Tenn. Code Ann. § 35-8-108 — TN Code / Title 35 / Chapter 8 / Section 35-8-108
Disclosure of other digital assets of deceased user
Status: in_force

Unless the user prohibited disclosure of digital assets or the court directs otherwise, a custodian shall disclose to the personal representative of the estate of a deceased user a catalogue of electronic communications sent or received by the user and digital assets, other than the content of electronic communications, of the user, if the representative gives the custodian: (1) A written request for disclosure in physical or electronic form; (2) A certified copy of the death certificate of the user; (3) A certified copy of any of the following: the letters of administration or letters testamentary appointing the personal representative; a small-estate affidavit under title 30, chapter 4; or a court order; and (4) If requested by the custodian: (A) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the user's account; (B) Evidence linking the account to the user; (C) An affidavit stating that disclosure of the user's digital assets is reasonably necessary for administration of the estate; or (D) A finding by the court that: (i) The user had a specific account with the custodian, identifiable by the information specified in subdivision (4)(A); or (ii) Disclosure of the user's digital assets is reasonably necessary for administration of the estate. Added by 2016 Tenn. Acts, ch. 570,s 9, eff. 7/1/2016.
Unless the user prohibited disclosure of digital assets or the court directs otherwise, a custodian shall disclose to the personal representative of the estate of a deceased user a catalogue of electronic communications sent or received by the user and digital assets, other than the content of electronic communications, of the user, if the representative gives the custodian:
(1) A written request for disclosure in physical or electronic form;
(2) A certified copy of the death certificate of the user;
(3) A certified copy of any of the following: the letters of administration or letters testamentary appointing the personal representative; a small-estate affidavit under title 30, chapter 4; or a court order; and
(4) If requested by the custodian: (A) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the user's account; (B) Evidence linking the account to the user; (C) An affidavit stating that disclosure of the user's digital assets is reasonably necessary for administration of the estate; or (D) A finding by the court that: (i) The user had a specific account with the custodian, identifiable by the information specified in subdivision (4)(A); or (ii) Disclosure of the user's digital assets is reasonably necessary for administration of the estate.
(A) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the user's account;
(B) Evidence linking the account to the user;
(C) An affidavit stating that disclosure of the user's digital assets is reasonably necessary for administration of the estate; or
(D) A finding by the court that: (i) The user had a specific account with the custodian, identifiable by the information specified in subdivision (4)(A); or (ii) Disclosure of the user's digital assets is reasonably necessary for administration of the estate.
(i) The user had a specific account with the custodian, identifiable by the information specified in subdivision (4)(A); or
(ii) Disclosure of the user's digital assets is reasonably necessary for administration of the estate.
Added by 2016 Tenn. Acts, ch. 570,s 9, eff. 7/1/2016.
Tenn. Code Ann. § 35-8-116 — TN Code / Title 35 / Chapter 8 / Section 35-8-116
Fiduciary duty
Status: in_force

(a) Not later than sixty (60) days after receipt of the information required under §§ 35-8-107 - 35-8-115, a custodian shall comply with a request under this chapter from a fiduciary or designated recipient to disclose digital assets or terminate an account. If the custodian fails to comply, the fiduciary or designated recipient may apply to the court for an order directing compliance. (b) An order under subsection (a) directing compliance must contain a finding that compliance is not in violation of 18 U.S.C. § 2702 . (c) A custodian may notify the user that a request for disclosure or to terminate an account was made under this chapter. (d) A custodian may deny a request under this chapter from a fiduciary or designated recipient for disclosure of digital assets or to terminate an account if the custodian is aware of any lawful access to the account following the receipt of the fiduciary's request. (e) This chapter does not limit a custodian's ability to obtain or require a fiduciary or designated recipient requesting disclosure or termination under this chapter to obtain a court order which: (1) Specifies that an account belongs to the minor, person with a disability, principal, or settlor; (2) Specifies that there is sufficient consent from the minor, person with a disability, principal, or settlor to support the requested disclosure; and (3) Contains a finding required by law other than this chapter. (f) A custodian and the custodian's officers, employees, and agents are immune from liability for an act or omission done in good faith in compliance with this chapter. Added by 2016 Tenn. Acts, ch. 570,s 17, eff. 7/1/2016.
(a) Not later than sixty (60) days after receipt of the information required under §§ 35-8-107 - 35-8-115, a custodian shall comply with a request under this chapter from a fiduciary or designated recipient to disclose digital assets or terminate an account. If the custodian fails to comply, the fiduciary or designated recipient may apply to the court for an order directing compliance.
(b) An order under subsection (a) directing compliance must contain a finding that compliance is not in violation of 18 U.S.C. § 2702 .
(c) A custodian may notify the user that a request for disclosure or to terminate an account was made under this chapter.
(d) A custodian may deny a request under this chapter from a fiduciary or designated recipient for disclosure of digital assets or to terminate an account if the custodian is aware of any lawful access to the account following the receipt of the fiduciary's request.
(e) This chapter does not limit a custodian's ability to obtain or require a fiduciary or designated recipient requesting disclosure or termination under this chapter to obtain a court order which: (1) Specifies that an account belongs to the minor, person with a disability, principal, or settlor; (2) Specifies that there is sufficient consent from the minor, person with a disability, principal, or settlor to support the requested disclosure; and (3) Contains a finding required by law other than this chapter.
(1) Specifies that an account belongs to the minor, person with a disability, principal, or settlor;
(2) Specifies that there is sufficient consent from the minor, person with a disability, principal, or settlor to support the requested disclosure; and
(3) Contains a finding required by law other than this chapter.
(f) A custodian and the custodian's officers, employees, and agents are immune from liability for an act or omission done in good faith in compliance with this chapter.
Added by 2016 Tenn. Acts, ch. 570,s 17, eff. 7/1/2016.
Tenn. Code Ann. § 35-7-113 — TN Code / Title 35 / Chapter 7 / Section 35-7-113
Care of custodial property
Status: in_force

(a) A custodian shall: (1) Take control of custodial property; (2) Register or record title to custodial property, except tangible personal property of a type for which registration or recording of title is not required under Tennessee law; and (3) Collect, hold, manage, invest, and reinvest custodial property. (b) In dealing with custodial property, a custodian shall observe the standard of care that would be observed by a prudent person dealing with property of another and is not limited by any other statute restricting investments by fiduciaries. If a custodian has a special skill or expertise or is named custodian on the basis of representations of a special skill or expertise, the custodian shall use that skill or expertise. However, a custodian, in the custodian's discretion and without liability to the minor or the minor's estate, may retain any custodial property received from a transferor. (c) A custodian may invest in or pay premiums on life insurance or endowment policies on: (1) The life of the minor only if the minor or the minor's estate is the sole beneficiary; or (2) The life of another person in whom the minor has an insurable interest; only to the extent that the minor, the minor's estate, or the custodian in the capacity of custodian, is the irrevocable beneficiary. (d) A custodian at all times shall keep custodial property separate and distinct from all other property in a manner sufficient to identify it clearly as custodial property of the minor. Custodial property consisting of an undivided interest is so identified if the minor's interest is held as a tenant in common and is fixed. Custodial property subject to recordation is so identified if it is recorded, and custodial property subject to registration is so identified if it is either registered or held in an account designated in the name of the custodian, followed in substance by the words "as a custodian for (name of minor) under the Tennessee Uniform Transfers to Minors Act." (e) A custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the minor's tax returns, and shall make them available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor if the minor has attained fourteen (14) years of age. Acts 1992, ch. 664, § 1; T.C.A. § 35-7-213.
(a) A custodian shall: (1) Take control of custodial property; (2) Register or record title to custodial property, except tangible personal property of a type for which registration or recording of title is not required under Tennessee law; and (3) Collect, hold, manage, invest, and reinvest custodial property.
(1) Take control of custodial property;
(2) Register or record title to custodial property, except tangible personal property of a type for which registration or recording of title is not required under Tennessee law; and
(3) Collect, hold, manage, invest, and reinvest custodial property.
(b) In dealing with custodial property, a custodian shall observe the standard of care that would be observed by a prudent person dealing with property of another and is not limited by any other statute restricting investments by fiduciaries. If a custodian has a special skill or expertise or is named custodian on the basis of representations of a special skill or expertise, the custodian shall use that skill or expertise. However, a custodian, in the custodian's discretion and without liability to the minor or the minor's estate, may retain any custodial property received from a transferor.
(c) A custodian may invest in or pay premiums on life insurance or endowment policies on: (1) The life of the minor only if the minor or the minor's estate is the sole beneficiary; or (2) The life of another person in whom the minor has an insurable interest; only to the extent that the minor, the minor's estate, or the custodian in the capacity of custodian, is the irrevocable beneficiary.
(1) The life of the minor only if the minor or the minor's estate is the sole beneficiary; or
(2) The life of another person in whom the minor has an insurable interest; only to the extent that the minor, the minor's estate, or the custodian in the capacity of custodian, is the irrevocable beneficiary.
only to the extent that the minor, the minor's estate, or the custodian in the capacity of custodian, is the irrevocable beneficiary.
(d) A custodian at all times shall keep custodial property separate and distinct from all other property in a manner sufficient to identify it clearly as custodial property of the minor. Custodial property consisting of an undivided interest is so identified if the minor's interest is held as a tenant in common and is fixed. Custodial property subject to recordation is so identified if it is recorded, and custodial property subject to registration is so identified if it is either registered or held in an account designated in the name of the custodian, followed in substance by the words "as a custodian for (name of minor) under the Tennessee Uniform Transfers to Minors Act."
(e) A custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the minor's tax returns, and shall make them available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor if the minor has attained fourteen (14) years of age.
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-213.
Tenn. Code Ann. § 35-6-501 — TN Code / Title 35 / Chapter 6 / Section 35-6-501
Disbursements from income
Status: in_force

A trustee shall make the following disbursements from income to the extent that they are not disbursements to which § 35-6-201(2)(B) or (C) applies: (1) One-half (½) of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee; (2) One-half (½) of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests; (3) All of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest; and (4) Recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset. Acts 2000, ch. 829, § 1.
A trustee shall make the following disbursements from income to the extent that they are not disbursements to which § 35-6-201(2)(B) or (C) applies:
(1) One-half (½) of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee;
(2) One-half (½) of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests;
(3) All of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest; and
(4) Recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-6-406 — TN Code / Title 35 / Chapter 6 / Section 35-6-406
Obligation to pay money
Status: in_force

(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income without any provision for amortization of premium. (b) A trustee shall allocate to principal an amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than one (1) year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity. If the obligation matures within one (1) year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust must be allocated to income. (c) This section does not apply to an obligation to which § 35-6-409 , § 35-6-410 , § 35-6-411 , § 35-6-412 , § 35-6-414 , or § 35-6-415 applies. Acts 2000, ch. 829, § 1.
(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income without any provision for amortization of premium.
(b) A trustee shall allocate to principal an amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than one (1) year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity. If the obligation matures within one (1) year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust must be allocated to income.
(c) This section does not apply to an obligation to which § 35-6-409 , § 35-6-410 , § 35-6-411 , § 35-6-412 , § 35-6-414 , or § 35-6-415 applies.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-3-102 — TN Code / Title 35 / Chapter 3 / Section 35-3-102
Authorized investments
Status: in_force

All trustees, guardians and other fiduciaries in this state, unless prohibited, or another mode of investment is prescribed by the will or deed of the testator or other person establishing the trust, may invest all funds in their hands in securities specified in §§ 35-3-103 - 35-3-111, and may also invest funds in income-producing commercial or residential property. Amended by 2016 Tenn. Acts, ch. 640,s 3, eff. 3/23/2016. Acts 1931, ch. 100, § 1; C. Supp. 1950, § 9596.1; modified; T.C.A. (orig. ed.), § 35-302.
All trustees, guardians and other fiduciaries in this state, unless prohibited, or another mode of investment is prescribed by the will or deed of the testator or other person establishing the trust, may invest all funds in their hands in securities specified in §§ 35-3-103 - 35-3-111, and may also invest funds in income-producing commercial or residential property.
Amended by 2016 Tenn. Acts, ch. 640,s 3, eff. 3/23/2016.
Acts 1931, ch. 100, § 1; C. Supp. 1950, § 9596.1; modified; T.C.A. (orig. ed.), § 35-302.
Tenn. Code Ann. § 35-6-601 — TN Code / Title 35 / Chapter 6 / Section 35-6-601
Application and construction of chapter 6
Status: in_force

Section 35-15-1101 controls all application and construction of chapter 6. Amended by 2013 Tenn. Acts, ch. 390,s 1, eff. 7/1/2013. Acts 2000, ch. 829, § 1.
Section 35-15-1101 controls all application and construction of chapter 6.
Amended by 2013 Tenn. Acts, ch. 390,s 1, eff. 7/1/2013.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-5-115 — TN Code / Title 35 / Chapter 5 / Section 35-5-115
Discovery proceedings for nonresidents
Status: in_force

(a) (1) IF a nonresident creditor holds indebtedness secured by residential real property that is located in this state and owned by a state resident, OR (2) IF a nonresident trustee or agent is involved in foreclosure proceedings relative to residential real property that is located in this state and owned by a resident, (3) THEN all discovery proceedings, including, but not limited to, the production of requested documents and the deposition of witnesses, shall be conducted in the county in which the residential real estate is located or in which the litigation is pending. (b) The court in which such litigation is pending may make orders consistent with the purposes of this section to prevent undue burden on any party. Acts 2003, ch. 174, § 1.
(a) (1) IF a nonresident creditor holds indebtedness secured by residential real property that is located in this state and owned by a state resident, OR (2) IF a nonresident trustee or agent is involved in foreclosure proceedings relative to residential real property that is located in this state and owned by a resident, (3) THEN all discovery proceedings, including, but not limited to, the production of requested documents and the deposition of witnesses, shall be conducted in the county in which the residential real estate is located or in which the litigation is pending.
(1) IF a nonresident creditor holds indebtedness secured by residential real property that is located in this state and owned by a state resident, OR
(2) IF a nonresident trustee or agent is involved in foreclosure proceedings relative to residential real property that is located in this state and owned by a resident,
(3) THEN all discovery proceedings, including, but not limited to, the production of requested documents and the deposition of witnesses, shall be conducted in the county in which the residential real estate is located or in which the litigation is pending.
(b) The court in which such litigation is pending may make orders consistent with the purposes of this section to prevent undue burden on any party.
Acts 2003, ch. 174, § 1.
Tenn. Code Ann. § 35-15-409 — TN Code / Title 35 / Chapter 15 / Section 35-15-409
Noncharitable trust without ascertainable beneficiary
Status: in_force

Except as otherwise provided in § 35-15-408 or by another statute, the following rules apply: (1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee. The trust may not be enforced for more than three hundred sixty (360) years; (2) 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; and (3) 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 2021 Tenn. Acts, ch. 420, s 7, eff. 7/1/2021. Amended by 2013 Tenn. Acts, ch. 390, s 12, eff. 7/1/2013. Acts 2004, ch. 537, § 31; 2007 , ch. 24, § 14.
Except as otherwise provided in § 35-15-408 or by another statute, the following rules apply:
(1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee. The trust may not be enforced for more than three hundred sixty (360) years;
(2) 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; and
(3) 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 2021 Tenn. Acts, ch. 420, s 7, eff. 7/1/2021.
Amended by 2013 Tenn. Acts, ch. 390, s 12, eff. 7/1/2013.
Acts 2004, ch. 537, § 31; 2007 , ch. 24, § 14.
Tenn. Code Ann. § 35-15-106 — TN Code / Title 35 / Chapter 15 / Section 35-15-106
Law supplemental to chapter - Applicability of certain sections of Restatement of Trusts
Status: in_force

(a) The common law of trusts and principles of equity supplement this chapter, except to the extent modified by this chapter or another statute of this state. (b) Notwithstanding subsection (a): (1) No provision in a trust directing or authorizing accumulation of trust income shall be invalid; and (2) The traditional common law distinction between a discretionary trust and a support trust and the dual judicial review standards related to this distinction shall be maintained. Unless specifically provided otherwise in this chapter, courts shall not consult, rely on or give any persuasive value to the Restatement (Third) of Trusts §§ 50, 56, 58, 59 or 60, nor any of the comments under such sections or related thereto, none of which have any force or effect relative to trusts governed by the laws of this state. Amended by 2013 Tenn. Acts, ch. 390,s 7, eff. 7/1/2013. Acts 2004, ch. 537, § 7.
(a) The common law of trusts and principles of equity supplement this chapter, except to the extent modified by this chapter or another statute of this state.
(b) Notwithstanding subsection (a): (1) No provision in a trust directing or authorizing accumulation of trust income shall be invalid; and (2) The traditional common law distinction between a discretionary trust and a support trust and the dual judicial review standards related to this distinction shall be maintained. Unless specifically provided otherwise in this chapter, courts shall not consult, rely on or give any persuasive value to the Restatement (Third) of Trusts §§ 50, 56, 58, 59 or 60, nor any of the comments under such sections or related thereto, none of which have any force or effect relative to trusts governed by the laws of this state.
(1) No provision in a trust directing or authorizing accumulation of trust income shall be invalid; and
(2) The traditional common law distinction between a discretionary trust and a support trust and the dual judicial review standards related to this distinction shall be maintained. Unless specifically provided otherwise in this chapter, courts shall not consult, rely on or give any persuasive value to the Restatement (Third) of Trusts §§ 50, 56, 58, 59 or 60, nor any of the comments under such sections or related thereto, none of which have any force or effect relative to trusts governed by the laws of this state.
Amended by 2013 Tenn. Acts, ch. 390,s 7, eff. 7/1/2013.
Acts 2004, ch. 537, § 7.
Tenn. Code Ann. § 35-11-106 — TN Code / Title 35 / Chapter 11 / Section 35-11-106
Powers of institutions apply to trusts
Status: in_force

All powers and authority that are conferred on banks and trust companies in the administration and maintenance of trust funds in those institutions shall also apply to trusts created by this chapter. Acts 1989, ch. 386, § 3.
All powers and authority that are conferred on banks and trust companies in the administration and maintenance of trust funds in those institutions shall also apply to trusts created by this chapter.
Acts 1989, ch. 386, § 3.
Tenn. Code Ann. § 35-9-103 — TN Code / Title 35 / Chapter 9 / Section 35-9-103
Applicability of Sections 35-9-101 and 35-9-102
Status: in_force

Sections 35-9-101 and 35-9-102 do not apply to any trust to the extent that a court of competent jurisdiction determines that the application would be contrary to the terms of the instrument governing the trust and that the same may not properly be changed to conform to those sections. Acts 1971, ch. 3, § 3; T.C.A., § 35-1003.
Sections 35-9-101 and 35-9-102 do not apply to any trust to the extent that a court of competent jurisdiction determines that the application would be contrary to the terms of the instrument governing the trust and that the same may not properly be changed to conform to those sections.
Acts 1971, ch. 3, § 3; T.C.A., § 35-1003.
Tenn. Code Ann. § 35-6-302 — TN Code / Title 35 / Chapter 6 / Section 35-6-302
Apportionment of receipts and disbursements when decedent dies or income interest begins
Status: in_force

(a) A trustee shall allocate an income receipt or disbursement other than one to which § 35-6-201(1) applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest. (b) A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement must be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins must be allocated to principal and the balance must be allocated to income. (c) An item of income or an obligation is due on the date the payer is required to make a payment. If a payment date is not stated, there is no due date for the purposes of this chapter. Distributions to shareholders or other owners from an entity to which § 35-6-401 applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals. Acts 2000, ch. 829, § 1.
(a) A trustee shall allocate an income receipt or disbursement other than one to which § 35-6-201(1) applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.
(b) A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement must be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins must be allocated to principal and the balance must be allocated to income.
(c) An item of income or an obligation is due on the date the payer is required to make a payment. If a payment date is not stated, there is no due date for the purposes of this chapter. Distributions to shareholders or other owners from an entity to which § 35-6-401 applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-3-101 — TN Code / Title 35 / Chapter 3 / Section 35-3-101
Authority of court
Status: in_force

The court is authorized to have the money and funds in the hands of clerks and receivers, or trustees, in litigation or under the control of the court, invested under such rules and orders in each case as may be legal and just. Acts 1865, ch. 19, § 1; Shan., § 5433; mod. Code 1932, § 9592; T.C.A. (orig. ed.), § 35-301.
The court is authorized to have the money and funds in the hands of clerks and receivers, or trustees, in litigation or under the control of the court, invested under such rules and orders in each case as may be legal and just.
Acts 1865, ch. 19, § 1; Shan., § 5433; mod. Code 1932, § 9592; T.C.A. (orig. ed.), § 35-301.
Tenn. Code Ann. § 35-15-706 — TN Code / Title 35 / Chapter 15 / Section 35-15-706
Removal of trustee
Status: in_force

(a) The settlor, a cotrustee, or a qualified beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative. (b) The court may remove a trustee if: (1) The trustee has committed a serious breach of trust; (2) Lack of cooperation among cotrustees substantially impairs the administration of the trust; (3) Because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries; or (4) There has been a substantial change of circumstances or removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available. (c) Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order such appropriate relief under § 35-15-1001(b) as may be necessary to protect the trust property or the interests of the beneficiaries. Acts 2004, ch. 537, § 56.
(a) The settlor, a cotrustee, or a qualified beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative.
(b) The court may remove a trustee if: (1) The trustee has committed a serious breach of trust; (2) Lack of cooperation among cotrustees substantially impairs the administration of the trust; (3) Because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries; or (4) There has been a substantial change of circumstances or removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available.
(1) The trustee has committed a serious breach of trust;
(2) Lack of cooperation among cotrustees substantially impairs the administration of the trust;
(3) Because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries; or
(4) There has been a substantial change of circumstances or removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available.
(c) Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order such appropriate relief under § 35-15-1001(b) as may be necessary to protect the trust property or the interests of the beneficiaries.
Acts 2004, ch. 537, § 56.
Tenn. Code Ann. § 35-2-105 — TN Code / Title 35 / Chapter 2 / Section 35-2-105
Check drawn by fiduciary payable to third person
Status: in_force

If a check or other bill of exchange is drawn by a fiduciary as such, or in the name of the principal by a fiduciary empowered to draw such instrument in the name of the principal, the payee is not bound to inquire whether the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in drawing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of the obligation as fiduciary unless the payee takes the instrument with actual knowledge of such breach or with knowledge of such facts that the action in taking the instrument amounts to bad faith. If, however, such instrument is payable to a personal creditor of the fiduciary and delivered to the creditor in payment of or as security for a personal debt of the fiduciary to the actual knowledge of the creditor, or is drawn and delivered in any transaction known by the payee to be for the personal benefit of the fiduciary, the creditor or other payee is liable to the principal if the fiduciary in fact commits a breach of the obligation as fiduciary in drawing or delivering the instrument. Acts 1953, ch. 82, § 5 (Williams, § 9596.22); T.C.A. (orig. ed.), § 35-206.
If a check or other bill of exchange is drawn by a fiduciary as such, or in the name of the principal by a fiduciary empowered to draw such instrument in the name of the principal, the payee is not bound to inquire whether the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in drawing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of the obligation as fiduciary unless the payee takes the instrument with actual knowledge of such breach or with knowledge of such facts that the action in taking the instrument amounts to bad faith. If, however, such instrument is payable to a personal creditor of the fiduciary and delivered to the creditor in payment of or as security for a personal debt of the fiduciary to the actual knowledge of the creditor, or is drawn and delivered in any transaction known by the payee to be for the personal benefit of the fiduciary, the creditor or other payee is liable to the principal if the fiduciary in fact commits a breach of the obligation as fiduciary in drawing or delivering the instrument.
Acts 1953, ch. 82, § 5 (Williams, § 9596.22); T.C.A. (orig. ed.), § 35-206.
Tenn. Code Ann. § 35-17-108 — TN Code / Title 35 / Chapter 17 / Section 35-17-108
Dissolution of marriage
Status: in_force

Upon the dissolution of the marriage of the settlor spouses, the community property trust shall terminate and the trustee shall distribute one-half (½) of the trust assets to each spouse, with each spouse receiving one-half (½) of each asset, unless otherwise agreed to in writing by both spouses. Acts 2010 , ch. 658, § 1.
Upon the dissolution of the marriage of the settlor spouses, the community property trust shall terminate and the trustee shall distribute one-half (½) of the trust assets to each spouse, with each spouse receiving one-half (½) of each asset, unless otherwise agreed to in writing by both spouses.
Acts 2010 , ch. 658, § 1.
Tenn. Code Ann. § 35-15-809 — TN Code / Title 35 / Chapter 15 / Section 35-15-809
Control and protection of trust property
Status: in_force

A trustee shall take reasonable steps to take control of and protect the trust property. Acts 2004, ch. 537, § 67.
A trustee shall take reasonable steps to take control of and protect the trust property.
Acts 2004, ch. 537, § 67.
Tenn. Code Ann. § 35-10-105 — TN Code / Title 35 / Chapter 10 / Section 35-10-105
Delegation of management and investment functions
Status: in_force

(a) Subject to any specific limitation set forth in a gift instrument or in law other than this chapter, an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in: (1) Selecting an agent; (2) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and (3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation. (b) In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation. (c) An institution that complies with subsection (a) is not liable for the decisions or actions of an agent to which the function was delegated. (d) By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function. (e) An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of this state other than this chapter.
(a) Subject to any specific limitation set forth in a gift instrument or in law other than this chapter, an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in: (1) Selecting an agent; (2) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and (3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.
(1) Selecting an agent;
(2) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and
(3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation.
(c) An institution that complies with subsection (a) is not liable for the decisions or actions of an agent to which the function was delegated.
(d) By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function.
(e) An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of this state other than this chapter.
Tenn. Code Ann. § 35-10-107 — TN Code / Title 35 / Chapter 10 / Section 35-10-107
§ 35-10-107
Status: in_force

Compliance with this chapter is determined in light of the facts and circumstances existing at the time a decision is made or action is taken, and not by hindsight.
Tenn. Code Ann. § 35-15-110 — TN Code / Title 35 / Chapter 15 / Section 35-15-110
Others treated as qualified beneficiaries
Status: in_force

(a) A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary under this chapter, if the charitable organization, on the date the charitable organization's qualification is being determined, would be a qualified beneficiary under this chapter if such charitable organization were an individual beneficiary. (b) The attorney general and reporter has the rights of a qualified beneficiary with respect to a charitable trust having its principal place of administration in this state if all of the interests in the trust that are for a charitable purpose, in the aggregate, on the date the attorney general and reporter's qualification is being determined, would cause an individual beneficiary to be a qualified beneficiary under this chapter if all of such interests were for the benefit of an individual beneficiary instead of for charitable purposes. Amended by 2019 Tenn. Acts, ch. 340,s 8, eff. 5/10/2019. Acts 2004, ch. 537, § 11; 2007, ch. 24, § 6.
(a) A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary under this chapter, if the charitable organization, on the date the charitable organization's qualification is being determined, would be a qualified beneficiary under this chapter if such charitable organization were an individual beneficiary.
(b) The attorney general and reporter has the rights of a qualified beneficiary with respect to a charitable trust having its principal place of administration in this state if all of the interests in the trust that are for a charitable purpose, in the aggregate, on the date the attorney general and reporter's qualification is being determined, would cause an individual beneficiary to be a qualified beneficiary under this chapter if all of such interests were for the benefit of an individual beneficiary instead of for charitable purposes.
Amended by 2019 Tenn. Acts, ch. 340,s 8, eff. 5/10/2019.
Acts 2004, ch. 537, § 11; 2007, ch. 24, § 6.
Tenn. Code Ann. § 35-5-116 — TN Code / Title 35 / Chapter 5 / Section 35-5-116
Trustee as necessary party
Status: in_force

(a) Any trustee named in a suit or proceeding, as related to a sale of real property under a trust deed or mortgage, may plead in the answer that the trustee is not a necessary party by a verified denial, stating the basis for the trustee's reasonable belief that the trustee was named as a party solely in the capacity as a trustee under a deed of trust, contract lien, or security instrument. (b) Within thirty (30) days after the filing of the trustee's verified denial, a verified response is due from all parties to the suit or proceeding setting forth all matters, whether in law or fact, that rebut the trustee's verified denial. (c) If a party has no objection or fails to file a timely verified response to the trustee's verified denial, the trustee shall be dismissed from the suit or proceeding without prejudice. (d) If a respondent files a timely verified response to the trustee's verified denial, the matter shall be set for hearing. The court shall dismiss the trustee from the suit or proceeding without prejudice, if the court determines that the trustee is not a necessary party. (e) A dismissal of the trustee pursuant to subsections (c) and (d) shall not prejudice a party's right to seek injunctive relief to prevent the trustee from proceeding with a foreclosure sale. (f) A trustee shall not be liable for any good faith error resulting from reliance on any information in law or fact provided by the borrower or secured party or their respective attorney, agent, or representative or other third party. Acts 2006, ch. 811, § 1.
(a) Any trustee named in a suit or proceeding, as related to a sale of real property under a trust deed or mortgage, may plead in the answer that the trustee is not a necessary party by a verified denial, stating the basis for the trustee's reasonable belief that the trustee was named as a party solely in the capacity as a trustee under a deed of trust, contract lien, or security instrument.
(b) Within thirty (30) days after the filing of the trustee's verified denial, a verified response is due from all parties to the suit or proceeding setting forth all matters, whether in law or fact, that rebut the trustee's verified denial.
(c) If a party has no objection or fails to file a timely verified response to the trustee's verified denial, the trustee shall be dismissed from the suit or proceeding without prejudice.
(d) If a respondent files a timely verified response to the trustee's verified denial, the matter shall be set for hearing. The court shall dismiss the trustee from the suit or proceeding without prejudice, if the court determines that the trustee is not a necessary party.
(e) A dismissal of the trustee pursuant to subsections (c) and (d) shall not prejudice a party's right to seek injunctive relief to prevent the trustee from proceeding with a foreclosure sale.
(f) A trustee shall not be liable for any good faith error resulting from reliance on any information in law or fact provided by the borrower or secured party or their respective attorney, agent, or representative or other third party.
Acts 2006, ch. 811, § 1.
Tenn. Code Ann. § 35-17-107 — TN Code / Title 35 / Chapter 17 / Section 35-17-107
Death of a spouse
Status: in_force

Upon the death of a spouse, one-half (½) of the aggregate value of the property owned by a community property trust established by the spouses reflects the share of the surviving spouse and the other one-half (½) reflects the share of the decedent. Unless provided otherwise in the trust agreement, the trustee has the power to distribute assets of the trust in divided or undivided interests and to adjust resulting differences in valuation. A distribution in kind may be made on the basis of a non pro rata division of the aggregate value of the trust assets, on the basis of a pro rata division of each individual asset, or by using both methods. Acts 2010 , ch. 658, § 1.
Upon the death of a spouse, one-half (½) of the aggregate value of the property owned by a community property trust established by the spouses reflects the share of the surviving spouse and the other one-half (½) reflects the share of the decedent. Unless provided otherwise in the trust agreement, the trustee has the power to distribute assets of the trust in divided or undivided interests and to adjust resulting differences in valuation. A distribution in kind may be made on the basis of a non pro rata division of the aggregate value of the trust assets, on the basis of a pro rata division of each individual asset, or by using both methods.
Acts 2010 , ch. 658, § 1.
Tenn. Code Ann. § 35-3-114 — TN Code / Title 35 / Chapter 3 / Section 35-3-114
Certificates of deposit and savings accounts
Status: in_force

All trustees and guardians in this state, unless prohibited, or another mode of investment is prescribed, by the will or deed of the testator or other person establishing the trust, may invest trust funds in their hands, in addition to the investments heretofore authorized, in certificates of deposit of, and savings accounts in, any national or state bank in the United States, including itself if such trustee or guardian is a national or state bank in the United States otherwise qualified, whose deposits are insured by the federal deposit insurance corporation, at the prevailing rate of interest of such certificates or savings accounts. No trustee or guardian shall invest in such certificates of deposit of, or savings accounts in any one (1) bank, an amount from any one (1) fund in the trustee's or guardian's care in excess of such amount as is fully insured as a deposit in the bank by the federal deposit insurance corporation, unless the investment is first approved by a court of competent jurisdiction. Acts 1939, ch. 170, § 1; C. Supp. 1950, § 9596.3 (Williams, §9596.7); Acts 1975, ch. 331, § 1; T.C.A. (orig. ed.), § 35-314; Acts 1989, ch. 288, § 1.
All trustees and guardians in this state, unless prohibited, or another mode of investment is prescribed, by the will or deed of the testator or other person establishing the trust, may invest trust funds in their hands, in addition to the investments heretofore authorized, in certificates of deposit of, and savings accounts in, any national or state bank in the United States, including itself if such trustee or guardian is a national or state bank in the United States otherwise qualified, whose deposits are insured by the federal deposit insurance corporation, at the prevailing rate of interest of such certificates or savings accounts. No trustee or guardian shall invest in such certificates of deposit of, or savings accounts in any one (1) bank, an amount from any one (1) fund in the trustee's or guardian's care in excess of such amount as is fully insured as a deposit in the bank by the federal deposit insurance corporation, unless the investment is first approved by a court of competent jurisdiction.
Acts 1939, ch. 170, § 1; C. Supp. 1950, § 9596.3 (Williams, §9596.7); Acts 1975, ch. 331, § 1; T.C.A. (orig. ed.), § 35-314; Acts 1989, ch. 288, § 1.
Tenn. Code Ann. § 35-2-106 — TN Code / Title 35 / Chapter 2 / Section 35-2-106
Check drawn by and payable to fiduciary - Uniform Veterans' Guardianship Act unaffected
Status: in_force

(a) If a check or other bill of exchange is drawn by a fiduciary as such or in the name of the principal by a fiduciary empowered to draw such instrument in the name of the principal, payable to the fiduciary personally, or payable to a third person and by the third person transferred to the fiduciary, and is thereafter transferred by the fiduciary, whether in payment of a personal debt of the fiduciary or otherwise, the transferee is not bound to inquire whether the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in transferring the instrument, and is not chargeable with notice that the fiduciary is committing a breach of the obligation as fiduciary unless the transferee takes the instrument with actual knowledge of such breach or with knowledge of such facts that the action in taking the instrument amounts to bad faith, except and provided that title 34, chapter 5, being the Uniform Veterans' Guardianship Act, is not by this chapter amended. (b) This chapter shall not apply in any situation governed by the Uniform Veterans' Guardianship Act. Acts 1953, ch. 82, § 6 (Williams, § 9596.23); T.C.A. (orig. ed.), § 35-207.
(a) If a check or other bill of exchange is drawn by a fiduciary as such or in the name of the principal by a fiduciary empowered to draw such instrument in the name of the principal, payable to the fiduciary personally, or payable to a third person and by the third person transferred to the fiduciary, and is thereafter transferred by the fiduciary, whether in payment of a personal debt of the fiduciary or otherwise, the transferee is not bound to inquire whether the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in transferring the instrument, and is not chargeable with notice that the fiduciary is committing a breach of the obligation as fiduciary unless the transferee takes the instrument with actual knowledge of such breach or with knowledge of such facts that the action in taking the instrument amounts to bad faith, except and provided that title 34, chapter 5, being the Uniform Veterans' Guardianship Act, is not by this chapter amended.
(b) This chapter shall not apply in any situation governed by the Uniform Veterans' Guardianship Act.
Acts 1953, ch. 82, § 6 (Williams, § 9596.23); T.C.A. (orig. ed.), § 35-207.
Tenn. Code Ann. § 35-15-605 — TN Code / Title 35 / Chapter 15 / Section 35-15-605
Written statement or list to dispose of items of tangible personal property
Status: in_force

(a) (1) A revocable (living) trust that becomes irrevocable upon the death of its settlor may refer to a written statement or list to dispose of items of tangible personal property not otherwise specifically disposed of by the revocable trust, other than money, evidences of indebtedness, documents of title, securities, and property used in a trade or business. (2) To be effective under this section as evidence of the intended disposition, the writing: (A) Must: (i) Be either in the handwriting of the settlor or signed by the settlor; (ii) Be dated; and (iii) Describe the items and the beneficiaries with reasonable certainty; (B) May be prepared before or after the execution of the revocable trust; (C) May be altered by the settlor after its preparation, provided that the settlor signs and dates the alteration; and (D) May be a writing that has no significance apart from its effect upon the dispositions made by the revocable trust. (3) If more than one (1) otherwise effective writings exist or a single writing contains properly signed and dated alterations, the provisions of the most recent writing or alteration revoke any inconsistent provisions of all prior writings. (b) A trustee is not liable for any distribution of tangible personal property to the apparent beneficiary under the settlor's revocable trust without actual knowledge of the written statement or list, as described in subsection (a), and the trustee has no duty to recover property distributed without knowledge of the written statement or list. Added by 2019 Tenn. Acts, ch. 197,s 4, eff. 4/25/2019.
(a) (1) A revocable (living) trust that becomes irrevocable upon the death of its settlor may refer to a written statement or list to dispose of items of tangible personal property not otherwise specifically disposed of by the revocable trust, other than money, evidences of indebtedness, documents of title, securities, and property used in a trade or business. (2) To be effective under this section as evidence of the intended disposition, the writing: (A) Must: (i) Be either in the handwriting of the settlor or signed by the settlor; (ii) Be dated; and (iii) Describe the items and the beneficiaries with reasonable certainty; (B) May be prepared before or after the execution of the revocable trust; (C) May be altered by the settlor after its preparation, provided that the settlor signs and dates the alteration; and (D) May be a writing that has no significance apart from its effect upon the dispositions made by the revocable trust. (3) If more than one (1) otherwise effective writings exist or a single writing contains properly signed and dated alterations, the provisions of the most recent writing or alteration revoke any inconsistent provisions of all prior writings.
(1) A revocable (living) trust that becomes irrevocable upon the death of its settlor may refer to a written statement or list to dispose of items of tangible personal property not otherwise specifically disposed of by the revocable trust, other than money, evidences of indebtedness, documents of title, securities, and property used in a trade or business.
(2) To be effective under this section as evidence of the intended disposition, the writing: (A) Must: (i) Be either in the handwriting of the settlor or signed by the settlor; (ii) Be dated; and (iii) Describe the items and the beneficiaries with reasonable certainty; (B) May be prepared before or after the execution of the revocable trust; (C) May be altered by the settlor after its preparation, provided that the settlor signs and dates the alteration; and (D) May be a writing that has no significance apart from its effect upon the dispositions made by the revocable trust.
(A) Must: (i) Be either in the handwriting of the settlor or signed by the settlor; (ii) Be dated; and (iii) Describe the items and the beneficiaries with reasonable certainty;
(i) Be either in the handwriting of the settlor or signed by the settlor;
(ii) Be dated; and
(iii) Describe the items and the beneficiaries with reasonable certainty;
(B) May be prepared before or after the execution of the revocable trust;
(C) May be altered by the settlor after its preparation, provided that the settlor signs and dates the alteration; and
(D) May be a writing that has no significance apart from its effect upon the dispositions made by the revocable trust.
(3) If more than one (1) otherwise effective writings exist or a single writing contains properly signed and dated alterations, the provisions of the most recent writing or alteration revoke any inconsistent provisions of all prior writings.
(b) A trustee is not liable for any distribution of tangible personal property to the apparent beneficiary under the settlor's revocable trust without actual knowledge of the written statement or list, as described in subsection (a), and the trustee has no duty to recover property distributed without knowledge of the written statement or list.
Added by 2019 Tenn. Acts, ch. 197,s 4, eff. 4/25/2019.
Tenn. Code Ann. § 35-6-504 — TN Code / Title 35 / Chapter 6 / Section 35-6-504
Transfers from income to reimburse principal
Status: in_force

(a) If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one (1) or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements. (b) Principal disbursements to which subsection (a) applies include the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a third party: (1) An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs; (2) A capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments; (3) Disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and broker's commissions; (4) Periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments; and (5) Disbursements described in § 35-6-502(a)(7) . (c) If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in subsection (a). Acts 2000, ch. 829, § 1.
(a) If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one (1) or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.
(b) Principal disbursements to which subsection (a) applies include the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a third party: (1) An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs; (2) A capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments; (3) Disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and broker's commissions; (4) Periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments; and (5) Disbursements described in § 35-6-502(a)(7) .
(1) An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs;
(2) A capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments;
(3) Disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and broker's commissions;
(4) Periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments; and
(5) Disbursements described in § 35-6-502(a)(7) .
(c) If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in subsection (a).
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-16-108 — TN Code / Title 35 / Chapter 16 / Section 35-16-108
Qualified trustees and advisors
Status: in_force

(a) For purposes of this chapter, neither the transferor nor any other natural person who is a nonresident of this state nor an entity that is not authorized by the law of this state to act as a trustee or whose activities are not subject to supervision as provided in § 35-16-102(12)(A) shall be considered a qualified trustee; however, nothing in this chapter shall preclude a transferor from appointing one (1) or more advisors, including, but not limited to: (1) Advisors who have authority under the terms of the trust instrument to remove and appoint qualified trustees or trust advisors; (2) Advisors who have authority under the terms of the trust instrument to direct, consent to or disapprove distributions from the trust; and (3) Investment advisors, whether or not the advisors would meet the requirements imposed by § 35-16-102(12) . (b) For purposes of subsection (a), "advisor" includes a trust "protector" or any other person who, in addition to a qualified trustee, holds one (1) or more trust powers. Acts 2007, ch. 144, § 8.
(a) For purposes of this chapter, neither the transferor nor any other natural person who is a nonresident of this state nor an entity that is not authorized by the law of this state to act as a trustee or whose activities are not subject to supervision as provided in § 35-16-102(12)(A) shall be considered a qualified trustee; however, nothing in this chapter shall preclude a transferor from appointing one (1) or more advisors, including, but not limited to: (1) Advisors who have authority under the terms of the trust instrument to remove and appoint qualified trustees or trust advisors; (2) Advisors who have authority under the terms of the trust instrument to direct, consent to or disapprove distributions from the trust; and (3) Investment advisors, whether or not the advisors would meet the requirements imposed by § 35-16-102(12) .
(1) Advisors who have authority under the terms of the trust instrument to remove and appoint qualified trustees or trust advisors;
(2) Advisors who have authority under the terms of the trust instrument to direct, consent to or disapprove distributions from the trust; and
(3) Investment advisors, whether or not the advisors would meet the requirements imposed by § 35-16-102(12) .
(b) For purposes of subsection (a), "advisor" includes a trust "protector" or any other person who, in addition to a qualified trustee, holds one (1) or more trust powers.
Acts 2007, ch. 144, § 8.
Tenn. Code Ann. § 35-8-111 — TN Code / Title 35 / Chapter 8 / Section 35-8-111
Disclosure of digital assets held in trust when trustee is original user
Status: in_force

Unless otherwise ordered by the court or provided in a trust, a custodian shall disclose to a trustee that is an original user of an account any digital asset of the account held in trust, including a catalogue of electronic communications of the trustee and the content of electronic communications. Added by 2016 Tenn. Acts, ch. 570,s 12, eff. 7/1/2016.
Unless otherwise ordered by the court or provided in a trust, a custodian shall disclose to a trustee that is an original user of an account any digital asset of the account held in trust, including a catalogue of electronic communications of the trustee and the content of electronic communications.
Added by 2016 Tenn. Acts, ch. 570,s 12, eff. 7/1/2016.
Tenn. Code Ann. § 35-7-125 — TN Code / Title 35 / Chapter 7 / Section 35-7-125
Repeals prior act
Status: in_force

The Tennessee Uniform Gifts to Minors Act, formerly compiled in this chapter, is repealed. To the extent that this chapter, by virtue of § 35-7-123 , does not apply to transfers made in a manner prescribed in the Tennessee Uniform Gifts to Minors Act or to the powers, duties and immunities conferred by transfers in that manner upon custodians and persons dealing with custodians, the repeal of the Tennessee Uniform Gifts to Minors Act does not affect those transfers or those powers, duties and immunities. Acts 1992, ch. 664, § 1; T.C.A. § 35-7-225.
The Tennessee Uniform Gifts to Minors Act, formerly compiled in this chapter, is repealed. To the extent that this chapter, by virtue of § 35-7-123 , does not apply to transfers made in a manner prescribed in the Tennessee Uniform Gifts to Minors Act or to the powers, duties and immunities conferred by transfers in that manner upon custodians and persons dealing with custodians, the repeal of the Tennessee Uniform Gifts to Minors Act does not affect those transfers or those powers, duties and immunities.
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-225.
Tenn. Code Ann. § 35-6-413 — TN Code / Title 35 / Chapter 6 / Section 35-6-413
Property not productive of income
Status: in_force

(a) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the trustee transfers from principal to income under § 35-6-104 and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, the spouse may require the trustee to make property productive of income, convert property within a reasonable time, or exercise the power conferred by § 35-6-104(a) . The trustee may decide which action or combination of actions to take. (b) In cases not governed by subsection (a), proceeds from the sale or other disposition of an asset are principal without regard to the amount of income the asset produces during any accounting period. Acts 2000, ch. 829, § 1.
(a) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the trustee transfers from principal to income under § 35-6-104 and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, the spouse may require the trustee to make property productive of income, convert property within a reasonable time, or exercise the power conferred by § 35-6-104(a) . The trustee may decide which action or combination of actions to take.
(b) In cases not governed by subsection (a), proceeds from the sale or other disposition of an asset are principal without regard to the amount of income the asset produces during any accounting period.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-7-115 — TN Code / Title 35 / Chapter 7 / Section 35-7-115
Use of custodial property
Status: in_force

(a) A custodian may deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to: (1) The duty or ability of the custodian personally or of any other person to support the minor; or (2) Any other income or property of the minor which may be applicable or available for that purpose. (b) On petition of an interested person or the minor, if the minor has attained fourteen (14) years of age, the court may order the custodian to deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the court considers advisable for the use and benefit of the minor. (c) A delivery, payment, or expenditure under this section is in addition to, not in substitution for, and does not affect any obligation of a person to support the minor. Acts 1992, ch. 664, § 1;; T.C.A. § 35-7-215.
(a) A custodian may deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to: (1) The duty or ability of the custodian personally or of any other person to support the minor; or (2) Any other income or property of the minor which may be applicable or available for that purpose.
(1) The duty or ability of the custodian personally or of any other person to support the minor; or
(2) Any other income or property of the minor which may be applicable or available for that purpose.
(b) On petition of an interested person or the minor, if the minor has attained fourteen (14) years of age, the court may order the custodian to deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the court considers advisable for the use and benefit of the minor.
(c) A delivery, payment, or expenditure under this section is in addition to, not in substitution for, and does not affect any obligation of a person to support the minor.
Acts 1992, ch. 664, § 1;; T.C.A. § 35-7-215.
Tenn. Code Ann. § 35-11-102 — TN Code / Title 35 / Chapter 11 / Section 35-11-102
Trust relationship prerequisite to accepting contributions - Beneficiaries
Status: in_force

(a) Before accepting any contributions for such fundraising activities, the organizer or promoter shall enter into a trust relationship with a bank or trust company or shall establish a trust in the name of an individual, " ______________ [name of beneficiary] trust, ______________ trustee", or words to the same effect; provided, that if in violation of this chapter contributions are accepted prior to entering into the trust relationship, then those contributions shall be placed in trust immediately upon establishment of the required trust relationship. (b) The beneficiary of the trust shall be the named individual for whom the funds are being raised. (c) Contingent beneficiaries shall be selected as provided in § 35-11-103 . (d) On the establishment of a trust for purposes regulated by this chapter, the trustee shall file written notice of the establishment of the trust on forms prescribed by the secretary of state with the division of charitable solicitation in the office of the secretary of state. No person or entity may solicit funds on behalf of an individual with a catastrophic illness that is subject to this chapter prior to the filing of this notice with the division. For any trust regulated under this chapter on July 1, 2007, the notice shall be filed on or before August 1, 2007. (e) A trustee, other than a bank or trust company acting as trustee, shall file an accounting of the trust with the division of charitable solicitations each year on the anniversary of the establishment of the trust. Acts 1989, ch. 386, §1; 2007 , ch. 430, §§ 3, 6.
(a) Before accepting any contributions for such fundraising activities, the organizer or promoter shall enter into a trust relationship with a bank or trust company or shall establish a trust in the name of an individual, " ______________ [name of beneficiary] trust, ______________ trustee", or words to the same effect; provided, that if in violation of this chapter contributions are accepted prior to entering into the trust relationship, then those contributions shall be placed in trust immediately upon establishment of the required trust relationship.
(b) The beneficiary of the trust shall be the named individual for whom the funds are being raised.
(c) Contingent beneficiaries shall be selected as provided in § 35-11-103 .
(d) On the establishment of a trust for purposes regulated by this chapter, the trustee shall file written notice of the establishment of the trust on forms prescribed by the secretary of state with the division of charitable solicitation in the office of the secretary of state. No person or entity may solicit funds on behalf of an individual with a catastrophic illness that is subject to this chapter prior to the filing of this notice with the division. For any trust regulated under this chapter on July 1, 2007, the notice shall be filed on or before August 1, 2007.
(e) A trustee, other than a bank or trust company acting as trustee, shall file an accounting of the trust with the division of charitable solicitations each year on the anniversary of the establishment of the trust.
Acts 1989, ch. 386, §1; 2007 , ch. 430, §§ 3, 6.
Tenn. Code Ann. § 35-7-107 — TN Code / Title 35 / Chapter 7 / Section 35-7-107
Other transfer by fiduciary
Status: in_force

(a) Subject to subsection (c), a personal representative or trustee may make an irrevocable transfer to another adult or trust company as custodian for the benefit of a minor pursuant to § 35-7-110 , in the absence of a will or under a will or trust that does not contain an authorization to do so. (b) Subject to subsection (c), a guardian may make an irrevocable transfer to another adult or trust company as custodian for the benefit of the minor pursuant to § 35-7-110 . (c) A transfer under subsection (a) or (b) may be made only if: (1) The personal representative, trustee, or guardian considers the transfer to be in the best interest of the minor; (2) The transfer is not prohibited by or inconsistent with provisions of the applicable will, trust agreement, or other governing instrument; and (3) The transfer is authorized by the court if it exceeds twenty-five thousand dollars ($25,000) in value. Acts 1992, ch. 664, § 1; T.C.A. § 35-7-207.
(a) Subject to subsection (c), a personal representative or trustee may make an irrevocable transfer to another adult or trust company as custodian for the benefit of a minor pursuant to § 35-7-110 , in the absence of a will or under a will or trust that does not contain an authorization to do so.
(b) Subject to subsection (c), a guardian may make an irrevocable transfer to another adult or trust company as custodian for the benefit of the minor pursuant to § 35-7-110 .
(c) A transfer under subsection (a) or (b) may be made only if: (1) The personal representative, trustee, or guardian considers the transfer to be in the best interest of the minor; (2) The transfer is not prohibited by or inconsistent with provisions of the applicable will, trust agreement, or other governing instrument; and (3) The transfer is authorized by the court if it exceeds twenty-five thousand dollars ($25,000) in value.
(1) The personal representative, trustee, or guardian considers the transfer to be in the best interest of the minor;
(2) The transfer is not prohibited by or inconsistent with provisions of the applicable will, trust agreement, or other governing instrument; and
(3) The transfer is authorized by the court if it exceeds twenty-five thousand dollars ($25,000) in value.
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-207.
Tenn. Code Ann. § 35-12-108 — TN Code / Title 35 / Chapter 12 / Section 35-12-108
Effect upon death
Status: in_force

On death of a sole owner or the last to die of all multiple owners, ownership of securities registered in beneficiary form passes to the beneficiary or beneficiaries who survive all owners. On proof of death of all owners, compliance with any applicable requirements of the registering entity, and procurement of any inheritance tax waiver as required by § 67-8-417 , a security registered in beneficiary form may be reregistered in the name of the beneficiary or beneficiaries who survived the death of all owners. Until division of the security after the death of all owners, multiple beneficiaries surviving the death of all owners hold their interests as tenants in common. If no beneficiary survives the death of all owners, the security belongs to the estate of the deceased sole owner or the estate of the last to die of all multiple owners. Acts 1995, ch. 471, § 1.
On death of a sole owner or the last to die of all multiple owners, ownership of securities registered in beneficiary form passes to the beneficiary or beneficiaries who survive all owners. On proof of death of all owners, compliance with any applicable requirements of the registering entity, and procurement of any inheritance tax waiver as required by § 67-8-417 , a security registered in beneficiary form may be reregistered in the name of the beneficiary or beneficiaries who survived the death of all owners. Until division of the security after the death of all owners, multiple beneficiaries surviving the death of all owners hold their interests as tenants in common. If no beneficiary survives the death of all owners, the security belongs to the estate of the deceased sole owner or the estate of the last to die of all multiple owners.
Acts 1995, ch. 471, § 1.
Tenn. Code Ann. § 35-7-103 — TN Code / Title 35 / Chapter 7 / Section 35-7-103
Scope and jurisdiction
Status: in_force

(a) This chapter applies to a transfer made on or after October 1, 1992, that refers to this chapter in the designation by which the transfer is made, if at the time of the transfer, the transferor, the minor, or the custodian is a resident of this state or the custodial property is located in this state. The custodianship so created remains subject to this chapter despite a subsequent change in residence of a transferor, the minor, or the custodian, or the removal of custodial property from this state. (b) A person designated as custodian under this chapter is subject to personal jurisdiction in this state with respect to any matter relating to the custodianship. (c) A transfer that purports to be made and that is valid under the Uniform Transfers to Minors Act, the Uniform Gifts to Minors Act, or substantially similar act, of another state is governed by the law of the designated state and may be executed and is enforceable in this state, if at the time of the transfer, the transferor, the minor, or the custodian is a resident of the designated state or the custodial property is located in the designated state. (d) This chapter shall not be construed as an exclusive method for making gifts or other transfers to minors. Acts 1992, ch. 664, § 1; T.C.A. § 35-7-203.
(a) This chapter applies to a transfer made on or after October 1, 1992, that refers to this chapter in the designation by which the transfer is made, if at the time of the transfer, the transferor, the minor, or the custodian is a resident of this state or the custodial property is located in this state. The custodianship so created remains subject to this chapter despite a subsequent change in residence of a transferor, the minor, or the custodian, or the removal of custodial property from this state.
(b) A person designated as custodian under this chapter is subject to personal jurisdiction in this state with respect to any matter relating to the custodianship.
(c) A transfer that purports to be made and that is valid under the Uniform Transfers to Minors Act, the Uniform Gifts to Minors Act, or substantially similar act, of another state is governed by the law of the designated state and may be executed and is enforceable in this state, if at the time of the transfer, the transferor, the minor, or the custodian is a resident of the designated state or the custodial property is located in the designated state.
(d) This chapter shall not be construed as an exclusive method for making gifts or other transfers to minors.
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-203.
Tenn. Code Ann. § 35-15-1010 — TN Code / Title 35 / Chapter 15 / Section 35-15-1010
Limitation on personal liability of trustee
Status: in_force

(a) Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity. (b) Except as otherwise provided in subsection (a) or (c), the debts, obligations and liabilities incurred by a trustee by reason of the ownership, management or control of trust property in the trustee's fiduciary capacity, shall be enforceable solely against the trust and its property, without any obligation or liability personally being borne by any trustee of such trust. (c) A trustee is personally liable for torts committed in the course of administering a trust only if the trustee is personally at fault on account of the trustee's own willful misconduct proven by clear and convincing evidence. (d) A claim based on a contract entered into by a trustee in the trustee's fiduciary capacity, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust, may be asserted in a judicial proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable for the claim. Acts 2004, ch. 537, § 86; 2010, ch. 725, § 10.
(a) Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity.
(b) Except as otherwise provided in subsection (a) or (c), the debts, obligations and liabilities incurred by a trustee by reason of the ownership, management or control of trust property in the trustee's fiduciary capacity, shall be enforceable solely against the trust and its property, without any obligation or liability personally being borne by any trustee of such trust.
(c) A trustee is personally liable for torts committed in the course of administering a trust only if the trustee is personally at fault on account of the trustee's own willful misconduct proven by clear and convincing evidence.
(d) A claim based on a contract entered into by a trustee in the trustee's fiduciary capacity, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust, may be asserted in a judicial proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable for the claim.
Acts 2004, ch. 537, § 86; 2010, ch. 725, § 10.
Tenn. Code Ann. § 35-12-110 — TN Code / Title 35 / Chapter 12 / Section 35-12-110
Transfer
Status: in_force

(a) A transfer on death resulting from a registration in beneficiary form is effective by reason of the contract regarding the registration between the owner and the registering entity and this chapter and is not testamentary. (b) This chapter does not limit the rights of creditors of security owners against beneficiaries and other transferees under other laws of this state. Acts 1995, ch. 471, § 1.
(a) A transfer on death resulting from a registration in beneficiary form is effective by reason of the contract regarding the registration between the owner and the registering entity and this chapter and is not testamentary.
(b) This chapter does not limit the rights of creditors of security owners against beneficiaries and other transferees under other laws of this state.
Acts 1995, ch. 471, § 1.
Tenn. Code Ann. § 35-13-111 — TN Code / Title 35 / Chapter 13 / Section 35-13-111
Venue of court action
Status: in_force

(a) If the gift instrument is a will and the estate is in administration, or if the gift under a will is not in trust, the venue of any court action is in the county in which the donor's will was or is being administered. (b) If the gift instrument is an inter-vivos trust or a testamentary trust under a fully administered will, venue of any court action shall be in any county in which a trustee resides, or is located if not an individual, or in which a majority of the beneficiaries, or potential beneficiaries, reside or are located. (c) If neither subsection (a) nor (b) applies, venue is in Davidson County, in a court of competent jurisdiction; provided, that the court may transfer the court action to a more convenient forum. (d) With the consent of the court in which an action is pending, the parties may waive the venue provisions of subsections (a), (b) and (c). Acts 1997, ch. 300, § 1.
(a) If the gift instrument is a will and the estate is in administration, or if the gift under a will is not in trust, the venue of any court action is in the county in which the donor's will was or is being administered.
(b) If the gift instrument is an inter-vivos trust or a testamentary trust under a fully administered will, venue of any court action shall be in any county in which a trustee resides, or is located if not an individual, or in which a majority of the beneficiaries, or potential beneficiaries, reside or are located.
(c) If neither subsection (a) nor (b) applies, venue is in Davidson County, in a court of competent jurisdiction; provided, that the court may transfer the court action to a more convenient forum.
(d) With the consent of the court in which an action is pending, the parties may waive the venue provisions of subsections (a), (b) and (c).
Acts 1997, ch. 300, § 1.
Tenn. Code Ann. § 35-11-105 — TN Code / Title 35 / Chapter 11 / Section 35-11-105
Disbursement of funds - Valid reimbursable medical expenses
Status: in_force

(a) Funds shall be disbursed by the trustee upon the presentation of a statement for valid reimbursable medical expenses incurred by the named individual for the treatment of the catastrophic illness and for the payment of reasonable solicitation costs and expenses, when appropriate, incurred by the organizer, promoter or solicitor. (b) "Valid reimbursable medical expenses" are those deductible medical expenses described in the Internal Revenue Code (U.S.C. title 26). Acts 1989, ch. 386, §3; 2007 , ch. 430, § 5.
(a) Funds shall be disbursed by the trustee upon the presentation of a statement for valid reimbursable medical expenses incurred by the named individual for the treatment of the catastrophic illness and for the payment of reasonable solicitation costs and expenses, when appropriate, incurred by the organizer, promoter or solicitor.
(b) "Valid reimbursable medical expenses" are those deductible medical expenses described in the Internal Revenue Code (U.S.C. title 26).
Acts 1989, ch. 386, §3; 2007 , ch. 430, § 5.
Tenn. Code Ann. § 35-15-507 — TN Code / Title 35 / Chapter 15 / Section 35-15-507
Personal obligations of trustee
Status: in_force

Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. Acts 2004, ch. 537, § 46.
Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.
Acts 2004, ch. 537, § 46.
Tenn. Code Ann. § 35-15-407 — TN Code / Title 35 / Chapter 15 / Section 35-15-407
Evidence of oral trust
Status: in_force

Except as required by a statute other than this chapter, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence. Acts 2004, ch. 537, § 29.
Except as required by a statute other than this chapter, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence.
Acts 2004, ch. 537, § 29.
Tenn. Code Ann. § 35-9-101 — TN Code / Title 35 / Chapter 9 / Section 35-9-101
Prohibited acts
Status: in_force

In the administration of any trust that is a "private foundation," as defined in § 509 of the Internal Revenue Code of 1954 ( 26 U.S.C. § 509 ), a "charitable trust," as defined in § 4947(a)(1) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4947(a)(1) ), or a "split-interest trust," as defined in § 4947(a)(2) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4947(a)(2) ), the following acts are prohibited: (1) Engaging in any act of self-dealing, as defined in § 4941(d) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4941(d) ), that would give rise to any liability for the tax imposed by § 4941(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4941(a) ); (2) Retaining any excess business holdings (as defined in § 4943(c) of the Internal Revenue Code of 1954 26 U.S.C. § 4943(c) ), that would give rise to any liability for the tax imposed by § 4943(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4943(a) ); (3) Making any investments that would jeopardize the carrying out of any of the exempt purposes of the trust, within the meaning of § 4944 of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4944 ), so as to give rise to any liability for the tax imposed by § 4944(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4944(a) ); or (4) Making any taxable expenditures (as defined in § 4945(d) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4945(d) ), that would give rise to any liability for the tax imposed by § 4945(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4945(a) ); provided, that this section does not apply either to those split-interest trusts or to amounts of those split-interest trusts that are not subject to the prohibitions applicable to private foundations by reason of § 4947 of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4947 ). Acts 1971, ch. 3, § 1; T.C.A., § 35-1001.
In the administration of any trust that is a "private foundation," as defined in § 509 of the Internal Revenue Code of 1954 ( 26 U.S.C. § 509 ), a "charitable trust," as defined in § 4947(a)(1) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4947(a)(1) ), or a "split-interest trust," as defined in § 4947(a)(2) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4947(a)(2) ), the following acts are prohibited:
(1) Engaging in any act of self-dealing, as defined in § 4941(d) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4941(d) ), that would give rise to any liability for the tax imposed by § 4941(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4941(a) );
(2) Retaining any excess business holdings (as defined in § 4943(c) of the Internal Revenue Code of 1954 26 U.S.C. § 4943(c) ), that would give rise to any liability for the tax imposed by § 4943(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4943(a) );
(3) Making any investments that would jeopardize the carrying out of any of the exempt purposes of the trust, within the meaning of § 4944 of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4944 ), so as to give rise to any liability for the tax imposed by § 4944(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4944(a) ); or
(4) Making any taxable expenditures (as defined in § 4945(d) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4945(d) ), that would give rise to any liability for the tax imposed by § 4945(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4945(a) ); provided, that this section does not apply either to those split-interest trusts or to amounts of those split-interest trusts that are not subject to the prohibitions applicable to private foundations by reason of § 4947 of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4947 ).
Acts 1971, ch. 3, § 1; T.C.A., § 35-1001.
Tenn. Code Ann. § 35-8-110 — TN Code / Title 35 / Chapter 8 / Section 35-8-110
Disclosure of other digital assets of principal
Status: in_force

Unless otherwise ordered by the court, directed by the principal, or provided by a power of attorney, a custodian shall disclose to an agent with specific authority over digital assets or general authority to act on behalf of a principal a catalogue of electronic communications sent or received by the principal and digital assets, other than the content of electronic communications, of the principal if the agent gives the custodian: (1) A written request for disclosure in physical or electronic form; (2) An original or a copy of the power of attorney that gives the agent specific authority over digital assets or general authority to act on behalf of the principal; (3) A certification by the agent, under penalty of perjury, that the power of attorney is in effect; and (4) If requested by the custodian: (A) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the principal's account; or (B) Evidence linking the account to the principal. Added by 2016 Tenn. Acts, ch. 570,s 11, eff. 7/1/2016.
Unless otherwise ordered by the court, directed by the principal, or provided by a power of attorney, a custodian shall disclose to an agent with specific authority over digital assets or general authority to act on behalf of a principal a catalogue of electronic communications sent or received by the principal and digital assets, other than the content of electronic communications, of the principal if the agent gives the custodian:
(1) A written request for disclosure in physical or electronic form;
(2) An original or a copy of the power of attorney that gives the agent specific authority over digital assets or general authority to act on behalf of the principal;
(3) A certification by the agent, under penalty of perjury, that the power of attorney is in effect; and
(4) If requested by the custodian: (A) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the principal's account; or (B) Evidence linking the account to the principal.
(A) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the principal's account; or
(B) Evidence linking the account to the principal.
Added by 2016 Tenn. Acts, ch. 570,s 11, eff. 7/1/2016.
Tenn. Code Ann. § 35-15-502 — TN Code / Title 35 / Chapter 15 / Section 35-15-502
Spendthrift provision
Status: in_force

(a) A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest. (b) A term of a trust providing that the interest of a beneficiary is held subject to a "spendthrift trust," or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the beneficiary's interest. (c) A spendthrift provision applies to all beneficial interests, including distribution interests and remainder interests. (d) A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and a creditor or assignee of the beneficiary may not reach any of, the interest, or a present, future or prospective distribution at the trust level. Similarly, no creditor or assignee of the beneficiary may force any distribution from the trust. This subsection (d) remains applicable regardless of the beneficiary's potential right to force a distribution under § 35-15-814 . (e) Notwithstanding any other provision of this section to the contrary, regardless of whether a beneficiary has any outstanding creditor, a trustee, cotrustee or other fiduciary of a trust subject to a spendthrift provision 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. No trustee, cotrustee or other fiduciary is liable to any creditor for paying the expenses of a beneficiary under a trust subject to a spendthrift provision. This subsection (e) remains applicable regardless of whether the beneficiary for whom such direct payment was made held a mandatory, support, discretionary or remainder interest. Amended by 2013 Tenn. Acts, ch. 390,s 16, eff. 7/1/2013. Acts 2004, ch. 537, § 41.
(a) A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest.
(b) A term of a trust providing that the interest of a beneficiary is held subject to a "spendthrift trust," or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the beneficiary's interest.
(c) A spendthrift provision applies to all beneficial interests, including distribution interests and remainder interests.
(d) A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and a creditor or assignee of the beneficiary may not reach any of, the interest, or a present, future or prospective distribution at the trust level. Similarly, no creditor or assignee of the beneficiary may force any distribution from the trust. This subsection (d) remains applicable regardless of the beneficiary's potential right to force a distribution under § 35-15-814 .
(e) Notwithstanding any other provision of this section to the contrary, regardless of whether a beneficiary has any outstanding creditor, a trustee, cotrustee or other fiduciary of a trust subject to a spendthrift provision 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. No trustee, cotrustee or other fiduciary is liable to any creditor for paying the expenses of a beneficiary under a trust subject to a spendthrift provision. This subsection (e) remains applicable regardless of whether the beneficiary for whom such direct payment was made held a mandatory, support, discretionary or remainder interest.
Amended by 2013 Tenn. Acts, ch. 390,s 16, eff. 7/1/2013.
Acts 2004, ch. 537, § 41.
Tenn. Code Ann. § 35-15-414 — TN Code / Title 35 / Chapter 15 / Section 35-15-414
Modification or termination of uneconomic trust
Status: in_force

(a) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having either a total value less than one hundred thousand dollars ($100,000) or for which the trustee's annual fee for administering the trust, as set forth in the trustee's published fee schedule, is five percent (5%) or more of the market value of the principal assets of the trust as of the last day of the preceding trust accounting year or the present market value of the principal assets of the trust if there is no applicable trust accounting for a preceding year may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration. (b) The court may modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration. (c) Upon the termination of a trust under this section, the trustee shall distribute the trust property to or for the benefit of the beneficiaries, in such shares as the trustee, or the court if a court proceeding, determines, after taking into account the interests of income and remainder beneficiaries so as to conform as nearly as possible to the intention of the settlor, but a trust that qualified for the marital deduction for tax purposes shall only be distributed to the spouse of the settlor for whom the trust was created. (d) This section does not apply to an easement for conservation or preservation. (e) This section shall not limit the right of a trustee, acting alone, to terminate a trust in accordance with applicable provisions of the governing instrument. Amended by 2019 Tenn. Acts, ch. 340,s 15, eff. 5/10/2019. Acts 2004, ch. 537, § 36.
(a) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having either a total value less than one hundred thousand dollars ($100,000) or for which the trustee's annual fee for administering the trust, as set forth in the trustee's published fee schedule, is five percent (5%) or more of the market value of the principal assets of the trust as of the last day of the preceding trust accounting year or the present market value of the principal assets of the trust if there is no applicable trust accounting for a preceding year may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.
(b) The court may modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration.
(c) Upon the termination of a trust under this section, the trustee shall distribute the trust property to or for the benefit of the beneficiaries, in such shares as the trustee, or the court if a court proceeding, determines, after taking into account the interests of income and remainder beneficiaries so as to conform as nearly as possible to the intention of the settlor, but a trust that qualified for the marital deduction for tax purposes shall only be distributed to the spouse of the settlor for whom the trust was created.
(d) This section does not apply to an easement for conservation or preservation.
(e) This section shall not limit the right of a trustee, acting alone, to terminate a trust in accordance with applicable provisions of the governing instrument.
Amended by 2019 Tenn. Acts, ch. 340,s 15, eff. 5/10/2019.
Acts 2004, ch. 537, § 36.
Tenn. Code Ann. § 35-7-117 — TN Code / Title 35 / Chapter 7 / Section 35-7-117
Exemption of third person from liability
Status: in_force

A third person in good faith and without court order may act on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian and, in the absence of knowledge, is not responsible for determining: (1) The validity of the purported custodian's designation; (2) The propriety of, or the authority under this chapter for, any act of the purported custodian; (3) The validity or propriety under this chapter of any instrument or instructions executed or given either by the person purporting to make a transfer or by the purported custodian; or (4) The propriety of the application of any property of the minor delivered to the purported custodian. Acts 1992, ch. 664, § 1; T.C.A. § 35-7-217.
A third person in good faith and without court order may act on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian and, in the absence of knowledge, is not responsible for determining:
(1) The validity of the purported custodian's designation;
(2) The propriety of, or the authority under this chapter for, any act of the purported custodian;
(3) The validity or propriety under this chapter of any instrument or instructions executed or given either by the person purporting to make a transfer or by the purported custodian; or
(4) The propriety of the application of any property of the minor delivered to the purported custodian.
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-217.
Tenn. Code Ann. § 35-3-121 — TN Code / Title 35 / Chapter 3 / Section 35-3-121
Investments in securities by banks or trust companies
Status: in_force

Unless the governing instrument, court order, or a statute specifically directs otherwise, a bank or trust company serving as trustee, guardian, agent, or in any other fiduciary capacity may invest in any security authorized by this chapter even if that fiduciary or an affiliate of that fiduciary, as defined in [former] § 35-3-117(d) [repealed], participates or has participated as a member of a syndicate underwriting the security, if: (1) The fiduciary does not purchase the security from itself or its affiliate; and (2) The fiduciary does not purchase the security from another syndicate member or an affiliate, pursuant to an implied or express agreement between the fiduciary or its affiliate and a selling member or its affiliate, to purchase all or part of each other's underwriting commitments. Acts 1983, ch. 60, § 1; T.C.A., § 35-329.
Unless the governing instrument, court order, or a statute specifically directs otherwise, a bank or trust company serving as trustee, guardian, agent, or in any other fiduciary capacity may invest in any security authorized by this chapter even if that fiduciary or an affiliate of that fiduciary, as defined in [former] § 35-3-117(d) [repealed], participates or has participated as a member of a syndicate underwriting the security, if:
(1) The fiduciary does not purchase the security from itself or its affiliate; and
(2) The fiduciary does not purchase the security from another syndicate member or an affiliate, pursuant to an implied or express agreement between the fiduciary or its affiliate and a selling member or its affiliate, to purchase all or part of each other's underwriting commitments.
Acts 1983, ch. 60, § 1; T.C.A., § 35-329.
Tenn. Code Ann. § 35-14-110 — TN Code / Title 35 / Chapter 14 / Section 35-14-110
Reviewing compliance
Status: in_force

Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight. Acts 2002, ch. 696, § 10.
Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight.
Acts 2002, ch. 696, § 10.
Tenn. Code Ann. § 35-6-301 — TN Code / Title 35 / Chapter 6 / Section 35-6-301
When right to income begins and ends
Status: in_force

(a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest. (b) An asset becomes subject to a trust: (1) On the date it is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life; (2) On the date of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate; or (3) On the date of an individual's death in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death. (c) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection (d), even if there is an intervening period of administration to wind up the preceding income interest. (d) An income interest ends on the day before an income beneficiary dies or another terminating event occurs, or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income. Acts 2000, ch. 829, § 1.
(a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.
(b) An asset becomes subject to a trust: (1) On the date it is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life; (2) On the date of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate; or (3) On the date of an individual's death in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.
(1) On the date it is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life;
(2) On the date of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate; or
(3) On the date of an individual's death in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.
(c) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection (d), even if there is an intervening period of administration to wind up the preceding income interest.
(d) An income interest ends on the day before an income beneficiary dies or another terminating event occurs, or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income.
Acts 2000, ch. 829, § 1.