Tenn. Code Ann. § 35-5-117 — TN Code / Title 35 / Chapter 5 / Section 35-5-117
Deficiency judgment sufficient to fully satisfy indebtedness on real property after trustee's or foreclosure sale
Status: in_force

(a) In an action brought by a creditor to recover a balance still owing on an indebtedness after a trustee's or foreclosure sale of real property secured by a deed of trust or mortgage, the creditor shall be entitled to a deficiency judgment in an amount sufficient to satisfy fully the indebtedness. (b) In all such actions, absent a showing of fraud, collusion, misconduct, or irregularity in the sale process, the deficiency judgment shall be for the total amount of indebtedness prior to the sale plus the costs of the foreclosure and sale, less the fair market value of the property at the time of the sale. The creditor shall be entitled to a rebuttable prima facie presumption that the sale price of the property is equal to the fair market value of the property at the time of the sale. (c) To overcome the presumption set forth in subsection (b), the debtor must prove by a preponderance of the evidence that the property sold for an amount materially less than the fair market value of property at the time of the foreclosure sale. If the debtor overcomes the presumption, the deficiency shall be the total amount of the indebtedness prior to the sale plus the costs of the foreclosure and sale, less the fair market value of the property at the time of the sale as determined by the court. (d) (1) Any action for a deficiency judgment under this section shall be brought not later than the earlier of: (A) Two (2) years after the date of the trustee's or foreclosure sale, exclusive of any period of time in which a petition for bankruptcy is pending; or (B) The time for enforcing the indebtedness as provided for under §§ 28-1-102 and 28-2-111 . (2) Nothing contained in this section shall be construed as limiting a person entitled to bring such action from electing to sue on an indebtedness in lieu of, prior to, or contemporaneously with enforcement of a deed of trust or mortgage. Acts 2010 , ch. 834, § 1; 2011 , ch. 122, §§ 1- 4; repealed by Acts 2011 , ch. 122, § 4, effective 1/1/2013.
(a) In an action brought by a creditor to recover a balance still owing on an indebtedness after a trustee's or foreclosure sale of real property secured by a deed of trust or mortgage, the creditor shall be entitled to a deficiency judgment in an amount sufficient to satisfy fully the indebtedness.
(b) In all such actions, absent a showing of fraud, collusion, misconduct, or irregularity in the sale process, the deficiency judgment shall be for the total amount of indebtedness prior to the sale plus the costs of the foreclosure and sale, less the fair market value of the property at the time of the sale. The creditor shall be entitled to a rebuttable prima facie presumption that the sale price of the property is equal to the fair market value of the property at the time of the sale.
(c) To overcome the presumption set forth in subsection (b), the debtor must prove by a preponderance of the evidence that the property sold for an amount materially less than the fair market value of property at the time of the foreclosure sale. If the debtor overcomes the presumption, the deficiency shall be the total amount of the indebtedness prior to the sale plus the costs of the foreclosure and sale, less the fair market value of the property at the time of the sale as determined by the court.
(d) (1) Any action for a deficiency judgment under this section shall be brought not later than the earlier of: (A) Two (2) years after the date of the trustee's or foreclosure sale, exclusive of any period of time in which a petition for bankruptcy is pending; or (B) The time for enforcing the indebtedness as provided for under §§ 28-1-102 and 28-2-111 . (2) Nothing contained in this section shall be construed as limiting a person entitled to bring such action from electing to sue on an indebtedness in lieu of, prior to, or contemporaneously with enforcement of a deed of trust or mortgage.
(1) Any action for a deficiency judgment under this section shall be brought not later than the earlier of: (A) Two (2) years after the date of the trustee's or foreclosure sale, exclusive of any period of time in which a petition for bankruptcy is pending; or (B) The time for enforcing the indebtedness as provided for under §§ 28-1-102 and 28-2-111 .
(A) Two (2) years after the date of the trustee's or foreclosure sale, exclusive of any period of time in which a petition for bankruptcy is pending; or
(B) The time for enforcing the indebtedness as provided for under §§ 28-1-102 and 28-2-111 .
(2) Nothing contained in this section shall be construed as limiting a person entitled to bring such action from electing to sue on an indebtedness in lieu of, prior to, or contemporaneously with enforcement of a deed of trust or mortgage.
Acts 2010 , ch. 834, § 1; 2011 , ch. 122, §§ 1- 4; repealed by Acts 2011 , ch. 122, § 4, effective 1/1/2013.
Tenn. Code Ann. § 35-15-501 — TN Code / Title 35 / Chapter 15 / Section 35-15-501
Application - Rights of beneficiary's creditor or assignee
Status: in_force

This part applies to a creditor's or assignee's claims and ability to reach mandatory, support and discretionary interests regardless of whether such interests are subject to a spendthrift provision. To the extent not otherwise prohibited by this part, the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary's distribution interest by attachment of present or future distributions to or for the benefit of the beneficiary or other means. The court may limit the award to such relief as is appropriate under the circumstances. Amended by 2013 Tenn. Acts, ch. 390, s 15, eff. 7/1/2013. Acts 2004, ch. 537, § 40; 2007 , ch. 24, § 21.
This part applies to a creditor's or assignee's claims and ability to reach mandatory, support and discretionary interests regardless of whether such interests are subject to a spendthrift provision. To the extent not otherwise prohibited by this part, the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary's distribution interest by attachment of present or future distributions to or for the benefit of the beneficiary or other means. The court may limit the award to such relief as is appropriate under the circumstances.
Amended by 2013 Tenn. Acts, ch. 390, s 15, eff. 7/1/2013.
Acts 2004, ch. 537, § 40; 2007 , ch. 24, § 21.
Tenn. Code Ann. § 35-15-810 — TN Code / Title 35 / Chapter 15 / Section 35-15-810
Recordkeeping and identification of trust property
Status: in_force

(a) A trustee shall keep adequate records of the administration of the trust. (b) A trustee shall keep trust property separate from the trustee's own property. (c) Except as otherwise provided in subsection (d), a trustee shall cause the trust property to be designated so that the interest of the trust, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary. (d) If the trustee maintains records clearly indicating the respective interests, a trustee may invest as a whole the property of two (2) or more separate trusts. (e) For all purposes under the Tennessee Uniform Trust Code, when a trust is apportioned into separate shares for a single beneficiary or related beneficiary group, the apportioned separate share of the trust shall be treated as separate trusts even though such share may be commingled with other separate shares for investment and tax reporting purposes as provided in this section. (f) For all purposes under this chapter, if a trust is apportioned into separate shares for one (1) or more beneficiaries, then the apportioned separate shares must be treated as separate trusts even though the share may be commingled with other separate shares of the trust for investment and tax reporting purposes as provided in this section. Amended by 2021 Tenn. Acts, ch. 420, s 16, eff. 7/1/2021. Amended by 2019 Tenn. Acts, ch. 197, s 5, eff. 4/25/2019. Acts 2004, ch. 537, § 68.
(a) A trustee shall keep adequate records of the administration of the trust.
(b) A trustee shall keep trust property separate from the trustee's own property.
(c) Except as otherwise provided in subsection (d), a trustee shall cause the trust property to be designated so that the interest of the trust, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary.
(d) If the trustee maintains records clearly indicating the respective interests, a trustee may invest as a whole the property of two (2) or more separate trusts.
(e) For all purposes under the Tennessee Uniform Trust Code, when a trust is apportioned into separate shares for a single beneficiary or related beneficiary group, the apportioned separate share of the trust shall be treated as separate trusts even though such share may be commingled with other separate shares for investment and tax reporting purposes as provided in this section.
(f) For all purposes under this chapter, if a trust is apportioned into separate shares for one (1) or more beneficiaries, then the apportioned separate shares must be treated as separate trusts even though the share may be commingled with other separate shares of the trust for investment and tax reporting purposes as provided in this section.
Amended by 2021 Tenn. Acts, ch. 420, s 16, eff. 7/1/2021.
Amended by 2019 Tenn. Acts, ch. 197, s 5, eff. 4/25/2019.
Acts 2004, ch. 537, § 68.
Tenn. Code Ann. § 35-50-107 — TN Code / Title 35 / Chapter 50 / Section 35-50-107
Limitations on appointment of nonresident fiduciary
Status: in_force

(a) (1) Any person who is not a resident of this state or any corporation that is authorized to exercise fiduciary powers, but is not authorized to do business in this state and does not actually maintain an office in this state, shall not be appointed or allowed to serve as trustee of a corporate or personal trust, personal representative of an estate, guardian, conservator for an incompetent person, guardian for a minor or in any other fiduciary capacity, unless there is also appointed as a fiduciary to serve with such nonresident fiduciary, a person resident in this state or corporation authorized to do business in this state and that maintains an office in this state, except as provided in subdivision (a)(2). In the event the resident cofiduciary ceases for any reason to act, then a new resident cofiduciary shall be appointed. (2) The following nonresident persons or corporations may serve as fiduciaries, whether the appointment is by will, deed, trust agreement, court order or decree or otherwise: (A) Except as provided in subdivision (a)(2)(C), a bank or trust company organized and doing business under the laws of any state or territory of the United States, including the District of Columbia, other than this state, or a national bank or trust company, duly authorized so to act, may be appointed and may serve in this state as a fiduciary, when and to the extent that the state, territory or District of Columbia in which the bank or trust company is organized or has its principal place of business grants authority to serve in like fiduciary capacities to a bank or trust company organized and doing business under the laws of this state or a national bank or trust company having its principal office in this state; (B) Any resident or nonresident person may serve as a personal representative of the estate of a decedent; (C) Any corporation that is authorized to exercise fiduciary powers may serve as trustee of an inter vivos personal or corporate trust, regardless of the residence of the trustee; (D) Any person may serve as trustee of a trust, regardless of the residence of the trustee; (E) Any person may serve as the guardian of the person of a minor, regardless of the residence of the guardian; (F) Any person may serve as the conservator of the person of an incompetent person, regardless of the residence of the conservator; (G) Any person or corporation authorized to exercise fiduciary powers may serve as agent or attorney-in-fact under a power of attorney, regardless of the residence of the agent or attorney-in-fact; and (H) A trust company that is organized under the laws of another state as a bank, trust company or savings bank that: (i) Has an office in this state that is not its principal office, meets the definition of a trust institution under 12 U.S.C. § 1841(c)(2)(D) , and is a direct or indirect subsidiary of a bank holding company that has a direct or indirect bank, trust company or savings bank subsidiary that has an office in this state in which deposits are accepted; or (ii) Has an office in this state that is not its principal office and accepts deposits at its office in this state. (b) (1) All fiduciaries appointed and serving under this section who are not residents of this state shall be subject to the jurisdiction of the courts of this state as to any action or claim for relief arising from any estate or trust within this state for which such nonresident person is acting as fiduciary in the manner described in §§ 20-2-214 - 20-2-219 or in any other manner or matter involving an estate or trust being administered in this state. (2) Any nonresident person, bank or trust company shall not act in any such capacities, until it has appointed in writing the secretary of state as its agent for service of process, upon whom all process in any suit or proceeding against it may be served in any action or proceeding relating to any trust, estate or matter within this state in respect of which such person, bank or trust company is acting in any such fiduciary capacity, and in the writing shall agree that any process against it, which shall be served upon the secretary of state, shall be of the same legal force and validity as if served on the person, bank or trust company. The appointment must identify the specific trust, estate, or person for which the fiduciary has been appointed, state the name and street address, including zip code, of the fiduciary and be accompanied by a ten dollar ($10.00) filing fee. This appointment shall continue so long as any liability remains outstanding against the person, bank or trust company pertaining to any such matters. Upon receipt of any such process, it is the duty of the secretary of state forthwith to forward the process by registered or certified mail to the person, bank or trust company at the address furnished in the writing. It shall be the responsibility of the nonresident personal representative to secure appointment of the secretary of state as agent for service of process and to provide the court with a copy of the receipt from the secretary of state. (c) Unless otherwise provided in the trust agreement or will or by § 30-1-201 , the court having jurisdiction shall require the person, bank or trust company to give bond for the performance of the fiduciary relationship, in which case the statute in such cases shall apply. Even if bond is otherwise waived, the court may, in its discretion, require a nonresident person qualifying as personal representative according to subdivision (a)(2)(B) to furnish bond in an amount equal to the value of assets of the personal estate being removed from this state during the period of estate administration. In the case of intestate succession, no nonresident person qualifying as a personal representative according to subdivision (a)(2)(B) shall be eligible to serve in that capacity without giving bond, unless all heirs at law join in a petition authorizing the person to so serve. (d) Nothing contained in this section shall apply to trust agreements executed for the purpose of securing loans and guaranties thereof. No out-of-state or foreign corporate fiduciary shall have any more powers or privileges to conduct business or serve in a fiduciary capacity in this state than the laws of the state in which the foreign corporation is organized confer like powers upon corporations organized and doing business under the laws of this state or having their principal office in this state. (e) No lack of compliance with this section by any nonresident fiduciary acting as an attorney-in-fact under the power of attorney otherwise executed in accordance with the laws of this state shall be construed to affect the title to any real estate constituting the subject matter of the power of attorney. Amended by 2016 Tenn. Acts, ch. 809, s 7, eff. 4/14/2016. Acts 1955, ch. 164, § 1; 1957, ch. 52, § 1; 1977, ch. 416, § 1; T.C.A., § 35-610; Acts 1985, ch. 140, § 32; 1985, ch. 312, § 2; 1988, ch. 854, § 15; 1991, ch. 187, § 1; 1993, ch. 453, § 1; 1995, ch. 177, §§ 4-12; 1996, ch. 768, §2; 1997 , ch. 426, § 21; 2000, ch. 730, §1; 2005, ch. 99, §§ 10 - 12.
(a) (1) Any person who is not a resident of this state or any corporation that is authorized to exercise fiduciary powers, but is not authorized to do business in this state and does not actually maintain an office in this state, shall not be appointed or allowed to serve as trustee of a corporate or personal trust, personal representative of an estate, guardian, conservator for an incompetent person, guardian for a minor or in any other fiduciary capacity, unless there is also appointed as a fiduciary to serve with such nonresident fiduciary, a person resident in this state or corporation authorized to do business in this state and that maintains an office in this state, except as provided in subdivision (a)(2). In the event the resident cofiduciary ceases for any reason to act, then a new resident cofiduciary shall be appointed. (2) The following nonresident persons or corporations may serve as fiduciaries, whether the appointment is by will, deed, trust agreement, court order or decree or otherwise: (A) Except as provided in subdivision (a)(2)(C), a bank or trust company organized and doing business under the laws of any state or territory of the United States, including the District of Columbia, other than this state, or a national bank or trust company, duly authorized so to act, may be appointed and may serve in this state as a fiduciary, when and to the extent that the state, territory or District of Columbia in which the bank or trust company is organized or has its principal place of business grants authority to serve in like fiduciary capacities to a bank or trust company organized and doing business under the laws of this state or a national bank or trust company having its principal office in this state; (B) Any resident or nonresident person may serve as a personal representative of the estate of a decedent; (C) Any corporation that is authorized to exercise fiduciary powers may serve as trustee of an inter vivos personal or corporate trust, regardless of the residence of the trustee; (D) Any person may serve as trustee of a trust, regardless of the residence of the trustee; (E) Any person may serve as the guardian of the person of a minor, regardless of the residence of the guardian; (F) Any person may serve as the conservator of the person of an incompetent person, regardless of the residence of the conservator; (G) Any person or corporation authorized to exercise fiduciary powers may serve as agent or attorney-in-fact under a power of attorney, regardless of the residence of the agent or attorney-in-fact; and (H) A trust company that is organized under the laws of another state as a bank, trust company or savings bank that: (i) Has an office in this state that is not its principal office, meets the definition of a trust institution under 12 U.S.C. § 1841(c)(2)(D) , and is a direct or indirect subsidiary of a bank holding company that has a direct or indirect bank, trust company or savings bank subsidiary that has an office in this state in which deposits are accepted; or (ii) Has an office in this state that is not its principal office and accepts deposits at its office in this state.
(1) Any person who is not a resident of this state or any corporation that is authorized to exercise fiduciary powers, but is not authorized to do business in this state and does not actually maintain an office in this state, shall not be appointed or allowed to serve as trustee of a corporate or personal trust, personal representative of an estate, guardian, conservator for an incompetent person, guardian for a minor or in any other fiduciary capacity, unless there is also appointed as a fiduciary to serve with such nonresident fiduciary, a person resident in this state or corporation authorized to do business in this state and that maintains an office in this state, except as provided in subdivision (a)(2). In the event the resident cofiduciary ceases for any reason to act, then a new resident cofiduciary shall be appointed.
(2) The following nonresident persons or corporations may serve as fiduciaries, whether the appointment is by will, deed, trust agreement, court order or decree or otherwise: (A) Except as provided in subdivision (a)(2)(C), a bank or trust company organized and doing business under the laws of any state or territory of the United States, including the District of Columbia, other than this state, or a national bank or trust company, duly authorized so to act, may be appointed and may serve in this state as a fiduciary, when and to the extent that the state, territory or District of Columbia in which the bank or trust company is organized or has its principal place of business grants authority to serve in like fiduciary capacities to a bank or trust company organized and doing business under the laws of this state or a national bank or trust company having its principal office in this state; (B) Any resident or nonresident person may serve as a personal representative of the estate of a decedent; (C) Any corporation that is authorized to exercise fiduciary powers may serve as trustee of an inter vivos personal or corporate trust, regardless of the residence of the trustee; (D) Any person may serve as trustee of a trust, regardless of the residence of the trustee; (E) Any person may serve as the guardian of the person of a minor, regardless of the residence of the guardian; (F) Any person may serve as the conservator of the person of an incompetent person, regardless of the residence of the conservator; (G) Any person or corporation authorized to exercise fiduciary powers may serve as agent or attorney-in-fact under a power of attorney, regardless of the residence of the agent or attorney-in-fact; and (H) A trust company that is organized under the laws of another state as a bank, trust company or savings bank that: (i) Has an office in this state that is not its principal office, meets the definition of a trust institution under 12 U.S.C. § 1841(c)(2)(D) , and is a direct or indirect subsidiary of a bank holding company that has a direct or indirect bank, trust company or savings bank subsidiary that has an office in this state in which deposits are accepted; or (ii) Has an office in this state that is not its principal office and accepts deposits at its office in this state.
(A) Except as provided in subdivision (a)(2)(C), a bank or trust company organized and doing business under the laws of any state or territory of the United States, including the District of Columbia, other than this state, or a national bank or trust company, duly authorized so to act, may be appointed and may serve in this state as a fiduciary, when and to the extent that the state, territory or District of Columbia in which the bank or trust company is organized or has its principal place of business grants authority to serve in like fiduciary capacities to a bank or trust company organized and doing business under the laws of this state or a national bank or trust company having its principal office in this state;
(B) Any resident or nonresident person may serve as a personal representative of the estate of a decedent;
(C) Any corporation that is authorized to exercise fiduciary powers may serve as trustee of an inter vivos personal or corporate trust, regardless of the residence of the trustee;
(D) Any person may serve as trustee of a trust, regardless of the residence of the trustee;
(E) Any person may serve as the guardian of the person of a minor, regardless of the residence of the guardian;
(F) Any person may serve as the conservator of the person of an incompetent person, regardless of the residence of the conservator;
(G) Any person or corporation authorized to exercise fiduciary powers may serve as agent or attorney-in-fact under a power of attorney, regardless of the residence of the agent or attorney-in-fact; and
(H) A trust company that is organized under the laws of another state as a bank, trust company or savings bank that: (i) Has an office in this state that is not its principal office, meets the definition of a trust institution under 12 U.S.C. § 1841(c)(2)(D) , and is a direct or indirect subsidiary of a bank holding company that has a direct or indirect bank, trust company or savings bank subsidiary that has an office in this state in which deposits are accepted; or (ii) Has an office in this state that is not its principal office and accepts deposits at its office in this state.
(i) Has an office in this state that is not its principal office, meets the definition of a trust institution under 12 U.S.C. § 1841(c)(2)(D) , and is a direct or indirect subsidiary of a bank holding company that has a direct or indirect bank, trust company or savings bank subsidiary that has an office in this state in which deposits are accepted; or
(ii) Has an office in this state that is not its principal office and accepts deposits at its office in this state.
(b) (1) All fiduciaries appointed and serving under this section who are not residents of this state shall be subject to the jurisdiction of the courts of this state as to any action or claim for relief arising from any estate or trust within this state for which such nonresident person is acting as fiduciary in the manner described in §§ 20-2-214 - 20-2-219 or in any other manner or matter involving an estate or trust being administered in this state. (2) Any nonresident person, bank or trust company shall not act in any such capacities, until it has appointed in writing the secretary of state as its agent for service of process, upon whom all process in any suit or proceeding against it may be served in any action or proceeding relating to any trust, estate or matter within this state in respect of which such person, bank or trust company is acting in any such fiduciary capacity, and in the writing shall agree that any process against it, which shall be served upon the secretary of state, shall be of the same legal force and validity as if served on the person, bank or trust company. The appointment must identify the specific trust, estate, or person for which the fiduciary has been appointed, state the name and street address, including zip code, of the fiduciary and be accompanied by a ten dollar ($10.00) filing fee. This appointment shall continue so long as any liability remains outstanding against the person, bank or trust company pertaining to any such matters. Upon receipt of any such process, it is the duty of the secretary of state forthwith to forward the process by registered or certified mail to the person, bank or trust company at the address furnished in the writing. It shall be the responsibility of the nonresident personal representative to secure appointment of the secretary of state as agent for service of process and to provide the court with a copy of the receipt from the secretary of state.
(1) All fiduciaries appointed and serving under this section who are not residents of this state shall be subject to the jurisdiction of the courts of this state as to any action or claim for relief arising from any estate or trust within this state for which such nonresident person is acting as fiduciary in the manner described in §§ 20-2-214 - 20-2-219 or in any other manner or matter involving an estate or trust being administered in this state.
(2) Any nonresident person, bank or trust company shall not act in any such capacities, until it has appointed in writing the secretary of state as its agent for service of process, upon whom all process in any suit or proceeding against it may be served in any action or proceeding relating to any trust, estate or matter within this state in respect of which such person, bank or trust company is acting in any such fiduciary capacity, and in the writing shall agree that any process against it, which shall be served upon the secretary of state, shall be of the same legal force and validity as if served on the person, bank or trust company. The appointment must identify the specific trust, estate, or person for which the fiduciary has been appointed, state the name and street address, including zip code, of the fiduciary and be accompanied by a ten dollar ($10.00) filing fee. This appointment shall continue so long as any liability remains outstanding against the person, bank or trust company pertaining to any such matters. Upon receipt of any such process, it is the duty of the secretary of state forthwith to forward the process by registered or certified mail to the person, bank or trust company at the address furnished in the writing. It shall be the responsibility of the nonresident personal representative to secure appointment of the secretary of state as agent for service of process and to provide the court with a copy of the receipt from the secretary of state.
(c) Unless otherwise provided in the trust agreement or will or by § 30-1-201 , the court having jurisdiction shall require the person, bank or trust company to give bond for the performance of the fiduciary relationship, in which case the statute in such cases shall apply. Even if bond is otherwise waived, the court may, in its discretion, require a nonresident person qualifying as personal representative according to subdivision (a)(2)(B) to furnish bond in an amount equal to the value of assets of the personal estate being removed from this state during the period of estate administration. In the case of intestate succession, no nonresident person qualifying as a personal representative according to subdivision (a)(2)(B) shall be eligible to serve in that capacity without giving bond, unless all heirs at law join in a petition authorizing the person to so serve.
(d) Nothing contained in this section shall apply to trust agreements executed for the purpose of securing loans and guaranties thereof. No out-of-state or foreign corporate fiduciary shall have any more powers or privileges to conduct business or serve in a fiduciary capacity in this state than the laws of the state in which the foreign corporation is organized confer like powers upon corporations organized and doing business under the laws of this state or having their principal office in this state.
(e) No lack of compliance with this section by any nonresident fiduciary acting as an attorney-in-fact under the power of attorney otherwise executed in accordance with the laws of this state shall be construed to affect the title to any real estate constituting the subject matter of the power of attorney.
Amended by 2016 Tenn. Acts, ch. 809, s 7, eff. 4/14/2016.
Acts 1955, ch. 164, § 1; 1957, ch. 52, § 1; 1977, ch. 416, § 1; T.C.A., § 35-610; Acts 1985, ch. 140, § 32; 1985, ch. 312, § 2; 1988, ch. 854, § 15; 1991, ch. 187, § 1; 1993, ch. 453, § 1; 1995, ch. 177, §§ 4-12; 1996, ch. 768, §2; 1997 , ch. 426, § 21; 2000, ch. 730, §1; 2005, ch. 99, §§ 10 - 12.
Tenn. Code Ann. § 35-15-103 — TN Code / Title 35 / Chapter 15 / Section 35-15-103
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Action" with respect to an act of a trustee, includes a failure to act; (2) "Another state" or "other state" means any state other than this state; (3) "Ascertainable standard" means a standard relating to an individual's health, education, support or maintenance within the meaning of § 2041(b)(1)(A) or § 2514(c)(1) of the Internal Revenue Code of 1986 (U.S.C. § 2041(b)(1)(A) and § 2514(c)(1)), as in effect on July 1, 2004, or as later amended; (4) "Beneficial interest" means a distribution interest or a remainder interest; provided, however, that a beneficial interest specifically excludes a power of appointment or a power reserved by a settlor; (5) "Beneficiary" means a person that has a present or future beneficial interest in a trust, vested or contingent; (6) "Charitable trust" means a trust, or portion of a trust, created for a charitable purpose described in § 35-15-405(a) ; (7) "Conservator" has the same meaning as in § 34-1-101 ; (8) "Directed trust" means a trust where either through the terms of the trust, an agreement of the qualified beneficiaries or a court order, one or more persons are given the authority to direct or consent to a fiduciary's actual or proposed investment decision, distribution decision, or any other decision of the fiduciary; (9) "Disinterested trustee" means a trustee that is not a related or subordinate party, as defined in 26 U.S.C. § 672(c) , with respect to the grantor or a qualified beneficiary if the qualified beneficiary were the grantor for purposes of 26 U.S.C. § 672(c) ; (10) "Distribution beneficiary" means a beneficiary who is an eligible distributee or permissible distributee of the income or principal of a trust; (11) "Distribution interest" means: (A) An interest, other than a remainder interest, held by a distribution beneficiary under a trust and may be a current distribution interest or a future distribution interest; (B) Relative to a distribution interest: (i) Neither the existence of a distribution interest or the provision of services by a spouse in that spouse's capacity as a fiduciary of the trust creating the distribution interest is relevant in the equitable division of marital property; (ii) None of the factors in subdivision (11)(B)(i) or the exercise or nonexercise of any power or discretion by a spouse in that spouse's capacity as a fiduciary of the trust creating the distribution interest (even if that spouse is also a beneficiary of the trust creating the distribution interest) are relevant to, indicative of or effect the transmutation or other conversion of separate property to community property; (iii) The expending of any community funds by a spouse in that spouse's capacity as a fiduciary of the trust creating the distribution interest relative to the operation or maintenance of property related to a distribution interest is not relevant to or indicative of, and does not effect a transmutation or other conversion of separate property to community property; (iv) Any funds expended pursuant to subdivision (11)(B)(iii) shall be valid debts of the trust and shall be repaid to the community with appropriate interest; (C) A distribution interest is classified as either a mandatory interest, a support interest or a discretionary interest; and although not the exclusive means to create each such respective distribution interest, absent clear and convincing evidence to the contrary, use of the example language accompanying the following definitions of each such respective distribution interest results in the indicated classification of distribution interest: (i) A mandatory interest means a distribution interest in which the timing of any distribution must occur within one (1) year from the date the right to the distribution arises and the trustee has no discretion in determining whether a distribution shall be made or the amount of such distribution; example distribution language indicating a mandatory interest includes, but is not limited to: (a) All income shall be distributed to a named beneficiary; or (b) One hundred thousand dollars ($100,000) a year shall be distributed to a named beneficiary; (ii) A support interest means a distribution interest that is not a mandatory interest but still contains mandatory language such as "shall make distributions" and is coupled with a standard capable of judicial interpretation; example distribution language indicating a support interest includes, but is not limited to: (a) The trustee shall make distributions for health, education, maintenance, and support; (b) Notwithstanding the distribution language used, if a trust instrument containing such distribution language specifically provides that the trustee exercise discretion in a reasonable manner with regard to a discretionary interest, then notwithstanding any other provision of this subdivision (11) defining distribution interests, the distribution interest shall be classified as a support interest; (iii) A discretionary interest means any interest that is not a mandatory or a support interest and is any distribution interest where a trustee has any discretion to make or withhold a distribution; example distribution language indicating a discretionary interest includes, but is not limited to: (a) The trustee may, in the trustee's sole and absolute discretion, make distributions for health, education, maintenance, and support; (b) The trustee, in the trustee's sole and absolute discretion, shall make distributions for health, education, maintenance, and support; (c) The trustee may make distributions for health, education, maintenance, and support; (d) The trustee shall make distributions for health, education, maintenance, and support; provided, however, that the trustee may exclude any of the beneficiaries or may make unequal distributions among them; or (e) The trustee may make distributions for health, education, maintenance, support, comfort, and general welfare; (f) A discretionary interest may also be evidenced by: (1) Permissive distribution language such as "may make distributions"; (2) Mandatory distribution language that is negated by the discretionary distribution language contained in the trust such as "the trustee shall make distributions in the trustee's sole and absolute discretion"; (g) An interest that includes mandatory distribution language such as "shall" but is subsequently qualified by discretionary distribution language shall be classified as a discretionary interest and not as a support or a mandatory interest; (D) (i) To the extent a trust contains distribution language indicating the existence of any combination of a mandatory, support and discretionary interest, that combined interest of the trust shall be divided and treated separately as follows: (a) The trust shall be a mandatory interest only to the extent of the mandatory distribution language; (b) The trust shall be a support interest only to the extent of such support distribution language; and (c) The remaining trust property shall be held as a discretionary interest; (ii) For purposes of this subdivision (11)(D), a support interest that includes mandatory distribution language such as "shall" but is subsequently qualified by discretionary distribution language, shall be classified as a discretionary interest and not as a support interest; (12) "Environmental law" means a federal, state, or local law, rule, regulation, or ordinance relating to protection of the environment; (13) "Excluded fiduciary" means any trustee, trust advisor, or trust protector to the extent that, under the terms of a trust, an agreement of the qualified beneficiaries, an exercise of the authority described in § 35-15-716 , or court order: (A) The trustee, trust advisor, or trust protector is excluded from exercising a power, or is relieved of a duty; and (B) The power or duty is granted or reserved to another person; (14) "Fiduciary" means: (A) A trustee, conservator, guardian, agent under any agency agreement or other instrument, an executor, personal representative or administrator of a decedent's estate, or any other party, including a trust advisor or a trust protector, who is acting in a fiduciary capacity for any person, trust, or estate; (B) Fiduciary also means a trustee as defined in § 35-14-102 ; (C) For purposes of subdivision (14)(A), an agency agreement includes but is not limited to, any agreement under which any delegation is made, either pursuant to § 35-15-807 or by anyone holding a power or duty pursuant to part 12; (D) For purposes of the definition of fiduciary in this subdivision (14), fiduciary does not mean any person who is an excluded fiduciary as such is defined in this section; (15) "Foreign" or "foreign country" means any jurisdiction, subdivision, territory or possession thereof, other than that of the United States of America or of a state; (16) "Foreign jurisdiction" means any jurisdiction, subdivision, territory or possession thereof, other than this state; (17) "Guardian" has the same meaning as in § 34-1-101 . The term does not include a guardian ad litem; (18) "Interests of the beneficiaries" means the beneficial interests provided in the terms of the trust; (19) "Internal Revenue Code" means the Internal Revenue Code of 1986 (U.S.C. title 26), as in effect on July 1, 2004, or as later amended; (20) "Jurisdiction" with respect to a geographic area, includes a state or country; (21) "Person" means an individual; corporation; business trust; estate; trust or civil law equivalent of a trust, including a fideicomiso or equivalent, or a foundation of the equivalent; partnership; limited liability company; association; joint venture; government; governmental subdivision, agency, or instrumentality; public corporation; or any other legal or commercial entity; (22) "Power of appointment" means: (A) An inter vivos or testamentary power to direct the disposition of trust property, other than a distribution decision made by a trustee or other fiduciary to a beneficiary; (B) Powers of appointment are held by the person to whom such power has been given, and not by a settlor in that person's capacity as settlor; (23) "Power of withdrawal" means a presently exercisable general power of appointment other than a power: (A) Exercisable by a trustee and limited by an ascertainable standard; or (B) Exercisable by another person only upon consent of the trustee or a person holding an adverse interest; (24) "Property" means anything that may be the subject of ownership, whether real or personal, legal or equitable, or any interest therein; (25) "Qualified beneficiary" means a beneficiary who, assuming the nonexercise of all powers of appointment and the nonoccurrence of any event not reasonably expected to occur, on the date the beneficiary's qualification is determined: (A) Is a distributee or permissible distributee of trust income or principal; (B) Would be a distributee or permissible distributee of trust income or principal if the interests of the distributees described in subdivision (25)(A) terminated on that date without causing the trust to terminate; or (C) Would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date; (D) (i) Notwithstanding any other provisions of this subdivision (25), no ultimate beneficiary or potential ultimate beneficiary shall be a qualified beneficiary; (ii) In determining who is or may be an ultimate beneficiary, all of the following shall be taken into consideration: (a) The terms of the trust naming any ultimate beneficiary or potential ultimate beneficiary and the intention of the settlor relative to any such beneficiary as expressed in such terms; and (b) Any terms or provisions related to the exercise of any power by any person naming any ultimate beneficiary or potential ultimate beneficiary and the intention of the person exercising such power relative to any such beneficiary as expressed in such terms or provisions; (iii) Determined as provided in subdivision (25)(D)(ii), an ultimate beneficiary or potential ultimate beneficiary is any beneficiary who the settlor or power holder did not reasonably anticipate would take any interest upon termination of all or any part of a trust absent all other beneficiaries or members of classes of beneficiaries named in the trust instrument or in the exercise of the power, respectively, predeceasing or otherwise not being in existence at the time at which such trust or part thereof terminates; (iv) By way of example and not in limitation of this subdivision (25)(D), an ultimate beneficiary is a person or persons often included in a trust instrument or under the exercise of a power to take an interest in a trust at the time all or any part of such trust terminates only in a case where all other named beneficiaries or classes of beneficiaries that have or had an affinity through either familial connection or friendship with any of: (a) The settlor; (b) The person holding any power; or (c) Any prior beneficiary or potential beneficiary of the trust; are predeceased or are otherwise not in existence at the time all or any part of the trust terminates; (26) "Reach" means, with respect to a distribution interest or any power held by anyone relative to a trust, to subject such distribution interest or such power to a judgment, decree, garnishment, attachment, execution, levy, creditor's bill or other legal, equitable, or administrative process, relief, or control of any court, tribunal, agency, or other entity that, by power of law, is provided with powers or jurisdiction similar to those described in this subdivision (26); (27) "Remainder interest" means an interest under which a trust beneficiary will receive property held by a trust outright at some time during the future; relative to a remainder interest: (A) Neither the existence of a remainder interest or the provision of services by a spouse in that spouse's capacity as a fiduciary of the trust creating the remainder interest is relevant in the equitable division of marital property; (B) None of the factors in subdivision (27)(A) or the exercise or non-exercise of any power or discretion by a spouse in that spouse's capacity as a fiduciary of the trust creating the remainder interest (even if that spouse is also a beneficiary of the trust creating the remainder interest) are relevant to, indicative of or effect the transmutation or other conversion of separate property to community property; (C) The expending of any community funds by a spouse in that spouse's capacity as a fiduciary of the trust creating the remainder interest relative to the operation or maintenance of property related to a remainder interest is not relevant to or indicative of, and does not effect a transmutation or other conversion of separate property to community property; (D) Any funds expended pursuant to subdivision (27)(C) shall be valid debts of the trust and shall be repaid to the community with appropriate interest; (28) "Reserved power" means a power held by a settlor; (29) "Revocable" as applied to a trust, means revocable by the settlor without the consent of the trustee or a person holding an adverse interest; (30) "Settlor" means a person, including a testator, who creates, or contributes property to, a trust. If more than one (1) person creates or contributes property to a trust, each person is a settlor of the portion of the trust property attributable to that person's contribution except to the extent another person has the power to revoke or withdraw that portion; (31) "Spendthrift provision" means a term of a trust which restrains both voluntary and involuntary transfer of a beneficiary's interest; (32) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. The term includes an Indian tribe or band recognized by federal law or formally acknowledged by a state; (33) "Successors in interest" means the beneficiaries under the settlor's will, if the settlor has a will, or in the absence of an effective will provision, the settlor's heirs at law; (34) "Terms of a trust" means the manifestation of the settlor's intent regarding a trust's provisions as expressed in the trust instrument or as may be established by other evidence that would be admissible in a judicial proceeding; (35) "This state" means the state of Tennessee; (36) "Trust advisor" means any person described in § 35-15-1201(a) ; (37) "Trust instrument" means an instrument executed by the settlor that contains terms of the trust, including any amendments thereto; (38) "Trust protector" means any person described in § 35-15-1201(a) ; and (39) "Trustee" includes an original, additional, and successor trustee, and a cotrustee. Amended by 2024 Tenn. Acts, ch. 695,s 1, eff. 7/1/2024. Amended by 2023 Tenn. Acts, ch. 166, s 5, eff. 4/17/2023. Amended by 2021 Tenn. Acts, ch. 420, Secs.s 2, s 23 eff. 7/1/2021. Amended by 2014 Tenn. Acts, ch. 829, s 5, eff. 4/29/2014. Amended by 2013 Tenn. Acts, ch. 390, s 3, eff. 7/1/2013. Acts 2004, ch. 537, § 4; 2007 , ch. 24, §§ 1 - 3; 2007 , ch. 477, § 1.
As used in this chapter, unless the context otherwise requires:
(1) "Action" with respect to an act of a trustee, includes a failure to act;
(2) "Another state" or "other state" means any state other than this state;
(3) "Ascertainable standard" means a standard relating to an individual's health, education, support or maintenance within the meaning of § 2041(b)(1)(A) or § 2514(c)(1) of the Internal Revenue Code of 1986 (U.S.C. § 2041(b)(1)(A) and § 2514(c)(1)), as in effect on July 1, 2004, or as later amended;
(4) "Beneficial interest" means a distribution interest or a remainder interest; provided, however, that a beneficial interest specifically excludes a power of appointment or a power reserved by a settlor;
(5) "Beneficiary" means a person that has a present or future beneficial interest in a trust, vested or contingent;
(6) "Charitable trust" means a trust, or portion of a trust, created for a charitable purpose described in § 35-15-405(a) ;
(7) "Conservator" has the same meaning as in § 34-1-101 ;
(8) "Directed trust" means a trust where either through the terms of the trust, an agreement of the qualified beneficiaries or a court order, one or more persons are given the authority to direct or consent to a fiduciary's actual or proposed investment decision, distribution decision, or any other decision of the fiduciary;
(9) "Disinterested trustee" means a trustee that is not a related or subordinate party, as defined in 26 U.S.C. § 672(c) , with respect to the grantor or a qualified beneficiary if the qualified beneficiary were the grantor for purposes of 26 U.S.C. § 672(c) ;
(10) "Distribution beneficiary" means a beneficiary who is an eligible distributee or permissible distributee of the income or principal of a trust;
(11) "Distribution interest" means: (A) An interest, other than a remainder interest, held by a distribution beneficiary under a trust and may be a current distribution interest or a future distribution interest; (B) Relative to a distribution interest: (i) Neither the existence of a distribution interest or the provision of services by a spouse in that spouse's capacity as a fiduciary of the trust creating the distribution interest is relevant in the equitable division of marital property; (ii) None of the factors in subdivision (11)(B)(i) or the exercise or nonexercise of any power or discretion by a spouse in that spouse's capacity as a fiduciary of the trust creating the distribution interest (even if that spouse is also a beneficiary of the trust creating the distribution interest) are relevant to, indicative of or effect the transmutation or other conversion of separate property to community property; (iii) The expending of any community funds by a spouse in that spouse's capacity as a fiduciary of the trust creating the distribution interest relative to the operation or maintenance of property related to a distribution interest is not relevant to or indicative of, and does not effect a transmutation or other conversion of separate property to community property; (iv) Any funds expended pursuant to subdivision (11)(B)(iii) shall be valid debts of the trust and shall be repaid to the community with appropriate interest; (C) A distribution interest is classified as either a mandatory interest, a support interest or a discretionary interest; and although not the exclusive means to create each such respective distribution interest, absent clear and convincing evidence to the contrary, use of the example language accompanying the following definitions of each such respective distribution interest results in the indicated classification of distribution interest: (i) A mandatory interest means a distribution interest in which the timing of any distribution must occur within one (1) year from the date the right to the distribution arises and the trustee has no discretion in determining whether a distribution shall be made or the amount of such distribution; example distribution language indicating a mandatory interest includes, but is not limited to: (a) All income shall be distributed to a named beneficiary; or (b) One hundred thousand dollars ($100,000) a year shall be distributed to a named beneficiary; (ii) A support interest means a distribution interest that is not a mandatory interest but still contains mandatory language such as "shall make distributions" and is coupled with a standard capable of judicial interpretation; example distribution language indicating a support interest includes, but is not limited to: (a) The trustee shall make distributions for health, education, maintenance, and support; (b) Notwithstanding the distribution language used, if a trust instrument containing such distribution language specifically provides that the trustee exercise discretion in a reasonable manner with regard to a discretionary interest, then notwithstanding any other provision of this subdivision (11) defining distribution interests, the distribution interest shall be classified as a support interest; (iii) A discretionary interest means any interest that is not a mandatory or a support interest and is any distribution interest where a trustee has any discretion to make or withhold a distribution; example distribution language indicating a discretionary interest includes, but is not limited to: (a) The trustee may, in the trustee's sole and absolute discretion, make distributions for health, education, maintenance, and support; (b) The trustee, in the trustee's sole and absolute discretion, shall make distributions for health, education, maintenance, and support; (c) The trustee may make distributions for health, education, maintenance, and support; (d) The trustee shall make distributions for health, education, maintenance, and support; provided, however, that the trustee may exclude any of the beneficiaries or may make unequal distributions among them; or (e) The trustee may make distributions for health, education, maintenance, support, comfort, and general welfare; (f) A discretionary interest may also be evidenced by: (1) Permissive distribution language such as "may make distributions"; (2) Mandatory distribution language that is negated by the discretionary distribution language contained in the trust such as "the trustee shall make distributions in the trustee's sole and absolute discretion"; (g) An interest that includes mandatory distribution language such as "shall" but is subsequently qualified by discretionary distribution language shall be classified as a discretionary interest and not as a support or a mandatory interest; (D) (i) To the extent a trust contains distribution language indicating the existence of any combination of a mandatory, support and discretionary interest, that combined interest of the trust shall be divided and treated separately as follows: (a) The trust shall be a mandatory interest only to the extent of the mandatory distribution language; (b) The trust shall be a support interest only to the extent of such support distribution language; and (c) The remaining trust property shall be held as a discretionary interest; (ii) For purposes of this subdivision (11)(D), a support interest that includes mandatory distribution language such as "shall" but is subsequently qualified by discretionary distribution language, shall be classified as a discretionary interest and not as a support interest;
(A) An interest, other than a remainder interest, held by a distribution beneficiary under a trust and may be a current distribution interest or a future distribution interest;
(B) Relative to a distribution interest: (i) Neither the existence of a distribution interest or the provision of services by a spouse in that spouse's capacity as a fiduciary of the trust creating the distribution interest is relevant in the equitable division of marital property; (ii) None of the factors in subdivision (11)(B)(i) or the exercise or nonexercise of any power or discretion by a spouse in that spouse's capacity as a fiduciary of the trust creating the distribution interest (even if that spouse is also a beneficiary of the trust creating the distribution interest) are relevant to, indicative of or effect the transmutation or other conversion of separate property to community property; (iii) The expending of any community funds by a spouse in that spouse's capacity as a fiduciary of the trust creating the distribution interest relative to the operation or maintenance of property related to a distribution interest is not relevant to or indicative of, and does not effect a transmutation or other conversion of separate property to community property; (iv) Any funds expended pursuant to subdivision (11)(B)(iii) shall be valid debts of the trust and shall be repaid to the community with appropriate interest;
(i) Neither the existence of a distribution interest or the provision of services by a spouse in that spouse's capacity as a fiduciary of the trust creating the distribution interest is relevant in the equitable division of marital property;
(ii) None of the factors in subdivision (11)(B)(i) or the exercise or nonexercise of any power or discretion by a spouse in that spouse's capacity as a fiduciary of the trust creating the distribution interest (even if that spouse is also a beneficiary of the trust creating the distribution interest) are relevant to, indicative of or effect the transmutation or other conversion of separate property to community property;
(iii) The expending of any community funds by a spouse in that spouse's capacity as a fiduciary of the trust creating the distribution interest relative to the operation or maintenance of property related to a distribution interest is not relevant to or indicative of, and does not effect a transmutation or other conversion of separate property to community property;
(iv) Any funds expended pursuant to subdivision (11)(B)(iii) shall be valid debts of the trust and shall be repaid to the community with appropriate interest;
(C) A distribution interest is classified as either a mandatory interest, a support interest or a discretionary interest; and although not the exclusive means to create each such respective distribution interest, absent clear and convincing evidence to the contrary, use of the example language accompanying the following definitions of each such respective distribution interest results in the indicated classification of distribution interest: (i) A mandatory interest means a distribution interest in which the timing of any distribution must occur within one (1) year from the date the right to the distribution arises and the trustee has no discretion in determining whether a distribution shall be made or the amount of such distribution; example distribution language indicating a mandatory interest includes, but is not limited to: (a) All income shall be distributed to a named beneficiary; or (b) One hundred thousand dollars ($100,000) a year shall be distributed to a named beneficiary; (ii) A support interest means a distribution interest that is not a mandatory interest but still contains mandatory language such as "shall make distributions" and is coupled with a standard capable of judicial interpretation; example distribution language indicating a support interest includes, but is not limited to: (a) The trustee shall make distributions for health, education, maintenance, and support; (b) Notwithstanding the distribution language used, if a trust instrument containing such distribution language specifically provides that the trustee exercise discretion in a reasonable manner with regard to a discretionary interest, then notwithstanding any other provision of this subdivision (11) defining distribution interests, the distribution interest shall be classified as a support interest; (iii) A discretionary interest means any interest that is not a mandatory or a support interest and is any distribution interest where a trustee has any discretion to make or withhold a distribution; example distribution language indicating a discretionary interest includes, but is not limited to: (a) The trustee may, in the trustee's sole and absolute discretion, make distributions for health, education, maintenance, and support; (b) The trustee, in the trustee's sole and absolute discretion, shall make distributions for health, education, maintenance, and support; (c) The trustee may make distributions for health, education, maintenance, and support; (d) The trustee shall make distributions for health, education, maintenance, and support; provided, however, that the trustee may exclude any of the beneficiaries or may make unequal distributions among them; or (e) The trustee may make distributions for health, education, maintenance, support, comfort, and general welfare; (f) A discretionary interest may also be evidenced by: (1) Permissive distribution language such as "may make distributions"; (2) Mandatory distribution language that is negated by the discretionary distribution language contained in the trust such as "the trustee shall make distributions in the trustee's sole and absolute discretion"; (g) An interest that includes mandatory distribution language such as "shall" but is subsequently qualified by discretionary distribution language shall be classified as a discretionary interest and not as a support or a mandatory interest;
(i) A mandatory interest means a distribution interest in which the timing of any distribution must occur within one (1) year from the date the right to the distribution arises and the trustee has no discretion in determining whether a distribution shall be made or the amount of such distribution; example distribution language indicating a mandatory interest includes, but is not limited to: (a) All income shall be distributed to a named beneficiary; or (b) One hundred thousand dollars ($100,000) a year shall be distributed to a named beneficiary;
(a) All income shall be distributed to a named beneficiary; or
(b) One hundred thousand dollars ($100,000) a year shall be distributed to a named beneficiary;
(ii) A support interest means a distribution interest that is not a mandatory interest but still contains mandatory language such as "shall make distributions" and is coupled with a standard capable of judicial interpretation; example distribution language indicating a support interest includes, but is not limited to: (a) The trustee shall make distributions for health, education, maintenance, and support; (b) Notwithstanding the distribution language used, if a trust instrument containing such distribution language specifically provides that the trustee exercise discretion in a reasonable manner with regard to a discretionary interest, then notwithstanding any other provision of this subdivision (11) defining distribution interests, the distribution interest shall be classified as a support interest;
(a) The trustee shall make distributions for health, education, maintenance, and support;
(b) Notwithstanding the distribution language used, if a trust instrument containing such distribution language specifically provides that the trustee exercise discretion in a reasonable manner with regard to a discretionary interest, then notwithstanding any other provision of this subdivision (11) defining distribution interests, the distribution interest shall be classified as a support interest;
(iii) A discretionary interest means any interest that is not a mandatory or a support interest and is any distribution interest where a trustee has any discretion to make or withhold a distribution; example distribution language indicating a discretionary interest includes, but is not limited to: (a) The trustee may, in the trustee's sole and absolute discretion, make distributions for health, education, maintenance, and support; (b) The trustee, in the trustee's sole and absolute discretion, shall make distributions for health, education, maintenance, and support; (c) The trustee may make distributions for health, education, maintenance, and support; (d) The trustee shall make distributions for health, education, maintenance, and support; provided, however, that the trustee may exclude any of the beneficiaries or may make unequal distributions among them; or (e) The trustee may make distributions for health, education, maintenance, support, comfort, and general welfare; (f) A discretionary interest may also be evidenced by: (1) Permissive distribution language such as "may make distributions"; (2) Mandatory distribution language that is negated by the discretionary distribution language contained in the trust such as "the trustee shall make distributions in the trustee's sole and absolute discretion"; (g) An interest that includes mandatory distribution language such as "shall" but is subsequently qualified by discretionary distribution language shall be classified as a discretionary interest and not as a support or a mandatory interest;
(a) The trustee may, in the trustee's sole and absolute discretion, make distributions for health, education, maintenance, and support;
(b) The trustee, in the trustee's sole and absolute discretion, shall make distributions for health, education, maintenance, and support;
(c) The trustee may make distributions for health, education, maintenance, and support;
(d) The trustee shall make distributions for health, education, maintenance, and support; provided, however, that the trustee may exclude any of the beneficiaries or may make unequal distributions among them; or
(e) The trustee may make distributions for health, education, maintenance, support, comfort, and general welfare;
(f) A discretionary interest may also be evidenced by: (1) Permissive distribution language such as "may make distributions"; (2) Mandatory distribution language that is negated by the discretionary distribution language contained in the trust such as "the trustee shall make distributions in the trustee's sole and absolute discretion";
(1) Permissive distribution language such as "may make distributions";
(2) Mandatory distribution language that is negated by the discretionary distribution language contained in the trust such as "the trustee shall make distributions in the trustee's sole and absolute discretion";
(g) An interest that includes mandatory distribution language such as "shall" but is subsequently qualified by discretionary distribution language shall be classified as a discretionary interest and not as a support or a mandatory interest;
(D) (i) To the extent a trust contains distribution language indicating the existence of any combination of a mandatory, support and discretionary interest, that combined interest of the trust shall be divided and treated separately as follows: (a) The trust shall be a mandatory interest only to the extent of the mandatory distribution language; (b) The trust shall be a support interest only to the extent of such support distribution language; and (c) The remaining trust property shall be held as a discretionary interest; (ii) For purposes of this subdivision (11)(D), a support interest that includes mandatory distribution language such as "shall" but is subsequently qualified by discretionary distribution language, shall be classified as a discretionary interest and not as a support interest;
(i) To the extent a trust contains distribution language indicating the existence of any combination of a mandatory, support and discretionary interest, that combined interest of the trust shall be divided and treated separately as follows: (a) The trust shall be a mandatory interest only to the extent of the mandatory distribution language; (b) The trust shall be a support interest only to the extent of such support distribution language; and (c) The remaining trust property shall be held as a discretionary interest;
(a) The trust shall be a mandatory interest only to the extent of the mandatory distribution language;
(b) The trust shall be a support interest only to the extent of such support distribution language; and
(c) The remaining trust property shall be held as a discretionary interest;
(ii) For purposes of this subdivision (11)(D), a support interest that includes mandatory distribution language such as "shall" but is subsequently qualified by discretionary distribution language, shall be classified as a discretionary interest and not as a support interest;
(12) "Environmental law" means a federal, state, or local law, rule, regulation, or ordinance relating to protection of the environment;
(13) "Excluded fiduciary" means any trustee, trust advisor, or trust protector to the extent that, under the terms of a trust, an agreement of the qualified beneficiaries, an exercise of the authority described in § 35-15-716 , or court order: (A) The trustee, trust advisor, or trust protector is excluded from exercising a power, or is relieved of a duty; and (B) The power or duty is granted or reserved to another person;
(A) The trustee, trust advisor, or trust protector is excluded from exercising a power, or is relieved of a duty; and
(B) The power or duty is granted or reserved to another person;
(14) "Fiduciary" means: (A) A trustee, conservator, guardian, agent under any agency agreement or other instrument, an executor, personal representative or administrator of a decedent's estate, or any other party, including a trust advisor or a trust protector, who is acting in a fiduciary capacity for any person, trust, or estate; (B) Fiduciary also means a trustee as defined in § 35-14-102 ; (C) For purposes of subdivision (14)(A), an agency agreement includes but is not limited to, any agreement under which any delegation is made, either pursuant to § 35-15-807 or by anyone holding a power or duty pursuant to part 12; (D) For purposes of the definition of fiduciary in this subdivision (14), fiduciary does not mean any person who is an excluded fiduciary as such is defined in this section;
(A) A trustee, conservator, guardian, agent under any agency agreement or other instrument, an executor, personal representative or administrator of a decedent's estate, or any other party, including a trust advisor or a trust protector, who is acting in a fiduciary capacity for any person, trust, or estate;
(B) Fiduciary also means a trustee as defined in § 35-14-102 ;
(C) For purposes of subdivision (14)(A), an agency agreement includes but is not limited to, any agreement under which any delegation is made, either pursuant to § 35-15-807 or by anyone holding a power or duty pursuant to part 12;
(D) For purposes of the definition of fiduciary in this subdivision (14), fiduciary does not mean any person who is an excluded fiduciary as such is defined in this section;
(15) "Foreign" or "foreign country" means any jurisdiction, subdivision, territory or possession thereof, other than that of the United States of America or of a state;
(16) "Foreign jurisdiction" means any jurisdiction, subdivision, territory or possession thereof, other than this state;
(17) "Guardian" has the same meaning as in § 34-1-101 . The term does not include a guardian ad litem;
(18) "Interests of the beneficiaries" means the beneficial interests provided in the terms of the trust;
(19) "Internal Revenue Code" means the Internal Revenue Code of 1986 (U.S.C. title 26), as in effect on July 1, 2004, or as later amended;
(20) "Jurisdiction" with respect to a geographic area, includes a state or country;
(21) "Person" means an individual; corporation; business trust; estate; trust or civil law equivalent of a trust, including a fideicomiso or equivalent, or a foundation of the equivalent; partnership; limited liability company; association; joint venture; government; governmental subdivision, agency, or instrumentality; public corporation; or any other legal or commercial entity;
(22) "Power of appointment" means: (A) An inter vivos or testamentary power to direct the disposition of trust property, other than a distribution decision made by a trustee or other fiduciary to a beneficiary; (B) Powers of appointment are held by the person to whom such power has been given, and not by a settlor in that person's capacity as settlor;
(A) An inter vivos or testamentary power to direct the disposition of trust property, other than a distribution decision made by a trustee or other fiduciary to a beneficiary;
(B) Powers of appointment are held by the person to whom such power has been given, and not by a settlor in that person's capacity as settlor;
(23) "Power of withdrawal" means a presently exercisable general power of appointment other than a power: (A) Exercisable by a trustee and limited by an ascertainable standard; or (B) Exercisable by another person only upon consent of the trustee or a person holding an adverse interest;
(A) Exercisable by a trustee and limited by an ascertainable standard; or
(B) Exercisable by another person only upon consent of the trustee or a person holding an adverse interest;
(24) "Property" means anything that may be the subject of ownership, whether real or personal, legal or equitable, or any interest therein;
(25) "Qualified beneficiary" means a beneficiary who, assuming the nonexercise of all powers of appointment and the nonoccurrence of any event not reasonably expected to occur, on the date the beneficiary's qualification is determined: (A) Is a distributee or permissible distributee of trust income or principal; (B) Would be a distributee or permissible distributee of trust income or principal if the interests of the distributees described in subdivision (25)(A) terminated on that date without causing the trust to terminate; or (C) Would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date; (D) (i) Notwithstanding any other provisions of this subdivision (25), no ultimate beneficiary or potential ultimate beneficiary shall be a qualified beneficiary; (ii) In determining who is or may be an ultimate beneficiary, all of the following shall be taken into consideration: (a) The terms of the trust naming any ultimate beneficiary or potential ultimate beneficiary and the intention of the settlor relative to any such beneficiary as expressed in such terms; and (b) Any terms or provisions related to the exercise of any power by any person naming any ultimate beneficiary or potential ultimate beneficiary and the intention of the person exercising such power relative to any such beneficiary as expressed in such terms or provisions; (iii) Determined as provided in subdivision (25)(D)(ii), an ultimate beneficiary or potential ultimate beneficiary is any beneficiary who the settlor or power holder did not reasonably anticipate would take any interest upon termination of all or any part of a trust absent all other beneficiaries or members of classes of beneficiaries named in the trust instrument or in the exercise of the power, respectively, predeceasing or otherwise not being in existence at the time at which such trust or part thereof terminates; (iv) By way of example and not in limitation of this subdivision (25)(D), an ultimate beneficiary is a person or persons often included in a trust instrument or under the exercise of a power to take an interest in a trust at the time all or any part of such trust terminates only in a case where all other named beneficiaries or classes of beneficiaries that have or had an affinity through either familial connection or friendship with any of: (a) The settlor; (b) The person holding any power; or (c) Any prior beneficiary or potential beneficiary of the trust; are predeceased or are otherwise not in existence at the time all or any part of the trust terminates;
(A) Is a distributee or permissible distributee of trust income or principal;
(B) Would be a distributee or permissible distributee of trust income or principal if the interests of the distributees described in subdivision (25)(A) terminated on that date without causing the trust to terminate; or
(C) Would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date;
(D) (i) Notwithstanding any other provisions of this subdivision (25), no ultimate beneficiary or potential ultimate beneficiary shall be a qualified beneficiary; (ii) In determining who is or may be an ultimate beneficiary, all of the following shall be taken into consideration: (a) The terms of the trust naming any ultimate beneficiary or potential ultimate beneficiary and the intention of the settlor relative to any such beneficiary as expressed in such terms; and (b) Any terms or provisions related to the exercise of any power by any person naming any ultimate beneficiary or potential ultimate beneficiary and the intention of the person exercising such power relative to any such beneficiary as expressed in such terms or provisions; (iii) Determined as provided in subdivision (25)(D)(ii), an ultimate beneficiary or potential ultimate beneficiary is any beneficiary who the settlor or power holder did not reasonably anticipate would take any interest upon termination of all or any part of a trust absent all other beneficiaries or members of classes of beneficiaries named in the trust instrument or in the exercise of the power, respectively, predeceasing or otherwise not being in existence at the time at which such trust or part thereof terminates; (iv) By way of example and not in limitation of this subdivision (25)(D), an ultimate beneficiary is a person or persons often included in a trust instrument or under the exercise of a power to take an interest in a trust at the time all or any part of such trust terminates only in a case where all other named beneficiaries or classes of beneficiaries that have or had an affinity through either familial connection or friendship with any of: (a) The settlor; (b) The person holding any power; or (c) Any prior beneficiary or potential beneficiary of the trust; are predeceased or are otherwise not in existence at the time all or any part of the trust terminates;
(i) Notwithstanding any other provisions of this subdivision (25), no ultimate beneficiary or potential ultimate beneficiary shall be a qualified beneficiary;
(ii) In determining who is or may be an ultimate beneficiary, all of the following shall be taken into consideration: (a) The terms of the trust naming any ultimate beneficiary or potential ultimate beneficiary and the intention of the settlor relative to any such beneficiary as expressed in such terms; and (b) Any terms or provisions related to the exercise of any power by any person naming any ultimate beneficiary or potential ultimate beneficiary and the intention of the person exercising such power relative to any such beneficiary as expressed in such terms or provisions;
(a) The terms of the trust naming any ultimate beneficiary or potential ultimate beneficiary and the intention of the settlor relative to any such beneficiary as expressed in such terms; and
(b) Any terms or provisions related to the exercise of any power by any person naming any ultimate beneficiary or potential ultimate beneficiary and the intention of the person exercising such power relative to any such beneficiary as expressed in such terms or provisions;
(iii) Determined as provided in subdivision (25)(D)(ii), an ultimate beneficiary or potential ultimate beneficiary is any beneficiary who the settlor or power holder did not reasonably anticipate would take any interest upon termination of all or any part of a trust absent all other beneficiaries or members of classes of beneficiaries named in the trust instrument or in the exercise of the power, respectively, predeceasing or otherwise not being in existence at the time at which such trust or part thereof terminates;
(iv) By way of example and not in limitation of this subdivision (25)(D), an ultimate beneficiary is a person or persons often included in a trust instrument or under the exercise of a power to take an interest in a trust at the time all or any part of such trust terminates only in a case where all other named beneficiaries or classes of beneficiaries that have or had an affinity through either familial connection or friendship with any of: (a) The settlor; (b) The person holding any power; or (c) Any prior beneficiary or potential beneficiary of the trust; are predeceased or are otherwise not in existence at the time all or any part of the trust terminates;
(a) The settlor;
(b) The person holding any power; or
(c) Any prior beneficiary or potential beneficiary of the trust; are predeceased or are otherwise not in existence at the time all or any part of the trust terminates;
are predeceased or are otherwise not in existence at the time all or any part of the trust terminates;
(26) "Reach" means, with respect to a distribution interest or any power held by anyone relative to a trust, to subject such distribution interest or such power to a judgment, decree, garnishment, attachment, execution, levy, creditor's bill or other legal, equitable, or administrative process, relief, or control of any court, tribunal, agency, or other entity that, by power of law, is provided with powers or jurisdiction similar to those described in this subdivision (26);
(27) "Remainder interest" means an interest under which a trust beneficiary will receive property held by a trust outright at some time during the future; relative to a remainder interest: (A) Neither the existence of a remainder interest or the provision of services by a spouse in that spouse's capacity as a fiduciary of the trust creating the remainder interest is relevant in the equitable division of marital property; (B) None of the factors in subdivision (27)(A) or the exercise or non-exercise of any power or discretion by a spouse in that spouse's capacity as a fiduciary of the trust creating the remainder interest (even if that spouse is also a beneficiary of the trust creating the remainder interest) are relevant to, indicative of or effect the transmutation or other conversion of separate property to community property; (C) The expending of any community funds by a spouse in that spouse's capacity as a fiduciary of the trust creating the remainder interest relative to the operation or maintenance of property related to a remainder interest is not relevant to or indicative of, and does not effect a transmutation or other conversion of separate property to community property; (D) Any funds expended pursuant to subdivision (27)(C) shall be valid debts of the trust and shall be repaid to the community with appropriate interest;
(A) Neither the existence of a remainder interest or the provision of services by a spouse in that spouse's capacity as a fiduciary of the trust creating the remainder interest is relevant in the equitable division of marital property;
(B) None of the factors in subdivision (27)(A) or the exercise or non-exercise of any power or discretion by a spouse in that spouse's capacity as a fiduciary of the trust creating the remainder interest (even if that spouse is also a beneficiary of the trust creating the remainder interest) are relevant to, indicative of or effect the transmutation or other conversion of separate property to community property;
(C) The expending of any community funds by a spouse in that spouse's capacity as a fiduciary of the trust creating the remainder interest relative to the operation or maintenance of property related to a remainder interest is not relevant to or indicative of, and does not effect a transmutation or other conversion of separate property to community property;
(D) Any funds expended pursuant to subdivision (27)(C) shall be valid debts of the trust and shall be repaid to the community with appropriate interest;
(28) "Reserved power" means a power held by a settlor;
(29) "Revocable" as applied to a trust, means revocable by the settlor without the consent of the trustee or a person holding an adverse interest;
(30) "Settlor" means a person, including a testator, who creates, or contributes property to, a trust. If more than one (1) person creates or contributes property to a trust, each person is a settlor of the portion of the trust property attributable to that person's contribution except to the extent another person has the power to revoke or withdraw that portion;
(31) "Spendthrift provision" means a term of a trust which restrains both voluntary and involuntary transfer of a beneficiary's interest;
(32) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. The term includes an Indian tribe or band recognized by federal law or formally acknowledged by a state;
(33) "Successors in interest" means the beneficiaries under the settlor's will, if the settlor has a will, or in the absence of an effective will provision, the settlor's heirs at law;
(34) "Terms of a trust" means the manifestation of the settlor's intent regarding a trust's provisions as expressed in the trust instrument or as may be established by other evidence that would be admissible in a judicial proceeding;
(35) "This state" means the state of Tennessee;
(36) "Trust advisor" means any person described in § 35-15-1201(a) ;
(37) "Trust instrument" means an instrument executed by the settlor that contains terms of the trust, including any amendments thereto;
(38) "Trust protector" means any person described in § 35-15-1201(a) ; and
(39) "Trustee" includes an original, additional, and successor trustee, and a cotrustee.
Amended by 2024 Tenn. Acts, ch. 695,s 1, eff. 7/1/2024.
Amended by 2023 Tenn. Acts, ch. 166, s 5, eff. 4/17/2023.
Amended by 2021 Tenn. Acts, ch. 420, Secs.s 2, s 23 eff. 7/1/2021.
Amended by 2014 Tenn. Acts, ch. 829, s 5, eff. 4/29/2014.
Amended by 2013 Tenn. Acts, ch. 390, s 3, eff. 7/1/2013.
Acts 2004, ch. 537, § 4; 2007 , ch. 24, §§ 1 - 3; 2007 , ch. 477, § 1.
Tenn. Code Ann. § 35-16-104 — TN Code / Title 35 / Chapter 16 / Section 35-16-104
Restrictions on actions, remedies and claims
Status: in_force

(a) Notwithstanding any law to the contrary, no action of any kind, including, but not limited to, an action to enforce a judgment entered by a court or other body having adjudicative authority, shall be brought at law or in equity for an attachment or other provisional remedy against property that is the subject of a qualified disposition to an investment services trust or for the avoidance of a qualified disposition to an investment services trust, unless the action is brought pursuant to the Uniform Fraudulent Transfer Act, compiled in title 66, chapter 3, part 3, and, in the case of a creditor whose claim arose after a qualified disposition, unless the qualified disposition was also made with actual intent to defraud such creditor. (b) (1) Notwithstanding § 66-3-310 , a creditor's claim under subsection (a) shall be extinguished: (A) If the person is a creditor when the qualified disposition to an investment services trust is made, unless the action is commenced within the later of eighteen (18) months after the qualified disposition is made or six (6) months after the person discovers or reasonably should have discovered the qualified disposition; or (B) If the person becomes a creditor after the qualified disposition to an investment services trust is made, unless the action is commenced within eighteen (18) months after the qualified disposition is made. (2) If subdivision (b)(1) applies: (A) A person shall be deemed to have discovered the existence of a qualified disposition to an investment services trust at the time any public record is made of any transfer of property relative to such qualified disposition, including but not limited to, the conveyance of real property that is recorded in the office of the county register of deeds of the county in which the property is located or the filing of a financing statement under title 47, chapter 9, or the equivalent recording or filing of either with the appropriate person or official under the laws of a jurisdiction other than this state; and (B) No creditor shall bring an action with respect to property that is the subject of a qualified disposition unless that creditor proves by clear and convincing evidence that the settlor's transfer of such property was made with the intent to defraud that specific creditor. (c) For purposes of this chapter, a qualified disposition that is made by means of a disposition by a transferor who is a trustee shall be deemed to have been made as of the time, whether before, on or after July 1, 2007, the property that is the subject of the qualified disposition was originally transferred to the transferor acting in the capacity of trustee, or any predecessor trustee, in a form that meets the requirements of § 35-16-102(7)(B) and (C) . The transferor's execution of a qualified affidavit creates a rebuttable presumption that the assets disclosed in the affidavit were transferred to the trust on the date of execution of the affidavit. The transferor bears the burden of proving by a preponderance of the evidence the date of transfer of any asset that is not listed on a qualified affidavit. (d) Notwithstanding any law to the contrary, a creditor, including a creditor whose claim arose before or after a qualified disposition, or any other person shall have only the rights with respect to a qualified disposition that are provided in this section and § 35-16-106 , and neither a creditor nor any other person shall have any claim or cause of action against the trustee, or an advisor of an investment services trust, or against any person involved in the counseling, drafting, preparation, execution or funding of an investment services trust. For purposes of this section, counseling, drafting, preparation, execution or funding of an investment services trust includes the counseling, drafting, preparation, execution and funding of a limited partnership or a limited liability company if interests in the limited partnership or limited liability company are subsequently transferred to the investment services trust. (e) Notwithstanding any law to the contrary, no action of any kind, including, but not limited to, an action to enforce a judgment entered by a court or other body having adjudicative authority, shall be brought at law or in equity against a trustee or an advisor of an investment services trust, or against any person involved in the counseling, drafting, preparation, execution or funding of an investment services trust, if, as of the date such action is brought, an action by a creditor with respect to the investment services trust would be barred under this section. (f) In circumstances where more than one (1) qualified disposition is made by means of the same investment services trust, then: (1) The making of a subsequent qualified disposition shall be disregarded in determining whether a creditor's claim with respect to a prior qualified disposition is extinguished as provided in subsection (b); and (2) Any distribution to a beneficiary shall be deemed to have been made from the latest qualified disposition. (g) If, in any action brought against an investment services trust, a court takes any action whereby the court declines to apply the law of this state in determining the effect of a spendthrift provision of the trust, the trustee of the trust shall immediately upon the court's action and without the further order of any court, cease in all respects to be trustee of the trust and a successor trustee shall succeed as trustee in accordance with the terms of the trust or, if the trust does not provide for a successor trustee and the trust would otherwise be without a trustee, a court of this state, upon the application of any beneficiary of the trust, shall appoint a successor trustee upon the terms and conditions it determines to be consistent with the purposes of the trust and this chapter. Upon the trustee's ceasing to be trustee, the trustee shall have no power or authority other than to convey the trust property to the successor trustee named in the trust in accordance with this section. (h) An investment services trust shall be subject to this section whether or not the transferor retains any or all of the powers and rights described in § 35-16-111 or serves as an investment advisor pursuant to § 35-16-109 . (i) (1) Notwithstanding subsection (a) or (b) to the contrary, the limitations on actions by creditors in law or equity shall not apply and such creditors' claims shall not be extinguished if the transferor is indebted on account of an agreement, judgment or order of a court for the payment of one (1) of the following: (A) Past due child support; (B) Past due alimony in solido of a spouse or former spouse; (C) Past due alimony or support of a spouse or former spouse; or (D) A written agreement, judgment or order of a court for division of marital property of a spouse or former spouse, but only to the extent of such debt, legally mandated interest and the reasonable cost of collection. (2) (A) A claim provided under this subsection (i) shall be asserted against a trustee only: (i) Upon a final nonappealable determination of a Tennessee court or a fully domesticated, final nonappealable order of a court of another state as defined by § 35-15-103 that such debt is past due; and (ii) After the court has determined that the claimant has made reasonable attempts to collect the debt from any other sources of the transferor or that such attempts would be futile. (B) Nothing in this subdivision (i)(2) shall be construed to prohibit the court from making the findings required in subdivisions (i)(2)(A)(i) and (ii) in the same proceeding and order. (j) Subsection (i) shall not apply to any claim for forced heirship, legitime or elective share. (k) In addition to subsection (j), to the extent subsection (j) applies to the laws of any foreign country: (1) For all purposes under this chapter, the effect of the laws of any foreign country shall be the same as provided in § 35-15-107(b)(3) and (4) ; and (2) Subsection (a) applies in addition to all other provisions of this chapter. Amended by 2021 Tenn. Acts, ch. 420, Secs.s15, s21 eff. 7/1/2021. Amended by 2013 Tenn. Acts, ch. 390, s 45, eff. 7/1/2013. Acts 2007 , ch. 144, § 4; 2008 , ch. 1010, § 2; 2010 , ch. 725, §§ 14- 16.
(a) Notwithstanding any law to the contrary, no action of any kind, including, but not limited to, an action to enforce a judgment entered by a court or other body having adjudicative authority, shall be brought at law or in equity for an attachment or other provisional remedy against property that is the subject of a qualified disposition to an investment services trust or for the avoidance of a qualified disposition to an investment services trust, unless the action is brought pursuant to the Uniform Fraudulent Transfer Act, compiled in title 66, chapter 3, part 3, and, in the case of a creditor whose claim arose after a qualified disposition, unless the qualified disposition was also made with actual intent to defraud such creditor.
(b) (1) Notwithstanding § 66-3-310 , a creditor's claim under subsection (a) shall be extinguished: (A) If the person is a creditor when the qualified disposition to an investment services trust is made, unless the action is commenced within the later of eighteen (18) months after the qualified disposition is made or six (6) months after the person discovers or reasonably should have discovered the qualified disposition; or (B) If the person becomes a creditor after the qualified disposition to an investment services trust is made, unless the action is commenced within eighteen (18) months after the qualified disposition is made. (2) If subdivision (b)(1) applies: (A) A person shall be deemed to have discovered the existence of a qualified disposition to an investment services trust at the time any public record is made of any transfer of property relative to such qualified disposition, including but not limited to, the conveyance of real property that is recorded in the office of the county register of deeds of the county in which the property is located or the filing of a financing statement under title 47, chapter 9, or the equivalent recording or filing of either with the appropriate person or official under the laws of a jurisdiction other than this state; and (B) No creditor shall bring an action with respect to property that is the subject of a qualified disposition unless that creditor proves by clear and convincing evidence that the settlor's transfer of such property was made with the intent to defraud that specific creditor.
(1) Notwithstanding § 66-3-310 , a creditor's claim under subsection (a) shall be extinguished: (A) If the person is a creditor when the qualified disposition to an investment services trust is made, unless the action is commenced within the later of eighteen (18) months after the qualified disposition is made or six (6) months after the person discovers or reasonably should have discovered the qualified disposition; or (B) If the person becomes a creditor after the qualified disposition to an investment services trust is made, unless the action is commenced within eighteen (18) months after the qualified disposition is made.
(A) If the person is a creditor when the qualified disposition to an investment services trust is made, unless the action is commenced within the later of eighteen (18) months after the qualified disposition is made or six (6) months after the person discovers or reasonably should have discovered the qualified disposition; or
(B) If the person becomes a creditor after the qualified disposition to an investment services trust is made, unless the action is commenced within eighteen (18) months after the qualified disposition is made.
(2) If subdivision (b)(1) applies: (A) A person shall be deemed to have discovered the existence of a qualified disposition to an investment services trust at the time any public record is made of any transfer of property relative to such qualified disposition, including but not limited to, the conveyance of real property that is recorded in the office of the county register of deeds of the county in which the property is located or the filing of a financing statement under title 47, chapter 9, or the equivalent recording or filing of either with the appropriate person or official under the laws of a jurisdiction other than this state; and (B) No creditor shall bring an action with respect to property that is the subject of a qualified disposition unless that creditor proves by clear and convincing evidence that the settlor's transfer of such property was made with the intent to defraud that specific creditor.
(A) A person shall be deemed to have discovered the existence of a qualified disposition to an investment services trust at the time any public record is made of any transfer of property relative to such qualified disposition, including but not limited to, the conveyance of real property that is recorded in the office of the county register of deeds of the county in which the property is located or the filing of a financing statement under title 47, chapter 9, or the equivalent recording or filing of either with the appropriate person or official under the laws of a jurisdiction other than this state; and
(B) No creditor shall bring an action with respect to property that is the subject of a qualified disposition unless that creditor proves by clear and convincing evidence that the settlor's transfer of such property was made with the intent to defraud that specific creditor.
(c) For purposes of this chapter, a qualified disposition that is made by means of a disposition by a transferor who is a trustee shall be deemed to have been made as of the time, whether before, on or after July 1, 2007, the property that is the subject of the qualified disposition was originally transferred to the transferor acting in the capacity of trustee, or any predecessor trustee, in a form that meets the requirements of § 35-16-102(7)(B) and (C) . The transferor's execution of a qualified affidavit creates a rebuttable presumption that the assets disclosed in the affidavit were transferred to the trust on the date of execution of the affidavit. The transferor bears the burden of proving by a preponderance of the evidence the date of transfer of any asset that is not listed on a qualified affidavit.
(d) Notwithstanding any law to the contrary, a creditor, including a creditor whose claim arose before or after a qualified disposition, or any other person shall have only the rights with respect to a qualified disposition that are provided in this section and § 35-16-106 , and neither a creditor nor any other person shall have any claim or cause of action against the trustee, or an advisor of an investment services trust, or against any person involved in the counseling, drafting, preparation, execution or funding of an investment services trust. For purposes of this section, counseling, drafting, preparation, execution or funding of an investment services trust includes the counseling, drafting, preparation, execution and funding of a limited partnership or a limited liability company if interests in the limited partnership or limited liability company are subsequently transferred to the investment services trust.
(e) Notwithstanding any law to the contrary, no action of any kind, including, but not limited to, an action to enforce a judgment entered by a court or other body having adjudicative authority, shall be brought at law or in equity against a trustee or an advisor of an investment services trust, or against any person involved in the counseling, drafting, preparation, execution or funding of an investment services trust, if, as of the date such action is brought, an action by a creditor with respect to the investment services trust would be barred under this section.
(f) In circumstances where more than one (1) qualified disposition is made by means of the same investment services trust, then: (1) The making of a subsequent qualified disposition shall be disregarded in determining whether a creditor's claim with respect to a prior qualified disposition is extinguished as provided in subsection (b); and (2) Any distribution to a beneficiary shall be deemed to have been made from the latest qualified disposition.
(1) The making of a subsequent qualified disposition shall be disregarded in determining whether a creditor's claim with respect to a prior qualified disposition is extinguished as provided in subsection (b); and
(2) Any distribution to a beneficiary shall be deemed to have been made from the latest qualified disposition.
(g) If, in any action brought against an investment services trust, a court takes any action whereby the court declines to apply the law of this state in determining the effect of a spendthrift provision of the trust, the trustee of the trust shall immediately upon the court's action and without the further order of any court, cease in all respects to be trustee of the trust and a successor trustee shall succeed as trustee in accordance with the terms of the trust or, if the trust does not provide for a successor trustee and the trust would otherwise be without a trustee, a court of this state, upon the application of any beneficiary of the trust, shall appoint a successor trustee upon the terms and conditions it determines to be consistent with the purposes of the trust and this chapter. Upon the trustee's ceasing to be trustee, the trustee shall have no power or authority other than to convey the trust property to the successor trustee named in the trust in accordance with this section.
(h) An investment services trust shall be subject to this section whether or not the transferor retains any or all of the powers and rights described in § 35-16-111 or serves as an investment advisor pursuant to § 35-16-109 .
(i) (1) Notwithstanding subsection (a) or (b) to the contrary, the limitations on actions by creditors in law or equity shall not apply and such creditors' claims shall not be extinguished if the transferor is indebted on account of an agreement, judgment or order of a court for the payment of one (1) of the following: (A) Past due child support; (B) Past due alimony in solido of a spouse or former spouse; (C) Past due alimony or support of a spouse or former spouse; or (D) A written agreement, judgment or order of a court for division of marital property of a spouse or former spouse, but only to the extent of such debt, legally mandated interest and the reasonable cost of collection. (2) (A) A claim provided under this subsection (i) shall be asserted against a trustee only: (i) Upon a final nonappealable determination of a Tennessee court or a fully domesticated, final nonappealable order of a court of another state as defined by § 35-15-103 that such debt is past due; and (ii) After the court has determined that the claimant has made reasonable attempts to collect the debt from any other sources of the transferor or that such attempts would be futile. (B) Nothing in this subdivision (i)(2) shall be construed to prohibit the court from making the findings required in subdivisions (i)(2)(A)(i) and (ii) in the same proceeding and order.
(1) Notwithstanding subsection (a) or (b) to the contrary, the limitations on actions by creditors in law or equity shall not apply and such creditors' claims shall not be extinguished if the transferor is indebted on account of an agreement, judgment or order of a court for the payment of one (1) of the following: (A) Past due child support; (B) Past due alimony in solido of a spouse or former spouse; (C) Past due alimony or support of a spouse or former spouse; or (D) A written agreement, judgment or order of a court for division of marital property of a spouse or former spouse, but only to the extent of such debt, legally mandated interest and the reasonable cost of collection.
(A) Past due child support;
(B) Past due alimony in solido of a spouse or former spouse;
(C) Past due alimony or support of a spouse or former spouse; or
(D) A written agreement, judgment or order of a court for division of marital property of a spouse or former spouse, but only to the extent of such debt, legally mandated interest and the reasonable cost of collection.
(2) (A) A claim provided under this subsection (i) shall be asserted against a trustee only: (i) Upon a final nonappealable determination of a Tennessee court or a fully domesticated, final nonappealable order of a court of another state as defined by § 35-15-103 that such debt is past due; and (ii) After the court has determined that the claimant has made reasonable attempts to collect the debt from any other sources of the transferor or that such attempts would be futile. (B) Nothing in this subdivision (i)(2) shall be construed to prohibit the court from making the findings required in subdivisions (i)(2)(A)(i) and (ii) in the same proceeding and order.
(A) A claim provided under this subsection (i) shall be asserted against a trustee only: (i) Upon a final nonappealable determination of a Tennessee court or a fully domesticated, final nonappealable order of a court of another state as defined by § 35-15-103 that such debt is past due; and (ii) After the court has determined that the claimant has made reasonable attempts to collect the debt from any other sources of the transferor or that such attempts would be futile.
(i) Upon a final nonappealable determination of a Tennessee court or a fully domesticated, final nonappealable order of a court of another state as defined by § 35-15-103 that such debt is past due; and
(ii) After the court has determined that the claimant has made reasonable attempts to collect the debt from any other sources of the transferor or that such attempts would be futile.
(B) Nothing in this subdivision (i)(2) shall be construed to prohibit the court from making the findings required in subdivisions (i)(2)(A)(i) and (ii) in the same proceeding and order.
(j) Subsection (i) shall not apply to any claim for forced heirship, legitime or elective share.
(k) In addition to subsection (j), to the extent subsection (j) applies to the laws of any foreign country: (1) For all purposes under this chapter, the effect of the laws of any foreign country shall be the same as provided in § 35-15-107(b)(3) and (4) ; and (2) Subsection (a) applies in addition to all other provisions of this chapter.
(1) For all purposes under this chapter, the effect of the laws of any foreign country shall be the same as provided in § 35-15-107(b)(3) and (4) ; and
(2) Subsection (a) applies in addition to all other provisions of this chapter.
Amended by 2021 Tenn. Acts, ch. 420, Secs.s15, s21 eff. 7/1/2021.
Amended by 2013 Tenn. Acts, ch. 390, s 45, eff. 7/1/2013.
Acts 2007 , ch. 144, § 4; 2008 , ch. 1010, § 2; 2010 , ch. 725, §§ 14- 16.
Tenn. Code Ann. § 35-16-111 — TN Code / Title 35 / Chapter 16 / Section 35-16-111
Revocability of trusts
Status: in_force

An investment services trust shall not be deemed revocable on account of its inclusion of one (1) or more of the following: (1) A transferor's power to veto a distribution from the trust; (2) A power of appointment, other than a power to appoint to the transferor, the transferor's creditors, the transferor's estate or the creditors of the transferor's estate, either exercisable by written instrument of the transferor during the transferor's life or exercisable by will or other written instrument of the transferor effective upon the transferor's death; provided, however, that a trust provision effecting a transfer by reason of the transferor's death to the transferor's estate, another trust, either established during the transferor's lifetime or at the transferor's death, or pursuant to the transferor's last will and testament or other testamentary instrument, is not a power to appoint to the transferor, the transferor's creditors, the transferor's estate, or the creditors of the transferor's estate; (3) The transferor's potential or actual receipt of income, including rights to the income retained in the trust; (4) The transferor's potential or actual receipt of income or principal from a charitable remainder unitrust or charitable remainder annuity trust as those terms are defined in § 664 of the Internal Revenue Code of 1986 ( 26 U.S.C. § 664 ), and any successor provision; (5) The transferor's receipt each year of an amount specified in the trust, the amount not to exceed five percent (5%) of the initial value of the trust or its value determined from time to time pursuant to the trust; (6) The transferor's potential or actual receipt or use of principal if the potential or actual receipt or use of principal would be the result of a qualified trustee's or qualified trustees' acting: (A) In the qualified trustee's or qualified trustees' discretion. For purposes of this section, a qualified trustee is presumed to have discretion with respect to the distribution of principal unless the discretion is expressly denied to the trustee by the terms of the trust; (B) Pursuant to a standard that governs the distribution of principal and does not confer upon the transferor a power to consume, invade or appropriate property for the benefit of the transferor, unless the power of the transferor is limited by an ascertainable standard relating to the health, education, support, or maintenance within the meaning of § 2041(b)(1)(A) or § 2514(c)(1) of the Internal Revenue Code of 1986 ( 26 U.S.C. § 2041(b)(1)(A) or 26 U.S.C. § 2514(c)(1) ), as in effect on July 1, 2007, or as later amended; or (C) At the direction of an advisor described in § 35-16-108 who is acting: (i) In the advisor's discretion; or (ii) Pursuant to a standard that governs the distribution of principal and does not confer upon the transferor a power to consume, invade, or appropriate property for the benefit of the transferor, unless the power of the transferor is limited by an ascertainable standard relating to the health, education, support, or maintenance within the meaning of § 2041(b)(1)(A) or § 2514(c)(1) of the Internal Revenue Code of 1986 ( 26 U.S.C. § 2041(b)(1)(A) or 26 U.S.C. § 2514(c)(1) ), as in effect on July 1, 2007, or as later amended; (7) The transferor's right to remove a trustee or advisor and to appoint a new trustee or advisor; provided, however, that the right shall not include the appointment of a person who is a related or subordinate party with respect to the transferor within the meaning of § 672(c) of the Internal Revenue Code of 1986 ( 26 U.S.C. § 672(c) ), and any successor provision; (8) The transferor's potential or actual use of real property held under a qualified personal residence trust within the meaning of the term as described in § 2702(c) of the Internal Revenue Code of 1986 ( 26 U.S.C. § 2702(c) ), and any successor provision; (9) The transferor's potential or actual receipt of income or principal to pay, in whole or in part, income taxes due on income of the trust if such potential or actual receipt of income or principal is pursuant to a provision in the trust instrument that expressly permits a distribution to the transferor as reimbursement for such taxes and if such distribution would be the result of a qualified trustee's or qualified trustees' acting: (A) In such qualified trustee's or qualified trustees' discretion or pursuant to a mandatory direction in the trust instrument; or (B) At the direction of an adviser described in § 35-16-108 , who is acting in such adviser's discretion; (10) The ability, whether pursuant to direction in the investment services trust or discretion of a qualified trustee to pay, after the death of the transferor, all or any part of the debts of the transferor outstanding at the time of the transferor's death, the expenses of administering the transferor's estate, or any estate or inheritance tax imposed on or with respect to the transferor's estate; and (11) A qualified trustee's or qualified trustees' authority to make distributions to pay taxes in lieu of or in addition to the power to make a distribution for taxes pursuant to subdivision (3), (6), (9), or (10) by direct payment to the taxing authorities. Amended by 2022 Tenn. Acts, ch. 877, s 10, eff. 4/14/2022. Amended by 2013 Tenn. Acts, ch. 390, s 53, eff. 7/1/2013. Acts 2007 , ch. 144, § 11; 2010 , ch. 725, § 19.
An investment services trust shall not be deemed revocable on account of its inclusion of one (1) or more of the following:
(1) A transferor's power to veto a distribution from the trust;
(2) A power of appointment, other than a power to appoint to the transferor, the transferor's creditors, the transferor's estate or the creditors of the transferor's estate, either exercisable by written instrument of the transferor during the transferor's life or exercisable by will or other written instrument of the transferor effective upon the transferor's death; provided, however, that a trust provision effecting a transfer by reason of the transferor's death to the transferor's estate, another trust, either established during the transferor's lifetime or at the transferor's death, or pursuant to the transferor's last will and testament or other testamentary instrument, is not a power to appoint to the transferor, the transferor's creditors, the transferor's estate, or the creditors of the transferor's estate;
(3) The transferor's potential or actual receipt of income, including rights to the income retained in the trust;
(4) The transferor's potential or actual receipt of income or principal from a charitable remainder unitrust or charitable remainder annuity trust as those terms are defined in § 664 of the Internal Revenue Code of 1986 ( 26 U.S.C. § 664 ), and any successor provision;
(5) The transferor's receipt each year of an amount specified in the trust, the amount not to exceed five percent (5%) of the initial value of the trust or its value determined from time to time pursuant to the trust;
(6) The transferor's potential or actual receipt or use of principal if the potential or actual receipt or use of principal would be the result of a qualified trustee's or qualified trustees' acting: (A) In the qualified trustee's or qualified trustees' discretion. For purposes of this section, a qualified trustee is presumed to have discretion with respect to the distribution of principal unless the discretion is expressly denied to the trustee by the terms of the trust; (B) Pursuant to a standard that governs the distribution of principal and does not confer upon the transferor a power to consume, invade or appropriate property for the benefit of the transferor, unless the power of the transferor is limited by an ascertainable standard relating to the health, education, support, or maintenance within the meaning of § 2041(b)(1)(A) or § 2514(c)(1) of the Internal Revenue Code of 1986 ( 26 U.S.C. § 2041(b)(1)(A) or 26 U.S.C. § 2514(c)(1) ), as in effect on July 1, 2007, or as later amended; or (C) At the direction of an advisor described in § 35-16-108 who is acting: (i) In the advisor's discretion; or (ii) Pursuant to a standard that governs the distribution of principal and does not confer upon the transferor a power to consume, invade, or appropriate property for the benefit of the transferor, unless the power of the transferor is limited by an ascertainable standard relating to the health, education, support, or maintenance within the meaning of § 2041(b)(1)(A) or § 2514(c)(1) of the Internal Revenue Code of 1986 ( 26 U.S.C. § 2041(b)(1)(A) or 26 U.S.C. § 2514(c)(1) ), as in effect on July 1, 2007, or as later amended;
(A) In the qualified trustee's or qualified trustees' discretion. For purposes of this section, a qualified trustee is presumed to have discretion with respect to the distribution of principal unless the discretion is expressly denied to the trustee by the terms of the trust;
(B) Pursuant to a standard that governs the distribution of principal and does not confer upon the transferor a power to consume, invade or appropriate property for the benefit of the transferor, unless the power of the transferor is limited by an ascertainable standard relating to the health, education, support, or maintenance within the meaning of § 2041(b)(1)(A) or § 2514(c)(1) of the Internal Revenue Code of 1986 ( 26 U.S.C. § 2041(b)(1)(A) or 26 U.S.C. § 2514(c)(1) ), as in effect on July 1, 2007, or as later amended; or
(C) At the direction of an advisor described in § 35-16-108 who is acting: (i) In the advisor's discretion; or (ii) Pursuant to a standard that governs the distribution of principal and does not confer upon the transferor a power to consume, invade, or appropriate property for the benefit of the transferor, unless the power of the transferor is limited by an ascertainable standard relating to the health, education, support, or maintenance within the meaning of § 2041(b)(1)(A) or § 2514(c)(1) of the Internal Revenue Code of 1986 ( 26 U.S.C. § 2041(b)(1)(A) or 26 U.S.C. § 2514(c)(1) ), as in effect on July 1, 2007, or as later amended;
(i) In the advisor's discretion; or
(ii) Pursuant to a standard that governs the distribution of principal and does not confer upon the transferor a power to consume, invade, or appropriate property for the benefit of the transferor, unless the power of the transferor is limited by an ascertainable standard relating to the health, education, support, or maintenance within the meaning of § 2041(b)(1)(A) or § 2514(c)(1) of the Internal Revenue Code of 1986 ( 26 U.S.C. § 2041(b)(1)(A) or 26 U.S.C. § 2514(c)(1) ), as in effect on July 1, 2007, or as later amended;
(7) The transferor's right to remove a trustee or advisor and to appoint a new trustee or advisor; provided, however, that the right shall not include the appointment of a person who is a related or subordinate party with respect to the transferor within the meaning of § 672(c) of the Internal Revenue Code of 1986 ( 26 U.S.C. § 672(c) ), and any successor provision;
(8) The transferor's potential or actual use of real property held under a qualified personal residence trust within the meaning of the term as described in § 2702(c) of the Internal Revenue Code of 1986 ( 26 U.S.C. § 2702(c) ), and any successor provision;
(9) The transferor's potential or actual receipt of income or principal to pay, in whole or in part, income taxes due on income of the trust if such potential or actual receipt of income or principal is pursuant to a provision in the trust instrument that expressly permits a distribution to the transferor as reimbursement for such taxes and if such distribution would be the result of a qualified trustee's or qualified trustees' acting: (A) In such qualified trustee's or qualified trustees' discretion or pursuant to a mandatory direction in the trust instrument; or (B) At the direction of an adviser described in § 35-16-108 , who is acting in such adviser's discretion;
(A) In such qualified trustee's or qualified trustees' discretion or pursuant to a mandatory direction in the trust instrument; or
(B) At the direction of an adviser described in § 35-16-108 , who is acting in such adviser's discretion;
(10) The ability, whether pursuant to direction in the investment services trust or discretion of a qualified trustee to pay, after the death of the transferor, all or any part of the debts of the transferor outstanding at the time of the transferor's death, the expenses of administering the transferor's estate, or any estate or inheritance tax imposed on or with respect to the transferor's estate; and
(11) A qualified trustee's or qualified trustees' authority to make distributions to pay taxes in lieu of or in addition to the power to make a distribution for taxes pursuant to subdivision (3), (6), (9), or (10) by direct payment to the taxing authorities.
Amended by 2022 Tenn. Acts, ch. 877, s 10, eff. 4/14/2022.
Amended by 2013 Tenn. Acts, ch. 390, s 53, eff. 7/1/2013.
Acts 2007 , ch. 144, § 11; 2010 , ch. 725, § 19.
Tenn. Code Ann. § 35-15-710 — TN Code / Title 35 / Chapter 15 / Section 35-15-710
Directed trusts
Status: in_force

If the terms of the trust, an agreement of the qualified beneficiaries, an exercise of the authority described in § 35-15-716 , or a court order requires a trustee, trust advisor, or trust protector to follow the direction of a trust advisor, trust protector, or trustee, and the trustee, trust advisor, or trust protector acts in accordance with such direction, then the trustee, trust advisor, or trust protector so directed must be treated as an excluded fiduciary. Amended by 2023 Tenn. Acts, ch. 166, s 6, eff. 4/17/2023. Added by 2013 Tenn. Acts, ch. 390, s 29, eff. 7/1/2013.
If the terms of the trust, an agreement of the qualified beneficiaries, an exercise of the authority described in § 35-15-716 , or a court order requires a trustee, trust advisor, or trust protector to follow the direction of a trust advisor, trust protector, or trustee, and the trustee, trust advisor, or trust protector acts in accordance with such direction, then the trustee, trust advisor, or trust protector so directed must be treated as an excluded fiduciary.
Amended by 2023 Tenn. Acts, ch. 166, s 6, eff. 4/17/2023.
Added by 2013 Tenn. Acts, ch. 390, s 29, eff. 7/1/2013.
Tenn. Code Ann. § 35-15-403 — TN Code / Title 35 / Chapter 15 / Section 35-15-403
Trusts created in other jurisdictions
Status: in_force

A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation: (1) The settlor was domiciled, had a place of abode, or was a national; (2) A trustee was domiciled or had a place of business; or (3) Any trust property was located. Acts 2004, ch. 537, § 25.
A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation:
(1) The settlor was domiciled, had a place of abode, or was a national;
(2) A trustee was domiciled or had a place of business; or
(3) Any trust property was located.
Acts 2004, ch. 537, § 25.
Tenn. Code Ann. § 35-13-101 — TN Code / Title 35 / Chapter 13 / Section 35-13-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Tennessee Charitable Beneficiaries Act of 1997." Acts 1997, ch. 300, § 1.
This chapter shall be known and may be cited as the "Tennessee Charitable Beneficiaries Act of 1997."
Acts 1997, ch. 300, § 1.
Tenn. Code Ann. § 35-15-108 — TN Code / Title 35 / Chapter 15 / Section 35-15-108
Place of administration - Sufficient nexus for a state jurisdiction provision - Transfer of place of administration
Status: in_force

(a) Without limiting or precluding other means for establishing a sufficient connection with a jurisdiction, for purposes of determining the applicable law controlling a trust's administration, the terms of a trust designating a jurisdiction's trust administration laws in a state jurisdiction provision are valid and controlling if: (1) A trustee's principal place of business is located in or a trustee is a resident of the designated jurisdiction; or (2) All or part of the administration occurs in the designated jurisdiction; which such administration, includes but is not limited to: (A) Maintenance of some trust records physically in the designated jurisdiction; and (B) Wholly or partly preparing or arranging for the preparation, either on an exclusive or a nonexclusive basis, in the designated jurisdiction of an income tax return that must be filed by the trust; or (3) Some or all of the trust assets are deposited in the designated jurisdiction or physical evidence of such assets is held in the designated jurisdiction and the trust is being administered by a person defined in subdivision (a)(1). For purposes of this subdivision (a)(3), "deposited in the designated jurisdiction," includes assets being held in any of a checking account, time deposit, certificate of deposit, brokerage account, trust company fiduciary account, or other similar account or deposit that is located in the designated jurisdiction. (b) Except as otherwise expressly provided in a state jurisdiction provision that is valid and controlling under subsection (a), or by court order addressing the applicable law for trust administration, the laws of this state govern the administration of a trust while the trust is administered in this state. Without precluding other means for establishing that a trust is administered in this state, if any of the activities described in subsection (a) occur in this state, the trust is administered in this state. (c) A trustee is under a continuing duty to administer the trust at a place appropriate to its purposes, its administration, and the interests of the beneficiaries. (d) Without precluding the right of the court to order, approve, or disapprove a transfer, the trustee, in furtherance of the duty prescribed by subsection (c), may transfer the trust's principal place of administration to another state or to a jurisdiction outside of the United States. (e) The trustee shall notify the qualified beneficiaries of a proposed transfer of a trust's principal place of administration not less than sixty (60) days before initiating the transfer. The notice of proposed transfer must include: (1) The name of the jurisdiction to which the principal place of administration is to be transferred; (2) The address and telephone number at the new location at which the trustee can be contacted; (3) An explanation of the reasons for the proposed transfer; (4) The date on which the proposed transfer is anticipated to occur; and (5) The date, not less than sixty (60) days after the giving of the notice, by which the qualified beneficiary must notify the trustee of an objection to the proposed transfer. (f) The authority of a trustee under this section to transfer a trust's principal place of administration terminates if a majority of those qualified beneficiaries described in § 35-15-103 notify the trustee of an objection to the proposed transfer on or before the date specified in the notice. (g) In connection with a transfer of the trust's principal place of administration, the trustee may transfer some or all of the trust property to a successor trustee designated in the terms of the trust or appointed pursuant to § 35-15-704 . Amended by 2021 Tenn. Acts, ch. 420, s 5, eff. 7/1/2021. Amended by 2021 Tenn. Acts, ch. 420, s 4, eff. 7/1/2021. Amended by 2013 Tenn. Acts, ch. 390, s 9, eff. 7/1/2013. Acts 2004, ch. 537, § 9.
(a) Without limiting or precluding other means for establishing a sufficient connection with a jurisdiction, for purposes of determining the applicable law controlling a trust's administration, the terms of a trust designating a jurisdiction's trust administration laws in a state jurisdiction provision are valid and controlling if: (1) A trustee's principal place of business is located in or a trustee is a resident of the designated jurisdiction; or (2) All or part of the administration occurs in the designated jurisdiction; which such administration, includes but is not limited to: (A) Maintenance of some trust records physically in the designated jurisdiction; and (B) Wholly or partly preparing or arranging for the preparation, either on an exclusive or a nonexclusive basis, in the designated jurisdiction of an income tax return that must be filed by the trust; or (3) Some or all of the trust assets are deposited in the designated jurisdiction or physical evidence of such assets is held in the designated jurisdiction and the trust is being administered by a person defined in subdivision (a)(1). For purposes of this subdivision (a)(3), "deposited in the designated jurisdiction," includes assets being held in any of a checking account, time deposit, certificate of deposit, brokerage account, trust company fiduciary account, or other similar account or deposit that is located in the designated jurisdiction.
(1) A trustee's principal place of business is located in or a trustee is a resident of the designated jurisdiction; or
(2) All or part of the administration occurs in the designated jurisdiction; which such administration, includes but is not limited to: (A) Maintenance of some trust records physically in the designated jurisdiction; and (B) Wholly or partly preparing or arranging for the preparation, either on an exclusive or a nonexclusive basis, in the designated jurisdiction of an income tax return that must be filed by the trust; or
(A) Maintenance of some trust records physically in the designated jurisdiction; and
(B) Wholly or partly preparing or arranging for the preparation, either on an exclusive or a nonexclusive basis, in the designated jurisdiction of an income tax return that must be filed by the trust; or
(3) Some or all of the trust assets are deposited in the designated jurisdiction or physical evidence of such assets is held in the designated jurisdiction and the trust is being administered by a person defined in subdivision (a)(1). For purposes of this subdivision (a)(3), "deposited in the designated jurisdiction," includes assets being held in any of a checking account, time deposit, certificate of deposit, brokerage account, trust company fiduciary account, or other similar account or deposit that is located in the designated jurisdiction.
(b) Except as otherwise expressly provided in a state jurisdiction provision that is valid and controlling under subsection (a), or by court order addressing the applicable law for trust administration, the laws of this state govern the administration of a trust while the trust is administered in this state. Without precluding other means for establishing that a trust is administered in this state, if any of the activities described in subsection (a) occur in this state, the trust is administered in this state.
(c) A trustee is under a continuing duty to administer the trust at a place appropriate to its purposes, its administration, and the interests of the beneficiaries.
(d) Without precluding the right of the court to order, approve, or disapprove a transfer, the trustee, in furtherance of the duty prescribed by subsection (c), may transfer the trust's principal place of administration to another state or to a jurisdiction outside of the United States.
(e) The trustee shall notify the qualified beneficiaries of a proposed transfer of a trust's principal place of administration not less than sixty (60) days before initiating the transfer. The notice of proposed transfer must include: (1) The name of the jurisdiction to which the principal place of administration is to be transferred; (2) The address and telephone number at the new location at which the trustee can be contacted; (3) An explanation of the reasons for the proposed transfer; (4) The date on which the proposed transfer is anticipated to occur; and (5) The date, not less than sixty (60) days after the giving of the notice, by which the qualified beneficiary must notify the trustee of an objection to the proposed transfer.
(1) The name of the jurisdiction to which the principal place of administration is to be transferred;
(2) The address and telephone number at the new location at which the trustee can be contacted;
(3) An explanation of the reasons for the proposed transfer;
(4) The date on which the proposed transfer is anticipated to occur; and
(5) The date, not less than sixty (60) days after the giving of the notice, by which the qualified beneficiary must notify the trustee of an objection to the proposed transfer.
(f) The authority of a trustee under this section to transfer a trust's principal place of administration terminates if a majority of those qualified beneficiaries described in § 35-15-103 notify the trustee of an objection to the proposed transfer on or before the date specified in the notice.
(g) In connection with a transfer of the trust's principal place of administration, the trustee may transfer some or all of the trust property to a successor trustee designated in the terms of the trust or appointed pursuant to § 35-15-704 .
Amended by 2021 Tenn. Acts, ch. 420, s 5, eff. 7/1/2021.
Amended by 2021 Tenn. Acts, ch. 420, s 4, eff. 7/1/2021.
Amended by 2013 Tenn. Acts, ch. 390, s 9, eff. 7/1/2013.
Acts 2004, ch. 537, § 9.
Tenn. Code Ann. § 35-4-103 — TN Code / Title 35 / Chapter 4 / Section 35-4-103
Accounting for trust funds - Chancery court approval
Status: in_force

(a) Unless ordered by a court of competent jurisdiction, the bank or trust company operating the common trust funds is not required to render a court accounting with regard to the funds, but it may, by application to the chancery court, secure approval of such an accounting on such conditions as the court may establish. (b) When an accounting of a common trust fund is presented to a court for approval, the court shall assign a date and place for hearing and order notice thereof by: (1) Publication once a week for three (3) weeks, the first publication to be not less than twenty (20) days prior to the date of hearing, of a notice in a newspaper having a circulation in the county in which the bank or trust company or branch thereof operating the common trust fund is located; (2) Mailing not less than fourteen (14) days prior to the date of the hearing a copy of the notice to all beneficiaries of the trusts participating in the common trust fund whose names are known to the bank or trust company from the records kept by it in the regular course of business in the administration of the trusts, directed to them at the addresses shown by those records; and (3) Such further notice if any as the court may order. Acts 1953, ch. 148, § 2 (Williams, § 9596.33); T.C.A. (orig. ed.), § 35-403.
(a) Unless ordered by a court of competent jurisdiction, the bank or trust company operating the common trust funds is not required to render a court accounting with regard to the funds, but it may, by application to the chancery court, secure approval of such an accounting on such conditions as the court may establish.
(b) When an accounting of a common trust fund is presented to a court for approval, the court shall assign a date and place for hearing and order notice thereof by: (1) Publication once a week for three (3) weeks, the first publication to be not less than twenty (20) days prior to the date of hearing, of a notice in a newspaper having a circulation in the county in which the bank or trust company or branch thereof operating the common trust fund is located; (2) Mailing not less than fourteen (14) days prior to the date of the hearing a copy of the notice to all beneficiaries of the trusts participating in the common trust fund whose names are known to the bank or trust company from the records kept by it in the regular course of business in the administration of the trusts, directed to them at the addresses shown by those records; and (3) Such further notice if any as the court may order.
(1) Publication once a week for three (3) weeks, the first publication to be not less than twenty (20) days prior to the date of hearing, of a notice in a newspaper having a circulation in the county in which the bank or trust company or branch thereof operating the common trust fund is located;
(2) Mailing not less than fourteen (14) days prior to the date of the hearing a copy of the notice to all beneficiaries of the trusts participating in the common trust fund whose names are known to the bank or trust company from the records kept by it in the regular course of business in the administration of the trusts, directed to them at the addresses shown by those records; and
(3) Such further notice if any as the court may order.
Acts 1953, ch. 148, § 2 (Williams, § 9596.33); T.C.A. (orig. ed.), § 35-403.
Tenn. Code Ann. § 35-15-1105 — TN Code / Title 35 / Chapter 15 / Section 35-15-1105
Dominion and control over a trust
Status: in_force

In the event a person challenges a settlor's or a beneficiary's influence over a trust, none of the following factors, alone or in combination, shall enter into a determination that dominion and control over a trust exists: (1) The settlor or a beneficiary is serving as a trustee, a trust advisor, a trust protector or other fiduciary as described in § 35-15-508 ; (2) The settlor or a beneficiary holds an unrestricted power to remove or replace a trustee, a trust advisor, a trust protector or other fiduciary; (3) The settlor or a beneficiary is a trust administrator, a general partner of a partnership, a manager of a limited liability company, an officer of a corporation, or holds any other managerial function relative to any type of entity specified in this subdivision (3), or relative to any other type of entity not so specified, and part or all of the trust property consists of an interest in such entity; (4) A person related by blood or adoption to the settlor or a beneficiary is appointed as a trustee, a trust advisor, a trust protector or other fiduciary; (5) The settlor's or a beneficiary's agent, accountant, attorney, financial advisor, or friend is appointed as a trustee, a trust advisor, a trust protector or other fiduciary; (6) A business associate is appointed as a trustee, a trust advisor, a trust protector or other fiduciary; (7) A beneficiary holds any power of appointment over any or all of the trust property; (8) The settlor holds a power to substitute property of equivalent value for property held by the trust, regardless of whether such power is: (A) Held in a fiduciary or nonfiduciary capacity; (B) Exercisable with or without the approval of any person in a fiduciary capacity; or (C) Exercisable with or without the approval of any person having an interest adverse to such settlor; (9) A trustee, a trust advisor, a trust protector or other fiduciary has the power to loan trust property to the settlor for less than a full and adequate rate of interest or without adequate security; (10) Any language relative to the power to make any distribution provides for any discretion relative to such distribution; (11) The trust has only one beneficiary eligible for current distributions; or (12) The beneficiary is serving as a cotrustee, or as a trust advisor or trust protector under part 12, or as any other fiduciary. Added by 2013 Tenn. Acts, ch. 390,s 52, eff. 7/1/2013.
In the event a person challenges a settlor's or a beneficiary's influence over a trust, none of the following factors, alone or in combination, shall enter into a determination that dominion and control over a trust exists:
(1) The settlor or a beneficiary is serving as a trustee, a trust advisor, a trust protector or other fiduciary as described in § 35-15-508 ;
(2) The settlor or a beneficiary holds an unrestricted power to remove or replace a trustee, a trust advisor, a trust protector or other fiduciary;
(3) The settlor or a beneficiary is a trust administrator, a general partner of a partnership, a manager of a limited liability company, an officer of a corporation, or holds any other managerial function relative to any type of entity specified in this subdivision (3), or relative to any other type of entity not so specified, and part or all of the trust property consists of an interest in such entity;
(4) A person related by blood or adoption to the settlor or a beneficiary is appointed as a trustee, a trust advisor, a trust protector or other fiduciary;
(5) The settlor's or a beneficiary's agent, accountant, attorney, financial advisor, or friend is appointed as a trustee, a trust advisor, a trust protector or other fiduciary;
(6) A business associate is appointed as a trustee, a trust advisor, a trust protector or other fiduciary;
(7) A beneficiary holds any power of appointment over any or all of the trust property;
(8) The settlor holds a power to substitute property of equivalent value for property held by the trust, regardless of whether such power is: (A) Held in a fiduciary or nonfiduciary capacity; (B) Exercisable with or without the approval of any person in a fiduciary capacity; or (C) Exercisable with or without the approval of any person having an interest adverse to such settlor;
(A) Held in a fiduciary or nonfiduciary capacity;
(B) Exercisable with or without the approval of any person in a fiduciary capacity; or
(C) Exercisable with or without the approval of any person having an interest adverse to such settlor;
(9) A trustee, a trust advisor, a trust protector or other fiduciary has the power to loan trust property to the settlor for less than a full and adequate rate of interest or without adequate security;
(10) Any language relative to the power to make any distribution provides for any discretion relative to such distribution;
(11) The trust has only one beneficiary eligible for current distributions; or
(12) The beneficiary is serving as a cotrustee, or as a trust advisor or trust protector under part 12, or as any other fiduciary.
Added by 2013 Tenn. Acts, ch. 390,s 52, eff. 7/1/2013.
Tenn. Code Ann. § 35-15-802 — TN Code / Title 35 / Chapter 15 / Section 35-15-802
Duty of loyalty
Status: in_force

(a) A trustee shall administer the trust solely in the interests of the beneficiaries as the beneficiaries' interests are defined under the terms of the trust. (b) Subject to the rights of persons dealing with or assisting the trustee as provided in § 35-15-1012 or as may otherwise be allowed under Tennessee law, a sale, encumbrance, or other transaction involving the investment or management of trust property entered into by the trustee for the trustee's own personal account or which is otherwise affected by a conflict between the trustee's fiduciary and personal interests is voidable by a beneficiary affected by the transaction unless: (1) The transaction was authorized by the terms of the trust; (2) The transaction was approved by the court; (3) The beneficiary did not commence a judicial proceeding within the time allowed by § 35-15-1005 ; (4) The beneficiary consented to the trustee's conduct, ratified the transaction, or released the trustee in compliance with § 35-15-1009 ; or (5) The transaction involves a contract entered into or claim acquired by the trustee before the person became or contemplated becoming trustee. (c) A sale, encumbrance, or other transaction involving the investment or management of trust property is presumed to be affected by a conflict between personal and fiduciary interests of the trustee if it is entered into by the trustee with: (1) The trustee's spouse; (2) The trustee's descendants, siblings, parents, or their spouses; (3) An agent or attorney of the trustee; or (4) A corporation or other person or enterprise in which the trustee, or a person that owns a significant interest in the trustee, has an interest that might affect the trustee's best judgment. (d) A transaction between a trustee and a beneficiary that does not concern trust property but that occurs during the existence of the trust or while the trustee retains significant influence over the beneficiary and from which the trustee obtains an advantage is voidable by the beneficiary unless the trustee establishes that the transaction was fair to the beneficiary. (e) A transaction not concerning trust property in which the trustee engages in the trustee's individual capacity involves a conflict between personal and fiduciary interests of the trustee if the transaction concerns an opportunity properly belonging to the trust. (f) In addition to all other permissible investments and delegatable duties listed in this title, so long as they are fairly priced and in accordance with the interest of the beneficiaries and the interests of the fiduciary's appointment and otherwise comply with chapter 14 of this title, a fiduciary may purchase, sell, hold or otherwise deal with an affiliate or an interest in an affiliated investment, as well as delegate to an affiliate or other agent associated with the fiduciary and, upon satisfaction of the conditions stated in subsection (h), such fiduciary may receive fiduciary compensation from such account at the same rate as the fiduciary would otherwise be entitled to be compensated. Such activities shall occur without any presumption of a conflict between personal and fiduciary interests of the trustee or other fiduciary. (g) As used in this section: (1) "Affiliate" means any corporation or other entity that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with the fiduciary; (2) "Affiliated investment" means an investment for which the fiduciary or an affiliate of the fiduciary acts as adviser, administrator, distributor, placement agent, underwriter, broker or in any other capacity for which it receives or has received a fee or commission from such investment or an investment acquired or disposed of in a transaction for which the fiduciary or an affiliate of the fiduciary receives or has received a fee or commission. "Affiliated investment" also means an investment in an insurance contract purchased from an insurance agency owned by, or affiliated with, the fiduciary, or any of its affiliates; (3) "Delegate to an affiliate or associated agent" means a proper delegation of any duty of the fiduciary to any person or entity that is affiliated with, or associated with, the fiduciary. The action of doing any of the above shall be known as a "delegation to an affiliate or associated agent"; (4) "Fee or commission" means compensation paid to a fiduciary or an affiliate thereof on account of its services to or on behalf of an investment; (5) For purposes of this section, "fiduciary" means any fiduciary as defined in § 35-15-103 , as well as any other fiduciary; and (6) "Investment" means any security as defined in § 2(a)(1) of the Securities Act of 1933 ( 15 U.S.C. § 77b(a)(1) ), any contract of sale of a commodity for future delivery within the meaning of § 2(i) of the Commodity Exchange Act ( 7 U.S.C. § 2(i) ), or any other asset permitted for fiduciary accounts pursuant to the terms of chapter 14 of this title or by the terms of the governing instrument, including by way of illustration and not limitation: shares or interests in a public or private investment fund, which shall include, but not be limited to, a public or private investment fund organized as a limited partnership, limited liability company, statutory or common law business trust, real estate investment trust, joint venture or other general or limited partnership; or an open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940 ( 15 U.S.C. § 80a-1 et seq.). (h) A fiduciary seeking compensation pursuant to subsection (f) shall, as is applicable relative to the fiduciary's particular appointment, disclose either: to those persons entitled to be kept informed about the administration of a trust under § 35-15-813(a)(1) , subject to § 35-15-813(d) and (e) ; to each principal in an agency relationship; or to all current recipients of statements of any other fiduciary account not described above; all fees or commissions paid or to be paid by the account, or received or to be received by an affiliate arising from such affiliated investment or delegation to an affiliate or associated agent. The disclosure required under this subsection (h) may be given either in a copy of the prospectus or any other disclosure document prepared for the affiliated investment under federal or state securities laws or in a written summary that includes all fees or commissions received or to be received by the fiduciary or any affiliate of the fiduciary and an explanation of the manner in which such fees or commissions are calculated, either as a percentage of the assets invested or by some other method. Such disclosure shall be made at least annually unless there has been no increase in the rate at which such fees or commissions are calculated since the most recent disclosure. Notwithstanding this subsection (h), no such disclosure is required if the governing instrument or a court order expressly authorizes the fiduciary to invest the fiduciary account in affiliated investments or to perform the delegation to an affiliate or associated agent. (i) A fiduciary that has complied with subsection (h), whether by making the applicable disclosure or by relying on the terms of a governing instrument or court order, shall have full authority to administer an affiliated investment, including the authority to vote proxies thereon, without regard to the affiliation between the fiduciary and the investment or the fiduciary and delegatee, as the case may be. (j) In voting shares of stock or in exercising powers of control over similar interests in other forms of enterprise, the trustee shall act in the best interests of the beneficiaries. If the trust is the sole owner of a corporation or other form of enterprise, the trustee shall elect or appoint directors or other managers who will manage the corporation or enterprise in the best interests of the beneficiaries. (k) This section does not preclude the following transactions, if fair to the beneficiaries: (1) An agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee; (2) Payment of reasonable compensation to the trustee; (3) A transaction between a trust and another trust, decedent's estate, or conservatorship of which the trustee is a fiduciary or in which a beneficiary has an interest; (4) A deposit of trust money in a regulated financial-service institution operated by the trustee; or (5) An advance by the trustee of money for the protection of the trust. (l) The court may appoint a special fiduciary to make a decision with respect to any proposed transaction that might violate this section if entered into by the trustee. Amended by 2023 Tenn. Acts, ch. 166, s 11, eff. 4/17/2023. Amended by 2013 Tenn. Acts, ch. 390, s 30, eff. 7/1/2013. Acts 2004, ch. 537, § 61; 2010 , ch. 725, § 8.
(a) A trustee shall administer the trust solely in the interests of the beneficiaries as the beneficiaries' interests are defined under the terms of the trust.
(b) Subject to the rights of persons dealing with or assisting the trustee as provided in § 35-15-1012 or as may otherwise be allowed under Tennessee law, a sale, encumbrance, or other transaction involving the investment or management of trust property entered into by the trustee for the trustee's own personal account or which is otherwise affected by a conflict between the trustee's fiduciary and personal interests is voidable by a beneficiary affected by the transaction unless: (1) The transaction was authorized by the terms of the trust; (2) The transaction was approved by the court; (3) The beneficiary did not commence a judicial proceeding within the time allowed by § 35-15-1005 ; (4) The beneficiary consented to the trustee's conduct, ratified the transaction, or released the trustee in compliance with § 35-15-1009 ; or (5) The transaction involves a contract entered into or claim acquired by the trustee before the person became or contemplated becoming trustee.
(1) The transaction was authorized by the terms of the trust;
(2) The transaction was approved by the court;
(3) The beneficiary did not commence a judicial proceeding within the time allowed by § 35-15-1005 ;
(4) The beneficiary consented to the trustee's conduct, ratified the transaction, or released the trustee in compliance with § 35-15-1009 ; or
(5) The transaction involves a contract entered into or claim acquired by the trustee before the person became or contemplated becoming trustee.
(c) A sale, encumbrance, or other transaction involving the investment or management of trust property is presumed to be affected by a conflict between personal and fiduciary interests of the trustee if it is entered into by the trustee with: (1) The trustee's spouse; (2) The trustee's descendants, siblings, parents, or their spouses; (3) An agent or attorney of the trustee; or (4) A corporation or other person or enterprise in which the trustee, or a person that owns a significant interest in the trustee, has an interest that might affect the trustee's best judgment.
(1) The trustee's spouse;
(2) The trustee's descendants, siblings, parents, or their spouses;
(3) An agent or attorney of the trustee; or
(4) A corporation or other person or enterprise in which the trustee, or a person that owns a significant interest in the trustee, has an interest that might affect the trustee's best judgment.
(d) A transaction between a trustee and a beneficiary that does not concern trust property but that occurs during the existence of the trust or while the trustee retains significant influence over the beneficiary and from which the trustee obtains an advantage is voidable by the beneficiary unless the trustee establishes that the transaction was fair to the beneficiary.
(e) A transaction not concerning trust property in which the trustee engages in the trustee's individual capacity involves a conflict between personal and fiduciary interests of the trustee if the transaction concerns an opportunity properly belonging to the trust.
(f) In addition to all other permissible investments and delegatable duties listed in this title, so long as they are fairly priced and in accordance with the interest of the beneficiaries and the interests of the fiduciary's appointment and otherwise comply with chapter 14 of this title, a fiduciary may purchase, sell, hold or otherwise deal with an affiliate or an interest in an affiliated investment, as well as delegate to an affiliate or other agent associated with the fiduciary and, upon satisfaction of the conditions stated in subsection (h), such fiduciary may receive fiduciary compensation from such account at the same rate as the fiduciary would otherwise be entitled to be compensated. Such activities shall occur without any presumption of a conflict between personal and fiduciary interests of the trustee or other fiduciary.
(g) As used in this section: (1) "Affiliate" means any corporation or other entity that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with the fiduciary; (2) "Affiliated investment" means an investment for which the fiduciary or an affiliate of the fiduciary acts as adviser, administrator, distributor, placement agent, underwriter, broker or in any other capacity for which it receives or has received a fee or commission from such investment or an investment acquired or disposed of in a transaction for which the fiduciary or an affiliate of the fiduciary receives or has received a fee or commission. "Affiliated investment" also means an investment in an insurance contract purchased from an insurance agency owned by, or affiliated with, the fiduciary, or any of its affiliates; (3) "Delegate to an affiliate or associated agent" means a proper delegation of any duty of the fiduciary to any person or entity that is affiliated with, or associated with, the fiduciary. The action of doing any of the above shall be known as a "delegation to an affiliate or associated agent"; (4) "Fee or commission" means compensation paid to a fiduciary or an affiliate thereof on account of its services to or on behalf of an investment; (5) For purposes of this section, "fiduciary" means any fiduciary as defined in § 35-15-103 , as well as any other fiduciary; and (6) "Investment" means any security as defined in § 2(a)(1) of the Securities Act of 1933 ( 15 U.S.C. § 77b(a)(1) ), any contract of sale of a commodity for future delivery within the meaning of § 2(i) of the Commodity Exchange Act ( 7 U.S.C. § 2(i) ), or any other asset permitted for fiduciary accounts pursuant to the terms of chapter 14 of this title or by the terms of the governing instrument, including by way of illustration and not limitation: shares or interests in a public or private investment fund, which shall include, but not be limited to, a public or private investment fund organized as a limited partnership, limited liability company, statutory or common law business trust, real estate investment trust, joint venture or other general or limited partnership; or an open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940 ( 15 U.S.C. § 80a-1 et seq.).
(1) "Affiliate" means any corporation or other entity that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with the fiduciary;
(2) "Affiliated investment" means an investment for which the fiduciary or an affiliate of the fiduciary acts as adviser, administrator, distributor, placement agent, underwriter, broker or in any other capacity for which it receives or has received a fee or commission from such investment or an investment acquired or disposed of in a transaction for which the fiduciary or an affiliate of the fiduciary receives or has received a fee or commission. "Affiliated investment" also means an investment in an insurance contract purchased from an insurance agency owned by, or affiliated with, the fiduciary, or any of its affiliates;
(3) "Delegate to an affiliate or associated agent" means a proper delegation of any duty of the fiduciary to any person or entity that is affiliated with, or associated with, the fiduciary. The action of doing any of the above shall be known as a "delegation to an affiliate or associated agent";
(4) "Fee or commission" means compensation paid to a fiduciary or an affiliate thereof on account of its services to or on behalf of an investment;
(5) For purposes of this section, "fiduciary" means any fiduciary as defined in § 35-15-103 , as well as any other fiduciary; and
(6) "Investment" means any security as defined in § 2(a)(1) of the Securities Act of 1933 ( 15 U.S.C. § 77b(a)(1) ), any contract of sale of a commodity for future delivery within the meaning of § 2(i) of the Commodity Exchange Act ( 7 U.S.C. § 2(i) ), or any other asset permitted for fiduciary accounts pursuant to the terms of chapter 14 of this title or by the terms of the governing instrument, including by way of illustration and not limitation: shares or interests in a public or private investment fund, which shall include, but not be limited to, a public or private investment fund organized as a limited partnership, limited liability company, statutory or common law business trust, real estate investment trust, joint venture or other general or limited partnership; or an open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940 ( 15 U.S.C. § 80a-1 et seq.).
(h) A fiduciary seeking compensation pursuant to subsection (f) shall, as is applicable relative to the fiduciary's particular appointment, disclose either: to those persons entitled to be kept informed about the administration of a trust under § 35-15-813(a)(1) , subject to § 35-15-813(d) and (e) ; to each principal in an agency relationship; or to all current recipients of statements of any other fiduciary account not described above; all fees or commissions paid or to be paid by the account, or received or to be received by an affiliate arising from such affiliated investment or delegation to an affiliate or associated agent. The disclosure required under this subsection (h) may be given either in a copy of the prospectus or any other disclosure document prepared for the affiliated investment under federal or state securities laws or in a written summary that includes all fees or commissions received or to be received by the fiduciary or any affiliate of the fiduciary and an explanation of the manner in which such fees or commissions are calculated, either as a percentage of the assets invested or by some other method. Such disclosure shall be made at least annually unless there has been no increase in the rate at which such fees or commissions are calculated since the most recent disclosure. Notwithstanding this subsection (h), no such disclosure is required if the governing instrument or a court order expressly authorizes the fiduciary to invest the fiduciary account in affiliated investments or to perform the delegation to an affiliate or associated agent.
(i) A fiduciary that has complied with subsection (h), whether by making the applicable disclosure or by relying on the terms of a governing instrument or court order, shall have full authority to administer an affiliated investment, including the authority to vote proxies thereon, without regard to the affiliation between the fiduciary and the investment or the fiduciary and delegatee, as the case may be.
(j) In voting shares of stock or in exercising powers of control over similar interests in other forms of enterprise, the trustee shall act in the best interests of the beneficiaries. If the trust is the sole owner of a corporation or other form of enterprise, the trustee shall elect or appoint directors or other managers who will manage the corporation or enterprise in the best interests of the beneficiaries.
(k) This section does not preclude the following transactions, if fair to the beneficiaries: (1) An agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee; (2) Payment of reasonable compensation to the trustee; (3) A transaction between a trust and another trust, decedent's estate, or conservatorship of which the trustee is a fiduciary or in which a beneficiary has an interest; (4) A deposit of trust money in a regulated financial-service institution operated by the trustee; or (5) An advance by the trustee of money for the protection of the trust.
(1) An agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee;
(2) Payment of reasonable compensation to the trustee;
(3) A transaction between a trust and another trust, decedent's estate, or conservatorship of which the trustee is a fiduciary or in which a beneficiary has an interest;
(4) A deposit of trust money in a regulated financial-service institution operated by the trustee; or
(5) An advance by the trustee of money for the protection of the trust.
(l) The court may appoint a special fiduciary to make a decision with respect to any proposed transaction that might violate this section if entered into by the trustee.
Amended by 2023 Tenn. Acts, ch. 166, s 11, eff. 4/17/2023.
Amended by 2013 Tenn. Acts, ch. 390, s 30, eff. 7/1/2013.
Acts 2004, ch. 537, § 61; 2010 , ch. 725, § 8.
Tenn. Code Ann. § 35-15-705 — TN Code / Title 35 / Chapter 15 / Section 35-15-705
Resignation of trustee
Status: in_force

(a) A trustee may resign: (1) Upon at least thirty (30) days' notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or (2) With the approval of the court. (b) In approving a resignation, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property. (c) Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or omissions of the trustee is not discharged or affected by the trustee's resignation. Acts 2004, ch. 537, § 55.
(a) A trustee may resign: (1) Upon at least thirty (30) days' notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or (2) With the approval of the court.
(1) Upon at least thirty (30) days' notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or
(2) With the approval of the court.
(b) In approving a resignation, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property.
(c) Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or omissions of the trustee is not discharged or affected by the trustee's resignation.
Acts 2004, ch. 537, § 55.
Tenn. Code Ann. § 35-6-409 — TN Code / Title 35 / Chapter 6 / Section 35-6-409
Deferred compensation, annuities, and similar payments
Status: in_force

(a) In this section: (1) "Payment" means a payment that a trustee may receive over a fixed number of years or during the life of one (1) or more individuals because of services rendered or property transferred to the payer in exchange for future payments. The term includes a payment made in money or property from the payer's general assets or from a separate fund created by the payer. For purposes of subsections (d), (e), (f), and (g), the term also includes any payment from any separate fund, regardless of the reason for the payment; and (2) "Separate fund" includes, without limitation, a private or commercial annuity, an individual retirement account, and a pension, profit-sharing, stock-bonus, or stock-ownership plan. (b) To the extent that a payment is characterized as interest, a dividend, or a payment made in lieu of interest or a dividend, a trustee shall allocate the payment to income. The trustee shall allocate to principal the balance of the payment and any other payment received in the same accounting period that is not characterized as interest, a dividend, or an equivalent payment. (c) If no part of a payment is characterized as interest, a dividend, or an equivalent payment, and all or part of the payment is required to be made, a trustee shall allocate to income ten percent (10%) of the part that is required to be made during the accounting period and the balance to principal. If no part of a payment is required to be made or the payment received is the entire amount to which the trustee is entitled, the trustee shall allocate the entire payment to principal. For purposes of this subsection (c), a payment is not "required to be made" to the extent that it is made because the trustee exercises a right of withdrawal. (d) Except as otherwise provided in subsection (e), subsections (f) and (g) apply, and subsections (b) and (c) do not apply, in determining the allocation of a payment made from a separate fund to: (1) A trust to which an election to qualify for a marital deduction under 26 U.S.C. § 2056(b)(7) or § 67 -8-315(a)(6) ; or (2) A trust that qualifies for the marital deduction under 26 U.S.C. § 2056(b)(5) . (e) Subsections (d), (f), and (g) do not apply if and to the extent that the series of payments would, without the application of subsection (d), qualify for the marital deduction under 26 U.S.C. § 2056(b)(7)(C) . (f) A trustee shall determine the internal income, without regard to its receipt by the trustee, of each separate fund for the accounting period as if the separate fund were a trust subject to this chapter. Upon request of the surviving spouse, the trustee shall demand that the person administering the separate fund distribute the internal income to the trust. The trustee shall allocate a payment from the separate fund to income to the extent of the internal income of the separate fund and distribute that amount to the surviving spouse. The trustee shall allocate the balance of the payment to principal. Upon request of the surviving spouse, the trustee shall allocate principal to income to the extent the internal income of the separate fund exceeds payments made from the separate fund to the trust during the accounting period. (g) If a trustee cannot determine the internal income of a separate fund but can determine the value of the separate fund, the internal income of the separate fund is deemed to equal at least three percent (3%) of the fund's value, according to the most recent statement of value preceding the beginning of the accounting period. If the trustee can determine neither the internal income of the separate fund nor the fund's value, the internal income of the fund is deemed to equal the product of the interest rate and the present value of the expected future payments, as determined under 26 U.S.C. § 7520 , for the month preceding the accounting period for which the computation is made. (h) This section does not apply to a payment to which § 35-6-410 applies. Acts 2000, ch. 829, § 1; 2010 , ch. 725, § 1.
(a) In this section: (1) "Payment" means a payment that a trustee may receive over a fixed number of years or during the life of one (1) or more individuals because of services rendered or property transferred to the payer in exchange for future payments. The term includes a payment made in money or property from the payer's general assets or from a separate fund created by the payer. For purposes of subsections (d), (e), (f), and (g), the term also includes any payment from any separate fund, regardless of the reason for the payment; and (2) "Separate fund" includes, without limitation, a private or commercial annuity, an individual retirement account, and a pension, profit-sharing, stock-bonus, or stock-ownership plan.
(1) "Payment" means a payment that a trustee may receive over a fixed number of years or during the life of one (1) or more individuals because of services rendered or property transferred to the payer in exchange for future payments. The term includes a payment made in money or property from the payer's general assets or from a separate fund created by the payer. For purposes of subsections (d), (e), (f), and (g), the term also includes any payment from any separate fund, regardless of the reason for the payment; and
(2) "Separate fund" includes, without limitation, a private or commercial annuity, an individual retirement account, and a pension, profit-sharing, stock-bonus, or stock-ownership plan.
(b) To the extent that a payment is characterized as interest, a dividend, or a payment made in lieu of interest or a dividend, a trustee shall allocate the payment to income. The trustee shall allocate to principal the balance of the payment and any other payment received in the same accounting period that is not characterized as interest, a dividend, or an equivalent payment.
(c) If no part of a payment is characterized as interest, a dividend, or an equivalent payment, and all or part of the payment is required to be made, a trustee shall allocate to income ten percent (10%) of the part that is required to be made during the accounting period and the balance to principal. If no part of a payment is required to be made or the payment received is the entire amount to which the trustee is entitled, the trustee shall allocate the entire payment to principal. For purposes of this subsection (c), a payment is not "required to be made" to the extent that it is made because the trustee exercises a right of withdrawal.
(d) Except as otherwise provided in subsection (e), subsections (f) and (g) apply, and subsections (b) and (c) do not apply, in determining the allocation of a payment made from a separate fund to: (1) A trust to which an election to qualify for a marital deduction under 26 U.S.C. § 2056(b)(7) or § 67 -8-315(a)(6) ; or (2) A trust that qualifies for the marital deduction under 26 U.S.C. § 2056(b)(5) .
(1) A trust to which an election to qualify for a marital deduction under 26 U.S.C. § 2056(b)(7) or § 67 -8-315(a)(6) ; or
(2) A trust that qualifies for the marital deduction under 26 U.S.C. § 2056(b)(5) .
(e) Subsections (d), (f), and (g) do not apply if and to the extent that the series of payments would, without the application of subsection (d), qualify for the marital deduction under 26 U.S.C. § 2056(b)(7)(C) .
(f) A trustee shall determine the internal income, without regard to its receipt by the trustee, of each separate fund for the accounting period as if the separate fund were a trust subject to this chapter. Upon request of the surviving spouse, the trustee shall demand that the person administering the separate fund distribute the internal income to the trust. The trustee shall allocate a payment from the separate fund to income to the extent of the internal income of the separate fund and distribute that amount to the surviving spouse. The trustee shall allocate the balance of the payment to principal. Upon request of the surviving spouse, the trustee shall allocate principal to income to the extent the internal income of the separate fund exceeds payments made from the separate fund to the trust during the accounting period.
(g) If a trustee cannot determine the internal income of a separate fund but can determine the value of the separate fund, the internal income of the separate fund is deemed to equal at least three percent (3%) of the fund's value, according to the most recent statement of value preceding the beginning of the accounting period. If the trustee can determine neither the internal income of the separate fund nor the fund's value, the internal income of the fund is deemed to equal the product of the interest rate and the present value of the expected future payments, as determined under 26 U.S.C. § 7520 , for the month preceding the accounting period for which the computation is made.
(h) This section does not apply to a payment to which § 35-6-410 applies.
Acts 2000, ch. 829, § 1; 2010 , ch. 725, § 1.
Tenn. Code Ann. § 35-15-107 — TN Code / Title 35 / Chapter 15 / Section 35-15-107
Governing law
Status: in_force

(a) The validity and construction of a trust are determined by the law of the jurisdiction designated in the terms of the trust instrument, which is called a state jurisdiction provision. (b) When a state jurisdiction provision designates that the law of this state controls: (1) This state and its courts have jurisdiction over a trust created in a foreign jurisdiction; (2) The validity, construction, and administration of a trust are determined by the laws of this state, including but not limited to: (A) The capacity of the settlor; (B) The powers, obligations, liabilities, and rights of the trustees and other fiduciaries; (C) The appointment and removal of the trustees and other fiduciaries; (D) The existence and extent of all powers conferred on a trustee or other fiduciary, including but not limited to, any trustee's or other fiduciary's discretionary powers, as well as the existence and extent of all powers retained by a settlor and the validity of the exercise of any such power, whether conferred on a trustee or other fiduciary or retained by a settlor; (3) (A) Neither a trust nor any disposition made subject to the terms of such trust is subject to the laws of any foreign country, nor is any such trust or such disposition void, voidable, liable to be set aside or defective in any manner for any reason including but not limited to: (i) The law of any foreign country prohibits or does not recognize the concept of a trust; or (ii) The trust or disposition avoids or defeats any right, claim, or interest conferred by the law of a foreign country upon any person by reason of a personal relationship to the settlor or by way of heirship rights or contravenes any rule or law of a foreign country or any foreign country's judicial or administrative order or action intended to recognize, protect, enforce, or give effect to such right, claim, or interest; (B) Relative to any foreign country or any interest in property arising or originating under the laws of any foreign country: (i) No form of forced heirship, legitime, forced share or any similar heirship rights or form of transmission or transfer of property from a decedent or from a living person, or any restrictions on transmission or transfer of property from a decedent or a living person is recognized by this state; or (ii) No heirship rights described in subdivision (b)(3)(B)(i) conferred under the law of a foreign country shall constitute an obligation or liability, the transfer, conveyance or devise of which, would violate title 66, chapter 3; and (C) This subdivision (b)(3) shall apply to all realty or other forms of immovable property physically in this state, as well as to all personal or movable property wherever situated if owned by a trust containing a state jurisdiction provision designating that the law of this state controls such trust; (4) No judgment or other holding of any judicial body of any foreign country, including but not limited to, any court, administrative body or other entity or organization purportedly having the power to make judicial or administrative decisions of any foreign country, shall be recognized or enforced or give rise to any equitable forms of relief, including but not limited to, estoppel, to the extent such judgment or other holding concerns a trust containing a state jurisdiction provision designating that the law of this state controls such trust or to the extent such judgment or other holding concerns property held by such trust; (5) If, in any action brought against a trustee or other fiduciary of a trust, any judicial body of any foreign country, including but not limited to, any court, administrative body or other entity or organization purportedly having the power to make judicial or administrative decisions of any foreign country, takes any action whereby such judicial body declines to apply the law of this state in determining the validity, construction, or administration of a trust, or the effect of a spendthrift provision or discretionary interest of a trust, the trustee or other fiduciary, as applicable, shall immediately upon the action of the judicial body of the foreign country and without the further order of any court of this state, cease in all respects to be trustee or other fiduciary, as applicable, of the trust and a vacancy in the office of trustee or other fiduciary, as applicable, shall immediately exist: (A) Upon the existence of such vacancy, the trustee or other fiduciary, as applicable, has no power or authority other than to convey the trust property to the successor trustee or other fiduciary who fills such vacancy as provided in subdivision (b)(5)(B); (B) Such vacancy shall be filled in the same manner as would a vacancy in trusteeship that is required to be filled, either as provided by § 35-15-704(c) if the trust is a noncharitable trust, or as provided by § 35-15-704(d) if the trust is a charitable trust; and (C) Section 35-15-704(e) shall also apply relative to such trustee or other fiduciary, as applicable, in the same manner as § 35-15-704(e) applies to trustees and vacancies in trusteeship in general; provided, however, that when exercising its power provided by § 35-15-704(e) , the court shall consider the purposes of this subsection (b) and make any such appointments pursuant to § 35-15-704(e) in a manner designed to give full force and effect to this subsection (b) to the maximum extent allowed by the laws of this state or of the United States. (c) In the absence of the existence of a state jurisdiction provision, the laws of the jurisdiction where the trust was executed determine the validity of the trust and the laws of descent, while the laws of the principal place of administration determine the administration of the trust. Amended by 2021 Tenn. Acts, ch. 420, s 3, eff. 7/1/2021. Amended by 2013 Tenn. Acts, ch. 390, s 8, eff. 7/1/2013. Acts 2004, ch. 537, § 8.
(a) The validity and construction of a trust are determined by the law of the jurisdiction designated in the terms of the trust instrument, which is called a state jurisdiction provision.
(b) When a state jurisdiction provision designates that the law of this state controls: (1) This state and its courts have jurisdiction over a trust created in a foreign jurisdiction; (2) The validity, construction, and administration of a trust are determined by the laws of this state, including but not limited to: (A) The capacity of the settlor; (B) The powers, obligations, liabilities, and rights of the trustees and other fiduciaries; (C) The appointment and removal of the trustees and other fiduciaries; (D) The existence and extent of all powers conferred on a trustee or other fiduciary, including but not limited to, any trustee's or other fiduciary's discretionary powers, as well as the existence and extent of all powers retained by a settlor and the validity of the exercise of any such power, whether conferred on a trustee or other fiduciary or retained by a settlor; (3) (A) Neither a trust nor any disposition made subject to the terms of such trust is subject to the laws of any foreign country, nor is any such trust or such disposition void, voidable, liable to be set aside or defective in any manner for any reason including but not limited to: (i) The law of any foreign country prohibits or does not recognize the concept of a trust; or (ii) The trust or disposition avoids or defeats any right, claim, or interest conferred by the law of a foreign country upon any person by reason of a personal relationship to the settlor or by way of heirship rights or contravenes any rule or law of a foreign country or any foreign country's judicial or administrative order or action intended to recognize, protect, enforce, or give effect to such right, claim, or interest; (B) Relative to any foreign country or any interest in property arising or originating under the laws of any foreign country: (i) No form of forced heirship, legitime, forced share or any similar heirship rights or form of transmission or transfer of property from a decedent or from a living person, or any restrictions on transmission or transfer of property from a decedent or a living person is recognized by this state; or (ii) No heirship rights described in subdivision (b)(3)(B)(i) conferred under the law of a foreign country shall constitute an obligation or liability, the transfer, conveyance or devise of which, would violate title 66, chapter 3; and (C) This subdivision (b)(3) shall apply to all realty or other forms of immovable property physically in this state, as well as to all personal or movable property wherever situated if owned by a trust containing a state jurisdiction provision designating that the law of this state controls such trust; (4) No judgment or other holding of any judicial body of any foreign country, including but not limited to, any court, administrative body or other entity or organization purportedly having the power to make judicial or administrative decisions of any foreign country, shall be recognized or enforced or give rise to any equitable forms of relief, including but not limited to, estoppel, to the extent such judgment or other holding concerns a trust containing a state jurisdiction provision designating that the law of this state controls such trust or to the extent such judgment or other holding concerns property held by such trust; (5) If, in any action brought against a trustee or other fiduciary of a trust, any judicial body of any foreign country, including but not limited to, any court, administrative body or other entity or organization purportedly having the power to make judicial or administrative decisions of any foreign country, takes any action whereby such judicial body declines to apply the law of this state in determining the validity, construction, or administration of a trust, or the effect of a spendthrift provision or discretionary interest of a trust, the trustee or other fiduciary, as applicable, shall immediately upon the action of the judicial body of the foreign country and without the further order of any court of this state, cease in all respects to be trustee or other fiduciary, as applicable, of the trust and a vacancy in the office of trustee or other fiduciary, as applicable, shall immediately exist: (A) Upon the existence of such vacancy, the trustee or other fiduciary, as applicable, has no power or authority other than to convey the trust property to the successor trustee or other fiduciary who fills such vacancy as provided in subdivision (b)(5)(B); (B) Such vacancy shall be filled in the same manner as would a vacancy in trusteeship that is required to be filled, either as provided by § 35-15-704(c) if the trust is a noncharitable trust, or as provided by § 35-15-704(d) if the trust is a charitable trust; and (C) Section 35-15-704(e) shall also apply relative to such trustee or other fiduciary, as applicable, in the same manner as § 35-15-704(e) applies to trustees and vacancies in trusteeship in general; provided, however, that when exercising its power provided by § 35-15-704(e) , the court shall consider the purposes of this subsection (b) and make any such appointments pursuant to § 35-15-704(e) in a manner designed to give full force and effect to this subsection (b) to the maximum extent allowed by the laws of this state or of the United States.
(1) This state and its courts have jurisdiction over a trust created in a foreign jurisdiction;
(2) The validity, construction, and administration of a trust are determined by the laws of this state, including but not limited to: (A) The capacity of the settlor; (B) The powers, obligations, liabilities, and rights of the trustees and other fiduciaries; (C) The appointment and removal of the trustees and other fiduciaries; (D) The existence and extent of all powers conferred on a trustee or other fiduciary, including but not limited to, any trustee's or other fiduciary's discretionary powers, as well as the existence and extent of all powers retained by a settlor and the validity of the exercise of any such power, whether conferred on a trustee or other fiduciary or retained by a settlor;
(A) The capacity of the settlor;
(B) The powers, obligations, liabilities, and rights of the trustees and other fiduciaries;
(C) The appointment and removal of the trustees and other fiduciaries;
(D) The existence and extent of all powers conferred on a trustee or other fiduciary, including but not limited to, any trustee's or other fiduciary's discretionary powers, as well as the existence and extent of all powers retained by a settlor and the validity of the exercise of any such power, whether conferred on a trustee or other fiduciary or retained by a settlor;
(3) (A) Neither a trust nor any disposition made subject to the terms of such trust is subject to the laws of any foreign country, nor is any such trust or such disposition void, voidable, liable to be set aside or defective in any manner for any reason including but not limited to: (i) The law of any foreign country prohibits or does not recognize the concept of a trust; or (ii) The trust or disposition avoids or defeats any right, claim, or interest conferred by the law of a foreign country upon any person by reason of a personal relationship to the settlor or by way of heirship rights or contravenes any rule or law of a foreign country or any foreign country's judicial or administrative order or action intended to recognize, protect, enforce, or give effect to such right, claim, or interest; (B) Relative to any foreign country or any interest in property arising or originating under the laws of any foreign country: (i) No form of forced heirship, legitime, forced share or any similar heirship rights or form of transmission or transfer of property from a decedent or from a living person, or any restrictions on transmission or transfer of property from a decedent or a living person is recognized by this state; or (ii) No heirship rights described in subdivision (b)(3)(B)(i) conferred under the law of a foreign country shall constitute an obligation or liability, the transfer, conveyance or devise of which, would violate title 66, chapter 3; and (C) This subdivision (b)(3) shall apply to all realty or other forms of immovable property physically in this state, as well as to all personal or movable property wherever situated if owned by a trust containing a state jurisdiction provision designating that the law of this state controls such trust;
(A) Neither a trust nor any disposition made subject to the terms of such trust is subject to the laws of any foreign country, nor is any such trust or such disposition void, voidable, liable to be set aside or defective in any manner for any reason including but not limited to: (i) The law of any foreign country prohibits or does not recognize the concept of a trust; or (ii) The trust or disposition avoids or defeats any right, claim, or interest conferred by the law of a foreign country upon any person by reason of a personal relationship to the settlor or by way of heirship rights or contravenes any rule or law of a foreign country or any foreign country's judicial or administrative order or action intended to recognize, protect, enforce, or give effect to such right, claim, or interest;
(i) The law of any foreign country prohibits or does not recognize the concept of a trust; or
(ii) The trust or disposition avoids or defeats any right, claim, or interest conferred by the law of a foreign country upon any person by reason of a personal relationship to the settlor or by way of heirship rights or contravenes any rule or law of a foreign country or any foreign country's judicial or administrative order or action intended to recognize, protect, enforce, or give effect to such right, claim, or interest;
(B) Relative to any foreign country or any interest in property arising or originating under the laws of any foreign country: (i) No form of forced heirship, legitime, forced share or any similar heirship rights or form of transmission or transfer of property from a decedent or from a living person, or any restrictions on transmission or transfer of property from a decedent or a living person is recognized by this state; or (ii) No heirship rights described in subdivision (b)(3)(B)(i) conferred under the law of a foreign country shall constitute an obligation or liability, the transfer, conveyance or devise of which, would violate title 66, chapter 3; and
(i) No form of forced heirship, legitime, forced share or any similar heirship rights or form of transmission or transfer of property from a decedent or from a living person, or any restrictions on transmission or transfer of property from a decedent or a living person is recognized by this state; or
(ii) No heirship rights described in subdivision (b)(3)(B)(i) conferred under the law of a foreign country shall constitute an obligation or liability, the transfer, conveyance or devise of which, would violate title 66, chapter 3; and
(C) This subdivision (b)(3) shall apply to all realty or other forms of immovable property physically in this state, as well as to all personal or movable property wherever situated if owned by a trust containing a state jurisdiction provision designating that the law of this state controls such trust;
(4) No judgment or other holding of any judicial body of any foreign country, including but not limited to, any court, administrative body or other entity or organization purportedly having the power to make judicial or administrative decisions of any foreign country, shall be recognized or enforced or give rise to any equitable forms of relief, including but not limited to, estoppel, to the extent such judgment or other holding concerns a trust containing a state jurisdiction provision designating that the law of this state controls such trust or to the extent such judgment or other holding concerns property held by such trust;
(5) If, in any action brought against a trustee or other fiduciary of a trust, any judicial body of any foreign country, including but not limited to, any court, administrative body or other entity or organization purportedly having the power to make judicial or administrative decisions of any foreign country, takes any action whereby such judicial body declines to apply the law of this state in determining the validity, construction, or administration of a trust, or the effect of a spendthrift provision or discretionary interest of a trust, the trustee or other fiduciary, as applicable, shall immediately upon the action of the judicial body of the foreign country and without the further order of any court of this state, cease in all respects to be trustee or other fiduciary, as applicable, of the trust and a vacancy in the office of trustee or other fiduciary, as applicable, shall immediately exist: (A) Upon the existence of such vacancy, the trustee or other fiduciary, as applicable, has no power or authority other than to convey the trust property to the successor trustee or other fiduciary who fills such vacancy as provided in subdivision (b)(5)(B); (B) Such vacancy shall be filled in the same manner as would a vacancy in trusteeship that is required to be filled, either as provided by § 35-15-704(c) if the trust is a noncharitable trust, or as provided by § 35-15-704(d) if the trust is a charitable trust; and (C) Section 35-15-704(e) shall also apply relative to such trustee or other fiduciary, as applicable, in the same manner as § 35-15-704(e) applies to trustees and vacancies in trusteeship in general; provided, however, that when exercising its power provided by § 35-15-704(e) , the court shall consider the purposes of this subsection (b) and make any such appointments pursuant to § 35-15-704(e) in a manner designed to give full force and effect to this subsection (b) to the maximum extent allowed by the laws of this state or of the United States.
(A) Upon the existence of such vacancy, the trustee or other fiduciary, as applicable, has no power or authority other than to convey the trust property to the successor trustee or other fiduciary who fills such vacancy as provided in subdivision (b)(5)(B);
(B) Such vacancy shall be filled in the same manner as would a vacancy in trusteeship that is required to be filled, either as provided by § 35-15-704(c) if the trust is a noncharitable trust, or as provided by § 35-15-704(d) if the trust is a charitable trust; and
(C) Section 35-15-704(e) shall also apply relative to such trustee or other fiduciary, as applicable, in the same manner as § 35-15-704(e) applies to trustees and vacancies in trusteeship in general; provided, however, that when exercising its power provided by § 35-15-704(e) , the court shall consider the purposes of this subsection (b) and make any such appointments pursuant to § 35-15-704(e) in a manner designed to give full force and effect to this subsection (b) to the maximum extent allowed by the laws of this state or of the United States.
(c) In the absence of the existence of a state jurisdiction provision, the laws of the jurisdiction where the trust was executed determine the validity of the trust and the laws of descent, while the laws of the principal place of administration determine the administration of the trust.
Amended by 2021 Tenn. Acts, ch. 420, s 3, eff. 7/1/2021.
Amended by 2013 Tenn. Acts, ch. 390, s 8, eff. 7/1/2013.
Acts 2004, ch. 537, § 8.