the trust at the date of the notice from which distributions may be made; and (v) An estimate of the income that may be distributable to the beneficiary;
(i) The number of other current income beneficiaries;
(ii) Whether distributions of income are required or discretionary;
(iii) Whether distributions of principal are permitted and, if so, for what purpose or purposes;
(iv) An estimate of the value of the trust at the date of the notice from which distributions may be made; and
(v) An estimate of the income that may be distributable to the beneficiary;
(C) If for a remainder beneficiary: (i) The number of other remainder beneficiaries; (ii) An estimate of the value of the trust at the date of the notice; and (iii) The conditions which must be met before the beneficiary's share is distributable; and
(i) The number of other remainder beneficiaries;
(ii) An estimate of the value of the trust at the date of the notice; and
(iii) The conditions which must be met before the beneficiary's share is distributable; and
(D) If for anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment, all of the information required by subdivisions (b)(3)(A)-(C) necessary or beneficial for that person to effectively determine whether or not to exercise that power of appointment.
(c) Upon the termination of an interest of any one (1) or more of the current income beneficiaries: (1) The trustee shall similarly notify the income beneficiaries who are takers of the terminated interest of their interest by sending or delivering them the notice required in subsection (b); and (2) If at that time the period described in subsection (b) has lapsed, the trustee shall similarly notify anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment by sending or delivering to such person the notice required in subsection (b).
(1) The trustee shall similarly notify the income beneficiaries who are takers of the terminated interest of their interest by sending or delivering them the notice required in subsection (b); and
(2) If at that time the period described in subsection (b) has lapsed, the trustee shall similarly notify anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment by sending or delivering to such person the notice required in subsection (b).
(d) A beneficiary may waive the right to a trustee's report or other information otherwise required to be furnished under this section. A beneficiary, with respect to future reports and other information, may withdraw a waiver previously given. Anyone who, in a capacity other than that of a fiduciary, as defined by § 35-15-103 , holds a power of appointment has the same power as provided a beneficiary in this subsection (d) to waive reports and other information and to withdraw a waiver previously given. During the time a beneficiary is represented by another pursuant to § 35-15-303 , a trustee shall send its report or other information otherwise required to be furnished under this section to the representative of the beneficiary, which has the same effect as sending the report or other information otherwise required to be furnished under this section to the beneficiary being represented.
(e) Subsections (a) and (b) do not apply to the extent: (1) That the terms of the trust provide otherwise; or (2) The settlor of the trust, or a trust protector or trust advisor under part 12 of this chapter, that holds the power to so direct, directs otherwise in a writing delivered to the trustee. Directions made in a writing delivered to the trustee by the settlor, trust advisor, or trust protector as set forth in this subdivision (e)(2) remain in effect until and unless the settlor, trust advisor, or trust protector revokes the written instructions or is incapacitated. Additionally, the written directions remain in effect only while the trust advisor or trust protector providing the written directions is serving as the current trust advisor or trust protector. Unless otherwise specifically provided in the written directions, upon the death or incapacity of a settlor who provided the written directions described in this subdivision (e)(2), the directions are revoked. However, upon the death or incapacity of the settlor, a trust advisor or trust protector, if any, may further direct the trustee in writing pursuant to this subdivision (e)(2). Unless otherwise stated in the governing instrument, in the event of a conflict in the written directions, the written directions of the settlor control. Notwithstanding this subdivision (e)(2), during the time a settlor has designated a representative to represent and bind the interests of a beneficiary or beneficiaries under § 35-15-303 , a trustee shall send its report or other information otherwise required to be furnished under this section to the representative designated by the settlor until the settlor revokes the designation or until the designated representative ceases serving. Sending reports or other information otherwise required to be furnished to a designated representative has the same effect as sending the report or other information otherwise required to be furnished under this section to the beneficiary or beneficiaries being represented. To the extent a settlor, trust advisor, or trust protector directs a trustee not to send its report or other information otherwise required to be furnished under this section to a beneficiary or beneficiaries and does not designate a representative to receive the information, the trustee shall send the information it would otherwise be required to send to the beneficiary or beneficiaries to the settlor, trust advisor, or trust protector, which has the same effect as sending the report or other information otherwise required to be furnished under this section to the beneficiary or beneficiaries.
(1) That the terms of the trust provide otherwise; or
(2) The settlor of the trust, or a trust protector or trust advisor under part 12 of this chapter, that holds the power to so direct, directs otherwise in a writing delivered to the trustee. Directions made in a writing delivered to the trustee by the settlor, trust advisor, or trust protector as set forth in this subdivision (e)(2) remain in effect until and unless the settlor, trust advisor, or trust protector revokes the written instructions or is incapacitated. Additionally, the written directions remain in effect only while the trust advisor or trust protector providing the written directions is serving as the current trust advisor or trust protector. Unless otherwise specifically provided in the written directions, upon the death or incapacity of a settlor who provided the written directions described in this subdivision (e)(2), the directions are revoked. However, upon the death or incapacity of the settlor, a trust advisor or trust protector, if any, may further direct the trustee in writing pursuant to this subdivision (e)(2). Unless otherwise stated in the governing instrument, in the event of a conflict in the written directions, the written directions of the settlor control. Notwithstanding this subdivision (e)(2), during the time a settlor has designated a representative to represent and bind the interests of a beneficiary or beneficiaries under § 35-15-303 , a trustee shall send its report or other information otherwise required to be furnished under this section to the representative designated by the settlor until the settlor revokes the designation or until the designated representative ceases serving. Sending reports or other information otherwise required to be furnished to a designated representative has the same effect as sending the report or other information otherwise required to be furnished under this section to the beneficiary or beneficiaries being represented. To the extent a settlor, trust advisor, or trust protector directs a trustee not to send its report or other information otherwise required to be furnished under this section to a beneficiary or beneficiaries and does not designate a representative to receive the information, the trustee shall send the information it would otherwise be required to send to the beneficiary or beneficiaries to the settlor, trust advisor, or trust protector, which has the same effect as sending the report or other information otherwise required to be furnished under this section to the beneficiary or beneficiaries.
(f) Subdivision (a)(1) and subsection (b) do not apply to a trust created under a trust agreement that became irrevocable before July 1, 2004. Trust law in effect prior to July 1, 2004, regarding the subject matter of subdivision (a)(1) and subsection (b) shall continue to apply to those trusts.
(g) If the trustee of a trust is bound by any written confidentiality restrictions with respect to an asset of a trust, a trustee may require that any beneficiary who is eligible to receive information pursuant to this or any other section of this title about such asset shall agree in writing to be bound by the confidentiality restrictions that bind the trustee before receiving such information from the trustee.
(h) A trust advisor, trust protector, or other fiduciary designated by the terms of the trust shall keep each excluded fiduciary designated by the terms of the trust reasonably informed about: (1) The administration of the trust with respect to any specific duty or function being performed by the trust advisor, trust protector, or other fiduciary to the extent that the duty or function would normally be performed by the excluded fiduciary or to the extent that providing such information to the excluded fiduciary is reasonably necessary for the excluded fiduciary to perform its duties; and (2) Any other material information that the excluded fiduciary would be required to disclose to the specified beneficiaries under subsection (a) regardless of whether the terms of the trust relieve the excluded fiduciary from providing such information to qualified beneficiaries. Neither the performance nor the failure to perform of a trust advisor, trust protector, or other fiduciary designated by the terms of the trust as provided in this subsection (h) shall affect the limitation on the liability of any excluded fiduciary provided by part 12 of this chapter.
(1) The administration of the trust with respect to any specific duty or function being performed by the trust advisor, trust protector, or other fiduciary to the extent that the duty or function would normally be performed by the excluded fiduciary or to the extent that providing such information to the excluded fiduciary is reasonably necessary for the excluded fiduciary to perform its duties; and
(2) Any other material information that the excluded fiduciary would be required to disclose to the specified beneficiaries under subsection (a) regardless of whether the terms of the trust relieve the excluded fiduciary from providing such information to qualified beneficiaries. Neither the performance nor the failure to perform of a trust advisor, trust protector, or other fiduciary designated by the terms of the trust as provided in this subsection (h) shall affect the limitation on the liability of any excluded fiduciary provided by part 12 of this chapter.
Amended by 2022 Tenn. Acts, ch. 877, s 1, eff. 4/14/2022.
Amended by 2021 Tenn. Acts, ch. 420, s 11, eff. 7/1/2021.
Amended by 2021 Tenn. Acts, ch. 420, s 10, eff. 7/1/2021.
Amended by 2019 Tenn. Acts, ch. 197, s 6, eff. 4/25/2019.
Amended by 2013 Tenn. Acts, ch. 390, s 32, eff. 7/1/2013.
Acts 2004, ch. 537, § 71; 2007 , ch. 24, §§ 28 - 30; 2010 , ch. 725, § 9.
Tenn. Code Ann. § 35-15-408 — TN Code / Title 35 / Chapter 15 / Section 35-15-408
Trust for care of animal
Status: in_force

(a) A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of more than one (1) animal alive during the settlor's lifetime, upon the death of the last surviving animal. The trust may not be enforced for more than ninety (90) years. (b) A trust authorized by this section may be enforced by any of the following who are appointed under the terms of a trust: a trustee, trust advisor, trust protector or other person or, if no person is so appointed, by a person appointed by the court. In addition, a person having an interest in the welfare of the animal may request the court to appoint a person to enforce the trust or to remove a person appointed. (c) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use must be distributed to the settlor, if then living, otherwise to the settlor's successors in interest. Amended by 2013 Tenn. Acts, ch. 390,s 11, eff. 7/1/2013. Acts 2004, ch. 537, § 30; 2007, ch. 24, § 13.
(a) A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of more than one (1) animal alive during the settlor's lifetime, upon the death of the last surviving animal. The trust may not be enforced for more than ninety (90) years.
(b) A trust authorized by this section may be enforced by any of the following who are appointed under the terms of a trust: a trustee, trust advisor, trust protector or other person or, if no person is so appointed, by a person appointed by the court. In addition, a person having an interest in the welfare of the animal may request the court to appoint a person to enforce the trust or to remove a person appointed.
(c) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use must be distributed to the settlor, if then living, otherwise to the settlor's successors in interest.
Amended by 2013 Tenn. Acts, ch. 390,s 11, eff. 7/1/2013.
Acts 2004, ch. 537, § 30; 2007, ch. 24, § 13.
Tenn. Code Ann. § 35-15-404 — TN Code / Title 35 / Chapter 15 / Section 35-15-404
Trust purposes
Status: in_force

A trust may be created only to the extent its purposes are lawful and possible to achieve. A trust and its terms must be for the benefit of its beneficiaries as the interests of such beneficiaries are defined under the terms of the trust. Amended by 2013 Tenn. Acts, ch. 390,s 50, eff. 7/1/2013. Acts 2004, ch. 537, § 26.
A trust may be created only to the extent its purposes are lawful and possible to achieve. A trust and its terms must be for the benefit of its beneficiaries as the interests of such beneficiaries are defined under the terms of the trust.
Amended by 2013 Tenn. Acts, ch. 390,s 50, eff. 7/1/2013.
Acts 2004, ch. 537, § 26.
Tenn. Code Ann. § 35-15-814 — TN Code / Title 35 / Chapter 15 / Section 35-15-814
Exercise of powers over discretionary and other interests - Tax savings
Status: in_force

(a) Relative to exercise of powers over discretionary and other interests: (1) "Improper motive" means to demonstrate action such as the following: (A) A trustee refusing to make or limiting distributions to beneficiaries other than the trustee due to the trustee's self interest when the trustee also holds a beneficial interest subject to a discretionary interest; or (B) A trustee making a distribution in excess of an ascertainable standard to such trustee as beneficiary when the trustee is restricted by an ascertainable standard in the trust; (2) Unless otherwise provided in the trust: (A) If the settlor's spouse is named as a beneficiary, the settlor's spouse is still living and the trust is classified as a support trust, then the trustee shall consider the resources of the settlor's spouse, including the settlor's obligation of support, prior to making a distribution; and (B) In all other cases, unless otherwise provided in the trust, the trustee need not consider the beneficiary's resources in determining whether a distribution should be made. (b) The following provisions apply only to discretionary interests: (1) A discretionary interest is neither a property interest nor an enforceable right; it is a mere expectancy; (2) A court may review a trustee's distribution discretion only if the trustee acts dishonestly, acts with an improper motive, or fails to act if under a duty to do so; (3) A reasonableness standard shall not be applied to the exercise of discretion by the trustee with regard to a discretionary interest; (4) Other than for the three (3) circumstances listed in subdivision (b)(2) or to enforce the limitations of subsection (d), a court has no jurisdiction to review the trustee's discretion or to force a distribution; and (5) Absent express language in the trust instrument to the contrary, in the event that the distribution language in a discretionary interest permits unequal distributions between beneficiaries or distributions to the exclusion of other beneficiaries, the trustee may distribute all of the accumulated, accrued, or undistributed income and principal to one beneficiary in the trustee's discretion. (c) The following provisions apply only to mandatory or support interests: (1) A beneficiary of a mandatory or a support interest has an enforceable right to a distribution pursuant to a court's review; (2) A trustee's distribution decision may be reviewed for unreasonableness, dishonesty, improper motivation, or failure to act if under a duty to do so; and (3) In the case of a support interest, nothing in this section shall raise a beneficiary's support interest to the level of a property interest. (d) Unless otherwise provided in subsection (f), and unless the terms of the trust expressly indicate that a rule in this subsection (d) does not apply: (1) A person other than a settlor who is a beneficiary and trustee of a trust that confers on the trustee a power to make discretionary distributions to or for the trustee's personal benefit may exercise the power only in accordance with an ascertainable standard; and (2) A trustee may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee personally owes another person. (e) A power that is limited or prohibited by subsection (d) may be exercised by a majority of the remaining trustees whose exercise of the power is not so limited or prohibited. If the power of all trustees is so limited or prohibited, the court may appoint a special fiduciary with authority to exercise the power. (f) Subsection (d) shall not apply to: (1) A power held by the settlor's spouse who is the trustee of a trust for which a marital deduction, as defined in § 2056(b)(5) or § 2523(e) of the Internal Revenue Code ( 26 U.S.C. § 2056(b)(5) and § 2523(e) ), was previously allowed; (2) Any trust during any period that the trust may be revoked or amended by its settlor; or (3) A trust if contributions to the trust qualify for the annual exclusion under § 2503(c) of the Internal Revenue Code ( 26 U.S.C. § 2503(c) ). Amended by 2014 Tenn. Acts, ch. 829, s 7, eff. 4/29/2014. Amended by 2013 Tenn. Acts, ch. 390, s 36, eff. 7/1/2013. Acts 2004, ch. 537, § 72; 2007 , ch. 24, § 31.
(a) Relative to exercise of powers over discretionary and other interests: (1) "Improper motive" means to demonstrate action such as the following: (A) A trustee refusing to make or limiting distributions to beneficiaries other than the trustee due to the trustee's self interest when the trustee also holds a beneficial interest subject to a discretionary interest; or (B) A trustee making a distribution in excess of an ascertainable standard to such trustee as beneficiary when the trustee is restricted by an ascertainable standard in the trust; (2) Unless otherwise provided in the trust: (A) If the settlor's spouse is named as a beneficiary, the settlor's spouse is still living and the trust is classified as a support trust, then the trustee shall consider the resources of the settlor's spouse, including the settlor's obligation of support, prior to making a distribution; and (B) In all other cases, unless otherwise provided in the trust, the trustee need not consider the beneficiary's resources in determining whether a distribution should be made.
(1) "Improper motive" means to demonstrate action such as the following: (A) A trustee refusing to make or limiting distributions to beneficiaries other than the trustee due to the trustee's self interest when the trustee also holds a beneficial interest subject to a discretionary interest; or (B) A trustee making a distribution in excess of an ascertainable standard to such trustee as beneficiary when the trustee is restricted by an ascertainable standard in the trust;
(A) A trustee refusing to make or limiting distributions to beneficiaries other than the trustee due to the trustee's self interest when the trustee also holds a beneficial interest subject to a discretionary interest; or
(B) A trustee making a distribution in excess of an ascertainable standard to such trustee as beneficiary when the trustee is restricted by an ascertainable standard in the trust;
(2) Unless otherwise provided in the trust: (A) If the settlor's spouse is named as a beneficiary, the settlor's spouse is still living and the trust is classified as a support trust, then the trustee shall consider the resources of the settlor's spouse, including the settlor's obligation of support, prior to making a distribution; and (B) In all other cases, unless otherwise provided in the trust, the trustee need not consider the beneficiary's resources in determining whether a distribution should be made.
(A) If the settlor's spouse is named as a beneficiary, the settlor's spouse is still living and the trust is classified as a support trust, then the trustee shall consider the resources of the settlor's spouse, including the settlor's obligation of support, prior to making a distribution; and
(B) In all other cases, unless otherwise provided in the trust, the trustee need not consider the beneficiary's resources in determining whether a distribution should be made.
(b) The following provisions apply only to discretionary interests: (1) A discretionary interest is neither a property interest nor an enforceable right; it is a mere expectancy; (2) A court may review a trustee's distribution discretion only if the trustee acts dishonestly, acts with an improper motive, or fails to act if under a duty to do so; (3) A reasonableness standard shall not be applied to the exercise of discretion by the trustee with regard to a discretionary interest; (4) Other than for the three (3) circumstances listed in subdivision (b)(2) or to enforce the limitations of subsection (d), a court has no jurisdiction to review the trustee's discretion or to force a distribution; and (5) Absent express language in the trust instrument to the contrary, in the event that the distribution language in a discretionary interest permits unequal distributions between beneficiaries or distributions to the exclusion of other beneficiaries, the trustee may distribute all of the accumulated, accrued, or undistributed income and principal to one beneficiary in the trustee's discretion.
(1) A discretionary interest is neither a property interest nor an enforceable right; it is a mere expectancy;
(2) A court may review a trustee's distribution discretion only if the trustee acts dishonestly, acts with an improper motive, or fails to act if under a duty to do so;
(3) A reasonableness standard shall not be applied to the exercise of discretion by the trustee with regard to a discretionary interest;
(4) Other than for the three (3) circumstances listed in subdivision (b)(2) or to enforce the limitations of subsection (d), a court has no jurisdiction to review the trustee's discretion or to force a distribution; and
(5) Absent express language in the trust instrument to the contrary, in the event that the distribution language in a discretionary interest permits unequal distributions between beneficiaries or distributions to the exclusion of other beneficiaries, the trustee may distribute all of the accumulated, accrued, or undistributed income and principal to one beneficiary in the trustee's discretion.
(c) The following provisions apply only to mandatory or support interests: (1) A beneficiary of a mandatory or a support interest has an enforceable right to a distribution pursuant to a court's review; (2) A trustee's distribution decision may be reviewed for unreasonableness, dishonesty, improper motivation, or failure to act if under a duty to do so; and (3) In the case of a support interest, nothing in this section shall raise a beneficiary's support interest to the level of a property interest.
(1) A beneficiary of a mandatory or a support interest has an enforceable right to a distribution pursuant to a court's review;
(2) A trustee's distribution decision may be reviewed for unreasonableness, dishonesty, improper motivation, or failure to act if under a duty to do so; and
(3) In the case of a support interest, nothing in this section shall raise a beneficiary's support interest to the level of a property interest.
(d) Unless otherwise provided in subsection (f), and unless the terms of the trust expressly indicate that a rule in this subsection (d) does not apply: (1) A person other than a settlor who is a beneficiary and trustee of a trust that confers on the trustee a power to make discretionary distributions to or for the trustee's personal benefit may exercise the power only in accordance with an ascertainable standard; and (2) A trustee may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee personally owes another person.
(1) A person other than a settlor who is a beneficiary and trustee of a trust that confers on the trustee a power to make discretionary distributions to or for the trustee's personal benefit may exercise the power only in accordance with an ascertainable standard; and
(2) A trustee may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee personally owes another person.
(e) A power that is limited or prohibited by subsection (d) may be exercised by a majority of the remaining trustees whose exercise of the power is not so limited or prohibited. If the power of all trustees is so limited or prohibited, the court may appoint a special fiduciary with authority to exercise the power.
(f) Subsection (d) shall not apply to: (1) A power held by the settlor's spouse who is the trustee of a trust for which a marital deduction, as defined in § 2056(b)(5) or § 2523(e) of the Internal Revenue Code ( 26 U.S.C. § 2056(b)(5) and § 2523(e) ), was previously allowed; (2) Any trust during any period that the trust may be revoked or amended by its settlor; or (3) A trust if contributions to the trust qualify for the annual exclusion under § 2503(c) of the Internal Revenue Code ( 26 U.S.C. § 2503(c) ).
(1) A power held by the settlor's spouse who is the trustee of a trust for which a marital deduction, as defined in § 2056(b)(5) or § 2523(e) of the Internal Revenue Code ( 26 U.S.C. § 2056(b)(5) and § 2523(e) ), was previously allowed;
(2) Any trust during any period that the trust may be revoked or amended by its settlor; or
(3) A trust if contributions to the trust qualify for the annual exclusion under § 2503(c) of the Internal Revenue Code ( 26 U.S.C. § 2503(c) ).
Amended by 2014 Tenn. Acts, ch. 829, s 7, eff. 4/29/2014.
Amended by 2013 Tenn. Acts, ch. 390, s 36, eff. 7/1/2013.
Acts 2004, ch. 537, § 72; 2007 , ch. 24, § 31.
Tenn. Code Ann. § 35-15-303 — TN Code / Title 35 / Chapter 15 / Section 35-15-303
Representation by fiduciaries and parents
Status: in_force

(a) To the extent there is no material conflict of interest between the representative and the person represented or among those being represented with respect to a particular question or dispute: (1) A conservator of the property or guardian of the property may represent and bind the estate that the conservator or guardian controls; (2) A conservator of the person or guardian of the person may represent and bind the ward if a conservator or guardian of the ward's estate has not been appointed; (3) An agent having authority to act with respect to the particular question or dispute may represent and bind the principal; (4) A trustee may represent and bind the beneficiaries of the trust; (5) When a trust is a beneficiary of another trust, the beneficiary trust may be represented by its trustee or, if the beneficiary trust has not yet been created, has previously terminated, or is otherwise not then in existence, or the trustee is unwilling or unable to represent the trust, the beneficiary trust may be represented by those persons who are qualified beneficiaries or who would be qualified beneficiaries of the beneficiary trust if the beneficiary trust were then in existence; (6) A personal representative of a decedent's estate may represent and bind persons interested in the estate; (7) A person may represent and bind the person's minor or unborn descendant if a guardian of the property or of the person for the descendant has not been appointed. If a disagreement arises between persons seeking to represent the same minor or unborn descendant, then representation is determined as follows: (A) If only one (1) person is a beneficiary of the trust that is the subject of the representation, then that person may represent the minor descendant or unborn descendant; (B) If both persons are beneficiaries of the trust that is the subject of the representation, then the person who is related to the settlor, other than by reason of being married to the other person, may represent the minor descendant or unborn descendant; (C) Subject to subdivision (a)(7)(D), if neither person is a beneficiary of the trust that is the subject of the representation, then the person who is the settlor of the trust that is the subject of the representation may represent the minor descendant or unborn descendant; or (D) If neither person is a beneficiary or settlor of the trust that is the subject of the representation, then the person who is related to the settlor, other than by reason of being married to the other person, may represent the minor descendant or unborn descendant; (8) A person designated by the settlor in the trust instrument or in a writing delivered to the trustee to represent the beneficiaries of the trust may represent and bind the beneficiaries; (9) A person designated by the beneficiaries of the trust to represent them may represent and bind the beneficiaries; and (10) If a disinterested party is serving as trustee, then a parent, grandparent, sibling, or spouse of an incapacitated adult who has assumed responsibility for the adult as determined by the disinterested trustee in the trustee's own discretion, may represent and bind the incapacitated adult if a conservator of the property or of the person has not been appointed and an agent does not have authority to act with respect to the matter in question. (b) As used in subdivision (5), "beneficiary trust" means a trust that is a beneficiary of another trust. Amended by 2024 Tenn. Acts, ch. 695,s 3, eff. 7/1/2024. Amended by 2023 Tenn. Acts, ch. 166, s 2, eff. 4/17/2023. Amended by 2023 Tenn. Acts, ch. 166, s 1, eff. 4/17/2023. Acts 2004, ch. 537, § 20; 2007 , ch. 24, §§ 11, 12; 2010 , ch. 725, § 4.
(a) To the extent there is no material conflict of interest between the representative and the person represented or among those being represented with respect to a particular question or dispute: (1) A conservator of the property or guardian of the property may represent and bind the estate that the conservator or guardian controls; (2) A conservator of the person or guardian of the person may represent and bind the ward if a conservator or guardian of the ward's estate has not been appointed; (3) An agent having authority to act with respect to the particular question or dispute may represent and bind the principal; (4) A trustee may represent and bind the beneficiaries of the trust; (5) When a trust is a beneficiary of another trust, the beneficiary trust may be represented by its trustee or, if the beneficiary trust has not yet been created, has previously terminated, or is otherwise not then in existence, or the trustee is unwilling or unable to represent the trust, the beneficiary trust may be represented by those persons who are qualified beneficiaries or who would be qualified beneficiaries of the beneficiary trust if the beneficiary trust were then in existence; (6) A personal representative of a decedent's estate may represent and bind persons interested in the estate; (7) A person may represent and bind the person's minor or unborn descendant if a guardian of the property or of the person for the descendant has not been appointed. If a disagreement arises between persons seeking to represent the same minor or unborn descendant, then representation is determined as follows: (A) If only one (1) person is a beneficiary of the trust that is the subject of the representation, then that person may represent the minor descendant or unborn descendant; (B) If both persons are beneficiaries of the trust that is the subject of the representation, then the person who is related to the settlor, other than by reason of being married to the other person, may represent the minor descendant or unborn descendant; (C) Subject to subdivision (a)(7)(D), if neither person is a beneficiary of the trust that is the subject of the representation, then the person who is the settlor of the trust that is the subject of the representation may represent the minor descendant or unborn descendant; or (D) If neither person is a beneficiary or settlor of the trust that is the subject of the representation, then the person who is related to the settlor, other than by reason of being married to the other person, may represent the minor descendant or unborn descendant; (8) A person designated by the settlor in the trust instrument or in a writing delivered to the trustee to represent the beneficiaries of the trust may represent and bind the beneficiaries; (9) A person designated by the beneficiaries of the trust to represent them may represent and bind the beneficiaries; and (10) If a disinterested party is serving as trustee, then a parent, grandparent, sibling, or spouse of an incapacitated adult who has assumed responsibility for the adult as determined by the disinterested trustee in the trustee's own discretion, may represent and bind the incapacitated adult if a conservator of the property or of the person has not been appointed and an agent does not have authority to act with respect to the matter in question.
(1) A conservator of the property or guardian of the property may represent and bind the estate that the conservator or guardian controls;
(2) A conservator of the person or guardian of the person may represent and bind the ward if a conservator or guardian of the ward's estate has not been appointed;
(3) An agent having authority to act with respect to the particular question or dispute may represent and bind the principal;
(4) A trustee may represent and bind the beneficiaries of the trust;
(5) When a trust is a beneficiary of another trust, the beneficiary trust may be represented by its trustee or, if the beneficiary trust has not yet been created, has previously terminated, or is otherwise not then in existence, or the trustee is unwilling or unable to represent the trust, the beneficiary trust may be represented by those persons who are qualified beneficiaries or who would be qualified beneficiaries of the beneficiary trust if the beneficiary trust were then in existence;
(6) A personal representative of a decedent's estate may represent and bind persons interested in the estate;
(7) A person may represent and bind the person's minor or unborn descendant if a guardian of the property or of the person for the descendant has not been appointed. If a disagreement arises between persons seeking to represent the same minor or unborn descendant, then representation is determined as follows: (A) If only one (1) person is a beneficiary of the trust that is the subject of the representation, then that person may represent the minor descendant or unborn descendant; (B) If both persons are beneficiaries of the trust that is the subject of the representation, then the person who is related to the settlor, other than by reason of being married to the other person, may represent the minor descendant or unborn descendant; (C) Subject to subdivision (a)(7)(D), if neither person is a beneficiary of the trust that is the subject of the representation, then the person who is the settlor of the trust that is the subject of the representation may represent the minor descendant or unborn descendant; or (D) If neither person is a beneficiary or settlor of the trust that is the subject of the representation, then the person who is related to the settlor, other than by reason of being married to the other person, may represent the minor descendant or unborn descendant;
(A) If only one (1) person is a beneficiary of the trust that is the subject of the representation, then that person may represent the minor descendant or unborn descendant;
(B) If both persons are beneficiaries of the trust that is the subject of the representation, then the person who is related to the settlor, other than by reason of being married to the other person, may represent the minor descendant or unborn descendant;
(C) Subject to subdivision (a)(7)(D), if neither person is a beneficiary of the trust that is the subject of the representation, then the person who is the settlor of the trust that is the subject of the representation may represent the minor descendant or unborn descendant; or
(D) If neither person is a beneficiary or settlor of the trust that is the subject of the representation, then the person who is related to the settlor, other than by reason of being married to the other person, may represent the minor descendant or unborn descendant;
(8) A person designated by the settlor in the trust instrument or in a writing delivered to the trustee to represent the beneficiaries of the trust may represent and bind the beneficiaries;
(9) A person designated by the beneficiaries of the trust to represent them may represent and bind the beneficiaries; and
(10) If a disinterested party is serving as trustee, then a parent, grandparent, sibling, or spouse of an incapacitated adult who has assumed responsibility for the adult as determined by the disinterested trustee in the trustee's own discretion, may represent and bind the incapacitated adult if a conservator of the property or of the person has not been appointed and an agent does not have authority to act with respect to the matter in question.
(b) As used in subdivision (5), "beneficiary trust" means a trust that is a beneficiary of another trust.
Amended by 2024 Tenn. Acts, ch. 695,s 3, eff. 7/1/2024.
Amended by 2023 Tenn. Acts, ch. 166, s 2, eff. 4/17/2023.
Amended by 2023 Tenn. Acts, ch. 166, s 1, eff. 4/17/2023.
Acts 2004, ch. 537, § 20; 2007 , ch. 24, §§ 11, 12; 2010 , ch. 725, § 4.
Tenn. Code Ann. § 35-14-109 — TN Code / Title 35 / Chapter 14 / Section 35-14-109
Investment costs
Status: in_force

In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee. Acts 2002, ch. 696, § 9.
In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee.
Acts 2002, ch. 696, § 9.