Tenn. Code Ann. § 35-50-124 — TN Code / Title 35 / Chapter 50 / Section 35-50-124
Limited power of trustee - Beneficiary - Application
Status: in_force

(a) (1) Due to the potential conflict of interest that exists between a trustee who is a beneficiary and other beneficiaries of the trust, any power conferred upon a trustee, other than the settlor of a revocable or amendable trust: (A) To make discretionary distributions of either principal or income to or for the benefit of the trustee, except to provide for that trustee's health, education, maintenance, or support as described under Internal Revenue Code §§ 2041 and 2514 ( 26 U.S.C. §§ 2041 and 2514 ); (B) To make discretionary allocations of receipts or expenses as between principal and income, unless the trustee acts in a fiduciary capacity whereby the trustee has no power to enlarge or shift any beneficial interest except as an incidental consequence of the discharge of the trustee's fiduciary duties; (C) To make discretionary distributions of either principal or income to satisfy any legal support obligations of the trustee; or (D) To exercise any other power, including the right to remove or to replace any trustee, so as to cause the powers enumerated in subdivision (a)(1)(A), (a)(1)(B) or (a)(1)(C) to be exercised on behalf of, or for the benefit of, a beneficiary who is also a trustee, cannot be exercised by that trustee. (2) Any of the foregoing proscribed powers that are conferred upon two (2) or more trustees may be exercised by the trustees who are not so disqualified. If there is no trustee qualified to exercise the power and the document creating the trust does not include authority for the appointment of an independent trustee, any party in interest, as defined in subsection (c), may apply to a court of competent jurisdiction to appoint an independent trustee and the power may be exercised by the independent trustee appointed by the court. (b) This section applies to any trust unless application of the statute would cause the loss of a marital or charitable deduction or loss of generation skipping transfer tax exemption or the terms of the trust either: (1) Refer specifically to this section and provide expressly to the contrary; (2) Clearly indicate an intent by the settlor of the trust or testator of a will to grant the trustee who is also a beneficiary the power in question to accomplish a particular beneficial tax result; or (3) Contain language similarly limiting the powers of a trustee who is also a beneficiary. (c) For the purpose of subsection (a) or (b): (1) If the trust is revocable or amendable and the settlor is not incapacitated, the party in interest is the settlor; (2) If the trust is revocable or amendable and the settlor is incapacitated, the party in interest is the settlor's legal representative under applicable law or the settlor's donee under the durable power of attorney that is sufficient to grant such authority; (3) If the trust is not revocable or amendable, the parties in interest are: (A) Each trustee then serving; (B) Each income beneficiary then in existence or, if any such beneficiary has not attained majority or is otherwise incapacitated, the beneficiary's natural guardian or other legal representative under applicable law or the beneficiary's donee under a durable power of attorney that is sufficient to grant such authority; and (C) Each remainder beneficiary then in existence or, if any such remainder beneficiary has not attained majority or is otherwise incapacitated, the beneficiary's natural guardian or other legal representative under applicable law or the beneficiary's donee under a durable power of attorney that is sufficient to grant such authority. (d) A person who has the right to remove or replace a trustee does not possess nor may that person be deemed to possess, by virtue of having that right, the powers of the trustee that is subject to removal or to replacement. Acts 1997 , ch. 439, § 1; 2000, ch. 893, §§ 1 - 4.
(a) (1) Due to the potential conflict of interest that exists between a trustee who is a beneficiary and other beneficiaries of the trust, any power conferred upon a trustee, other than the settlor of a revocable or amendable trust: (A) To make discretionary distributions of either principal or income to or for the benefit of the trustee, except to provide for that trustee's health, education, maintenance, or support as described under Internal Revenue Code §§ 2041 and 2514 ( 26 U.S.C. §§ 2041 and 2514 ); (B) To make discretionary allocations of receipts or expenses as between principal and income, unless the trustee acts in a fiduciary capacity whereby the trustee has no power to enlarge or shift any beneficial interest except as an incidental consequence of the discharge of the trustee's fiduciary duties; (C) To make discretionary distributions of either principal or income to satisfy any legal support obligations of the trustee; or (D) To exercise any other power, including the right to remove or to replace any trustee, so as to cause the powers enumerated in subdivision (a)(1)(A), (a)(1)(B) or (a)(1)(C) to be exercised on behalf of, or for the benefit of, a beneficiary who is also a trustee, cannot be exercised by that trustee. (2) Any of the foregoing proscribed powers that are conferred upon two (2) or more trustees may be exercised by the trustees who are not so disqualified. If there is no trustee qualified to exercise the power and the document creating the trust does not include authority for the appointment of an independent trustee, any party in interest, as defined in subsection (c), may apply to a court of competent jurisdiction to appoint an independent trustee and the power may be exercised by the independent trustee appointed by the court.
(1) Due to the potential conflict of interest that exists between a trustee who is a beneficiary and other beneficiaries of the trust, any power conferred upon a trustee, other than the settlor of a revocable or amendable trust: (A) To make discretionary distributions of either principal or income to or for the benefit of the trustee, except to provide for that trustee's health, education, maintenance, or support as described under Internal Revenue Code §§ 2041 and 2514 ( 26 U.S.C. §§ 2041 and 2514 ); (B) To make discretionary allocations of receipts or expenses as between principal and income, unless the trustee acts in a fiduciary capacity whereby the trustee has no power to enlarge or shift any beneficial interest except as an incidental consequence of the discharge of the trustee's fiduciary duties; (C) To make discretionary distributions of either principal or income to satisfy any legal support obligations of the trustee; or (D) To exercise any other power, including the right to remove or to replace any trustee, so as to cause the powers enumerated in subdivision (a)(1)(A), (a)(1)(B) or (a)(1)(C) to be exercised on behalf of, or for the benefit of, a beneficiary who is also a trustee, cannot be exercised by that trustee.
(A) To make discretionary distributions of either principal or income to or for the benefit of the trustee, except to provide for that trustee's health, education, maintenance, or support as described under Internal Revenue Code §§ 2041 and 2514 ( 26 U.S.C. §§ 2041 and 2514 );
(B) To make discretionary allocations of receipts or expenses as between principal and income, unless the trustee acts in a fiduciary capacity whereby the trustee has no power to enlarge or shift any beneficial interest except as an incidental consequence of the discharge of the trustee's fiduciary duties;
(C) To make discretionary distributions of either principal or income to satisfy any legal support obligations of the trustee; or
(D) To exercise any other power, including the right to remove or to replace any trustee, so as to cause the powers enumerated in subdivision (a)(1)(A), (a)(1)(B) or (a)(1)(C) to be exercised on behalf of, or for the benefit of, a beneficiary who is also a trustee, cannot be exercised by that trustee.
cannot be exercised by that trustee.
(2) Any of the foregoing proscribed powers that are conferred upon two (2) or more trustees may be exercised by the trustees who are not so disqualified. If there is no trustee qualified to exercise the power and the document creating the trust does not include authority for the appointment of an independent trustee, any party in interest, as defined in subsection (c), may apply to a court of competent jurisdiction to appoint an independent trustee and the power may be exercised by the independent trustee appointed by the court.
(b) This section applies to any trust unless application of the statute would cause the loss of a marital or charitable deduction or loss of generation skipping transfer tax exemption or the terms of the trust either: (1) Refer specifically to this section and provide expressly to the contrary; (2) Clearly indicate an intent by the settlor of the trust or testator of a will to grant the trustee who is also a beneficiary the power in question to accomplish a particular beneficial tax result; or (3) Contain language similarly limiting the powers of a trustee who is also a beneficiary.
(1) Refer specifically to this section and provide expressly to the contrary;
(2) Clearly indicate an intent by the settlor of the trust or testator of a will to grant the trustee who is also a beneficiary the power in question to accomplish a particular beneficial tax result; or
(3) Contain language similarly limiting the powers of a trustee who is also a beneficiary.
(c) For the purpose of subsection (a) or (b): (1) If the trust is revocable or amendable and the settlor is not incapacitated, the party in interest is the settlor; (2) If the trust is revocable or amendable and the settlor is incapacitated, the party in interest is the settlor's legal representative under applicable law or the settlor's donee under the durable power of attorney that is sufficient to grant such authority; (3) If the trust is not revocable or amendable, the parties in interest are: (A) Each trustee then serving; (B) Each income beneficiary then in existence or, if any such beneficiary has not attained majority or is otherwise incapacitated, the beneficiary's natural guardian or other legal representative under applicable law or the beneficiary's donee under a durable power of attorney that is sufficient to grant such authority; and (C) Each remainder beneficiary then in existence or, if any such remainder beneficiary has not attained majority or is otherwise incapacitated, the beneficiary's natural guardian or other legal representative under applicable law or the beneficiary's donee under a durable power of attorney that is sufficient to grant such authority.
(1) If the trust is revocable or amendable and the settlor is not incapacitated, the party in interest is the settlor;
(2) If the trust is revocable or amendable and the settlor is incapacitated, the party in interest is the settlor's legal representative under applicable law or the settlor's donee under the durable power of attorney that is sufficient to grant such authority;
(3) If the trust is not revocable or amendable, the parties in interest are: (A) Each trustee then serving; (B) Each income beneficiary then in existence or, if any such beneficiary has not attained majority or is otherwise incapacitated, the beneficiary's natural guardian or other legal representative under applicable law or the beneficiary's donee under a durable power of attorney that is sufficient to grant such authority; and (C) Each remainder beneficiary then in existence or, if any such remainder beneficiary has not attained majority or is otherwise incapacitated, the beneficiary's natural guardian or other legal representative under applicable law or the beneficiary's donee under a durable power of attorney that is sufficient to grant such authority.
(A) Each trustee then serving;
(B) Each income beneficiary then in existence or, if any such beneficiary has not attained majority or is otherwise incapacitated, the beneficiary's natural guardian or other legal representative under applicable law or the beneficiary's donee under a durable power of attorney that is sufficient to grant such authority; and
(C) Each remainder beneficiary then in existence or, if any such remainder beneficiary has not attained majority or is otherwise incapacitated, the beneficiary's natural guardian or other legal representative under applicable law or the beneficiary's donee under a durable power of attorney that is sufficient to grant such authority.
(d) A person who has the right to remove or replace a trustee does not possess nor may that person be deemed to possess, by virtue of having that right, the powers of the trustee that is subject to removal or to replacement.
Acts 1997 , ch. 439, § 1; 2000, ch. 893, §§ 1 - 4.
Tenn. Code Ann. § 35-3-120 — TN Code / Title 35 / Chapter 3 / Section 35-3-120
Federally guaranteed loans and investments
Status: in_force

(a) Banks, trust companies, insurance companies, building and loan associations, credit unions, trustees and others acting in a fiduciary capacity, trust funds, pension and profit-sharing funds, real estate investment trusts, and other financial institutions, originating mortgagee institutions, and other institutions approved as mortgagees and otherwise meeting the requirements of the federal housing administration or veterans administration to act as mortgagees under the programs of these agencies may: (1) Make loans and advances of credit and purchases of obligations representing loans and advances of credit that are eligible for credit insurance by the federal housing commissioner, and may obtain that insurance; (2) Make loans secured by real property or leasehold, that the federal housing commissioner insures or makes a commitment to insure, and may obtain that insurance; (3) Invest their funds, eligible for investment, in notes or bonds secured by mortgage or trust deed insured by the federal housing commissioner, and in debentures issued by the federal housing commissioner, and also in securities issued by the Federal National Mortgage Association; and (4) Make any loans and advances of credit and purchases of obligations representing loans and advances of credit that are eligible to be guaranteed or insured in whole or in part by the veterans administration or administrator of veterans affairs, or secured by real property or leasehold as the administrator of veterans affairs makes a commitment to guarantee or insure. (b) No law of this state, requiring security upon which loans or investments may be made, or prescribing the nature, amount or form of the security, or prescribing or limiting interest rates upon loans or investments, or limiting investments of capital or deposits, or prescribing or limiting the period for which loans or investments may be made, shall apply to loans or investments made pursuant to this section. Acts 1961, ch. 43, §§ 1, 2; T.C.A., §§ 35-327, 35-328.
(a) Banks, trust companies, insurance companies, building and loan associations, credit unions, trustees and others acting in a fiduciary capacity, trust funds, pension and profit-sharing funds, real estate investment trusts, and other financial institutions, originating mortgagee institutions, and other institutions approved as mortgagees and otherwise meeting the requirements of the federal housing administration or veterans administration to act as mortgagees under the programs of these agencies may: (1) Make loans and advances of credit and purchases of obligations representing loans and advances of credit that are eligible for credit insurance by the federal housing commissioner, and may obtain that insurance; (2) Make loans secured by real property or leasehold, that the federal housing commissioner insures or makes a commitment to insure, and may obtain that insurance; (3) Invest their funds, eligible for investment, in notes or bonds secured by mortgage or trust deed insured by the federal housing commissioner, and in debentures issued by the federal housing commissioner, and also in securities issued by the Federal National Mortgage Association; and (4) Make any loans and advances of credit and purchases of obligations representing loans and advances of credit that are eligible to be guaranteed or insured in whole or in part by the veterans administration or administrator of veterans affairs, or secured by real property or leasehold as the administrator of veterans affairs makes a commitment to guarantee or insure.
(1) Make loans and advances of credit and purchases of obligations representing loans and advances of credit that are eligible for credit insurance by the federal housing commissioner, and may obtain that insurance;
(2) Make loans secured by real property or leasehold, that the federal housing commissioner insures or makes a commitment to insure, and may obtain that insurance;
(3) Invest their funds, eligible for investment, in notes or bonds secured by mortgage or trust deed insured by the federal housing commissioner, and in debentures issued by the federal housing commissioner, and also in securities issued by the Federal National Mortgage Association; and
(4) Make any loans and advances of credit and purchases of obligations representing loans and advances of credit that are eligible to be guaranteed or insured in whole or in part by the veterans administration or administrator of veterans affairs, or secured by real property or leasehold as the administrator of veterans affairs makes a commitment to guarantee or insure.
(b) No law of this state, requiring security upon which loans or investments may be made, or prescribing the nature, amount or form of the security, or prescribing or limiting interest rates upon loans or investments, or limiting investments of capital or deposits, or prescribing or limiting the period for which loans or investments may be made, shall apply to loans or investments made pursuant to this section.
Acts 1961, ch. 43, §§ 1, 2; T.C.A., §§ 35-327, 35-328.
Tenn. Code Ann. § 35-5-109 — TN Code / Title 35 / Chapter 5 / Section 35-5-109
Published ending time and published start time for auctions
Status: in_force

The published ending time for auctions conducted under this chapter on an internet-based bidding platform and the published start time for an in-person auction must be between the hours of nine o'clock a.m. (9:00 a.m.) and seven o'clock p.m. (7:00 p.m.) of the day fixed in the notice or advertisement. The day fixed may be any day Monday through Saturday, but must not be fixed on a state or federal legal holiday. However, this section does not apply to sales of parcels pursuant to title 67, chapter 5. Amended by 2019 Tenn. Acts, ch. 471,s 1, eff. 7/1/2019. Amended by 2017 Tenn. Acts, ch. 187,s 2, eff. 4/19/2017. Amended by 2015 Tenn. Acts, ch. 414,s 1, eff. 5/8/2015. Amended by 2014 Tenn. Acts, ch. 912,s 3, eff. 7/1/2014. Code 1858, § 2155 (deriv. Acts 1807, ch. 99, § 1); Shan., § 3848; Code 1932, § 7803; T.C.A. (orig. ed.), § 35-510.
The published ending time for auctions conducted under this chapter on an internet-based bidding platform and the published start time for an in-person auction must be between the hours of nine o'clock a.m. (9:00 a.m.) and seven o'clock p.m. (7:00 p.m.) of the day fixed in the notice or advertisement. The day fixed may be any day Monday through Saturday, but must not be fixed on a state or federal legal holiday. However, this section does not apply to sales of parcels pursuant to title 67, chapter 5.
Amended by 2019 Tenn. Acts, ch. 471,s 1, eff. 7/1/2019.
Amended by 2017 Tenn. Acts, ch. 187,s 2, eff. 4/19/2017.
Amended by 2015 Tenn. Acts, ch. 414,s 1, eff. 5/8/2015.
Amended by 2014 Tenn. Acts, ch. 912,s 3, eff. 7/1/2014.
Code 1858, § 2155 (deriv. Acts 1807, ch. 99, § 1); Shan., § 3848; Code 1932, § 7803; T.C.A. (orig. ed.), § 35-510.
Tenn. Code Ann. § 35-4-102 — TN Code / Title 35 / Chapter 4 / Section 35-4-102
Bank or trust company establishing common trust funds - Investing in trust funds
Status: in_force

Any bank or trust company qualified to act as fiduciary in this state may establish common trust funds for the purpose of furnishing investments to itself as fiduciary, or to itself and others as cofiduciaries, or to another bank or trust company which may, as such fiduciary or cofiduciary, invest funds that it lawfully holds for investment in interests in the common trust funds, if this investment is not prohibited by the instrument, judgment, decree or order creating the fiduciary relationship, and if, in the case of cofiduciaries, the bank or trust company procures the consent of its cofiduciaries to the investment. Acts 1953, ch. 148, § 1 (Williams, § 9596.32); 1973, ch. 378, §1; T.C.A. (orig. ed.), § 35-402.
Any bank or trust company qualified to act as fiduciary in this state may establish common trust funds for the purpose of furnishing investments to itself as fiduciary, or to itself and others as cofiduciaries, or to another bank or trust company which may, as such fiduciary or cofiduciary, invest funds that it lawfully holds for investment in interests in the common trust funds, if this investment is not prohibited by the instrument, judgment, decree or order creating the fiduciary relationship, and if, in the case of cofiduciaries, the bank or trust company procures the consent of its cofiduciaries to the investment.
Acts 1953, ch. 148, § 1 (Williams, § 9596.32); 1973, ch. 378, §1; T.C.A. (orig. ed.), § 35-402.
Tenn. Code Ann. § 35-10-104 — TN Code / Title 35 / Chapter 10 / Section 35-10-104
Appropriation for expenditure or accumulation of endowment fund - Rules of construction
Status: in_force

(a) Subject to the intent of a donor expressed in the gift instrument and to subsection (d), an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established. Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution. In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and shall consider, if relevant, the following factors: (1) The duration and preservation of the endowment fund; (2) The purposes of the institution and the endowment fund; (3) General economic conditions; (4) The possible effect of inflation or deflation; (5) The expected total return from income and the appreciation of investments; (6) Other resources of the institution; and (7) The investment policy of the institution. (b) To limit the authority to appropriate for expenditure or accumulate under subsection (a), a gift instrument must specifically state the limitation. (c) Terms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only "income", "interest", "dividends", or "rents, issues, or profits", or "to preserve the principal intact", or words of similar import: (1) Create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and (2) Do not otherwise limit the authority to appropriate for expenditure or accumulate under subsection (a). (d) (1) The appropriation for expenditure in any year of an amount greater than seven percent (7%) of the fair market value of an endowment fund, calculated on the basis of market values determined at least quarterly and averaged over a period of not less than three (3) years immediately preceding the year in which the appropriation for expenditure was made, creates a rebuttable presumption of imprudence. (2) For an endowment fund in existence for fewer than three (3) years, the fair market value of the endowment fund must be calculated for the period the endowment fund has been in existence. (3) This subsection (d) does not: (A) Apply to an appropriation for expenditure permitted under law other than this chapter or by the gift instrument; or (B) Create a presumption of prudence for an appropriation for expenditure of an amount less than or equal to seven percent (7%) of the fair market value of the endowment fund.
(a) Subject to the intent of a donor expressed in the gift instrument and to subsection (d), an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established. Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution. In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and shall consider, if relevant, the following factors: (1) The duration and preservation of the endowment fund; (2) The purposes of the institution and the endowment fund; (3) General economic conditions; (4) The possible effect of inflation or deflation; (5) The expected total return from income and the appreciation of investments; (6) Other resources of the institution; and (7) The investment policy of the institution.
(1) The duration and preservation of the endowment fund;
(2) The purposes of the institution and the endowment fund;
(3) General economic conditions;
(4) The possible effect of inflation or deflation;
(5) The expected total return from income and the appreciation of investments;
(6) Other resources of the institution; and
(7) The investment policy of the institution.
(b) To limit the authority to appropriate for expenditure or accumulate under subsection (a), a gift instrument must specifically state the limitation.
(c) Terms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only "income", "interest", "dividends", or "rents, issues, or profits", or "to preserve the principal intact", or words of similar import: (1) Create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and (2) Do not otherwise limit the authority to appropriate for expenditure or accumulate under subsection (a).
(1) Create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and
(2) Do not otherwise limit the authority to appropriate for expenditure or accumulate under subsection (a).
(d) (1) The appropriation for expenditure in any year of an amount greater than seven percent (7%) of the fair market value of an endowment fund, calculated on the basis of market values determined at least quarterly and averaged over a period of not less than three (3) years immediately preceding the year in which the appropriation for expenditure was made, creates a rebuttable presumption of imprudence. (2) For an endowment fund in existence for fewer than three (3) years, the fair market value of the endowment fund must be calculated for the period the endowment fund has been in existence. (3) This subsection (d) does not: (A) Apply to an appropriation for expenditure permitted under law other than this chapter or by the gift instrument; or (B) Create a presumption of prudence for an appropriation for expenditure of an amount less than or equal to seven percent (7%) of the fair market value of the endowment fund.
(1) The appropriation for expenditure in any year of an amount greater than seven percent (7%) of the fair market value of an endowment fund, calculated on the basis of market values determined at least quarterly and averaged over a period of not less than three (3) years immediately preceding the year in which the appropriation for expenditure was made, creates a rebuttable presumption of imprudence.
(2) For an endowment fund in existence for fewer than three (3) years, the fair market value of the endowment fund must be calculated for the period the endowment fund has been in existence.
(3) This subsection (d) does not: (A) Apply to an appropriation for expenditure permitted under law other than this chapter or by the gift instrument; or (B) Create a presumption of prudence for an appropriation for expenditure of an amount less than or equal to seven percent (7%) of the fair market value of the endowment fund.
(A) Apply to an appropriation for expenditure permitted under law other than this chapter or by the gift instrument; or
(B) Create a presumption of prudence for an appropriation for expenditure of an amount less than or equal to seven percent (7%) of the fair market value of the endowment fund.
Tenn. Code Ann. § 35-9-107 — TN Code / Title 35 / Chapter 9 / Section 35-9-107
Reformation of trusts to comply with tax regulations
Status: in_force

(a) It is the purpose of this section to permit and authorize the reformation of certain inter vivos and testamentary charitable remainder trusts created prior to and after December 10, 1998, to comply with applicable federal tax regulations regarding qualifying payments to noncharitable beneficiaries. Such reformations shall be permitted and authorized upon the unanimous written consent of all living individual grantors, living individual beneficiaries, charitable remainder beneficiaries named or otherwise provided for in the trust agreement, and the trustee, with the concurrence of the attorney general and reporter. The attorney general and reporter shall perform such acts as, in the attorney general and reporter's opinion, will effectuate this declaration of purpose. (b) (1) Notwithstanding any provision to the contrary in the governing instrument or in any other law of this state, the trustee of any charitable remainder trust described in § 1.664-3(a)(1)(i)(b) of the Internal Revenue Code Regulations ( 26 CFR 1.664-3(a)(1)(i)(b) ), as currently adopted, or as may be subsequently amended, may, without application to any court and either before or after the funding of such trust, reform the trust to meet the definition of a charitable remainder unitrust described in § 1.664-3(a)(1)(i)(c) of the Internal Revenue Code Regulations ( 26 CFR 1.664-3(a)(1)(i)(c) ), as currently adopted, or as may be subsequently amended. In order to effectuate this reformation, the trustee shall obtain the written consent of all living grantors, living beneficiaries, charitable beneficiaries named or otherwise provided for in the trust agreement, and the trustee, together with the written concurrence of the attorney general and reporter. If the charitable beneficiary is to be determined by a person having discretion to select or name the charitable beneficiary at the time the trust terminates, the consent of that person shall be required. Consent shall not be required as to individual beneficiaries or grantors not living at the time of reformation or as to charitable remainder beneficiaries not named or not in existence at the time of reformation. (2) The possibility of beneficial interests arising after the reformation of the trust instrument shall not defeat the ability to reform the trust pursuant to this section. In the case of an individual beneficiary or grantor not competent to give consent, the consent of that beneficiary's or grantor's guardian or conservator, if any, or the consent of a guardian ad litem appointed by a court of competent jurisdiction, shall be treated as the consent of the beneficiary or grantor. A copy of the proposed reformation, executed by the trustee and consented to by all living grantors, living beneficiaries, and charitable beneficiaries named or otherwise provided for in the trust agreement, shall be delivered to the attorney general and reporter. The attorney general and reporter shall, within thirty (30) days after receipt, either concur with the proposed reformation or state any specific objections to the proposed reformation in writing and delivered to the trustee by registered mail. If the attorney general and reporter state objections and those objections are not resolved to the attorney general's and reporter's satisfaction or the attorney general and reporter does not withdraw the objections, subdivision (b)(3) shall apply. (3) In the event that all of the living grantors, living beneficiaries, and charitable remainder beneficiaries do not consent to the reformation, any court of competent jurisdiction shall have the power to reform the governing instrument in accordance with subdivision (b)(1) upon petition by the trustee or any beneficiary. A copy of the petition shall be delivered in person or by registered mail to the attorney general and reporter. Acts 2000, ch. 600, § 1.
(a) It is the purpose of this section to permit and authorize the reformation of certain inter vivos and testamentary charitable remainder trusts created prior to and after December 10, 1998, to comply with applicable federal tax regulations regarding qualifying payments to noncharitable beneficiaries. Such reformations shall be permitted and authorized upon the unanimous written consent of all living individual grantors, living individual beneficiaries, charitable remainder beneficiaries named or otherwise provided for in the trust agreement, and the trustee, with the concurrence of the attorney general and reporter. The attorney general and reporter shall perform such acts as, in the attorney general and reporter's opinion, will effectuate this declaration of purpose.
(b) (1) Notwithstanding any provision to the contrary in the governing instrument or in any other law of this state, the trustee of any charitable remainder trust described in § 1.664-3(a)(1)(i)(b) of the Internal Revenue Code Regulations ( 26 CFR 1.664-3(a)(1)(i)(b) ), as currently adopted, or as may be subsequently amended, may, without application to any court and either before or after the funding of such trust, reform the trust to meet the definition of a charitable remainder unitrust described in § 1.664-3(a)(1)(i)(c) of the Internal Revenue Code Regulations ( 26 CFR 1.664-3(a)(1)(i)(c) ), as currently adopted, or as may be subsequently amended. In order to effectuate this reformation, the trustee shall obtain the written consent of all living grantors, living beneficiaries, charitable beneficiaries named or otherwise provided for in the trust agreement, and the trustee, together with the written concurrence of the attorney general and reporter. If the charitable beneficiary is to be determined by a person having discretion to select or name the charitable beneficiary at the time the trust terminates, the consent of that person shall be required. Consent shall not be required as to individual beneficiaries or grantors not living at the time of reformation or as to charitable remainder beneficiaries not named or not in existence at the time of reformation. (2) The possibility of beneficial interests arising after the reformation of the trust instrument shall not defeat the ability to reform the trust pursuant to this section. In the case of an individual beneficiary or grantor not competent to give consent, the consent of that beneficiary's or grantor's guardian or conservator, if any, or the consent of a guardian ad litem appointed by a court of competent jurisdiction, shall be treated as the consent of the beneficiary or grantor. A copy of the proposed reformation, executed by the trustee and consented to by all living grantors, living beneficiaries, and charitable beneficiaries named or otherwise provided for in the trust agreement, shall be delivered to the attorney general and reporter. The attorney general and reporter shall, within thirty (30) days after receipt, either concur with the proposed reformation or state any specific objections to the proposed reformation in writing and delivered to the trustee by registered mail. If the attorney general and reporter state objections and those objections are not resolved to the attorney general's and reporter's satisfaction or the attorney general and reporter does not withdraw the objections, subdivision (b)(3) shall apply. (3) In the event that all of the living grantors, living beneficiaries, and charitable remainder beneficiaries do not consent to the reformation, any court of competent jurisdiction shall have the power to reform the governing instrument in accordance with subdivision (b)(1) upon petition by the trustee or any beneficiary. A copy of the petition shall be delivered in person or by registered mail to the attorney general and reporter.
(1) Notwithstanding any provision to the contrary in the governing instrument or in any other law of this state, the trustee of any charitable remainder trust described in § 1.664-3(a)(1)(i)(b) of the Internal Revenue Code Regulations ( 26 CFR 1.664-3(a)(1)(i)(b) ), as currently adopted, or as may be subsequently amended, may, without application to any court and either before or after the funding of such trust, reform the trust to meet the definition of a charitable remainder unitrust described in § 1.664-3(a)(1)(i)(c) of the Internal Revenue Code Regulations ( 26 CFR 1.664-3(a)(1)(i)(c) ), as currently adopted, or as may be subsequently amended. In order to effectuate this reformation, the trustee shall obtain the written consent of all living grantors, living beneficiaries, charitable beneficiaries named or otherwise provided for in the trust agreement, and the trustee, together with the written concurrence of the attorney general and reporter. If the charitable beneficiary is to be determined by a person having discretion to select or name the charitable beneficiary at the time the trust terminates, the consent of that person shall be required. Consent shall not be required as to individual beneficiaries or grantors not living at the time of reformation or as to charitable remainder beneficiaries not named or not in existence at the time of reformation.
(2) The possibility of beneficial interests arising after the reformation of the trust instrument shall not defeat the ability to reform the trust pursuant to this section. In the case of an individual beneficiary or grantor not competent to give consent, the consent of that beneficiary's or grantor's guardian or conservator, if any, or the consent of a guardian ad litem appointed by a court of competent jurisdiction, shall be treated as the consent of the beneficiary or grantor. A copy of the proposed reformation, executed by the trustee and consented to by all living grantors, living beneficiaries, and charitable beneficiaries named or otherwise provided for in the trust agreement, shall be delivered to the attorney general and reporter. The attorney general and reporter shall, within thirty (30) days after receipt, either concur with the proposed reformation or state any specific objections to the proposed reformation in writing and delivered to the trustee by registered mail. If the attorney general and reporter state objections and those objections are not resolved to the attorney general's and reporter's satisfaction or the attorney general and reporter does not withdraw the objections, subdivision (b)(3) shall apply.
(3) In the event that all of the living grantors, living beneficiaries, and charitable remainder beneficiaries do not consent to the reformation, any court of competent jurisdiction shall have the power to reform the governing instrument in accordance with subdivision (b)(1) upon petition by the trustee or any beneficiary. A copy of the petition shall be delivered in person or by registered mail to the attorney general and reporter.
Acts 2000, ch. 600, § 1.
Tenn. Code Ann. § 35-15-1006 — TN Code / Title 35 / Chapter 15 / Section 35-15-1006
Reliance on trust instrustment
Status: in_force

A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance. Acts 2004, ch. 537, § 82.
A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance.
Acts 2004, ch. 537, § 82.
Tenn. Code Ann. § 35-15-1011 — TN Code / Title 35 / Chapter 15 / Section 35-15-1011
Interest as general partner
Status: in_force

(a) Except as otherwise provided in subsection (c) or unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust's acquisition of the interest if the fiduciary capacity was disclosed in the contract or in a statement previously filed pursuant to the Uniform Partnership Act, compiled in title 61, chapter 1, or the Uniform Limited Partnership Act, compiled in title 61, chapter 2. (b) Except as otherwise provided in subsection (c), a trustee who holds an interest as a general partner is not personally liable for torts committed by the partnership or for obligations arising from ownership or control of the interest unless the trustee is personally at fault on account of the trustee's own willful misconduct proven by clear and convincing evidence. (c) The immunity provided by this section does not apply if an interest in the partnership is held by the trustee in a capacity other than that of trustee. (d) If the trustee of a revocable trust holds an interest as a general partner, the settlor is personally liable for contracts and other obligations of the partnership as if the settlor were a general partner. Acts 2004, ch. 537, § 87; 2010, ch. 725, §§ 11, 12.
(a) Except as otherwise provided in subsection (c) or unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust's acquisition of the interest if the fiduciary capacity was disclosed in the contract or in a statement previously filed pursuant to the Uniform Partnership Act, compiled in title 61, chapter 1, or the Uniform Limited Partnership Act, compiled in title 61, chapter 2.
(b) Except as otherwise provided in subsection (c), a trustee who holds an interest as a general partner is not personally liable for torts committed by the partnership or for obligations arising from ownership or control of the interest unless the trustee is personally at fault on account of the trustee's own willful misconduct proven by clear and convincing evidence.
(c) The immunity provided by this section does not apply if an interest in the partnership is held by the trustee in a capacity other than that of trustee.
(d) If the trustee of a revocable trust holds an interest as a general partner, the settlor is personally liable for contracts and other obligations of the partnership as if the settlor were a general partner.
Acts 2004, ch. 537, § 87; 2010, ch. 725, §§ 11, 12.
Tenn. Code Ann. § 35-50-122 — TN Code / Title 35 / Chapter 50 / Section 35-50-122
Generation-skipping tax - Definitions
Status: in_force

(a) As used in this section, unless the context otherwise requires: (1) "Generation-skipping tax" means the generation-skipping transfer tax imposed by chapter 13 of the Internal Revenue Code ( 26 U.S.C. §§ 2601 et seq.); (2) "Internal Revenue Code" means the Internal Revenue Code of 1986 and successor provisions and codifications of that Code; (3) "Trust" means any express trust, with additions, wherever and however created, or any separate share of a trust, and includes any arrangement, other than an estate, that, although not a trust, has substantially the same effect as a trust; and (4) "Trustee" means an original, additional or successor trustee, whether or not appointed or confirmed by a court, and, in the case of an arrangement that is not a trust but is treated as a trust for purposes of the generation-skipping tax, includes the person in actual or constructive possession of the property subject to the arrangement. (b) A trustee is authorized, but not required, to divide any trust into two (2) or more separate trusts, of equal or unequal value, in order to create one (1) or more trusts entirely exempt from the generation-skipping tax and one (1) or more trusts entirely subject to the generation-skipping tax. Other terms and provisions of both trusts will remain substantially identical in all respects to the original trust. (c) The purpose of this section is to authorize a trustee to take appropriate action to preclude or minimize to the extent possible the imposition of the generation-skipping tax, and this section shall be broadly construed to carry out this purpose. (d) A trustee may exercise the authority granted in this section without prior approval or leave of any court. (e) Any trustee who in good faith acts or fails to act shall not be liable to any person for taking or failing to take any action authorized by this section. (f) This section applies to any trust that may be subject to chapter 13 of the Internal Revenue Code. Acts 1991, ch. 192, §1; 1997 , ch. 407, § 7; 2004, ch. 866, § 8.
(a) As used in this section, unless the context otherwise requires: (1) "Generation-skipping tax" means the generation-skipping transfer tax imposed by chapter 13 of the Internal Revenue Code ( 26 U.S.C. §§ 2601 et seq.); (2) "Internal Revenue Code" means the Internal Revenue Code of 1986 and successor provisions and codifications of that Code; (3) "Trust" means any express trust, with additions, wherever and however created, or any separate share of a trust, and includes any arrangement, other than an estate, that, although not a trust, has substantially the same effect as a trust; and (4) "Trustee" means an original, additional or successor trustee, whether or not appointed or confirmed by a court, and, in the case of an arrangement that is not a trust but is treated as a trust for purposes of the generation-skipping tax, includes the person in actual or constructive possession of the property subject to the arrangement.
(1) "Generation-skipping tax" means the generation-skipping transfer tax imposed by chapter 13 of the Internal Revenue Code ( 26 U.S.C. §§ 2601 et seq.);
(2) "Internal Revenue Code" means the Internal Revenue Code of 1986 and successor provisions and codifications of that Code;
(3) "Trust" means any express trust, with additions, wherever and however created, or any separate share of a trust, and includes any arrangement, other than an estate, that, although not a trust, has substantially the same effect as a trust; and
(4) "Trustee" means an original, additional or successor trustee, whether or not appointed or confirmed by a court, and, in the case of an arrangement that is not a trust but is treated as a trust for purposes of the generation-skipping tax, includes the person in actual or constructive possession of the property subject to the arrangement.
(b) A trustee is authorized, but not required, to divide any trust into two (2) or more separate trusts, of equal or unequal value, in order to create one (1) or more trusts entirely exempt from the generation-skipping tax and one (1) or more trusts entirely subject to the generation-skipping tax. Other terms and provisions of both trusts will remain substantially identical in all respects to the original trust.
(c) The purpose of this section is to authorize a trustee to take appropriate action to preclude or minimize to the extent possible the imposition of the generation-skipping tax, and this section shall be broadly construed to carry out this purpose.
(d) A trustee may exercise the authority granted in this section without prior approval or leave of any court.
(e) Any trustee who in good faith acts or fails to act shall not be liable to any person for taking or failing to take any action authorized by this section.
(f) This section applies to any trust that may be subject to chapter 13 of the Internal Revenue Code.
Acts 1991, ch. 192, §1; 1997 , ch. 407, § 7; 2004, ch. 866, § 8.
Tenn. Code Ann. § 35-15-801 — TN Code / Title 35 / Chapter 15 / Section 35-15-801
Duty to administer trust
Status: in_force

Upon acceptance of a trusteeship, the trustee shall administer the trust until such time as the trust terminates or a successor trustee is appointed and all assets are delivered in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this chapter. Acts 2004, ch. 537, § 60.
Upon acceptance of a trusteeship, the trustee shall administer the trust until such time as the trust terminates or a successor trustee is appointed and all assets are delivered in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this chapter.
Acts 2004, ch. 537, § 60.
Tenn. Code Ann. § 35-15-401 — TN Code / Title 35 / Chapter 15 / Section 35-15-401
Methods of creating trust
Status: in_force

A trust may be created by: (1) The transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking effect upon the settlor's death; (2) The declaration by the owner of property that the owner holds identifiable property as trustee; (3) The exercise of a power of appointment in favor of a trustee; or (4) A court pursuant to its statutory or equitable powers. Acts 2004, ch. 537, § 23.
A trust may be created by:
(1) The transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking effect upon the settlor's death;
(2) The declaration by the owner of property that the owner holds identifiable property as trustee;
(3) The exercise of a power of appointment in favor of a trustee; or
(4) A court pursuant to its statutory or equitable powers.
Acts 2004, ch. 537, § 23.
Tenn. Code Ann. § 35-5-111 — TN Code / Title 35 / Chapter 5 / Section 35-5-111
State may bid at execution or judicial sales
Status: in_force

Whenever the state is interested in the proceeds of any execution sale or any judicial sale, to any extent whatsoever, the state, acting through its attorney general and reporter, may bid on and buy in property either real or personal, at that sale, to the same extent as any natural person might do. Any sums due and payable on behalf of the state, as costs of sale or as a part of the purchase price of the property so bid in and paid by the state, shall be paid out of the general fund of the state treasury upon the warrant of the governor. Acts 1943, ch. 11, § 1; C. Supp. 1950, § 7804.1; T.C.A. (orig. ed.), § 35-512.
Whenever the state is interested in the proceeds of any execution sale or any judicial sale, to any extent whatsoever, the state, acting through its attorney general and reporter, may bid on and buy in property either real or personal, at that sale, to the same extent as any natural person might do. Any sums due and payable on behalf of the state, as costs of sale or as a part of the purchase price of the property so bid in and paid by the state, shall be paid out of the general fund of the state treasury upon the warrant of the governor.
Acts 1943, ch. 11, § 1; C. Supp. 1950, § 7804.1; T.C.A. (orig. ed.), § 35-512.
Tenn. Code Ann. § 35-15-709 — TN Code / Title 35 / Chapter 15 / Section 35-15-709
Reimbursement of expenses
Status: in_force

(a) A trustee, trust advisor or trust protector is entitled to be reimbursed out of the trust property, with interest as appropriate, for: (1) Expenses that were properly incurred in the administration of the trust; and (2) To the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust. (b) An advance, either by the trustee, trust advisor or trust protector or by a person named in § 35-15-701(c)(1) , of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest. Amended by 2013 Tenn. Acts, ch. 390,s 28, eff. 7/1/2013. Acts 2004, ch. 537, § 59.
(a) A trustee, trust advisor or trust protector is entitled to be reimbursed out of the trust property, with interest as appropriate, for: (1) Expenses that were properly incurred in the administration of the trust; and (2) To the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust.
(1) Expenses that were properly incurred in the administration of the trust; and
(2) To the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust.
(b) An advance, either by the trustee, trust advisor or trust protector or by a person named in § 35-15-701(c)(1) , of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.
Amended by 2013 Tenn. Acts, ch. 390,s 28, eff. 7/1/2013.
Acts 2004, ch. 537, § 59.
Tenn. Code Ann. § 35-15-601 — TN Code / Title 35 / Chapter 15 / Section 35-15-601
Capacity of settlor of revocable trust - Form of execution for post-death disposition
Status: in_force

The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will. To be effective as a post death disposition of property transferred during the transferor's life or by the transferor's will to a trust of which the transferor is the settlor or deemed to be the settlor, neither a revocable nor irrevocable trust existing on or executed after July 1, 2004, has to be executed with the formalities of a will. Acts 2004, ch. 537, § 47; 2005, ch. 99, § 8.
The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will. To be effective as a post death disposition of property transferred during the transferor's life or by the transferor's will to a trust of which the transferor is the settlor or deemed to be the settlor, neither a revocable nor irrevocable trust existing on or executed after July 1, 2004, has to be executed with the formalities of a will.
Acts 2004, ch. 537, § 47; 2005, ch. 99, § 8.
Tenn. Code Ann. § 35-2-108 — TN Code / Title 35 / Chapter 2 / Section 35-2-108
Deposit in name of principal - Drawing checks
Status: in_force

If a check is drawn upon the account of the principal in a bank or savings institution by a fiduciary who is empowered to draw checks upon the principal's account, the bank or savings institution is authorized to pay such check without being liable to the principal, unless the bank or savings institution pays the check with actual knowledge that the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in drawing such check, or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such a check is payable to the drawee bank or savings institution and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank or savings institution is liable to the principal if the fiduciary in fact commits a breach of the obligation as fiduciary in drawing or delivering the check. Acts 1953, ch. 82, § 8 (Williams, § 9596.25); T.C.A. (orig. ed.), § 35-209; Acts 1985, ch. 167, § 2.
If a check is drawn upon the account of the principal in a bank or savings institution by a fiduciary who is empowered to draw checks upon the principal's account, the bank or savings institution is authorized to pay such check without being liable to the principal, unless the bank or savings institution pays the check with actual knowledge that the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in drawing such check, or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such a check is payable to the drawee bank or savings institution and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank or savings institution is liable to the principal if the fiduciary in fact commits a breach of the obligation as fiduciary in drawing or delivering the check.
Acts 1953, ch. 82, § 8 (Williams, § 9596.25); T.C.A. (orig. ed.), § 35-209; Acts 1985, ch. 167, § 2.
Tenn. Code Ann. § 35-13-113 — TN Code / Title 35 / Chapter 13 / Section 35-13-113
Construction with other laws
Status: in_force

This chapter is deemed cumulative to any equitable doctrine or remedy or statute having for its object the same or similar purposes of this chapter. Acts 1997, ch. 300, § 1.
This chapter is deemed cumulative to any equitable doctrine or remedy or statute having for its object the same or similar purposes of this chapter.
Acts 1997, ch. 300, § 1.
Tenn. Code Ann. § 35-11-110 — TN Code / Title 35 / Chapter 11 / Section 35-11-110
Rules and regulations
Status: in_force

The secretary of state may adopt rules and regulations to carry out this chapter in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. Acts 2007, ch. 430, § 10.
The secretary of state may adopt rules and regulations to carry out this chapter in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Acts 2007, ch. 430, § 10.
Tenn. Code Ann. § 35-15-804 — TN Code / Title 35 / Chapter 15 / Section 35-15-804
Prudent administration
Status: in_force

A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill and caution. Acts 2004, ch. 537, § 60.
A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill and caution.
Acts 2004, ch. 537, § 60.
Tenn. Code Ann. § 35-16-110 — TN Code / Title 35 / Chapter 16 / Section 35-16-110
Successor trustees
Status: in_force

In the event that a qualified trustee of an investment services trust ceases to meet the requirements of § 35-16-102(12)(A) , and there remains no trustee that meets the requirements, the qualified trustee shall be deemed to have resigned as of the time of that cessation, and thereupon the successor qualified trustee provided for in the investment services trust shall become a qualified trustee of the investment services trust, or in the absence of any successor qualified trustee provided for in the investment services trust, then a court of this state shall, upon application of any interested party, appoint a successor qualified trustee. Acts 2007, ch. 144, § 10.
In the event that a qualified trustee of an investment services trust ceases to meet the requirements of § 35-16-102(12)(A) , and there remains no trustee that meets the requirements, the qualified trustee shall be deemed to have resigned as of the time of that cessation, and thereupon the successor qualified trustee provided for in the investment services trust shall become a qualified trustee of the investment services trust, or in the absence of any successor qualified trustee provided for in the investment services trust, then a court of this state shall, upon application of any interested party, appoint a successor qualified trustee.
Acts 2007, ch. 144, § 10.
Tenn. Code Ann. § 35-3-105 — TN Code / Title 35 / Chapter 3 / Section 35-3-105
Bonds of counties - "Net revenue" defined
Status: in_force

(a) Investments may be made in bonds of any county in the state and bonds of any city or town in the state having a population of not less than two thousand (2,000) by the last federal census preceding the investment, regardless of whether the bonds are payable from taxes levied on property in the county, city or town, or are payable solely from revenues of the waterworks system, electric distribution system or both owned and operated by the issuing county, city or town, or are payable from both taxes and revenues; provided, that the county, city or town has not defaulted within fifteen (15) years preceding the investment, for more than ninety (90) days, in the payment of any part of either principal or interest on any bond, note or other evidence of valid indebtedness. (b) Before any funds may be invested in bonds payable solely from waterworks, electric revenue or both, there shall be furnished with the bonds a certified copy of an operating statement issued by the official in charge of the operations of the waterworks or electric distribution systems, showing that the net revenue from the system or systems pledged to and available for the principal of and interest on all outstanding bonds payable from that revenue, covering a period of twelve (12) consecutive months out of the fifteen (15) months preceding the investment, have been at least one and one-third (1 1/3) times the highest combined principal and interest requirements for any one (1) year on all bonds then outstanding that are payable from the pledged revenues of the system or systems. (c) "Net revenue" means total revenue less operating expenses incurred in connection with the operation of the system or systems. Acts 1931, ch. 100, § 1(c); 1939, ch. 143, § 1; 1949, ch. 275, § 1; C. Supp. 1950, § 9596.1(C); modified; T.C.A. (orig. ed.), § 35-305.
(a) Investments may be made in bonds of any county in the state and bonds of any city or town in the state having a population of not less than two thousand (2,000) by the last federal census preceding the investment, regardless of whether the bonds are payable from taxes levied on property in the county, city or town, or are payable solely from revenues of the waterworks system, electric distribution system or both owned and operated by the issuing county, city or town, or are payable from both taxes and revenues; provided, that the county, city or town has not defaulted within fifteen (15) years preceding the investment, for more than ninety (90) days, in the payment of any part of either principal or interest on any bond, note or other evidence of valid indebtedness.
(b) Before any funds may be invested in bonds payable solely from waterworks, electric revenue or both, there shall be furnished with the bonds a certified copy of an operating statement issued by the official in charge of the operations of the waterworks or electric distribution systems, showing that the net revenue from the system or systems pledged to and available for the principal of and interest on all outstanding bonds payable from that revenue, covering a period of twelve (12) consecutive months out of the fifteen (15) months preceding the investment, have been at least one and one-third (1 1/3) times the highest combined principal and interest requirements for any one (1) year on all bonds then outstanding that are payable from the pledged revenues of the system or systems.
(c) "Net revenue" means total revenue less operating expenses incurred in connection with the operation of the system or systems.
Acts 1931, ch. 100, § 1(c); 1939, ch. 143, § 1; 1949, ch. 275, § 1; C. Supp. 1950, § 9596.1(C); modified; T.C.A. (orig. ed.), § 35-305.
Tenn. Code Ann. § 35-17-101 — TN Code / Title 35 / Chapter 17 / Section 35-17-101
Short title
Status: in_force

This chapter shall be known as the "Tennessee Community Property Trust Act of 2010." Acts 2010, ch. 658, § 1.
This chapter shall be known as the "Tennessee Community Property Trust Act of 2010."
Acts 2010, ch. 658, § 1.
Tenn. Code Ann. § 35-12-112 — TN Code / Title 35 / Chapter 12 / Section 35-12-112
Construction
Status: in_force

(a) This chapter shall be liberally construed and applied to promote its underlying purposes and policy and to make uniform the laws with respect to the subject of this chapter among states enacting it. (b) Unless displaced by the particular provisions of this chapter, the principles of law and equity supplement its provisions. Acts 1995, ch. 471, § 1.
(a) This chapter shall be liberally construed and applied to promote its underlying purposes and policy and to make uniform the laws with respect to the subject of this chapter among states enacting it.
(b) Unless displaced by the particular provisions of this chapter, the principles of law and equity supplement its provisions.
Acts 1995, ch. 471, § 1.
Tenn. Code Ann. § 35-6-404 — TN Code / Title 35 / Chapter 6 / Section 35-6-404
Principal receipts
Status: in_force

A trustee shall allocate to principal: (1) To the extent not allocated to income under this chapter, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary; (2) Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this chapter; (3) Amounts recovered from third parties to reimburse the trust because of disbursements described in § 35-6-502(a)(7) or for other reasons to the extent not based on the loss of income; (4) Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income; (5) Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and (6) Other receipts as provided in Part 4C, §§ 35-6-408 - 35-6-415. Acts 2000, ch. 829, § 1.
A trustee shall allocate to principal:
(1) To the extent not allocated to income under this chapter, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;
(2) Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this chapter;
(3) Amounts recovered from third parties to reimburse the trust because of disbursements described in § 35-6-502(a)(7) or for other reasons to the extent not based on the loss of income;
(4) Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;
(5) Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and
(6) Other receipts as provided in Part 4C, §§ 35-6-408 - 35-6-415.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-16-109 — TN Code / Title 35 / Chapter 16 / Section 35-16-109
Transferor as investment advisor
Status: in_force

A person may serve as an investment advisor notwithstanding that the person is the transferor of the qualified disposition. Acts 2007, ch. 144, § 9; 2010, ch. 725, § 18.
A person may serve as an investment advisor notwithstanding that the person is the transferor of the qualified disposition.
Acts 2007, ch. 144, § 9; 2010, ch. 725, § 18.
Tenn. Code Ann. § 35-2-112 — TN Code / Title 35 / Chapter 2 / Section 35-2-112
Uniformity of interpretation
Status: in_force

This chapter shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it. Acts 1953, ch. 82, § 13 (Williams, § 9596.30); T.C.A. (orig. ed.), § 35-214.
This chapter shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it.
Acts 1953, ch. 82, § 13 (Williams, § 9596.30); T.C.A. (orig. ed.), § 35-214.
Tenn. Code Ann. § 35-17-105 — TN Code / Title 35 / Chapter 17 / Section 35-17-105
Classification of property as community property - Enforcement - Duration - Management and control - Effect of distributions
Status: in_force

(a) Whether or not both, one (1) or neither is domiciled in this state, spouses may transmute any or all of their property to community property by transferring property to a community property trust. (b) A community property trust is enforceable without consideration. (c) All property owned by a community property trust will be community property during marriage. (d) The right to manage and control property that is transferred to a community property trust is determined by the terms of the trust. (e) When property is distributed from a community property trust, it shall no longer constitute community property. Amended by 2023 Tenn. Acts, ch. 166, s 13, eff. 4/17/2023. Acts 2010 , ch. 658, § 1.
(a) Whether or not both, one (1) or neither is domiciled in this state, spouses may transmute any or all of their property to community property by transferring property to a community property trust.
(b) A community property trust is enforceable without consideration.
(c) All property owned by a community property trust will be community property during marriage.
(d) The right to manage and control property that is transferred to a community property trust is determined by the terms of the trust.
(e) When property is distributed from a community property trust, it shall no longer constitute community property.
Amended by 2023 Tenn. Acts, ch. 166, s 13, eff. 4/17/2023.
Acts 2010 , ch. 658, § 1.
Tenn. Code Ann. § 35-7-109 — TN Code / Title 35 / Chapter 7 / Section 35-7-109
Receipt for custodial property
Status: in_force

A written acknowledgment of delivery by a custodian constitutes a sufficient receipt and discharge for custodial property transferred to the custodian pursuant to this chapter. Acts 1992, ch. 664, § 1; T.C.A. § 35-7-209.
A written acknowledgment of delivery by a custodian constitutes a sufficient receipt and discharge for custodial property transferred to the custodian pursuant to this chapter.
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-209.
Tenn. Code Ann. § 35-15-707 — TN Code / Title 35 / Chapter 15 / Section 35-15-707
Delivery of property by former trustee - Petition for approval of accountings and release and discharge from liability
Status: in_force

(a) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property. (b) A trustee who has resigned or been removed shall, within a reasonable time, deliver the trust property within the trustee's possession to the cotrustee, successor trustee, or other person entitled to it. (c) Prior to delivering the trust property within the trustee's possession to the co-trustee, successor trustee, or other person entitled to it, a trustee who has resigned or been removed shall have the right and authority to petition the court for approval of its accountings and a release and discharge from all liability related to such trust as allowed under § 35-15-205 . Amended by 2019 Tenn. Acts, ch. 340, s 10, eff. 5/10/2019. Acts 2004, ch. 537, § 57; 2007 , ch. 24, § 27.
(a) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.
(b) A trustee who has resigned or been removed shall, within a reasonable time, deliver the trust property within the trustee's possession to the cotrustee, successor trustee, or other person entitled to it.
(c) Prior to delivering the trust property within the trustee's possession to the co-trustee, successor trustee, or other person entitled to it, a trustee who has resigned or been removed shall have the right and authority to petition the court for approval of its accountings and a release and discharge from all liability related to such trust as allowed under § 35-15-205 .
Amended by 2019 Tenn. Acts, ch. 340, s 10, eff. 5/10/2019.
Acts 2004, ch. 537, § 57; 2007 , ch. 24, § 27.
Tenn. Code Ann. § 35-15-702 — TN Code / Title 35 / Chapter 15 / Section 35-15-702
Trustee's bond
Status: in_force

(a) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement. (b) The court may specify the amount of a bond, its liabilities, and whether sureties are necessary. The court may modify or terminate a bond at any time. (c) A state or national bank, savings institution, or trust company authorized to exercise fiduciary powers and regulated by the office of the comptroller of the currency, office of thrift supervision, the department of financial institutions or equivalent state banking supervisors need not give bond, even if required by the terms of the trust. Acts 2004, ch. 537, § 52.
(a) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement.
(b) The court may specify the amount of a bond, its liabilities, and whether sureties are necessary. The court may modify or terminate a bond at any time.
(c) A state or national bank, savings institution, or trust company authorized to exercise fiduciary powers and regulated by the office of the comptroller of the currency, office of thrift supervision, the department of financial institutions or equivalent state banking supervisors need not give bond, even if required by the terms of the trust.
Acts 2004, ch. 537, § 52.
Tenn. Code Ann. § 35-15-305 — TN Code / Title 35 / Chapter 15 / Section 35-15-305
Appointment of representative
Status: in_force

(a) If the court determines that an interest is not represented under this chapter, or that the otherwise available representation might be inadequate, the court may appoint a representative to receive notice, give consent, and otherwise represent, bind, and act on behalf of a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown. A representative may be appointed to represent several persons or interests. (b) A representative may act on behalf of the individual represented with respect to any matter arising under this chapter, whether or not a judicial proceeding concerning the trust is pending. (c) In making decisions, a representative may consider general benefit accruing to the living members of the individual's family. Acts 2004, ch. 537, § 22.
(a) If the court determines that an interest is not represented under this chapter, or that the otherwise available representation might be inadequate, the court may appoint a representative to receive notice, give consent, and otherwise represent, bind, and act on behalf of a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown. A representative may be appointed to represent several persons or interests.
(b) A representative may act on behalf of the individual represented with respect to any matter arising under this chapter, whether or not a judicial proceeding concerning the trust is pending.
(c) In making decisions, a representative may consider general benefit accruing to the living members of the individual's family.
Acts 2004, ch. 537, § 22.
Tenn. Code Ann. § 35-15-203 — TN Code / Title 35 / Chapter 15 / Section 35-15-203
Subject matter jurisdiction
Status: in_force

Chancery courts and other courts of record having probate jurisdiction: (1) To the exclusion of all other courts, have concurrent jurisdiction over proceedings in this state brought by a trustee or beneficiary concerning the administration of a trust; and (2) Have concurrent jurisdiction with other courts of record in this state over other proceedings involving a trust. Acts 2004, ch. 537, § 16; 2012, ch. 886, § 10.
Chancery courts and other courts of record having probate jurisdiction:
(1) To the exclusion of all other courts, have concurrent jurisdiction over proceedings in this state brought by a trustee or beneficiary concerning the administration of a trust; and
(2) Have concurrent jurisdiction with other courts of record in this state over other proceedings involving a trust.
Acts 2004, ch. 537, § 16; 2012, ch. 886, § 10.
Tenn. Code Ann. § 35-15-806 — TN Code / Title 35 / Chapter 15 / Section 35-15-806
Trustee's skills
Status: in_force

A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise. Acts 2004, ch. 537, § 64.
A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise.
Acts 2004, ch. 537, § 64.
Tenn. Code Ann. § 35-12-106 — TN Code / Title 35 / Chapter 12 / Section 35-12-106
Evidence of beneficiary form
Status: in_force

Registration in beneficiary form may be shown by the words "transfer on death" or the abbreviation "TOD," or by the words "pay on death" or the abbreviation "POD," after the name of the registered owner and before the name of a beneficiary. Acts 1995, ch. 471, § 1.
Registration in beneficiary form may be shown by the words "transfer on death" or the abbreviation "TOD," or by the words "pay on death" or the abbreviation "POD," after the name of the registered owner and before the name of a beneficiary.
Acts 1995, ch. 471, § 1.
Tenn. Code Ann. § 35-15-708 — TN Code / Title 35 / Chapter 15 / Section 35-15-708
Compensation of trustees, trust advisors and trust protectors
Status: in_force

(a) If the terms of a trust do not specify a trustee's, trust advisor's or trust protector's compensation, and if the settlor, if living, or otherwise a majority of the qualified beneficiaries as defined in § 35-15-103(24)(A) , have not otherwise agreed, a trustee, trust advisor or trust protector is entitled to compensation that is reasonable under the circumstances. (b) If the terms of a trust specify a trustee's, trust advisor's or trust protector's compensation, the trustee, trust advisor or trust protector is entitled to be compensated as specified in the trust, but the court may allow more or less compensation if: (1) The duties of the trustee, trust advisor or trust protector are substantially different from those contemplated when the trust was created; or (2) The compensation specified by the terms of the trust would be unreasonably low or high. (c) Factors for the court to consider in deciding upon a trustee's, trust advisor's or trust protector's compensation shall include the size of the trust, the nature and number of the assets, the income produced, the time and responsibility required, the expertise required, any management or sale of real property or closely held business interests, any involvement in litigation to protect trust property, and other relevant factors. (d) Subject to the court's authority as provided in subsection (b), regardless of its form of entity, the fees set forth in the published fee schedule of a trustee, trust advisor or trust protector that is regulated by the department of financial institutions, the equivalent regulatory agency of another state, the office of the comptroller of the currency or the office of thrift supervision shall be presumed to be reasonable, unless otherwise provided by the terms of the trust. Amended by 2013 Tenn. Acts, ch. 390,s 27, eff. 7/1/2013. Acts 2004, ch. 537, § 58.
(a) If the terms of a trust do not specify a trustee's, trust advisor's or trust protector's compensation, and if the settlor, if living, or otherwise a majority of the qualified beneficiaries as defined in § 35-15-103(24)(A) , have not otherwise agreed, a trustee, trust advisor or trust protector is entitled to compensation that is reasonable under the circumstances.
(b) If the terms of a trust specify a trustee's, trust advisor's or trust protector's compensation, the trustee, trust advisor or trust protector is entitled to be compensated as specified in the trust, but the court may allow more or less compensation if: (1) The duties of the trustee, trust advisor or trust protector are substantially different from those contemplated when the trust was created; or (2) The compensation specified by the terms of the trust would be unreasonably low or high.
(1) The duties of the trustee, trust advisor or trust protector are substantially different from those contemplated when the trust was created; or
(2) The compensation specified by the terms of the trust would be unreasonably low or high.
(c) Factors for the court to consider in deciding upon a trustee's, trust advisor's or trust protector's compensation shall include the size of the trust, the nature and number of the assets, the income produced, the time and responsibility required, the expertise required, any management or sale of real property or closely held business interests, any involvement in litigation to protect trust property, and other relevant factors.
(d) Subject to the court's authority as provided in subsection (b), regardless of its form of entity, the fees set forth in the published fee schedule of a trustee, trust advisor or trust protector that is regulated by the department of financial institutions, the equivalent regulatory agency of another state, the office of the comptroller of the currency or the office of thrift supervision shall be presumed to be reasonable, unless otherwise provided by the terms of the trust.
Amended by 2013 Tenn. Acts, ch. 390,s 27, eff. 7/1/2013.
Acts 2004, ch. 537, § 58.
Tenn. Code Ann. § 35-3-119 — TN Code / Title 35 / Chapter 3 / Section 35-3-119
Tennessee Valley authority obligations
Status: in_force

Notwithstanding any restrictions on investments contained in any laws of this state, the state and all public officers, municipal corporations, political subdivisions, and public bodies, all banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business, and all executors, administrators, guardians, trustees and other fiduciaries may legally invest any sinking funds, moneys or other funds belonging to them or within their control in any bonds or other obligations issued by the Tennessee Valley authority pursuant to the Tennessee Valley Authority Act of 1933 ( 16 U.S.C. § 831 ), and any amendment to that act, and the bonds and other obligations shall be authorized security for all public deposits, it being the purpose of this section to authorize any persons, firms, corporations, associations, political subdivisions, bodies and officers, public or private, to use any funds owned or controlled by them, including, but not limited to, sinking, insurance, investment, retirement, compensation, pension and trust funds, and funds held on deposit, for the purchase of any such bonds or other obligations. Nothing contained in this section shall be construed as relieving any person, firm or corporation from any duty of exercising reasonable care in selecting securities. Acts 1961, ch. 128, § 1; T.C.A., § 35-326.
Notwithstanding any restrictions on investments contained in any laws of this state, the state and all public officers, municipal corporations, political subdivisions, and public bodies, all banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business, and all executors, administrators, guardians, trustees and other fiduciaries may legally invest any sinking funds, moneys or other funds belonging to them or within their control in any bonds or other obligations issued by the Tennessee Valley authority pursuant to the Tennessee Valley Authority Act of 1933 ( 16 U.S.C. § 831 ), and any amendment to that act, and the bonds and other obligations shall be authorized security for all public deposits, it being the purpose of this section to authorize any persons, firms, corporations, associations, political subdivisions, bodies and officers, public or private, to use any funds owned or controlled by them, including, but not limited to, sinking, insurance, investment, retirement, compensation, pension and trust funds, and funds held on deposit, for the purchase of any such bonds or other obligations. Nothing contained in this section shall be construed as relieving any person, firm or corporation from any duty of exercising reasonable care in selecting securities.
Acts 1961, ch. 128, § 1; T.C.A., § 35-326.
Tenn. Code Ann. § 35-15-114 — TN Code / Title 35 / Chapter 15 / Section 35-15-114
Real property in trust
Status: in_force

(a) An estate in real property may be acquired in the name of the trust or in the name of the trustee on behalf of the named trust, and title to real property conveyed by the trust must be conveyed by the trustee, as trustee of the trust. (b) Subsection (a) applies to documents executed prior to, on, and after July 1, 2021. (c) This section does not abrogate or amend § 35-15-402(d) . Acts 2021, ch. 449, § 1.
(a) An estate in real property may be acquired in the name of the trust or in the name of the trustee on behalf of the named trust, and title to real property conveyed by the trust must be conveyed by the trustee, as trustee of the trust.
(b) Subsection (a) applies to documents executed prior to, on, and after July 1, 2021.
(c) This section does not abrogate or amend § 35-15-402(d) .
Acts 2021, ch. 449, § 1.
Tenn. Code Ann. § 35-3-112 — TN Code / Title 35 / Chapter 3 / Section 35-3-112
State and federal bond issues - Reports
Status: in_force

Guardians, executors, administrators and trustees shall also be authorized and empowered to invest money and funds in their hands in the bonds of the state, of the United States, or obligations issued separately or collectively by or for federal land banks, federal intermediate credit banks and banks for cooperatives under the act of congress known as the Farm Credit Act of 1971 (85 Stat. 583, 12 U.S.C. § 2001 et seq.) and amendments to that act, or in obligations issued under the Home Owner's Loan Act of congress ( 12 U.S.C. § 1461 et seq.), or notes or bonds secured by mortgage or trust deed insured by the federal housing administrator, or bonds and/or debentures issued by national mortgage associations; also to lend on the security of any such bonds to the extent of eighty-five percent (85%) of their face value; and, in either case, make report thereof to the court where the guardian, executor, administrator or trustee is qualified, unless another mode of investment is required by will or deed of the testator or another person who has established the funds. Acts 1865, ch. 19, § 2; Shan., § 4281; Acts 1925, ch. 9, § 1; Shan. Supp., § 4281a4; mod. Code 1932, § 8497; Acts 1935, ch. 136, §1; 1935, ch. 187, § 1; 1937, ch. 75, § 1; C. Supp. 1950, §8497; Acts 1976, ch. 585, § 2; T.C.A. (orig. ed.), § 35-312.
Guardians, executors, administrators and trustees shall also be authorized and empowered to invest money and funds in their hands in the bonds of the state, of the United States, or obligations issued separately or collectively by or for federal land banks, federal intermediate credit banks and banks for cooperatives under the act of congress known as the Farm Credit Act of 1971 (85 Stat. 583, 12 U.S.C. § 2001 et seq.) and amendments to that act, or in obligations issued under the Home Owner's Loan Act of congress ( 12 U.S.C. § 1461 et seq.), or notes or bonds secured by mortgage or trust deed insured by the federal housing administrator, or bonds and/or debentures issued by national mortgage associations; also to lend on the security of any such bonds to the extent of eighty-five percent (85%) of their face value; and, in either case, make report thereof to the court where the guardian, executor, administrator or trustee is qualified, unless another mode of investment is required by will or deed of the testator or another person who has established the funds.
Acts 1865, ch. 19, § 2; Shan., § 4281; Acts 1925, ch. 9, § 1; Shan. Supp., § 4281a4; mod. Code 1932, § 8497; Acts 1935, ch. 136, §1; 1935, ch. 187, § 1; 1937, ch. 75, § 1; C. Supp. 1950, §8497; Acts 1976, ch. 585, § 2; T.C.A. (orig. ed.), § 35-312.
Tenn. Code Ann. § 35-15-1008 — TN Code / Title 35 / Chapter 15 / Section 35-15-1008
Exculpation of trustee
Status: in_force

(a) A provision of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: (1) Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or (2) Was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor. (b) An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the settlor. Acts 2004, ch. 537, § 84.
(a) A provision of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: (1) Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or (2) Was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.
(1) Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or
(2) Was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.
(b) An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the settlor.
Acts 2004, ch. 537, § 84.
Tenn. Code Ann. § 35-15-405 — TN Code / Title 35 / Chapter 15 / Section 35-15-405
Charitable purposes - Enforcement
Status: in_force

(a) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to the community. (b) If the terms of a charitable trust do not indicate a particular charitable purpose or beneficiary, the court may select one (1) or more charitable purposes or beneficiaries. The selection must be consistent with the settlor's intention to the extent it can be ascertained. (c) The settlor of a charitable trust, among others, may maintain a proceeding to enforce the trust. Acts 2004, ch. 537, § 27.
(a) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to the community.
(b) If the terms of a charitable trust do not indicate a particular charitable purpose or beneficiary, the court may select one (1) or more charitable purposes or beneficiaries. The selection must be consistent with the settlor's intention to the extent it can be ascertained.
(c) The settlor of a charitable trust, among others, may maintain a proceeding to enforce the trust.
Acts 2004, ch. 537, § 27.
Tenn. Code Ann. § 35-16-101 — TN Code / Title 35 / Chapter 16 / Section 35-16-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Tennessee Investment Services Act of 2007." Acts 2007, ch. 144, § 1.
This chapter shall be known and may be cited as the "Tennessee Investment Services Act of 2007."
Acts 2007, ch. 144, § 1.
Tenn. Code Ann. § 35-7-106 — TN Code / Title 35 / Chapter 7 / Section 35-7-106
Transfer authorized by will or trust
Status: in_force

(a) A personal representative or trustee may make an irrevocable transfer pursuant to § 35-7-110 , to a custodian for the benefit of a minor as authorized in the governing will or trust or by a judicial order. (b) If the testator or settlor has nominated a custodian under § 35-7-104 , to receive the custodial property, the transfer must be made to that person. (c) If the testator or settlor has not nominated a custodian or all persons so nominated as custodian die before the transfer or are unable, decline, or are ineligible to serve, the personal representative or the trustee, as the case may be, shall designate the custodian from among those eligible to serve as custodian for property of that kind under § 35-7-110(a) . Acts 1992, ch. 664, § 1; T.C.A. § 35-7-206.
(a) A personal representative or trustee may make an irrevocable transfer pursuant to § 35-7-110 , to a custodian for the benefit of a minor as authorized in the governing will or trust or by a judicial order.
(b) If the testator or settlor has nominated a custodian under § 35-7-104 , to receive the custodial property, the transfer must be made to that person.
(c) If the testator or settlor has not nominated a custodian or all persons so nominated as custodian die before the transfer or are unable, decline, or are ineligible to serve, the personal representative or the trustee, as the case may be, shall designate the custodian from among those eligible to serve as custodian for property of that kind under § 35-7-110(a) .
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-206.
Tenn. Code Ann. § 35-16-107 — TN Code / Title 35 / Chapter 16 / Section 35-16-107
Spendthrift provisions
Status: in_force

A spendthrift provision as described in § 35-16-102(7)(C) shall be deemed to be a restriction on the transfer of the transferor's beneficial interest in the trust that is enforceable under applicable nonbankruptcy law within the meaning of § 541(c)(2) of the Bankruptcy Code ( 11 U.S.C. § 541(c)(2) ), or any successor provision. Acts 2007, ch. 144, § 7.
A spendthrift provision as described in § 35-16-102(7)(C) shall be deemed to be a restriction on the transfer of the transferor's beneficial interest in the trust that is enforceable under applicable nonbankruptcy law within the meaning of § 541(c)(2) of the Bankruptcy Code ( 11 U.S.C. § 541(c)(2) ), or any successor provision.
Acts 2007, ch. 144, § 7.
Tenn. Code Ann. § 35-5-107 — TN Code / Title 35 / Chapter 5 / Section 35-5-107
Effect of noncompliance with chapter
Status: in_force

Any officer, or other person, referenced in § 35-5-106 who fails to comply with this chapter commits a Class C misdemeanor and is, moreover, liable to the party injured by the noncompliance, for all damages resulting from the failure. Code 1858, § 2153 (deriv. Acts 1855-1856, ch. 83, § 5); Shan., §3846; Code 1932, § 7801; T.C.A. (orig. ed.), § 35-508; Acts 1989, ch. 591, § 113.
Any officer, or other person, referenced in § 35-5-106 who fails to comply with this chapter commits a Class C misdemeanor and is, moreover, liable to the party injured by the noncompliance, for all damages resulting from the failure.
Code 1858, § 2153 (deriv. Acts 1855-1856, ch. 83, § 5); Shan., §3846; Code 1932, § 7801; T.C.A. (orig. ed.), § 35-508; Acts 1989, ch. 591, § 113.
Tenn. Code Ann. § 35-7-112 — TN Code / Title 35 / Chapter 7 / Section 35-7-112
Validity and effect of transfer
Status: in_force

(a) The validity of a transfer made in a manner prescribed in this chapter is not affected by: (1) Failure of the transferor to comply with sections hereof concerning possession and control; (2) Designation of an ineligible custodian, except designation of the transferor in the case of property for which the transferor is ineligible to serve as custodian under this chapter; or (3) Death or incapacity of a person nominated or designated as custodian or the written disclaimer of the office by that person. (b) A transfer made pursuant to this chapter is irrevocable, and the custodial property is indefeasibly vested in the minor, but the custodian has all the rights, powers, duties, and authority provided in this chapter, and neither the minor nor the minor's legal representative has any right, power, duty, or authority with respect to the custodial property except as provided in this chapter. (c) By making a transfer, the transferor incorporates in the disposition all the provisions of this chapter and grants to the custodian, and to any third person dealing with a person designated as custodian, the respective powers, rights, and immunities provided in this chapter. Acts 1992, ch. 664, § 1; T.C.A. § 35-7-212.
(a) The validity of a transfer made in a manner prescribed in this chapter is not affected by: (1) Failure of the transferor to comply with sections hereof concerning possession and control; (2) Designation of an ineligible custodian, except designation of the transferor in the case of property for which the transferor is ineligible to serve as custodian under this chapter; or (3) Death or incapacity of a person nominated or designated as custodian or the written disclaimer of the office by that person.
(1) Failure of the transferor to comply with sections hereof concerning possession and control;
(2) Designation of an ineligible custodian, except designation of the transferor in the case of property for which the transferor is ineligible to serve as custodian under this chapter; or
(3) Death or incapacity of a person nominated or designated as custodian or the written disclaimer of the office by that person.
(b) A transfer made pursuant to this chapter is irrevocable, and the custodial property is indefeasibly vested in the minor, but the custodian has all the rights, powers, duties, and authority provided in this chapter, and neither the minor nor the minor's legal representative has any right, power, duty, or authority with respect to the custodial property except as provided in this chapter.
(c) By making a transfer, the transferor incorporates in the disposition all the provisions of this chapter and grants to the custodian, and to any third person dealing with a person designated as custodian, the respective powers, rights, and immunities provided in this chapter.
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-212.
Tenn. Code Ann. § 35-12-104 — TN Code / Title 35 / Chapter 12 / Section 35-12-104
Authorization
Status: in_force

A security may be registered in beneficiary form if the form is authorized by this or a similar statute of the state of organization of the issuer or registering entity, the location of the registering entity's principal office, the office of its transfer agent or its office making the registration, or by this or a similar statute of the law of the state listed as the owner's address at the time of registration. A registration governed by the law of a jurisdiction in which this or similar legislation is not in force or was not in force when a registration in beneficiary form was made is nevertheless presumed to be valid and authorized as a matter of contract law. Acts 1995, ch. 471, § 1.
A security may be registered in beneficiary form if the form is authorized by this or a similar statute of the state of organization of the issuer or registering entity, the location of the registering entity's principal office, the office of its transfer agent or its office making the registration, or by this or a similar statute of the law of the state listed as the owner's address at the time of registration. A registration governed by the law of a jurisdiction in which this or similar legislation is not in force or was not in force when a registration in beneficiary form was made is nevertheless presumed to be valid and authorized as a matter of contract law.
Acts 1995, ch. 471, § 1.
Tenn. Code Ann. § 35-16-112 — TN Code / Title 35 / Chapter 16 / Section 35-16-112
Applicability
Status: in_force

This chapter applies to qualified dispositions to investment services trusts and dispositions by transferors who are trustees made on or after July 1, 2007. Acts 2007, ch. 144, § 12.
This chapter applies to qualified dispositions to investment services trusts and dispositions by transferors who are trustees made on or after July 1, 2007.
Acts 2007, ch. 144, § 12.
Tenn. Code Ann. § 35-15-508 — TN Code / Title 35 / Chapter 15 / Section 35-15-508
Removal or replacement power over trustee or other fiduciary not reachable by holder's creditors - Interests of beneficiary who is also a trustee or other fiduciary not reachable
Status: in_force

(a) No creditor or assignee of a beneficiary shall have the power to reach an interest of a beneficiary or any other person who holds an unconditional or conditional removal or replacement power over a trustee or other fiduciary. Such power over a trustee or other fiduciary is personal to the holder and shall not be exercised by the holder's creditors. No court shall direct a holder to exercise the power. (b) Subject to § 35-15-504(b)(3) : (1) No creditor or assignee of a beneficiary may reach an interest of a beneficiary who is also a trustee, cotrustee or other fiduciary, or otherwise compel a distribution because the beneficiary is then serving as a trustee, cotrustee or other fiduciary; and (2) No court may foreclose against a beneficiary's interest described in subdivision (b)(1). Added by 2013 Tenn. Acts, ch. 390,s 23, eff. 7/1/2013.
(a) No creditor or assignee of a beneficiary shall have the power to reach an interest of a beneficiary or any other person who holds an unconditional or conditional removal or replacement power over a trustee or other fiduciary. Such power over a trustee or other fiduciary is personal to the holder and shall not be exercised by the holder's creditors. No court shall direct a holder to exercise the power.
(b) Subject to § 35-15-504(b)(3) : (1) No creditor or assignee of a beneficiary may reach an interest of a beneficiary who is also a trustee, cotrustee or other fiduciary, or otherwise compel a distribution because the beneficiary is then serving as a trustee, cotrustee or other fiduciary; and (2) No court may foreclose against a beneficiary's interest described in subdivision (b)(1).
(1) No creditor or assignee of a beneficiary may reach an interest of a beneficiary who is also a trustee, cotrustee or other fiduciary, or otherwise compel a distribution because the beneficiary is then serving as a trustee, cotrustee or other fiduciary; and
(2) No court may foreclose against a beneficiary's interest described in subdivision (b)(1).
Added by 2013 Tenn. Acts, ch. 390,s 23, eff. 7/1/2013.
Tenn. Code Ann. § 35-12-113 — TN Code / Title 35 / Chapter 12 / Section 35-12-113
Application
Status: in_force

This chapter applies to registrations of securities in beneficiary form made before or after July 1, 1995, by decedents dying on or after July 1, 1995. Acts 1995, ch. 471, § 1.
This chapter applies to registrations of securities in beneficiary form made before or after July 1, 1995, by decedents dying on or after July 1, 1995.
Acts 1995, ch. 471, § 1.
Tenn. Code Ann. § 35-7-118 — TN Code / Title 35 / Chapter 7 / Section 35-7-118
Liability to third persons
Status: in_force

(a) A claim based on: (1) A contract entered into by a custodian acting in a custodial capacity; (2) An obligation arising from the ownership or control of custodial property; or (3) A tort committed during the custodianship; may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the minor is personally liable therefor. (b) A custodian is not personally liable: (1) On a contract properly entered into in the custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract; or (2) For an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault. (c) A minor is not personally liable for an obligation arising from ownership of custodial property or for a tort committed during the custodianship unless the minor is personally at fault. Acts 1992, ch. 664, § 1; T.C.A. § 35-7-218.
(a) A claim based on: (1) A contract entered into by a custodian acting in a custodial capacity; (2) An obligation arising from the ownership or control of custodial property; or (3) A tort committed during the custodianship; may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the minor is personally liable therefor.
(1) A contract entered into by a custodian acting in a custodial capacity;
(2) An obligation arising from the ownership or control of custodial property; or
(3) A tort committed during the custodianship; may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the minor is personally liable therefor.
may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the minor is personally liable therefor.
(b) A custodian is not personally liable: (1) On a contract properly entered into in the custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract; or (2) For an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault.
(1) On a contract properly entered into in the custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract; or
(2) For an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault.
(c) A minor is not personally liable for an obligation arising from ownership of custodial property or for a tort committed during the custodianship unless the minor is personally at fault.
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-218.
Tenn. Code Ann. § 35-14-103 — TN Code / Title 35 / Chapter 14 / Section 35-14-103
Prudent investor rule
Status: in_force

(a) Except as otherwise provided in subsection (b), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this chapter. (b) The prudent investor rule, a default rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust. A trustee is not liable to a beneficiary to the extent that the trustee acted in reliance on the provisions of the trust. Acts 2002, ch. 696, § 3.
(a) Except as otherwise provided in subsection (b), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this chapter.
(b) The prudent investor rule, a default rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust. A trustee is not liable to a beneficiary to the extent that the trustee acted in reliance on the provisions of the trust.
Acts 2002, ch. 696, § 3.
Tenn. Code Ann. § 35-8-118 — TN Code / Title 35 / Chapter 8 / Section 35-8-118
Electronic signatures - Global and National Commerce Act
Status: in_force

This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act ( 15 U.S.C. §§ 7001 et seq.), but does not modify, limit, or supersede Section 101(c), Electronic Signatures in Global and National Commerce Act ( 15 U.S.C. § 7001(c) ), or authorize electronic delivery of any of the notices described in Section 103(b), Electronic Signatures in Global and National Commerce Act ( 15 U.S.C. § 7003(b) ). Added by 2016 Tenn. Acts, ch. 570,s 19, eff. 7/1/2016.
This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act ( 15 U.S.C. §§ 7001 et seq.), but does not modify, limit, or supersede Section 101(c), Electronic Signatures in Global and National Commerce Act ( 15 U.S.C. § 7001(c) ), or authorize electronic delivery of any of the notices described in Section 103(b), Electronic Signatures in Global and National Commerce Act ( 15 U.S.C. § 7003(b) ).
Added by 2016 Tenn. Acts, ch. 570,s 19, eff. 7/1/2016.
Tenn. Code Ann. § 35-15-301 — TN Code / Title 35 / Chapter 15 / Section 35-15-301
Representation - Basic effect
Status: in_force

(a) Notice to a person who may represent and bind another person under this chapter has the same effect as if notice were given directly to the other person. (b) The consent of a person who may represent and bind another person under this chapter is binding on the person represented unless the person represented objects to the representation before the consent would otherwise have become effective. (c) Except as otherwise provided in §§ 35-15-411 and 35-15-602 , a person who under this chapter may represent a settlor who lacks capacity may receive notice and give a binding consent on the settlor's behalf. (d) A settlor may not represent and bind a beneficiary under this chapter with respect to the termination or modification of a trust under § 35-15-411(a) . Acts 2004, ch. 537, § 18; 2007, ch. 24, § 10.
(a) Notice to a person who may represent and bind another person under this chapter has the same effect as if notice were given directly to the other person.
(b) The consent of a person who may represent and bind another person under this chapter is binding on the person represented unless the person represented objects to the representation before the consent would otherwise have become effective.
(c) Except as otherwise provided in §§ 35-15-411 and 35-15-602 , a person who under this chapter may represent a settlor who lacks capacity may receive notice and give a binding consent on the settlor's behalf.
(d) A settlor may not represent and bind a beneficiary under this chapter with respect to the termination or modification of a trust under § 35-15-411(a) .
Acts 2004, ch. 537, § 18; 2007, ch. 24, § 10.
Tenn. Code Ann. § 35-50-111 — TN Code / Title 35 / Chapter 50 / Section 35-50-111
Fiduciary bond on interest
Status: in_force

Whenever a fiduciary, as defined in § 35-2-102 , is required by law to execute a bond for assets placed with a financial institution in the form of a bank, trust company or savings and loan association, and the fiduciary agrees with the institution not to withdraw the principal of the assets, the bond required of the fiduciary shall be for the amount of the interest. No bond adjustment is necessary if the principal, or a portion of the principal, is withdrawn with court approval. The authorization for elimination of bond on the principal so deposited with the financial institution shall not apply unless the agreement by the fiduciary with the institution is approved by the court charged with administering the funds or the estate of the minor, and unless the agreement is filed in and enforced by the court. Acts 1976, ch. 675, § 2; T.C.A., § 35-621.
Whenever a fiduciary, as defined in § 35-2-102 , is required by law to execute a bond for assets placed with a financial institution in the form of a bank, trust company or savings and loan association, and the fiduciary agrees with the institution not to withdraw the principal of the assets, the bond required of the fiduciary shall be for the amount of the interest. No bond adjustment is necessary if the principal, or a portion of the principal, is withdrawn with court approval. The authorization for elimination of bond on the principal so deposited with the financial institution shall not apply unless the agreement by the fiduciary with the institution is approved by the court charged with administering the funds or the estate of the minor, and unless the agreement is filed in and enforced by the court.
Acts 1976, ch. 675, § 2; T.C.A., § 35-621.
Tenn. Code Ann. § 35-16-106 — TN Code / Title 35 / Chapter 16 / Section 35-16-106
Avoidance of qualified dispositions
Status: in_force

(a) A qualified disposition to an investment services trust shall be avoided only to the extent necessary to satisfy the transferor's debt to the creditor at whose instance the disposition had been avoided, together with costs, including attorneys' fees, that the court may allow. (b) In the event any qualified disposition shall be avoided as provided in subsection (a), then: (1) If the court is satisfied that a qualified trustee has not acted in bad faith in accepting or administering the property that is the subject of the qualified disposition: (A) The qualified trustee shall have a first and paramount lien against the property that is the subject of the qualified disposition in an amount equal to the entire cost, including attorneys' fees, properly incurred by the qualified trustee in the defense of the action or proceedings to avoid the qualified disposition; (B) The qualified disposition shall be avoided subject to the proper fees, costs, preexisting rights, claims and interests of the qualified trustee and of any predecessor qualified trustee that has not acted in bad faith; and (C) For purposes of this subdivision (b)(1), it shall be presumed that the qualified trustee did not act in bad faith merely by accepting the property; and (2) If the court is satisfied that a beneficiary of an investment services trust has not acted in bad faith, the avoidance of the qualified disposition shall be subject to the right of the beneficiary to retain any distribution made upon the exercise of a trust power or discretion vested in the qualified trustee or qualified trustees of the investment services trust, which power or discretion was properly exercised prior to the creditor's commencement of an action to avoid the qualified disposition. For purposes of this subdivision (b)(2), it shall be presumed that the beneficiary, including a beneficiary who is also a transferor of the trust, did not act in bad faith merely by creating the trust or by accepting a distribution made in accordance with the terms of the trust. (c) A disposition by a trustee that is not a qualified trustee to a trustee that is a qualified trustee shall not be treated as other than a qualified disposition solely because the trust instrument fails to meet the requirements of § 35-16-102(7)(A) . (d) In the case of a disposition to more than one (1) trustee, a disposition that is otherwise a qualified disposition shall not be treated as other than a qualified disposition solely because not all of the recipient trustees are qualified trustees. Acts 2007, ch. 144, § 6.
(a) A qualified disposition to an investment services trust shall be avoided only to the extent necessary to satisfy the transferor's debt to the creditor at whose instance the disposition had been avoided, together with costs, including attorneys' fees, that the court may allow.
(b) In the event any qualified disposition shall be avoided as provided in subsection (a), then: (1) If the court is satisfied that a qualified trustee has not acted in bad faith in accepting or administering the property that is the subject of the qualified disposition: (A) The qualified trustee shall have a first and paramount lien against the property that is the subject of the qualified disposition in an amount equal to the entire cost, including attorneys' fees, properly incurred by the qualified trustee in the defense of the action or proceedings to avoid the qualified disposition; (B) The qualified disposition shall be avoided subject to the proper fees, costs, preexisting rights, claims and interests of the qualified trustee and of any predecessor qualified trustee that has not acted in bad faith; and (C) For purposes of this subdivision (b)(1), it shall be presumed that the qualified trustee did not act in bad faith merely by accepting the property; and (2) If the court is satisfied that a beneficiary of an investment services trust has not acted in bad faith, the avoidance of the qualified disposition shall be subject to the right of the beneficiary to retain any distribution made upon the exercise of a trust power or discretion vested in the qualified trustee or qualified trustees of the investment services trust, which power or discretion was properly exercised prior to the creditor's commencement of an action to avoid the qualified disposition. For purposes of this subdivision (b)(2), it shall be presumed that the beneficiary, including a beneficiary who is also a transferor of the trust, did not act in bad faith merely by creating the trust or by accepting a distribution made in accordance with the terms of the trust.
(1) If the court is satisfied that a qualified trustee has not acted in bad faith in accepting or administering the property that is the subject of the qualified disposition: (A) The qualified trustee shall have a first and paramount lien against the property that is the subject of the qualified disposition in an amount equal to the entire cost, including attorneys' fees, properly incurred by the qualified trustee in the defense of the action or proceedings to avoid the qualified disposition; (B) The qualified disposition shall be avoided subject to the proper fees, costs, preexisting rights, claims and interests of the qualified trustee and of any predecessor qualified trustee that has not acted in bad faith; and (C) For purposes of this subdivision (b)(1), it shall be presumed that the qualified trustee did not act in bad faith merely by accepting the property; and
(A) The qualified trustee shall have a first and paramount lien against the property that is the subject of the qualified disposition in an amount equal to the entire cost, including attorneys' fees, properly incurred by the qualified trustee in the defense of the action or proceedings to avoid the qualified disposition;
(B) The qualified disposition shall be avoided subject to the proper fees, costs, preexisting rights, claims and interests of the qualified trustee and of any predecessor qualified trustee that has not acted in bad faith; and
(C) For purposes of this subdivision (b)(1), it shall be presumed that the qualified trustee did not act in bad faith merely by accepting the property; and
(2) If the court is satisfied that a beneficiary of an investment services trust has not acted in bad faith, the avoidance of the qualified disposition shall be subject to the right of the beneficiary to retain any distribution made upon the exercise of a trust power or discretion vested in the qualified trustee or qualified trustees of the investment services trust, which power or discretion was properly exercised prior to the creditor's commencement of an action to avoid the qualified disposition. For purposes of this subdivision (b)(2), it shall be presumed that the beneficiary, including a beneficiary who is also a transferor of the trust, did not act in bad faith merely by creating the trust or by accepting a distribution made in accordance with the terms of the trust.
(c) A disposition by a trustee that is not a qualified trustee to a trustee that is a qualified trustee shall not be treated as other than a qualified disposition solely because the trust instrument fails to meet the requirements of § 35-16-102(7)(A) .
(d) In the case of a disposition to more than one (1) trustee, a disposition that is otherwise a qualified disposition shall not be treated as other than a qualified disposition solely because not all of the recipient trustees are qualified trustees.
Acts 2007, ch. 144, § 6.
Tenn. Code Ann. § 35-13-109 — TN Code / Title 35 / Chapter 13 / Section 35-13-109
Validity where no trustee
Status: in_force

No trust to which a charitable gift or a discretionary charitable gift is or has been made shall fail for lack of a trustee. If there is no trustee, the title to any trust property intended for a charitable purpose shall vest in the clerk of the court that has jurisdiction and venue of the trust as determined under § 35-13-110 until the court either appoints a trustee or orders distribution of the gift. Acts 1997, ch. 300, § 1.
No trust to which a charitable gift or a discretionary charitable gift is or has been made shall fail for lack of a trustee. If there is no trustee, the title to any trust property intended for a charitable purpose shall vest in the clerk of the court that has jurisdiction and venue of the trust as determined under § 35-13-110 until the court either appoints a trustee or orders distribution of the gift.
Acts 1997, ch. 300, § 1.
Tenn. Code Ann. § 35-16-103 — TN Code / Title 35 / Chapter 16 / Section 35-16-103
Qualified affidavit requirements
Status: in_force

A qualified affidavit shall state that: (1) The transferor has full right, title, and authority to transfer the assets to the trust; (2) The transfer of the assets to the trust will not render the transferor insolvent; (3) The transferor does not intend to defraud a creditor by transferring the assets to the trust; (4) The transferor does not have any pending or threatened court actions against the transferor, except for those court actions identified by the transferor on an attachment to the affidavit; (5) The transferor is not involved in any administrative proceedings, except for those administrative proceedings identified on an attachment to the affidavit; (6) The transferor does not contemplate filing for relief under the federal bankruptcy code; and (7) The assets being transferred to the trust were not derived from unlawful activities. Acts 2007, ch. 144, § 3.
A qualified affidavit shall state that:
(1) The transferor has full right, title, and authority to transfer the assets to the trust;
(2) The transfer of the assets to the trust will not render the transferor insolvent;
(3) The transferor does not intend to defraud a creditor by transferring the assets to the trust;
(4) The transferor does not have any pending or threatened court actions against the transferor, except for those court actions identified by the transferor on an attachment to the affidavit;
(5) The transferor is not involved in any administrative proceedings, except for those administrative proceedings identified on an attachment to the affidavit;
(6) The transferor does not contemplate filing for relief under the federal bankruptcy code; and
(7) The assets being transferred to the trust were not derived from unlawful activities.
Acts 2007, ch. 144, § 3.
Tenn. Code Ann. § 35-3-104 — TN Code / Title 35 / Chapter 3 / Section 35-3-104
Securities of foreign governments
Status: in_force

Investments may be made in bonds, notes and stock issued or guaranteed by any foreign government with which the United States is at the time of sale or offer of sale of the bonds, notes or stock maintaining diplomatic relations and which foreign government has not, for at least thirty (30) years prior to the making of the investment, defaulted for more than thirty (30) days in the payment of any part either of principal or interest of any bond, note, stock or other evidence of indebtedness issued by it; provided, that if the foreign government has not been in existence for as much as thirty (30) years, but has been in existence for not less than ten (10) years, then the investment may be made in securities issued or guaranteed by it, if it has not defaulted in the payment of any part either of principal or interest of any bond, note, stock or other evidence of indebtedness issued by it since it has been in existence. Acts 1931, ch. 100, § 1(b); C. Supp. 1950, § 9596.1(B); modified; T.C.A. (orig. ed.), § 35-304.
Investments may be made in bonds, notes and stock issued or guaranteed by any foreign government with which the United States is at the time of sale or offer of sale of the bonds, notes or stock maintaining diplomatic relations and which foreign government has not, for at least thirty (30) years prior to the making of the investment, defaulted for more than thirty (30) days in the payment of any part either of principal or interest of any bond, note, stock or other evidence of indebtedness issued by it; provided, that if the foreign government has not been in existence for as much as thirty (30) years, but has been in existence for not less than ten (10) years, then the investment may be made in securities issued or guaranteed by it, if it has not defaulted in the payment of any part either of principal or interest of any bond, note, stock or other evidence of indebtedness issued by it since it has been in existence.
Acts 1931, ch. 100, § 1(b); C. Supp. 1950, § 9596.1(B); modified; T.C.A. (orig. ed.), § 35-304.
Tenn. Code Ann. § 35-15-1101 — TN Code / Title 35 / Chapter 15 / Section 35-15-1101
No consideration given to need to promote uniformity of application and construction of law
Status: in_force

(a) Numerous provisions of each of the following have been modified extensively relative to their respective uniform acts as such uniform acts were drafted and have been amended by the Uniform Law Commission, also known as the National Conference of Commissioners of Uniform State Laws: (1) Chapter 6, the Uniform Principal and Income Act; (2) Chapter 14, the Tennessee Uniform Prudent Investor Act of 2002; and (3) Chapter 15, the Tennessee Uniform Trust Code. (b) These modifications were undertaken deliberately and after significant consideration: (1) Therefore, in applying and construing title 35, no consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states, including any other state that has enacted laws covering the same general subject matter as chapters 9, 14 or 15, either by enacting such respective uniform acts as such uniform acts were originally drafted or as such were originally drafted and subsequently have been amended, or by enacting laws based on or similar to such uniform acts as originally drafted or as such have been amended; and (2) Unless specifically provided otherwise in this chapter, chapter 6 or chapter 14, courts shall not consult, rely on or give any persuasive value to such uniform acts or any respective other state's acts based on or similar to such uniform acts, or any comments accompanying any such uniform acts or any respective other state's acts based on or similar to such uniform acts; none of which have any force or effect relative to trusts governed by the laws of this state. Amended by 2013 Tenn. Acts, ch. 390,s 42, eff. 7/1/2013. Acts 2004, ch. 537, § 90.
(a) Numerous provisions of each of the following have been modified extensively relative to their respective uniform acts as such uniform acts were drafted and have been amended by the Uniform Law Commission, also known as the National Conference of Commissioners of Uniform State Laws: (1) Chapter 6, the Uniform Principal and Income Act; (2) Chapter 14, the Tennessee Uniform Prudent Investor Act of 2002; and (3) Chapter 15, the Tennessee Uniform Trust Code.
(1) Chapter 6, the Uniform Principal and Income Act;
(2) Chapter 14, the Tennessee Uniform Prudent Investor Act of 2002; and
(3) Chapter 15, the Tennessee Uniform Trust Code.
(b) These modifications were undertaken deliberately and after significant consideration: (1) Therefore, in applying and construing title 35, no consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states, including any other state that has enacted laws covering the same general subject matter as chapters 9, 14 or 15, either by enacting such respective uniform acts as such uniform acts were originally drafted or as such were originally drafted and subsequently have been amended, or by enacting laws based on or similar to such uniform acts as originally drafted or as such have been amended; and (2) Unless specifically provided otherwise in this chapter, chapter 6 or chapter 14, courts shall not consult, rely on or give any persuasive value to such uniform acts or any respective other state's acts based on or similar to such uniform acts, or any comments accompanying any such uniform acts or any respective other state's acts based on or similar to such uniform acts; none of which have any force or effect relative to trusts governed by the laws of this state.
(1) Therefore, in applying and construing title 35, no consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states, including any other state that has enacted laws covering the same general subject matter as chapters 9, 14 or 15, either by enacting such respective uniform acts as such uniform acts were originally drafted or as such were originally drafted and subsequently have been amended, or by enacting laws based on or similar to such uniform acts as originally drafted or as such have been amended; and
(2) Unless specifically provided otherwise in this chapter, chapter 6 or chapter 14, courts shall not consult, rely on or give any persuasive value to such uniform acts or any respective other state's acts based on or similar to such uniform acts, or any comments accompanying any such uniform acts or any respective other state's acts based on or similar to such uniform acts; none of which have any force or effect relative to trusts governed by the laws of this state.
Amended by 2013 Tenn. Acts, ch. 390,s 42, eff. 7/1/2013.
Acts 2004, ch. 537, § 90.
Tenn. Code Ann. § 35-6-403 — TN Code / Title 35 / Chapter 6 / Section 35-6-403
Business and other activities conducted by trustee
Status: in_force

(a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets. (b) A trustee who accounts separately for a business or other activity may determine the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business. (c) Activities for which a trustee may maintain separate accounting records include: (1) Retail, manufacturing, service, and other traditional business activities; (2) Farming; (3) Raising and selling livestock and other animals; (4) Management of rental properties; (5) Extraction of minerals and other natural resources; (6) Timber operations; and (7) Activities to which § 35-6-414 applies. Acts 2000, ch. 829, § 1.
(a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.
(b) A trustee who accounts separately for a business or other activity may determine the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business.
(c) Activities for which a trustee may maintain separate accounting records include: (1) Retail, manufacturing, service, and other traditional business activities; (2) Farming; (3) Raising and selling livestock and other animals; (4) Management of rental properties; (5) Extraction of minerals and other natural resources; (6) Timber operations; and (7) Activities to which § 35-6-414 applies.
(1) Retail, manufacturing, service, and other traditional business activities;
(2) Farming;
(3) Raising and selling livestock and other animals;
(4) Management of rental properties;
(5) Extraction of minerals and other natural resources;
(6) Timber operations; and
(7) Activities to which § 35-6-414 applies.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-13-112 — TN Code / Title 35 / Chapter 13 / Section 35-13-112
Trust in violation of state or federal law
Status: in_force

If the department of revenue makes a written determination that the operation of a charitable trust violates § 35-9-101 or if the Internal Revenue Service makes such a written determination with respect to the corresponding provisions of the Internal Revenue Code (U.S.C. title 26), and provides the written determination to the trustee, the trustee shall furnish a copy of the determination to the attorney general and reporter, and any other person may notify the attorney general and reporter of the determination. The attorney general and reporter may take any action that is deemed necessary to protect the interest of the people of the state. Acts 1997 , ch. 300, § 1.
If the department of revenue makes a written determination that the operation of a charitable trust violates § 35-9-101 or if the Internal Revenue Service makes such a written determination with respect to the corresponding provisions of the Internal Revenue Code (U.S.C. title 26), and provides the written determination to the trustee, the trustee shall furnish a copy of the determination to the attorney general and reporter, and any other person may notify the attorney general and reporter of the determination. The attorney general and reporter may take any action that is deemed necessary to protect the interest of the people of the state.
Acts 1997 , ch. 300, § 1.
Tenn. Code Ann. § 35-17-106 — TN Code / Title 35 / Chapter 17 / Section 35-17-106
Satisfaction of obligations
Status: in_force

(a) An obligation incurred by only one (1) spouse before or during marriage may be satisfied from that spouse's one-half (½) share of a community property trust. (b) An obligation incurred by both spouses during marriage may be satisfied from a community property trust of the spouses. Acts 2010 , ch. 658, § 1.
(a) An obligation incurred by only one (1) spouse before or during marriage may be satisfied from that spouse's one-half (½) share of a community property trust.
(b) An obligation incurred by both spouses during marriage may be satisfied from a community property trust of the spouses.
Acts 2010 , ch. 658, § 1.
Tenn. Code Ann. § 35-15-815 — TN Code / Title 35 / Chapter 15 / Section 35-15-815
General powers of trustee
Status: in_force

(a) A trustee, without authorization by the court, may exercise: (1) Powers conferred by the terms of the trust; and (2) Except as limited by the terms of the trust: (A) All powers over the trust property which an unmarried competent owner has over individually owned property; (B) Any other powers appropriate to achieve the proper investment, management, and distribution of the trust property; and (C) Any other powers conferred by this chapter. (b) The exercise of a power is subject to the fiduciary duties prescribed by this part. Acts 2004, ch. 537, § 73.
(a) A trustee, without authorization by the court, may exercise: (1) Powers conferred by the terms of the trust; and (2) Except as limited by the terms of the trust: (A) All powers over the trust property which an unmarried competent owner has over individually owned property; (B) Any other powers appropriate to achieve the proper investment, management, and distribution of the trust property; and (C) Any other powers conferred by this chapter.
(1) Powers conferred by the terms of the trust; and
(2) Except as limited by the terms of the trust: (A) All powers over the trust property which an unmarried competent owner has over individually owned property; (B) Any other powers appropriate to achieve the proper investment, management, and distribution of the trust property; and (C) Any other powers conferred by this chapter.
(A) All powers over the trust property which an unmarried competent owner has over individually owned property;
(B) Any other powers appropriate to achieve the proper investment, management, and distribution of the trust property; and
(C) Any other powers conferred by this chapter.
(b) The exercise of a power is subject to the fiduciary duties prescribed by this part.
Acts 2004, ch. 537, § 73.
Tenn. Code Ann. § 35-15-1205 — TN Code / Title 35 / Chapter 15 / Section 35-15-1205
Fiduciary's liability for action or inaction of trustee, trust advisor, and trust protector
Status: in_force

An excluded fiduciary is not liable, either individually or as a fiduciary, for: (1) Any loss resulting from compliance with a direction of a trustee, trust advisor or trust protector, including but not limited to, any loss from the trustee, trust advisor or trust protector breaching fiduciary responsibilities or acting beyond the trustee's, trust advisor's or trust protector's scope of authority; (2) Any loss resulting from any action or inaction of a trustee, trust advisor, or trust protector; or (3) Any loss that results from the failure of a trustee, trust advisor, or trust protector to take any action proposed by the excluded fiduciary where such action requires the authorization of the trustee, trust advisor, or trust protector; provided, that an excluded fiduciary who had a duty to propose such action timely sought but failed to obtain the authorization. Added by 2013 Tenn. Acts, ch. 390,s 43, eff. 7/1/2013.
An excluded fiduciary is not liable, either individually or as a fiduciary, for:
(1) Any loss resulting from compliance with a direction of a trustee, trust advisor or trust protector, including but not limited to, any loss from the trustee, trust advisor or trust protector breaching fiduciary responsibilities or acting beyond the trustee's, trust advisor's or trust protector's scope of authority;
(2) Any loss resulting from any action or inaction of a trustee, trust advisor, or trust protector; or
(3) Any loss that results from the failure of a trustee, trust advisor, or trust protector to take any action proposed by the excluded fiduciary where such action requires the authorization of the trustee, trust advisor, or trust protector; provided, that an excluded fiduciary who had a duty to propose such action timely sought but failed to obtain the authorization.
Added by 2013 Tenn. Acts, ch. 390,s 43, eff. 7/1/2013.
Tenn. Code Ann. § 35-15-805 — TN Code / Title 35 / Chapter 15 / Section 35-15-805
Costs of administration
Status: in_force

In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee. Acts 2004, ch. 537, § 63.
In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee.
Acts 2004, ch. 537, § 63.
Tenn. Code Ann. § 35-2-103 — TN Code / Title 35 / Chapter 2 / Section 35-2-103
Application of payments made to fiduciaries - Validity of right or title acquired
Status: in_force

A person who in good faith pays or transfers to a fiduciary any money or other property, which the fiduciary as such is authorized to receive, is not responsible for the proper application thereof by the fiduciary, and any right or title acquired from the fiduciary in consideration of such payment or transfer is not invalid in consequence of a misapplication by the fiduciary. Acts 1953, ch. 82, § 2 (Williams, § 9596.19); T.C.A. (orig. ed.), § 35-203.
A person who in good faith pays or transfers to a fiduciary any money or other property, which the fiduciary as such is authorized to receive, is not responsible for the proper application thereof by the fiduciary, and any right or title acquired from the fiduciary in consideration of such payment or transfer is not invalid in consequence of a misapplication by the fiduciary.
Acts 1953, ch. 82, § 2 (Williams, § 9596.19); T.C.A. (orig. ed.), § 35-203.
Tenn. Code Ann. § 35-14-108 — TN Code / Title 35 / Chapter 14 / Section 35-14-108
Impartiality
Status: in_force

If a trust has two (2) or more beneficiaries, the trustee shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries. Acts 2002, ch. 696, § 8.
If a trust has two (2) or more beneficiaries, the trustee shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.
Acts 2002, ch. 696, § 8.
Tenn. Code Ann. § 35-50-123 — TN Code / Title 35 / Chapter 50 / Section 35-50-123
Powers of fiduciaries
Status: in_force

Each fiduciary, as defined in § 35-2-102 , has the powers enumerated in § 35-50-110(32) . Acts 1992, ch. 951, § 13.
Each fiduciary, as defined in § 35-2-102 , has the powers enumerated in § 35-50-110(32) .
Acts 1992, ch. 951, § 13.
Tenn. Code Ann. § 35-5-105 — TN Code / Title 35 / Chapter 5 / Section 35-5-105
Notice in writing if printer refuses
Status: in_force

If the printer will not make the publication for the rates provided in § 8-21-1301 , the officer or person conducting the sale shall make publication by written notices as provided in §§ 35-5-103 and 35-5-104 . Code 1858, § 2151 (deriv. Acts 1855-1856, ch. 83, § 3); Shan., §3844; Code 1932, § 7799; T.C.A. (orig. ed.), § 35-506.
If the printer will not make the publication for the rates provided in § 8-21-1301 , the officer or person conducting the sale shall make publication by written notices as provided in §§ 35-5-103 and 35-5-104 .
Code 1858, § 2151 (deriv. Acts 1855-1856, ch. 83, § 3); Shan., §3844; Code 1932, § 7799; T.C.A. (orig. ed.), § 35-506.
Tenn. Code Ann. § 35-15-1203 — TN Code / Title 35 / Chapter 15 / Section 35-15-1203
Trust advisor and trust protector subject to court jurisdiction
Status: in_force

By accepting appointment to serve as a trust advisor or trust protector, the trust advisor or the trust protector submits personally to the jurisdiction of the courts of this state even if investment advisory agreements or other related agreements provide otherwise, and the trust advisor or trust protector may be made a party to any action or proceeding relating to a decision, action, or inaction of the trust advisor or trust protector. Added by 2013 Tenn. Acts, ch. 390,s 43, eff. 7/1/2013.
By accepting appointment to serve as a trust advisor or trust protector, the trust advisor or the trust protector submits personally to the jurisdiction of the courts of this state even if investment advisory agreements or other related agreements provide otherwise, and the trust advisor or trust protector may be made a party to any action or proceeding relating to a decision, action, or inaction of the trust advisor or trust protector.
Added by 2013 Tenn. Acts, ch. 390,s 43, eff. 7/1/2013.
Tenn. Code Ann. § 35-15-1202 — TN Code / Title 35 / Chapter 15 / Section 35-15-1202
Trust advisors and trust protectors as fiduciaries
Status: in_force

(a) A trust advisor or trust protector, other than a beneficiary, is a fiduciary with respect to each power granted to such trust advisor or trust protector. In exercising any power or refraining from exercising any power, a trust advisor or trust protector shall act in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries. (b) A trust advisor or trust protector is an excluded fiduciary with respect to each power granted or reserved exclusively to any one or more other trustees, trust advisors, or trust protectors. Added by 2013 Tenn. Acts, ch. 390,s 43, eff. 7/1/2013.
(a) A trust advisor or trust protector, other than a beneficiary, is a fiduciary with respect to each power granted to such trust advisor or trust protector. In exercising any power or refraining from exercising any power, a trust advisor or trust protector shall act in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.
(b) A trust advisor or trust protector is an excluded fiduciary with respect to each power granted or reserved exclusively to any one or more other trustees, trust advisors, or trust protectors.
Added by 2013 Tenn. Acts, ch. 390,s 43, eff. 7/1/2013.
Tenn. Code Ann. § 35-2-102 — TN Code / Title 35 / Chapter 2 / Section 35-2-102
Chapter definitions
Status: in_force

(a) In this chapter, unless the context otherwise requires: (1) "Bank" includes any person or association of persons, whether incorporated or not, carrying on the business of banking; (2) "Fiduciary" includes a trustee under any trust, expressed, implied, resulting or constructive, executor, administrator, personal representative, guardian, conservator, curator, receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, agent, officer of a corporation, public or private, public officer, or any other person acting in a fiduciary capacity for any person, trust or estate; (3) "Person" includes a corporation, partnership, or other association, or two (2) or more persons having a joint or common interest; (4) "Principal" includes any person to whom a fiduciary as such owes an obligation; and (5) "Savings institution" includes a federal or state savings and loan association or savings bank. (b) A thing is done "in good faith," within the meaning of this chapter, when it is in fact done honestly, whether it is done negligently or not. Acts 1953, ch. 82, § 1 (Williams, § 9596.18); T.C.A. (orig. ed.), § 35-202; Acts 1985, ch. 167, § 1; 1988, ch. 854, § 13.
(a) In this chapter, unless the context otherwise requires: (1) "Bank" includes any person or association of persons, whether incorporated or not, carrying on the business of banking; (2) "Fiduciary" includes a trustee under any trust, expressed, implied, resulting or constructive, executor, administrator, personal representative, guardian, conservator, curator, receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, agent, officer of a corporation, public or private, public officer, or any other person acting in a fiduciary capacity for any person, trust or estate; (3) "Person" includes a corporation, partnership, or other association, or two (2) or more persons having a joint or common interest; (4) "Principal" includes any person to whom a fiduciary as such owes an obligation; and (5) "Savings institution" includes a federal or state savings and loan association or savings bank.
(1) "Bank" includes any person or association of persons, whether incorporated or not, carrying on the business of banking;
(2) "Fiduciary" includes a trustee under any trust, expressed, implied, resulting or constructive, executor, administrator, personal representative, guardian, conservator, curator, receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, agent, officer of a corporation, public or private, public officer, or any other person acting in a fiduciary capacity for any person, trust or estate;
(3) "Person" includes a corporation, partnership, or other association, or two (2) or more persons having a joint or common interest;
(4) "Principal" includes any person to whom a fiduciary as such owes an obligation; and
(5) "Savings institution" includes a federal or state savings and loan association or savings bank.
(b) A thing is done "in good faith," within the meaning of this chapter, when it is in fact done honestly, whether it is done negligently or not.
Acts 1953, ch. 82, § 1 (Williams, § 9596.18); T.C.A. (orig. ed.), § 35-202; Acts 1985, ch. 167, § 1; 1988, ch. 854, § 13.
Tenn. Code Ann. § 35-5-108 — TN Code / Title 35 / Chapter 5 / Section 35-5-108
Plan of division of land - Sale of portion of land
Status: in_force

At any time before ten o'clock a.m. (10:00 a.m.) on the day of sale, the defendant or other person whose property is to be sold may deliver to the officer or person making the sale, a plan of division of the lands to be sold, subscribed by the defendant or other person, bearing a date subsequent to the date of advertisement, in which case so much of the land as may be necessary to satisfy the debt and costs, and no more, shall be sold according to the plan furnished. If no such plan is furnished, the land may be sold without division. Code 1858, § 2154 (deriv. Acts 1799, ch. 14, § 3); Shan., § 3847; Code 1932, § 7802; T.C.A. (orig. ed.), § 35-509.
At any time before ten o'clock a.m. (10:00 a.m.) on the day of sale, the defendant or other person whose property is to be sold may deliver to the officer or person making the sale, a plan of division of the lands to be sold, subscribed by the defendant or other person, bearing a date subsequent to the date of advertisement, in which case so much of the land as may be necessary to satisfy the debt and costs, and no more, shall be sold according to the plan furnished. If no such plan is furnished, the land may be sold without division.
Code 1858, § 2154 (deriv. Acts 1799, ch. 14, § 3); Shan., § 3847; Code 1932, § 7802; T.C.A. (orig. ed.), § 35-509.
Tenn. Code Ann. § 35-3-106 — TN Code / Title 35 / Chapter 3 / Section 35-3-106
Municipal bonds
Status: in_force

Investments may be made in bonds and notes of any county, city or town in any state or territory of the United States that has a population, as shown by the last federal census next preceding the investment, of not less than forty-five thousand (45,000) and has not defaulted within twenty-five (25) years next preceding the investment, for more than thirty (30) days, in the payment of any part of either principal or interest of any bond, note or other evidence of indebtedness. Acts 1931, ch. 100, § 1(e); C. Supp. 1950, § 9596.1(D); modified; T.C.A. (orig. ed.), § 35-306.
Investments may be made in bonds and notes of any county, city or town in any state or territory of the United States that has a population, as shown by the last federal census next preceding the investment, of not less than forty-five thousand (45,000) and has not defaulted within twenty-five (25) years next preceding the investment, for more than thirty (30) days, in the payment of any part of either principal or interest of any bond, note or other evidence of indebtedness.
Acts 1931, ch. 100, § 1(e); C. Supp. 1950, § 9596.1(D); modified; T.C.A. (orig. ed.), § 35-306.
Tenn. Code Ann. § 35-6-402 — TN Code / Title 35 / Chapter 6 / Section 35-6-402
Distribution from trust or estate
Status: in_force

A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, § 35-6-401 or § 35-6-415 applies to a receipt from the trust. Acts 2000, ch. 829, § 1.
A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, § 35-6-401 or § 35-6-415 applies to a receipt from the trust.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-15-1004 — TN Code / Title 35 / Chapter 15 / Section 35-15-1004
Attorney's fees and costs
Status: in_force

(a) In a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney's fees, to any party, to be paid by another party or from the trust that is the subject of the controversy. (b) In a nonjudicial proceeding involving the administration of a trust, the trustee may pay fees, other reasonable costs and expenses from the trust assets where all of the parties to the proceeding agree in writing. (c) In a mediation or arbitration proceeding involving the administration of a trust, the mediator or arbitrator may award fees, other reasonable costs and expenses against the assets of the trust. Acts 2004, ch. 537, § 80.
(a) In a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney's fees, to any party, to be paid by another party or from the trust that is the subject of the controversy.
(b) In a nonjudicial proceeding involving the administration of a trust, the trustee may pay fees, other reasonable costs and expenses from the trust assets where all of the parties to the proceeding agree in writing.
(c) In a mediation or arbitration proceeding involving the administration of a trust, the mediator or arbitrator may award fees, other reasonable costs and expenses against the assets of the trust.
Acts 2004, ch. 537, § 80.
Tenn. Code Ann. § 35-8-101 — TN Code / Title 35 / Chapter 8 / Section 35-8-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Revised Uniform Fiduciary Access to Digital Assets Act." Added by 2016 Tenn. Acts, ch. 570,s 2, eff. 7/1/2016.
This chapter shall be known and may be cited as the "Revised Uniform Fiduciary Access to Digital Assets Act."
Added by 2016 Tenn. Acts, ch. 570,s 2, eff. 7/1/2016.
Tenn. Code Ann. § 35-2-104 — TN Code / Title 35 / Chapter 2 / Section 35-2-104
Transfer of negotiable instrument by fiduciary
Status: in_force

If any negotiable instrument payable or endorsed to a fiduciary as such is endorsed by the fiduciary, or if any negotiable instrument payable or endorsed to the principal is endorsed by a fiduciary empowered to endorse such instrument on behalf of the principal, the endorsee is not bound to inquire whether the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in endorsing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of the obligation as fiduciary unless the endorsee takes the instrument with actual knowledge of such breach or with knowledge of such facts that the action in taking the instrument amounts to bad faith. If, however, such instrument is transferred by the fiduciary in payment of or as security for a personal debt of the fiduciary to the actual knowledge of the creditor, or is transferred in any transaction known by the transferee to be for the personal benefit of the fiduciary, the creditor or other transferee is liable to the principal if the fiduciary in fact commits a breach of the obligation as fiduciary in transferring the instrument. Acts 1953, ch. 82, § 4 (Williams, § 9596.21); T.C.A. (orig. ed.), § 35-205.
If any negotiable instrument payable or endorsed to a fiduciary as such is endorsed by the fiduciary, or if any negotiable instrument payable or endorsed to the principal is endorsed by a fiduciary empowered to endorse such instrument on behalf of the principal, the endorsee is not bound to inquire whether the fiduciary is committing a breach of the fiduciary's obligation as fiduciary in endorsing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of the obligation as fiduciary unless the endorsee takes the instrument with actual knowledge of such breach or with knowledge of such facts that the action in taking the instrument amounts to bad faith. If, however, such instrument is transferred by the fiduciary in payment of or as security for a personal debt of the fiduciary to the actual knowledge of the creditor, or is transferred in any transaction known by the transferee to be for the personal benefit of the fiduciary, the creditor or other transferee is liable to the principal if the fiduciary in fact commits a breach of the obligation as fiduciary in transferring the instrument.
Acts 1953, ch. 82, § 4 (Williams, § 9596.21); T.C.A. (orig. ed.), § 35-205.
Tenn. Code Ann. § 35-5-106 — TN Code / Title 35 / Chapter 5 / Section 35-5-106
Sale without advertisement is not void
Status: in_force

Should the officer, or other person making the sale, proceed to sell without pursuing the provisions of this chapter, the sale shall not, on that account, be either void or voidable. Code 1858, § 2152 (deriv. Acts 1855-1856, ch. 83, § 4); Shan., §3845; Code 1932, § 7800; T.C.A. (orig. ed.), § 35-507.
Should the officer, or other person making the sale, proceed to sell without pursuing the provisions of this chapter, the sale shall not, on that account, be either void or voidable.
Code 1858, § 2152 (deriv. Acts 1855-1856, ch. 83, § 4); Shan., §3845; Code 1932, § 7800; T.C.A. (orig. ed.), § 35-507.
Tenn. Code Ann. § 35-7-114 — TN Code / Title 35 / Chapter 7 / Section 35-7-114
Powers of custodian
Status: in_force

(a) A custodian, acting in a custodial capacity, has all the rights, powers, and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers, and authority in that capacity only. (b) This section does not relieve a custodian from liability for breach of duties of care under § 35-7-113 . (c) The custodian is authorized to invest some or all of the custodial property in the Internal Revenue Code Section 529 plan, if the custodian determines the investment to be in the best interest of the minor. Acts 1992, ch. 664, § 1; 2005, ch. 99, § 7; T.C.A. § 35-7-214.
(a) A custodian, acting in a custodial capacity, has all the rights, powers, and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers, and authority in that capacity only.
(b) This section does not relieve a custodian from liability for breach of duties of care under § 35-7-113 .
(c) The custodian is authorized to invest some or all of the custodial property in the Internal Revenue Code Section 529 plan, if the custodian determines the investment to be in the best interest of the minor.
Acts 1992, ch. 664, § 1; 2005, ch. 99, § 7; T.C.A. § 35-7-214.
Tenn. Code Ann. § 35-7-121 — TN Code / Title 35 / Chapter 7 / Section 35-7-121
Termination of custodianship
Status: in_force

(a) The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor's estate upon the earlier of: (1) The minor's attainment of twenty-one (21) years of age; provided, that this transfer can be withheld until the minor's attainment of up to twenty-five (25) years of age if the instrument so provides, and if the gift is an inter vivos gift, the instrument further expressly states that deferring termination of custodianship beyond the minor's attainment of twenty-one (21) years of age will cause the transfer to be a gift of a future interest which may have adverse federal and state gift tax consequences; or (2) The minor's death. (b) At any time a custodian may transfer part or all of the custodial property to a qualified minor's trust without court order. The transfer terminates the custodianship to the extent of the transfer. Acts 1992, ch. 664, § 1; 1995, ch. 513, § 1; 1999, ch. 491, § 8; T.C.A. §35-7-221; Acts 2007 , ch. 8, § 12.
(a) The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor's estate upon the earlier of: (1) The minor's attainment of twenty-one (21) years of age; provided, that this transfer can be withheld until the minor's attainment of up to twenty-five (25) years of age if the instrument so provides, and if the gift is an inter vivos gift, the instrument further expressly states that deferring termination of custodianship beyond the minor's attainment of twenty-one (21) years of age will cause the transfer to be a gift of a future interest which may have adverse federal and state gift tax consequences; or (2) The minor's death.
(1) The minor's attainment of twenty-one (21) years of age; provided, that this transfer can be withheld until the minor's attainment of up to twenty-five (25) years of age if the instrument so provides, and if the gift is an inter vivos gift, the instrument further expressly states that deferring termination of custodianship beyond the minor's attainment of twenty-one (21) years of age will cause the transfer to be a gift of a future interest which may have adverse federal and state gift tax consequences; or
(2) The minor's death.
(b) At any time a custodian may transfer part or all of the custodial property to a qualified minor's trust without court order. The transfer terminates the custodianship to the extent of the transfer.
Acts 1992, ch. 664, § 1; 1995, ch. 513, § 1; 1999, ch. 491, § 8; T.C.A. §35-7-221; Acts 2007 , ch. 8, § 12.
Tenn. Code Ann. § 35-13-108 — TN Code / Title 35 / Chapter 13 / Section 35-13-108
Validity under rules of remoteness or rule against perpetuities
Status: in_force

No charitable gift shall fail for remoteness of vesting or for any violation of the rule against perpetuities. Acts 1997, ch. 300, § 1.
No charitable gift shall fail for remoteness of vesting or for any violation of the rule against perpetuities.
Acts 1997, ch. 300, § 1.
Tenn. Code Ann. § 35-5-118 — TN Code / Title 35 / Chapter 5 / Section 35-5-118
Applicability of Sections 35-5-101 (e)
Status: in_force

The requirements of §§ 35-5-101(e) , 35-5-104(a)(4) and (5) , and 35-5-104(b) shall not be applicable to sales of parcels pursuant to title 67, chapter 5. Acts 2010 , ch. 1001, § 1.
The requirements of §§ 35-5-101(e) , 35-5-104(a)(4) and (5) , and 35-5-104(b) shall not be applicable to sales of parcels pursuant to title 67, chapter 5.
Acts 2010 , ch. 1001, § 1.
Tenn. Code Ann. § 35-15-503 — TN Code / Title 35 / Chapter 15 / Section 35-15-503
Exceptions to spendthift provision
Status: in_force

A spendthrift provision is unenforceable against a claim of this state to the extent a statute of this state so provides. Acts 2004, ch. 537, § 42.
A spendthrift provision is unenforceable against a claim of this state to the extent a statute of this state so provides.
Acts 2004, ch. 537, § 42.
Tenn. Code Ann. § 35-15-202 — TN Code / Title 35 / Chapter 15 / Section 35-15-202
Jurisdiction over trustee and beneficiary
Status: in_force

(a) By accepting the trusteeship of a trust having its principal place of administration in this state or by moving the principal place of administration to this state, the trustee submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust. (b) With respect to their interests in the trust, the beneficiaries of a trust having its principal place of administration in this state are subject to the jurisdiction of the courts of this state regarding any matter involving the trust. By accepting a distribution from such a trust, the recipient submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust. (c) This section does not preclude other methods of obtaining jurisdiction over a trustee, beneficiary, or other person receiving property from the trust. Acts 2004, ch. 537, § 15.
(a) By accepting the trusteeship of a trust having its principal place of administration in this state or by moving the principal place of administration to this state, the trustee submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust.
(b) With respect to their interests in the trust, the beneficiaries of a trust having its principal place of administration in this state are subject to the jurisdiction of the courts of this state regarding any matter involving the trust. By accepting a distribution from such a trust, the recipient submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust.
(c) This section does not preclude other methods of obtaining jurisdiction over a trustee, beneficiary, or other person receiving property from the trust.
Acts 2004, ch. 537, § 15.
Tenn. Code Ann. § 35-6-405 — TN Code / Title 35 / Chapter 6 / Section 35-6-405
Rental property
Status: in_force

To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, must be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the trustee's contractual obligations have been satisfied with respect to that amount. Acts 2000, ch. 829, § 1.
To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, must be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the trustee's contractual obligations have been satisfied with respect to that amount.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-15-715 — TN Code / Title 35 / Chapter 15 / Section 35-15-715
Directed trusts - Removal of fiduciary
Status: in_force

(a) A trust advisor, trust protector or other fiduciary other than a cotrustee, such cotrustee's removal already being provided for in § 35-15-706 , may be removed as such respective fiduciary in a like manner as provided for a trustee under § 35-15-706 . (b) When exercising its powers under this section relative to removal of such respective fiduciary, the court shall consider the powers, duties and liabilities relative to such respective fiduciaries other than a cotrustee and whether any of such respective fiduciaries are excluded fiduciaries. Added by 2013 Tenn. Acts, ch. 390, s 29, eff. 7/1/2013.
(a) A trust advisor, trust protector or other fiduciary other than a cotrustee, such cotrustee's removal already being provided for in § 35-15-706 , may be removed as such respective fiduciary in a like manner as provided for a trustee under § 35-15-706 .
(b) When exercising its powers under this section relative to removal of such respective fiduciary, the court shall consider the powers, duties and liabilities relative to such respective fiduciaries other than a cotrustee and whether any of such respective fiduciaries are excluded fiduciaries.
Added by 2013 Tenn. Acts, ch. 390, s 29, eff. 7/1/2013.
Tenn. Code Ann. § 35-7-104 — TN Code / Title 35 / Chapter 7 / Section 35-7-104
Nomination of custodian
Status: in_force

(a) A person having the right to designate the recipient of property transferable upon the occurrence of a future event may revocably nominate a custodian to receive the property for a minor beneficiary upon the occurrence of the event by naming the custodian followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act." The nomination may name one (1) or more persons as substitute custodians to whom the property must be transferred, in the order named, if the first nominated custodian dies before the transfer or is unable, declines, or is ineligible to serve. The nomination may be made in a will, a trust, a deed, an instrument exercising a power of appointment, or in a writing designating a beneficiary of contractual rights which is registered with or delivered to the payor, issuer, or other obligor of the contractual rights. (b) A custodian nominated under this section must be a person to whom a transfer of property of that kind may be made under § 35-7-110(a) . (c) The nomination of a custodian under this section does not create custodial property until the nominating instrument becomes irrevocable or a transfer to the nominated custodian is completed. Unless the nomination of a custodian has been revoked, upon the occurrence of the future event, the custodianship becomes effective and the custodian shall enforce a transfer of the custodial property pursuant to § 35-7-110 . Acts 1992, ch. 664, § 1; T.C.A. § 35-7-204.
(a) A person having the right to designate the recipient of property transferable upon the occurrence of a future event may revocably nominate a custodian to receive the property for a minor beneficiary upon the occurrence of the event by naming the custodian followed in substance by the words "as custodian for ______________ (name of minor) under the Tennessee Uniform Transfers to Minors Act." The nomination may name one (1) or more persons as substitute custodians to whom the property must be transferred, in the order named, if the first nominated custodian dies before the transfer or is unable, declines, or is ineligible to serve. The nomination may be made in a will, a trust, a deed, an instrument exercising a power of appointment, or in a writing designating a beneficiary of contractual rights which is registered with or delivered to the payor, issuer, or other obligor of the contractual rights.
(b) A custodian nominated under this section must be a person to whom a transfer of property of that kind may be made under § 35-7-110(a) .
(c) The nomination of a custodian under this section does not create custodial property until the nominating instrument becomes irrevocable or a transfer to the nominated custodian is completed. Unless the nomination of a custodian has been revoked, upon the occurrence of the future event, the custodianship becomes effective and the custodian shall enforce a transfer of the custodial property pursuant to § 35-7-110 .
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-204.
Tenn. Code Ann. § 35-17-102 — TN Code / Title 35 / Chapter 17 / Section 35-17-102
Chapter definitions
Status: in_force

As used in this chapter: (1) "Community property" means property owned by a community property trust during the marriage of the settlor spouses; (2) "Community property trust" means an express trust that complies with § 35-17-103 ; (3) "Decree" means a judgment or other order of a court; (4) "Dissolution" means either: (A) Termination of a marriage by a decree of dissolution, divorce, annulment or declaration of invalidity; or (B) Entry of a decree of legal separation maintenance; (5) "During marriage" means a period that begins at marriage and ends at dissolution or immediately after the death of a spouse; (6) "Qualified trustee" means either: (A) A natural person who is a resident of this state; or (B) A company authorized to act as a fiduciary in this state pursuant to § 45-2-1001 ; and (7) "Settlor spouses" means a married couple that establishes a community property trust. Amended by 2023 Tenn. Acts, ch. 166, s 12, eff. 4/17/2023. Acts 2010 , ch. 658, § 1.
As used in this chapter:
(1) "Community property" means property owned by a community property trust during the marriage of the settlor spouses;
(2) "Community property trust" means an express trust that complies with § 35-17-103 ;
(3) "Decree" means a judgment or other order of a court;
(4) "Dissolution" means either: (A) Termination of a marriage by a decree of dissolution, divorce, annulment or declaration of invalidity; or (B) Entry of a decree of legal separation maintenance;
(A) Termination of a marriage by a decree of dissolution, divorce, annulment or declaration of invalidity; or
(B) Entry of a decree of legal separation maintenance;
(5) "During marriage" means a period that begins at marriage and ends at dissolution or immediately after the death of a spouse;
(6) "Qualified trustee" means either: (A) A natural person who is a resident of this state; or (B) A company authorized to act as a fiduciary in this state pursuant to § 45-2-1001 ; and
(A) A natural person who is a resident of this state; or
(B) A company authorized to act as a fiduciary in this state pursuant to § 45-2-1001 ; and
(7) "Settlor spouses" means a married couple that establishes a community property trust.
Amended by 2023 Tenn. Acts, ch. 166, s 12, eff. 4/17/2023.
Acts 2010 , ch. 658, § 1.
Tenn. Code Ann. § 35-17-103 — TN Code / Title 35 / Chapter 17 / Section 35-17-103
Requirements for community property trust
Status: in_force

An arrangement is a community property trust if one (1) or both spouses transfer property to a trust, that: (1) Expressly declares that the trust is a Tennessee community property trust; (2) Has at least one (1) trustee who is a qualified trustee whose powers include, or are limited to, maintaining records for the trust on an exclusive or a nonexclusive basis and preparing or arranging for the preparation of, on an exclusive or a nonexclusive basis, any income tax returns that must be filed by the trust. Both spouses or either spouse may be a trustee; (3) Is signed by both spouses; and (4) Contains the following language in capital letters at the beginning of the trust: THE CONSEQUENCES OF THIS TRUST MAY BE VERY EXTENSIVE, INCLUDING, BUT NOT LIMITED TO, YOUR RIGHTS WITH YOUR SPOUSE BOTH DURING THE COURSE OF YOUR MARRIAGE AND AT THE TIME OF A DIVORCE. ACCORDINGLY, THIS AGREEMENT SHOULD ONLY BE SIGNED AFTER CAREFUL CONSIDERATION. IF YOU HAVE ANY QUESTIONS ABOUT THIS AGREEMENT, YOU SHOULD SEEK COMPETENT ADVICE. Acts 2010, ch. 658, § 1.
An arrangement is a community property trust if one (1) or both spouses transfer property to a trust, that:
(1) Expressly declares that the trust is a Tennessee community property trust;
(2) Has at least one (1) trustee who is a qualified trustee whose powers include, or are limited to, maintaining records for the trust on an exclusive or a nonexclusive basis and preparing or arranging for the preparation of, on an exclusive or a nonexclusive basis, any income tax returns that must be filed by the trust. Both spouses or either spouse may be a trustee;
(3) Is signed by both spouses; and
(4) Contains the following language in capital letters at the beginning of the trust: THE CONSEQUENCES OF THIS TRUST MAY BE VERY EXTENSIVE, INCLUDING, BUT NOT LIMITED TO, YOUR RIGHTS WITH YOUR SPOUSE BOTH DURING THE COURSE OF YOUR MARRIAGE AND AT THE TIME OF A DIVORCE. ACCORDINGLY, THIS AGREEMENT SHOULD ONLY BE SIGNED AFTER CAREFUL CONSIDERATION. IF YOU HAVE ANY QUESTIONS ABOUT THIS AGREEMENT, YOU SHOULD SEEK COMPETENT ADVICE.
THE CONSEQUENCES OF THIS TRUST MAY BE VERY EXTENSIVE, INCLUDING, BUT NOT LIMITED TO, YOUR RIGHTS WITH YOUR SPOUSE BOTH DURING THE COURSE OF YOUR MARRIAGE AND AT THE TIME OF A DIVORCE. ACCORDINGLY, THIS AGREEMENT SHOULD ONLY BE SIGNED AFTER CAREFUL CONSIDERATION. IF YOU HAVE ANY QUESTIONS ABOUT THIS AGREEMENT, YOU SHOULD SEEK COMPETENT ADVICE.
Acts 2010, ch. 658, § 1.
Tenn. Code Ann. § 35-1-102 — TN Code / Title 35 / Chapter 1 / Section 35-1-102
§ 35-1-102
Status: in_force

In addition to the other provisions for the appointment of trustees in this chapter, a public trustee may be appointed by the court pursuant to title 30, chapter 1, part 4.
Tenn. Code Ann. § 35-14-102 — TN Code / Title 35 / Chapter 14 / Section 35-14-102
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Governing instrument" means: (A) A will, deed, trust instrument or agency agreement; (B) For purposes of subdivision (1)(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 chapter 15, part 12 of this title; (2) "Trust" means any fiduciary relationship created by a governing instrument; and (3) "Trustee" means any fiduciary as defined in § 35-15-103 . Amended by 2013 Tenn. Acts, ch. 390, s 2, eff. 7/1/2013. Acts 2002, ch. 696, § 2.
As used in this chapter, unless the context otherwise requires:
(1) "Governing instrument" means: (A) A will, deed, trust instrument or agency agreement; (B) For purposes of subdivision (1)(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 chapter 15, part 12 of this title;
(A) A will, deed, trust instrument or agency agreement;
(B) For purposes of subdivision (1)(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 chapter 15, part 12 of this title;
(2) "Trust" means any fiduciary relationship created by a governing instrument; and
(3) "Trustee" means any fiduciary as defined in § 35-15-103 .
Amended by 2013 Tenn. Acts, ch. 390, s 2, eff. 7/1/2013.
Acts 2002, ch. 696, § 2.
Tenn. Code Ann. § 35-9-102 — TN Code / Title 35 / Chapter 9 / Section 35-9-102
Distribution of amounts to avoid tax liability
Status: in_force

In the administration of any trust that is a private foundation or that is a charitable trust, there shall be distributed, for the purposes specified in the trust instrument, for each taxable year, amounts at least sufficient to avoid liability for the tax imposed by § 4942(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4942(a) ). Acts 1971, ch. 3, § 2; T.C.A., § 35-1002.
In the administration of any trust that is a private foundation or that is a charitable trust, there shall be distributed, for the purposes specified in the trust instrument, for each taxable year, amounts at least sufficient to avoid liability for the tax imposed by § 4942(a) of the Internal Revenue Code of 1954 ( 26 U.S.C. § 4942(a) ).
Acts 1971, ch. 3, § 2; T.C.A., § 35-1002.
Tenn. Code Ann. § 35-10-101 — TN Code / Title 35 / Chapter 10 / Section 35-10-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Uniform Prudent Management of Institutional Funds Act."
Tenn. Code Ann. § 35-15-811 — TN Code / Title 35 / Chapter 15 / Section 35-15-811
Enforcement and defense of claims
Status: in_force

(a) A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust. (b) A trustee may abandon or assign any claim that it believes is unreasonable to enforce to one or more of the beneficiaries of the trust holding the claim. Acts 2004, ch. 537, § 69.
(a) A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.
(b) A trustee may abandon or assign any claim that it believes is unreasonable to enforce to one or more of the beneficiaries of the trust holding the claim.
Acts 2004, ch. 537, § 69.
Tenn. Code Ann. § 35-11-109 — TN Code / Title 35 / Chapter 11 / Section 35-11-109
Subpoena power
Status: in_force

The secretary of state or the secretary's designee shall have the right to issue subpoenas to obtain records relevant to a solicitation or a trust established under this part, subject to title 45, chapter 10 and the Federal Right to Financial Privacy Act ( 12 U.S.C. § 3401 et seq.) Acts 2007, ch. 430, § 9.
The secretary of state or the secretary's designee shall have the right to issue subpoenas to obtain records relevant to a solicitation or a trust established under this part, subject to title 45, chapter 10 and the Federal Right to Financial Privacy Act ( 12 U.S.C. § 3401 et seq.)
Acts 2007, ch. 430, § 9.
Tenn. Code Ann. § 35-6-407 — TN Code / Title 35 / Chapter 6 / Section 35-6-407
Insurance policies and similar contracts
Status: in_force

(a) Except as otherwise provided in subsection (b), a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, or loss of title to a trust asset. The trustee shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income, and to principal if the premiums are paid from principal. (b) A trustee shall allocate to income proceeds of a contract that insures the trustee against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to § 35-6-403 , loss of profits from a business. (c) This section does not apply to a contract to which § 35-6-409 applies. Acts 2000, ch. 829, § 1.
(a) Except as otherwise provided in subsection (b), a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, or loss of title to a trust asset. The trustee shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income, and to principal if the premiums are paid from principal.
(b) A trustee shall allocate to income proceeds of a contract that insures the trustee against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to § 35-6-403 , loss of profits from a business.
(c) This section does not apply to a contract to which § 35-6-409 applies.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-6-602 — TN Code / Title 35 / Chapter 6 / Section 35-6-602
Application of act to existing trusts and estates
Status: in_force

This act applies to every trust or decedent's estate existing on or after July 1, 2000, except as otherwise expressly provided in the will or terms of the trust or in this act. Acts 2000, ch. 829, § 1.
This act applies to every trust or decedent's estate existing on or after July 1, 2000, except as otherwise expressly provided in the will or terms of the trust or in this act.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-6-101 — TN Code / Title 35 / Chapter 6 / Section 35-6-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Uniform Principal and Income Act". Acts 2000, ch. 829, § 1.
This chapter shall be known and may be cited as the "Uniform Principal and Income Act".
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-15-1206 — TN Code / Title 35 / Chapter 15 / Section 35-15-1206
[Repealed]
Status: repealed

Repealed by 2022 Tenn. Acts, ch. 877,s 2, eff. 4/14/2022. Added by 2013 Tenn. Acts, ch. 390,s 43, eff. 7/1/2013.
Repealed by 2022 Tenn. Acts, ch. 877,s 2, eff. 4/14/2022.
Added by 2013 Tenn. Acts, ch. 390,s 43, eff. 7/1/2013.
Tenn. Code Ann. § 35-6-505 — TN Code / Title 35 / Chapter 6 / Section 35-6-505
Income taxes
Status: in_force

(a) A tax required to be paid by a trustee based on receipts allocated to income must be paid from income. (b) A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority. (c) A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid: (1) From income to the extent that receipts from the entity are allocated only to income; (2) From principal to the extent that receipts from the entity are allocated only to principal; (3) Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and (4) From principal to the extent that the tax exceeds the total receipts from the entity. (d) After applying subsections (a)-(c), the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary. Acts 2000, ch. 829, § 1; 2010, ch. 725, § 2.
(a) A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.
(b) A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.
(c) A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid: (1) From income to the extent that receipts from the entity are allocated only to income; (2) From principal to the extent that receipts from the entity are allocated only to principal; (3) Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and (4) From principal to the extent that the tax exceeds the total receipts from the entity.
(1) From income to the extent that receipts from the entity are allocated only to income;
(2) From principal to the extent that receipts from the entity are allocated only to principal;
(3) Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and
(4) From principal to the extent that the tax exceeds the total receipts from the entity.
(d) After applying subsections (a)-(c), the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary.
Acts 2000, ch. 829, § 1; 2010, ch. 725, § 2.
Tenn. Code Ann. § 35-7-116 — TN Code / Title 35 / Chapter 7 / Section 35-7-116
Custodian's expenses, compensation, and bond
Status: in_force

(a) A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian's duties. (b) Except for one who is a transferor under § 35-7-105 , a custodian has a noncumulative election during each calendar year to charge reasonable compensation for services performed during that year. (c) Except as provided in § 35-7-119(f) , a custodian need not give a bond. Acts 1992, ch. 664, § 1; T.C.A. § 35-7-216.
(a) A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian's duties.
(b) Except for one who is a transferor under § 35-7-105 , a custodian has a noncumulative election during each calendar year to charge reasonable compensation for services performed during that year.
(c) Except as provided in § 35-7-119(f) , a custodian need not give a bond.
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-216.
Tenn. Code Ann. § 35-15-1102 — TN Code / Title 35 / Chapter 15 / Section 35-15-1102
Electronic records and signatures
Status: in_force

The provisions of this chapter governing the legal effect, validity, or enforceability of electronic records or electronic signatures, and of contracts formed or performed with the use of such records or signatures, conform to the requirements of section 102 of the Electronic Signatures in Global and National Commerce Act ( 15 U.S.C. § 7002 ), and supersede, modify, and limit the requirements of the Electronic Signatures in Global and National Commerce Act. However, the execution of a modification, termination, or settlement agreement pursuant to § 35-15-111 , § 35-15-411 , or § 35-15-412 is considered a transaction for purposes of § 47-10-103 . Amended by 2021 Tenn. Acts, ch. 420, s 19, eff. 7/1/2021. Acts 2004, ch. 537, § 91.
The provisions of this chapter governing the legal effect, validity, or enforceability of electronic records or electronic signatures, and of contracts formed or performed with the use of such records or signatures, conform to the requirements of section 102 of the Electronic Signatures in Global and National Commerce Act ( 15 U.S.C. § 7002 ), and supersede, modify, and limit the requirements of the Electronic Signatures in Global and National Commerce Act. However, the execution of a modification, termination, or settlement agreement pursuant to § 35-15-111 , § 35-15-411 , or § 35-15-412 is considered a transaction for purposes of § 47-10-103 .
Amended by 2021 Tenn. Acts, ch. 420, s 19, eff. 7/1/2021.
Acts 2004, ch. 537, § 91.
Tenn. Code Ann. § 35-2-110 — TN Code / Title 35 / Chapter 2 / Section 35-2-110
Deposit in names of two (2)
Status: in_force

When a deposit is made in a bank or savings institution in the name of two (2) or more persons as fiduciaries and a check is drawn upon the fiduciary account by any fiduciary or fiduciaries authorized by the other fiduciary or fiduciaries to draw checks upon the fiduciary account, neither the payee nor other holder nor the bank or savings institution is bound to inquire whether it is a breach of trust to authorize such fiduciary or fiduciaries to draw checks upon the fiduciary account, and is not liable unless the circumstances be such that the action of the payee or other holder or the bank or savings institution amounts to bad faith. Acts 1953, ch. 82, § 10 (Williams, § 9596.27); T.C.A. (orig. ed.), § 35-211; Acts 1985, ch. 167, § 2; 1988, ch. 854, § 14.
When a deposit is made in a bank or savings institution in the name of two (2) or more persons as fiduciaries and a check is drawn upon the fiduciary account by any fiduciary or fiduciaries authorized by the other fiduciary or fiduciaries to draw checks upon the fiduciary account, neither the payee nor other holder nor the bank or savings institution is bound to inquire whether it is a breach of trust to authorize such fiduciary or fiduciaries to draw checks upon the fiduciary account, and is not liable unless the circumstances be such that the action of the payee or other holder or the bank or savings institution amounts to bad faith.
Acts 1953, ch. 82, § 10 (Williams, § 9596.27); T.C.A. (orig. ed.), § 35-211; Acts 1985, ch. 167, § 2; 1988, ch. 854, § 14.
Tenn. Code Ann. § 35-15-109 — TN Code / Title 35 / Chapter 15 / Section 35-15-109
Methods and waiver of notice
Status: in_force

(a) Notice to a person under this chapter or the sending of a document to a person under this chapter must be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. Permissible methods of notice or for sending a document include first-class mail, personal delivery, delivery to the person's last known place of residence or place of business, or a properly directed electronic message. (b) Notice otherwise required under this chapter or a document otherwise required to be sent under this chapter need not be provided to a person whose identity or location is unknown to and not reasonably ascertainable by the trustee. (c) Notice under this chapter or the sending of a document under this chapter may be waived by the person to be notified or sent the document. (d) Notice of a judicial proceeding must be given as provided in the applicable rules of civil procedure. Acts 2004, ch. 537, § 10.
(a) Notice to a person under this chapter or the sending of a document to a person under this chapter must be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. Permissible methods of notice or for sending a document include first-class mail, personal delivery, delivery to the person's last known place of residence or place of business, or a properly directed electronic message.
(b) Notice otherwise required under this chapter or a document otherwise required to be sent under this chapter need not be provided to a person whose identity or location is unknown to and not reasonably ascertainable by the trustee.
(c) Notice under this chapter or the sending of a document under this chapter may be waived by the person to be notified or sent the document.
(d) Notice of a judicial proceeding must be given as provided in the applicable rules of civil procedure.
Acts 2004, ch. 537, § 10.
Tenn. Code Ann. § 35-7-105 — TN Code / Title 35 / Chapter 7 / Section 35-7-105
Transfer by gift or exercise of power of appointment
Status: in_force

A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a minor pursuant to § 35-7-110 . Acts 1992, ch. 664, § 1; T.C.A. § 35-7-205.
A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a minor pursuant to § 35-7-110 .
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-205.
Tenn. Code Ann. § 35-17-104 — TN Code / Title 35 / Chapter 17 / Section 35-17-104
Agreement establishing community property trust - Amendments and revocation
Status: in_force

(a) In the agreement establishing a community property trust, spouses may agree on: (1) The rights and obligations in the property transferred to the trust, notwithstanding when and where the property is acquired or located; (2) The management and control of the property transferred to the trust; (3) The disposition of the property transferred to the trust on dissolution, death, or the occurrence or nonoccurrence of another event; (4) The choice of law governing the interpretation of the trust; and (5) Any other matter that affects the property transferred to the trust and does not violate public policy or a statute imposing a criminal penalty. (b) (1) Either spouse may amend a community property trust regarding the disposition of that spouse's one-half (½) share of the community property in the occurrence of such spouse's death. (2) Except as provided in subdivision (b)(1), a community property trust may not be amended or revoked unless the agreement itself provides for amendment or revocation. Acts 2010 , ch. 658, § 1.
(a) In the agreement establishing a community property trust, spouses may agree on: (1) The rights and obligations in the property transferred to the trust, notwithstanding when and where the property is acquired or located; (2) The management and control of the property transferred to the trust; (3) The disposition of the property transferred to the trust on dissolution, death, or the occurrence or nonoccurrence of another event; (4) The choice of law governing the interpretation of the trust; and (5) Any other matter that affects the property transferred to the trust and does not violate public policy or a statute imposing a criminal penalty.
(1) The rights and obligations in the property transferred to the trust, notwithstanding when and where the property is acquired or located;
(2) The management and control of the property transferred to the trust;
(3) The disposition of the property transferred to the trust on dissolution, death, or the occurrence or nonoccurrence of another event;
(4) The choice of law governing the interpretation of the trust; and
(5) Any other matter that affects the property transferred to the trust and does not violate public policy or a statute imposing a criminal penalty.
(b) (1) Either spouse may amend a community property trust regarding the disposition of that spouse's one-half (½) share of the community property in the occurrence of such spouse's death. (2) Except as provided in subdivision (b)(1), a community property trust may not be amended or revoked unless the agreement itself provides for amendment or revocation.
(1) Either spouse may amend a community property trust regarding the disposition of that spouse's one-half (½) share of the community property in the occurrence of such spouse's death.
(2) Except as provided in subdivision (b)(1), a community property trust may not be amended or revoked unless the agreement itself provides for amendment or revocation.
Acts 2010 , ch. 658, § 1.
Tenn. Code Ann. § 35-11-107 — TN Code / Title 35 / Chapter 11 / Section 35-11-107
Civil penalties - Appeal
Status: in_force

In addition to any other penalty or remedy available under law, the secretary of state or the designee of the secretary may assess a civil penalty, pursuant to § 48-101-514 , against any person or entity that violates a provision of this chapter. The person or entity against whom the penalty is assessed shall have appeal rights pursuant to § 48-101-514 . Acts 2007, ch. 430, § 7.
In addition to any other penalty or remedy available under law, the secretary of state or the designee of the secretary may assess a civil penalty, pursuant to § 48-101-514 , against any person or entity that violates a provision of this chapter. The person or entity against whom the penalty is assessed shall have appeal rights pursuant to § 48-101-514 .
Acts 2007, ch. 430, § 7.
Tenn. Code Ann. § 35-7-126 — TN Code / Title 35 / Chapter 7 / Section 35-7-126
Severability
Status: in_force

If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. Acts 1992, ch. 664, § 1; T.C.A. § 35-7-226.
If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-226.