Tenn. Code Ann. § 35-3-116 — TN Code / Title 35 / Chapter 3 / Section 35-3-116
Courts empowered to authorize retention of original investments
Status: in_force

(a) Any guardian, personal representative, trustee or other fiduciary may make, in the county in which appointed, application to the chancery court, or to any other court therein having concurrent jurisdiction, for permission to retain and hold in unchanged form any security or investment originally forming a part of the estate, and the court shall have the authority and power to authorize the guardian, personal representative, trustee or other fiduciary, to retain and hold in unchanged form any security or investment originally forming a part of the estate, upon it being made to appear to the court that retention of the security or investment is to the manifest interest of the estate. The authority to retain securities or investments, when granted to the fiduciary by the instrument under which the fiduciary is acting, is not affected by the foregoing provisions. (b) The application in every such case shall be made by bill or petition, and the beneficiaries be made the defendants and served with process, and the cause shall be conducted and heard in the same manner as other suits in chancery. (c) A guardian ad litem shall be appointed for all defendants under disability, and the decree of the court authorizing the retention of the securities or investments shall set out fully the reasons and object moving the court in granting to the fiduciary the authority so to do. (d) It is not intended to impose upon a fiduciary any duty or obligation in addition to those arising under previously existing law, nor is it intended to change, modify or alter any investment statute of the state, except insofar as variations from those statutes may be made through proceedings authorized by this section. Acts 1945, ch. 53, §§ 1-4; mod. C. Supp. 1950, §§9596.5-9596.7 (Williams, §§ 9596.9-9596.11); T.C.A. (orig. ed.), §§ 35-316 -- 35-318.
(a) Any guardian, personal representative, trustee or other fiduciary may make, in the county in which appointed, application to the chancery court, or to any other court therein having concurrent jurisdiction, for permission to retain and hold in unchanged form any security or investment originally forming a part of the estate, and the court shall have the authority and power to authorize the guardian, personal representative, trustee or other fiduciary, to retain and hold in unchanged form any security or investment originally forming a part of the estate, upon it being made to appear to the court that retention of the security or investment is to the manifest interest of the estate. The authority to retain securities or investments, when granted to the fiduciary by the instrument under which the fiduciary is acting, is not affected by the foregoing provisions.
(b) The application in every such case shall be made by bill or petition, and the beneficiaries be made the defendants and served with process, and the cause shall be conducted and heard in the same manner as other suits in chancery.
(c) A guardian ad litem shall be appointed for all defendants under disability, and the decree of the court authorizing the retention of the securities or investments shall set out fully the reasons and object moving the court in granting to the fiduciary the authority so to do.
(d) It is not intended to impose upon a fiduciary any duty or obligation in addition to those arising under previously existing law, nor is it intended to change, modify or alter any investment statute of the state, except insofar as variations from those statutes may be made through proceedings authorized by this section.
Acts 1945, ch. 53, §§ 1-4; mod. C. Supp. 1950, §§9596.5-9596.7 (Williams, §§ 9596.9-9596.11); T.C.A. (orig. ed.), §§ 35-316 -- 35-318.
Tenn. Code Ann. § 35-3-107 — TN Code / Title 35 / Chapter 3 / Section 35-3-107
Real estate bonds and notes
Status: in_force

Investments may be made in bonds and notes secured by first mortgage or deed of trust on real estate located in this state; provided, that: (1) The face or principal amount of the bonds or notes does not exceed one-half (½) the actual value of the real estate as appraised by one (1) or more licensed real estate dealers acting for unincorporated trustees, guardians or other fiduciaries, and in case of incorporated trustees, guardians or other fiduciaries, the appraisal shall be made by an agent or committee composed of or selected by the board of directors or executive committee of the incorporated trustee, guardian or other fiduciary; (2) The trustee, guardian or other fiduciary or any institution controlled by that entity or person has not received any commission from the borrower or issuer in the making of the mortgage or deed of trust or the underwriting of the securities secured by the mortgage or deed of trust, unless the commission charged the borrower or issuer does not exceed one percent (1%) per annum of the aggregate principal amount of the bonds or notes; and (3) Any probate or chancery court of the county where the fiduciary is located, upon the application of any beneficiary of the trust or of any person connected with any beneficiary, by consanguinity or affinity, within the sixth degree as computed by the civil law, may, at any time, either restrain the making of any such proposed investment, if the investment is not consummated, or if consummated, require the fiduciary promptly to dispose of the bonds or notes at the best price then obtainable and otherwise reinvest the funds, and the court may exercise such power to restrain or compel disposal in all cases in which the court may find that action to be necessary to protect the interest of any beneficiary. Acts 1931, ch. 100, § 1(f); C. Supp. 1950, § 9596.1(E); modified; T.C.A. (orig. ed.), § 35-307.
Investments may be made in bonds and notes secured by first mortgage or deed of trust on real estate located in this state; provided, that:
(1) The face or principal amount of the bonds or notes does not exceed one-half (½) the actual value of the real estate as appraised by one (1) or more licensed real estate dealers acting for unincorporated trustees, guardians or other fiduciaries, and in case of incorporated trustees, guardians or other fiduciaries, the appraisal shall be made by an agent or committee composed of or selected by the board of directors or executive committee of the incorporated trustee, guardian or other fiduciary;
(2) The trustee, guardian or other fiduciary or any institution controlled by that entity or person has not received any commission from the borrower or issuer in the making of the mortgage or deed of trust or the underwriting of the securities secured by the mortgage or deed of trust, unless the commission charged the borrower or issuer does not exceed one percent (1%) per annum of the aggregate principal amount of the bonds or notes; and
(3) Any probate or chancery court of the county where the fiduciary is located, upon the application of any beneficiary of the trust or of any person connected with any beneficiary, by consanguinity or affinity, within the sixth degree as computed by the civil law, may, at any time, either restrain the making of any such proposed investment, if the investment is not consummated, or if consummated, require the fiduciary promptly to dispose of the bonds or notes at the best price then obtainable and otherwise reinvest the funds, and the court may exercise such power to restrain or compel disposal in all cases in which the court may find that action to be necessary to protect the interest of any beneficiary.
Acts 1931, ch. 100, § 1(f); C. Supp. 1950, § 9596.1(E); modified; T.C.A. (orig. ed.), § 35-307.
Tenn. Code Ann. § 35-15-1015 — TN Code / Title 35 / Chapter 15 / Section 35-15-1015
Limitation on personal liability of beneficiaries
Status: in_force

A beneficiary of a trust is not personally liable for the liabilities of third persons incurred in or arising from the administration of the trust or which are otherwise imposed upon the holder of the title to the property, including liabilities arising from contracts made by the trustee or torts committed by the trustee in the course of the administration of the trust. Added by 2023 Tenn. Acts, ch. 166, s 10, eff. 4/17/2023.
A beneficiary of a trust is not personally liable for the liabilities of third persons incurred in or arising from the administration of the trust or which are otherwise imposed upon the holder of the title to the property, including liabilities arising from contracts made by the trustee or torts committed by the trustee in the course of the administration of the trust.
Added by 2023 Tenn. Acts, ch. 166, s 10, eff. 4/17/2023.
Tenn. Code Ann. § 35-7-102 — TN Code / Title 35 / Chapter 7 / Section 35-7-102
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Adult" means an individual who has attained twenty-one (21) years of age; (2) "Benefit plan" means an employer's plan for the benefit of an employee or partner; (3) "Broker" means a person lawfully engaged in the business of effecting transactions in securities or commodities for the person's own account or for the account of others; (4) "Court" means the chancery, probate and juvenile courts and other courts having probate jurisdiction, which shall have concurrent jurisdiction under this chapter; (5) "Custodial property" means: (A) Any interest in property transferred to a custodian under this chapter; and (B) The income from and proceeds of that interest in property; (6) "Custodian" means a person so designated, including a person designated as a joint custodian pursuant to § 35-7-111 , or a successor or substitute custodian designated according to this chapter; (7) "Financial institution" means a bank, trust company, savings institution, or credit union, chartered and supervised under state or federal law; (8) "Guardian" means a person appointed by or qualified in a court to act as a general, limited, or temporary guardian or conservator of a minor's property or person or a person legally authorized to perform substantially the same functions; (9) "Legal representative" means an individual's personal representative, guardian or conservator; (10) "Member of the minor's family" means the minor's parent, stepparent, spouse, grandparent, brother, sister, uncle, or aunt, whether of the whole or half blood or by adoption; (11) "Minor" means an individual who has not attained twenty-one (21) years of age, although the minor may already be of legal age; (12) "Person" means an individual, corporation, organization, or other legal entity; (13) "Personal representative" means an executor, administrator, successor personal representative, or special administrator of a decedent's estate or a person legally authorized to perform substantially the same functions; (14) "Qualified minor's trust" means any trust, including a trust created by the custodian, that satisfies the requirements of federal Internal Revenue Code § 2503(c) ( 26 U.S.C. § 2503(c) ), and the regulations implementing that section; (15) "State" includes any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession subject to the legislative authority of the United States; (16) "Transfer" means a transaction that creates custodial property under this chapter; (17) "Transferor" means a person who makes a transfer under this chapter; and (18) "Trust company" means a financial institution, corporation, or other legal entity, authorized to exercise general trust powers. Acts 1992, ch. 664, § 1; 1996, ch. 593, § 1; T.C.A. §35-7-202; Acts 2007 , ch. 8, § 11.
As used in this chapter, unless the context otherwise requires:
(1) "Adult" means an individual who has attained twenty-one (21) years of age;
(2) "Benefit plan" means an employer's plan for the benefit of an employee or partner;
(3) "Broker" means a person lawfully engaged in the business of effecting transactions in securities or commodities for the person's own account or for the account of others;
(4) "Court" means the chancery, probate and juvenile courts and other courts having probate jurisdiction, which shall have concurrent jurisdiction under this chapter;
(5) "Custodial property" means: (A) Any interest in property transferred to a custodian under this chapter; and (B) The income from and proceeds of that interest in property;
(A) Any interest in property transferred to a custodian under this chapter; and
(B) The income from and proceeds of that interest in property;
(6) "Custodian" means a person so designated, including a person designated as a joint custodian pursuant to § 35-7-111 , or a successor or substitute custodian designated according to this chapter;
(7) "Financial institution" means a bank, trust company, savings institution, or credit union, chartered and supervised under state or federal law;
(8) "Guardian" means a person appointed by or qualified in a court to act as a general, limited, or temporary guardian or conservator of a minor's property or person or a person legally authorized to perform substantially the same functions;
(9) "Legal representative" means an individual's personal representative, guardian or conservator;
(10) "Member of the minor's family" means the minor's parent, stepparent, spouse, grandparent, brother, sister, uncle, or aunt, whether of the whole or half blood or by adoption;
(11) "Minor" means an individual who has not attained twenty-one (21) years of age, although the minor may already be of legal age;
(12) "Person" means an individual, corporation, organization, or other legal entity;
(13) "Personal representative" means an executor, administrator, successor personal representative, or special administrator of a decedent's estate or a person legally authorized to perform substantially the same functions;
(14) "Qualified minor's trust" means any trust, including a trust created by the custodian, that satisfies the requirements of federal Internal Revenue Code § 2503(c) ( 26 U.S.C. § 2503(c) ), and the regulations implementing that section;
(15) "State" includes any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession subject to the legislative authority of the United States;
(16) "Transfer" means a transaction that creates custodial property under this chapter;
(17) "Transferor" means a person who makes a transfer under this chapter; and
(18) "Trust company" means a financial institution, corporation, or other legal entity, authorized to exercise general trust powers.
Acts 1992, ch. 664, § 1; 1996, ch. 593, § 1; T.C.A. §35-7-202; Acts 2007 , ch. 8, § 11.
Tenn. Code Ann. § 35-15-1012 — TN Code / Title 35 / Chapter 15 / Section 35-15-1012
Protection of person dealing with trustee
Status: in_force

(a) A person other than a beneficiary who in "good faith", as defined in § 47-1-201 , assists a trustee, or who in "good faith" and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly exercised the power. (b) A person other than a beneficiary who in "good faith" deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise. (c) A person who in "good faith" delivers assets to a trustee need not ensure their proper application. (d) A person other than a beneficiary who in "good faith" assists a former trustee, or who in "good faith" and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee. (e) Comparable protective provisions of other laws, see §§ 47-8-101 - 47-8-407, relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section. Acts 2004, ch. 537, § 88.
(a) A person other than a beneficiary who in "good faith", as defined in § 47-1-201 , assists a trustee, or who in "good faith" and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly exercised the power.
(b) A person other than a beneficiary who in "good faith" deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise.
(c) A person who in "good faith" delivers assets to a trustee need not ensure their proper application.
(d) A person other than a beneficiary who in "good faith" assists a former trustee, or who in "good faith" and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee.
(e) Comparable protective provisions of other laws, see §§ 47-8-101 - 47-8-407, relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.
Acts 2004, ch. 537, § 88.
Tenn. Code Ann. § 35-7-111 — TN Code / Title 35 / Chapter 7 / Section 35-7-111
Transfers - Single and joint custodians
Status: in_force

A transfer may be made only for one (1) minor, and up to two (2) persons may be the custodians. All custodial property held under this chapter by the same custodian or custodians for the benefit of the same minor constitutes a single custodianship. If more than one (1) person is appointed a custodian, such persons shall act as joint custodians under this chapter and, unless specified in any document creating the custodial property, each joint custodian shall have full power and authority to act alone with respect to the custodial property. If either joint custodian resigns, dies, becomes incapacitated or is removed, then the remaining one (1) of them may serve as sole custodian without the necessity of appointing a successor joint custodian. Acts 1992, ch. 664, § 1; 1996, ch. 593, § 3; T.C.A. § 35-7-211.
A transfer may be made only for one (1) minor, and up to two (2) persons may be the custodians. All custodial property held under this chapter by the same custodian or custodians for the benefit of the same minor constitutes a single custodianship. If more than one (1) person is appointed a custodian, such persons shall act as joint custodians under this chapter and, unless specified in any document creating the custodial property, each joint custodian shall have full power and authority to act alone with respect to the custodial property. If either joint custodian resigns, dies, becomes incapacitated or is removed, then the remaining one (1) of them may serve as sole custodian without the necessity of appointing a successor joint custodian.
Acts 1992, ch. 664, § 1; 1996, ch. 593, § 3; T.C.A. § 35-7-211.
Tenn. Code Ann. § 35-6-104 — TN Code / Title 35 / Chapter 6 / Section 35-6-104
Trustee's power to adjust
Status: in_force

(a) A trustee may adjust between principal and income to the extent the trustee considers necessary if: (1) The trustee invests and manages trust assets as a prudent investor; (2) The terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to the trust's income; and (3) The trustee determines, after applying the rules in § 35-6-103(a) , that the trustee is unable to comply with § 35-6-103(b) . (b) In deciding whether and to what extent to exercise the power to make adjustments under this section, the trustee may consider, but is not limited to, any of the following: (1) The nature, purpose, and expected duration of the trust; (2) The intent of the settlor; (3) The identity and circumstances of the beneficiaries; (4) The needs for liquidity, regularity of income, and preservation and appreciation of capital; (5) The assets held in the trust; the extent to which they consist of financial assets, interests in closely held enterprises, tangible and intangible personal property, or real property; the extent to which an asset is used by a beneficiary; and whether an asset was purchased by the trustee or received from the settlor; (6) The net amount allocated to income under the other sections of this chapter and the increase or decrease in the value of the principal assets, which the trustee may estimate as to assets for which market values are not readily available; (7) Whether and to what extent the terms of the trust give the trustee the power to invade principal or accumulate income or prohibit the trustee from invading principal or accumulating income, and the extent to which the trustee has exercised a power from time to time to invade principal or accumulate income; (8) The actual and anticipated effect of economic conditions on principal and income and effects of inflation and deflation; and (9) The anticipated tax consequences of an adjustment. (c) A trustee may not make an adjustment: (1) That disqualifies the trust for an estate tax or gift tax marital or charitable deduction that would be allowed, in whole or in part, if the trustee did not have the power to make the adjustment; (2) That reduces the actuarial value of the income interest in a trust to which a person transfers property with the intent to qualify for a gift tax exclusion; (3) That changes the amount payable to a beneficiary as a fixed annuity or a fixed fraction of the value of the trust assets; (4) From any amount that is permanently set aside for charitable purposes under a will or the terms of a trust unless both income and principal are so set aside; (5) If possessing or exercising the power to make an adjustment causes an individual to be treated as the owner of all or part of the trust for income tax purposes, and the individual would not be treated as the owner if the trustee did not possess the power to make an adjustment; (6) If possessing or exercising the power to make an adjustment causes all or part of the trust assets to be included for estate tax purposes in the estate of an individual who has the power to remove a trustee or appoint a trustee, or both, and the assets would not be included in the estate of the individual if the trustee did not possess the power to make an adjustment; (7) If the trustee is a beneficiary of the trust; or (8) If the trustee is not a beneficiary, but the adjustment would benefit the trustee directly or indirectly. (d) If subdivision (c)(5), (c)(6), (c)(7), or (c)(8) applies to a trustee and there is more than one (1) trustee, a cotrustee to whom the provision does not apply may make the adjustment unless the exercise of the power by the remaining trustee or trustees is not permitted by the terms of the trust. (e) A trustee may release the entire power conferred by subsection (a) or may release only the power to adjust from income to principal or the power to adjust from principal to income if the trustee is uncertain about whether possessing or exercising the power will cause a result described in subdivision (c)(1)-(6) or (c)(8), or if the trustee determines that possessing or exercising the power will or may deprive the trust of a tax benefit or impose a tax burden not described in subsection (c). The release may be permanent or for a specified period, including a period measured by the life of an individual. (f) Terms of a trust that limit the power of a trustee to make an adjustment between principal and income do not affect the application of this section unless it is clear from the terms of the trust that the terms are intended to deny the trustee the power of adjustment conferred by subsection (a). (g) Nothing in this section or in this chapter is intended to create or imply a duty to make an adjustment, and a trustee is not liable for not considering whether to make an adjustment or for choosing not to make an adjustment. Acts 2000, ch. 829, § 1; 2004, ch. 866, § 7.
(a) A trustee may adjust between principal and income to the extent the trustee considers necessary if: (1) The trustee invests and manages trust assets as a prudent investor; (2) The terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to the trust's income; and (3) The trustee determines, after applying the rules in § 35-6-103(a) , that the trustee is unable to comply with § 35-6-103(b) .
(1) The trustee invests and manages trust assets as a prudent investor;
(2) The terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to the trust's income; and
(3) The trustee determines, after applying the rules in § 35-6-103(a) , that the trustee is unable to comply with § 35-6-103(b) .
(b) In deciding whether and to what extent to exercise the power to make adjustments under this section, the trustee may consider, but is not limited to, any of the following: (1) The nature, purpose, and expected duration of the trust; (2) The intent of the settlor; (3) The identity and circumstances of the beneficiaries; (4) The needs for liquidity, regularity of income, and preservation and appreciation of capital; (5) The assets held in the trust; the extent to which they consist of financial assets, interests in closely held enterprises, tangible and intangible personal property, or real property; the extent to which an asset is used by a beneficiary; and whether an asset was purchased by the trustee or received from the settlor; (6) The net amount allocated to income under the other sections of this chapter and the increase or decrease in the value of the principal assets, which the trustee may estimate as to assets for which market values are not readily available; (7) Whether and to what extent the terms of the trust give the trustee the power to invade principal or accumulate income or prohibit the trustee from invading principal or accumulating income, and the extent to which the trustee has exercised a power from time to time to invade principal or accumulate income; (8) The actual and anticipated effect of economic conditions on principal and income and effects of inflation and deflation; and (9) The anticipated tax consequences of an adjustment.
(1) The nature, purpose, and expected duration of the trust;
(2) The intent of the settlor;
(3) The identity and circumstances of the beneficiaries;
(4) The needs for liquidity, regularity of income, and preservation and appreciation of capital;
(5) The assets held in the trust; the extent to which they consist of financial assets, interests in closely held enterprises, tangible and intangible personal property, or real property; the extent to which an asset is used by a beneficiary; and whether an asset was purchased by the trustee or received from the settlor;
(6) The net amount allocated to income under the other sections of this chapter and the increase or decrease in the value of the principal assets, which the trustee may estimate as to assets for which market values are not readily available;
(7) Whether and to what extent the terms of the trust give the trustee the power to invade principal or accumulate income or prohibit the trustee from invading principal or accumulating income, and the extent to which the trustee has exercised a power from time to time to invade principal or accumulate income;
(8) The actual and anticipated effect of economic conditions on principal and income and effects of inflation and deflation; and
(9) The anticipated tax consequences of an adjustment.
(c) A trustee may not make an adjustment: (1) That disqualifies the trust for an estate tax or gift tax marital or charitable deduction that would be allowed, in whole or in part, if the trustee did not have the power to make the adjustment; (2) That reduces the actuarial value of the income interest in a trust to which a person transfers property with the intent to qualify for a gift tax exclusion; (3) That changes the amount payable to a beneficiary as a fixed annuity or a fixed fraction of the value of the trust assets; (4) From any amount that is permanently set aside for charitable purposes under a will or the terms of a trust unless both income and principal are so set aside; (5) If possessing or exercising the power to make an adjustment causes an individual to be treated as the owner of all or part of the trust for income tax purposes, and the individual would not be treated as the owner if the trustee did not possess the power to make an adjustment; (6) If possessing or exercising the power to make an adjustment causes all or part of the trust assets to be included for estate tax purposes in the estate of an individual who has the power to remove a trustee or appoint a trustee, or both, and the assets would not be included in the estate of the individual if the trustee did not possess the power to make an adjustment; (7) If the trustee is a beneficiary of the trust; or (8) If the trustee is not a beneficiary, but the adjustment would benefit the trustee directly or indirectly.
(1) That disqualifies the trust for an estate tax or gift tax marital or charitable deduction that would be allowed, in whole or in part, if the trustee did not have the power to make the adjustment;
(2) That reduces the actuarial value of the income interest in a trust to which a person transfers property with the intent to qualify for a gift tax exclusion;
(3) That changes the amount payable to a beneficiary as a fixed annuity or a fixed fraction of the value of the trust assets;
(4) From any amount that is permanently set aside for charitable purposes under a will or the terms of a trust unless both income and principal are so set aside;
(5) If possessing or exercising the power to make an adjustment causes an individual to be treated as the owner of all or part of the trust for income tax purposes, and the individual would not be treated as the owner if the trustee did not possess the power to make an adjustment;
(6) If possessing or exercising the power to make an adjustment causes all or part of the trust assets to be included for estate tax purposes in the estate of an individual who has the power to remove a trustee or appoint a trustee, or both, and the assets would not be included in the estate of the individual if the trustee did not possess the power to make an adjustment;
(7) If the trustee is a beneficiary of the trust; or
(8) If the trustee is not a beneficiary, but the adjustment would benefit the trustee directly or indirectly.
(d) If subdivision (c)(5), (c)(6), (c)(7), or (c)(8) applies to a trustee and there is more than one (1) trustee, a cotrustee to whom the provision does not apply may make the adjustment unless the exercise of the power by the remaining trustee or trustees is not permitted by the terms of the trust.
(e) A trustee may release the entire power conferred by subsection (a) or may release only the power to adjust from income to principal or the power to adjust from principal to income if the trustee is uncertain about whether possessing or exercising the power will cause a result described in subdivision (c)(1)-(6) or (c)(8), or if the trustee determines that possessing or exercising the power will or may deprive the trust of a tax benefit or impose a tax burden not described in subsection (c). The release may be permanent or for a specified period, including a period measured by the life of an individual.
(f) Terms of a trust that limit the power of a trustee to make an adjustment between principal and income do not affect the application of this section unless it is clear from the terms of the trust that the terms are intended to deny the trustee the power of adjustment conferred by subsection (a).
(g) Nothing in this section or in this chapter is intended to create or imply a duty to make an adjustment, and a trustee is not liable for not considering whether to make an adjustment or for choosing not to make an adjustment.
Acts 2000, ch. 829, § 1; 2004, ch. 866, § 7.
Tenn. Code Ann. § 35-15-1301 — TN Code / Title 35 / Chapter 15 / Section 35-15-1301
Special purpose entity
Status: in_force

(a) As used in this part: (1) "Corporate trustee" means a Tennessee trust company, a Tennessee bank with trust powers, or a national bank with trust powers and with a physical presence in Tennessee; (2) "Department" means the department of financial institutions; (3) "Designated ancestor" means one (1) or more ancestors of the family designated as such in the entity's governing documents. A designated ancestor may be either living or deceased. If two (2) designated ancestors are designated, they must be or have been spouses to each other, and if more than such first two (2) designated ancestors are designated, each such additional designated ancestor must be or have been a spouse of either of the first two (2) designated ancestors; (4) "Entity" means a corporation or a limited liability company organized in this state; (5) (A) "Family member" means a designated ancestor and: (i) An individual within the twelfth degree of lineal kinship of a designated ancestor; (ii) An individual within the eleventh degree of collateral kinship of a designated ancestor; (iii) A spouse or former spouse of a designated ancestor or of an individual defined as a family member in subdivision (a)(5)(A) or (a)(5)(B); and (iv) An individual who is a relative of a spouse or former spouse specified in subdivision (a)(5)(C) who is within the fifth degree of lineal or collateral kinship of the spouse or former spouse; (B) For purposes of determining whether a person is a family member as defined in this subdivision (a)(5): (i) A legally adopted person shall be treated as a natural child of the adoptive parents; (ii) A stepchild shall be treated as a natural child of the individual who is or was the stepparent of that child; (iii) A foster child, or an individual who was a minor when an adult became the individual's legal guardian, shall be treated as a natural child of the adult appointed as foster parent or guardian; (iv) A child of a spouse or former spouse of an individual shall be treated as a natural child of that individual; (v) Degrees are calculated by adding the number of steps from a relevant designated ancestor through each individual to the family member either directly, in case of lineal kinship, or through a designated ancestor, in the case of collateral kinship; and (vi) A person who was a family member at the time of the special purpose entity's engagement as trust protector or trust advisor shall not cease to be a family member solely due to a death, divorce, or other similar event; and (6) "Special purpose entity" means an entity that meets the requirements provided under subsection (b). (b) A special purpose entity shall not be subject to chapters 1 and 2 of title 45 regulating fiduciary activity if: (1) The entity is established for the exclusive purpose of acting as a trust protector or trust advisor as defined by § 35-15-1201 , or any combination of such purposes; (2) The entity is acting in such capacity solely under the terms of trusts in which the grantor or beneficiary is a family member, and under which a corporate trustee is serving as trustee; (3) The entity is not engaged in trust company business as a private trust company under title 45, chapter 2, part 20, or with the general public as a public trust company; (4) The entity does not hold itself out as being in the business of acting as a fiduciary for hire as either a public or private trust company; (5) The entity files an annual report with the secretary of state; (6) The entity agrees to be subject to examination by the department at the discretion of the department solely for the purpose of determining whether the entity satisfies all requirements for qualification under this part; (7) The entity agrees to pay the department the actual expenses of the examination at the time of the examination described in subdivision (b)(6); (8) The entity does not use the word "trust" or "trustee" in the entity's name in any manner; (9) The governing documents of the entity, as such governing documents may be amended from time to time, limit the entity's authorized activities to the functions permitted to a trust protector or trust advisor, or any combination of such functions, and limit the performance of those functions with respect to trusts in which a grantor or beneficiary of such trust is a family member with respect to a designated ancestor specifically named in the entity's governing documents; (10) The entity does not act as a fiduciary other than as provided in this part; and (11) On or before the date that is sixty (60) days after the date on which the entity's initial formation documents are filed with the secretary of state, the entity or the entity's organizers: (A) Provide notice to the department of: (i) The entity's intention to act as a special purpose entity; (ii) The name, address, and telephone number of each organizer of the entity; (iii) The address of the entity's principal office; and (iv) The name of each current and prospective corporate trustee for each separate trust for which such entity is or will be engaged as a trust protector or trust advisor; and (B) Pay a one-time fee of one thousand dollars ($1,000) to the department. (12) [Deleted by 2022 amendment.] (c) An entity that fails to meet any of the requirements set forth in subsection (b) is not a special purpose entity and is not authorized to act as a special purpose entity in this state. (d) Notwithstanding subsection (c), an entity that meets all of the requirements of subsection (b) other than the notice and fee requirements of subdivision (b)(11) is deemed to have satisfied all of the requirements of subsection (b) and is deemed to be a special purpose entity under this section; provided, that the entity provides the notice and fee specified in subdivision (b)(11) to the department on or before August 1, 2022. Amended by 2022 Tenn. Acts, ch. 877, Secs.s13, s14, s15, s16, s17 eff. 4/14/2022. Added by 2019 Tenn. Acts, ch. 340, s 17, eff. 5/10/2019.
(a) As used in this part: (1) "Corporate trustee" means a Tennessee trust company, a Tennessee bank with trust powers, or a national bank with trust powers and with a physical presence in Tennessee; (2) "Department" means the department of financial institutions; (3) "Designated ancestor" means one (1) or more ancestors of the family designated as such in the entity's governing documents. A designated ancestor may be either living or deceased. If two (2) designated ancestors are designated, they must be or have been spouses to each other, and if more than such first two (2) designated ancestors are designated, each such additional designated ancestor must be or have been a spouse of either of the first two (2) designated ancestors; (4) "Entity" means a corporation or a limited liability company organized in this state; (5) (A) "Family member" means a designated ancestor and: (i) An individual within the twelfth degree of lineal kinship of a designated ancestor; (ii) An individual within the eleventh degree of collateral kinship of a designated ancestor; (iii) A spouse or former spouse of a designated ancestor or of an individual defined as a family member in subdivision (a)(5)(A) or (a)(5)(B); and (iv) An individual who is a relative of a spouse or former spouse specified in subdivision (a)(5)(C) who is within the fifth degree of lineal or collateral kinship of the spouse or former spouse; (B) For purposes of determining whether a person is a family member as defined in this subdivision (a)(5): (i) A legally adopted person shall be treated as a natural child of the adoptive parents; (ii) A stepchild shall be treated as a natural child of the individual who is or was the stepparent of that child; (iii) A foster child, or an individual who was a minor when an adult became the individual's legal guardian, shall be treated as a natural child of the adult appointed as foster parent or guardian; (iv) A child of a spouse or former spouse of an individual shall be treated as a natural child of that individual; (v) Degrees are calculated by adding the number of steps from a relevant designated ancestor through each individual to the family member either directly, in case of lineal kinship, or through a designated ancestor, in the case of collateral kinship; and (vi) A person who was a family member at the time of the special purpose entity's engagement as trust protector or trust advisor shall not cease to be a family member solely due to a death, divorce, or other similar event; and (6) "Special purpose entity" means an entity that meets the requirements provided under subsection (b).
(1) "Corporate trustee" means a Tennessee trust company, a Tennessee bank with trust powers, or a national bank with trust powers and with a physical presence in Tennessee;
(2) "Department" means the department of financial institutions;
(3) "Designated ancestor" means one (1) or more ancestors of the family designated as such in the entity's governing documents. A designated ancestor may be either living or deceased. If two (2) designated ancestors are designated, they must be or have been spouses to each other, and if more than such first two (2) designated ancestors are designated, each such additional designated ancestor must be or have been a spouse of either of the first two (2) designated ancestors;
(4) "Entity" means a corporation or a limited liability company organized in this state;
(5) (A) "Family member" means a designated ancestor and: (i) An individual within the twelfth degree of lineal kinship of a designated ancestor; (ii) An individual within the eleventh degree of collateral kinship of a designated ancestor; (iii) A spouse or former spouse of a designated ancestor or of an individual defined as a family member in subdivision (a)(5)(A) or (a)(5)(B); and (iv) An individual who is a relative of a spouse or former spouse specified in subdivision (a)(5)(C) who is within the fifth degree of lineal or collateral kinship of the spouse or former spouse; (B) For purposes of determining whether a person is a family member as defined in this subdivision (a)(5): (i) A legally adopted person shall be treated as a natural child of the adoptive parents; (ii) A stepchild shall be treated as a natural child of the individual who is or was the stepparent of that child; (iii) A foster child, or an individual who was a minor when an adult became the individual's legal guardian, shall be treated as a natural child of the adult appointed as foster parent or guardian; (iv) A child of a spouse or former spouse of an individual shall be treated as a natural child of that individual; (v) Degrees are calculated by adding the number of steps from a relevant designated ancestor through each individual to the family member either directly, in case of lineal kinship, or through a designated ancestor, in the case of collateral kinship; and (vi) A person who was a family member at the time of the special purpose entity's engagement as trust protector or trust advisor shall not cease to be a family member solely due to a death, divorce, or other similar event; and
(A) "Family member" means a designated ancestor and: (i) An individual within the twelfth degree of lineal kinship of a designated ancestor; (ii) An individual within the eleventh degree of collateral kinship of a designated ancestor; (iii) A spouse or former spouse of a designated ancestor or of an individual defined as a family member in subdivision (a)(5)(A) or (a)(5)(B); and (iv) An individual who is a relative of a spouse or former spouse specified in subdivision (a)(5)(C) who is within the fifth degree of lineal or collateral kinship of the spouse or former spouse;
(i) An individual within the twelfth degree of lineal kinship of a designated ancestor;
(ii) An individual within the eleventh degree of collateral kinship of a designated ancestor;
(iii) A spouse or former spouse of a designated ancestor or of an individual defined as a family member in subdivision (a)(5)(A) or (a)(5)(B); and
(iv) An individual who is a relative of a spouse or former spouse specified in subdivision (a)(5)(C) who is within the fifth degree of lineal or collateral kinship of the spouse or former spouse;
(B) For purposes of determining whether a person is a family member as defined in this subdivision (a)(5): (i) A legally adopted person shall be treated as a natural child of the adoptive parents; (ii) A stepchild shall be treated as a natural child of the individual who is or was the stepparent of that child; (iii) A foster child, or an individual who was a minor when an adult became the individual's legal guardian, shall be treated as a natural child of the adult appointed as foster parent or guardian; (iv) A child of a spouse or former spouse of an individual shall be treated as a natural child of that individual; (v) Degrees are calculated by adding the number of steps from a relevant designated ancestor through each individual to the family member either directly, in case of lineal kinship, or through a designated ancestor, in the case of collateral kinship; and (vi) A person who was a family member at the time of the special purpose entity's engagement as trust protector or trust advisor shall not cease to be a family member solely due to a death, divorce, or other similar event; and
(i) A legally adopted person shall be treated as a natural child of the adoptive parents;
(ii) A stepchild shall be treated as a natural child of the individual who is or was the stepparent of that child;
(iii) A foster child, or an individual who was a minor when an adult became the individual's legal guardian, shall be treated as a natural child of the adult appointed as foster parent or guardian;
(iv) A child of a spouse or former spouse of an individual shall be treated as a natural child of that individual;
(v) Degrees are calculated by adding the number of steps from a relevant designated ancestor through each individual to the family member either directly, in case of lineal kinship, or through a designated ancestor, in the case of collateral kinship; and
(vi) A person who was a family member at the time of the special purpose entity's engagement as trust protector or trust advisor shall not cease to be a family member solely due to a death, divorce, or other similar event; and
(6) "Special purpose entity" means an entity that meets the requirements provided under subsection (b).
(b) A special purpose entity shall not be subject to chapters 1 and 2 of title 45 regulating fiduciary activity if: (1) The entity is established for the exclusive purpose of acting as a trust protector or trust advisor as defined by § 35-15-1201 , or any combination of such purposes; (2) The entity is acting in such capacity solely under the terms of trusts in which the grantor or beneficiary is a family member, and under which a corporate trustee is serving as trustee; (3) The entity is not engaged in trust company business as a private trust company under title 45, chapter 2, part 20, or with the general public as a public trust company; (4) The entity does not hold itself out as being in the business of acting as a fiduciary for hire as either a public or private trust company; (5) The entity files an annual report with the secretary of state; (6) The entity agrees to be subject to examination by the department at the discretion of the department solely for the purpose of determining whether the entity satisfies all requirements for qualification under this part; (7) The entity agrees to pay the department the actual expenses of the examination at the time of the examination described in subdivision (b)(6); (8) The entity does not use the word "trust" or "trustee" in the entity's name in any manner; (9) The governing documents of the entity, as such governing documents may be amended from time to time, limit the entity's authorized activities to the functions permitted to a trust protector or trust advisor, or any combination of such functions, and limit the performance of those functions with respect to trusts in which a grantor or beneficiary of such trust is a family member with respect to a designated ancestor specifically named in the entity's governing documents; (10) The entity does not act as a fiduciary other than as provided in this part; and (11) On or before the date that is sixty (60) days after the date on which the entity's initial formation documents are filed with the secretary of state, the entity or the entity's organizers: (A) Provide notice to the department of: (i) The entity's intention to act as a special purpose entity; (ii) The name, address, and telephone number of each organizer of the entity; (iii) The address of the entity's principal office; and (iv) The name of each current and prospective corporate trustee for each separate trust for which such entity is or will be engaged as a trust protector or trust advisor; and (B) Pay a one-time fee of one thousand dollars ($1,000) to the department. (12) [Deleted by 2022 amendment.]
(1) The entity is established for the exclusive purpose of acting as a trust protector or trust advisor as defined by § 35-15-1201 , or any combination of such purposes;
(2) The entity is acting in such capacity solely under the terms of trusts in which the grantor or beneficiary is a family member, and under which a corporate trustee is serving as trustee;
(3) The entity is not engaged in trust company business as a private trust company under title 45, chapter 2, part 20, or with the general public as a public trust company;
(4) The entity does not hold itself out as being in the business of acting as a fiduciary for hire as either a public or private trust company;
(5) The entity files an annual report with the secretary of state;
(6) The entity agrees to be subject to examination by the department at the discretion of the department solely for the purpose of determining whether the entity satisfies all requirements for qualification under this part;
(7) The entity agrees to pay the department the actual expenses of the examination at the time of the examination described in subdivision (b)(6);
(8) The entity does not use the word "trust" or "trustee" in the entity's name in any manner;
(9) The governing documents of the entity, as such governing documents may be amended from time to time, limit the entity's authorized activities to the functions permitted to a trust protector or trust advisor, or any combination of such functions, and limit the performance of those functions with respect to trusts in which a grantor or beneficiary of such trust is a family member with respect to a designated ancestor specifically named in the entity's governing documents;
(10) The entity does not act as a fiduciary other than as provided in this part; and
(11) On or before the date that is sixty (60) days after the date on which the entity's initial formation documents are filed with the secretary of state, the entity or the entity's organizers: (A) Provide notice to the department of: (i) The entity's intention to act as a special purpose entity; (ii) The name, address, and telephone number of each organizer of the entity; (iii) The address of the entity's principal office; and (iv) The name of each current and prospective corporate trustee for each separate trust for which such entity is or will be engaged as a trust protector or trust advisor; and (B) Pay a one-time fee of one thousand dollars ($1,000) to the department.
(A) Provide notice to the department of: (i) The entity's intention to act as a special purpose entity; (ii) The name, address, and telephone number of each organizer of the entity; (iii) The address of the entity's principal office; and (iv) The name of each current and prospective corporate trustee for each separate trust for which such entity is or will be engaged as a trust protector or trust advisor; and
(i) The entity's intention to act as a special purpose entity;
(ii) The name, address, and telephone number of each organizer of the entity;
(iii) The address of the entity's principal office; and
(iv) The name of each current and prospective corporate trustee for each separate trust for which such entity is or will be engaged as a trust protector or trust advisor; and
(B) Pay a one-time fee of one thousand dollars ($1,000) to the department.
(12) [Deleted by 2022 amendment.]
(c) An entity that fails to meet any of the requirements set forth in subsection (b) is not a special purpose entity and is not authorized to act as a special purpose entity in this state.
(d) Notwithstanding subsection (c), an entity that meets all of the requirements of subsection (b) other than the notice and fee requirements of subdivision (b)(11) is deemed to have satisfied all of the requirements of subsection (b) and is deemed to be a special purpose entity under this section; provided, that the entity provides the notice and fee specified in subdivision (b)(11) to the department on or before August 1, 2022.
Amended by 2022 Tenn. Acts, ch. 877, Secs.s13, s14, s15, s16, s17 eff. 4/14/2022.
Added by 2019 Tenn. Acts, ch. 340, s 17, eff. 5/10/2019.
Tenn. Code Ann. § 35-15-901 — TN Code / Title 35 / Chapter 15 / Section 35-15-901
Uniform Principal and Income Act and Tennessee Uniform Prudent Investor Act of 2002 incorporated by reference
Status: in_force

Title 35, chapter 6 and chapter 14 are incorporated in this chapter by reference. Amended by 2013 Tenn. Acts, ch. 390,s 39, eff. 7/1/2013. Acts 2004, ch. 537, § 76.
Title 35, chapter 6 and chapter 14 are incorporated in this chapter by reference.
Amended by 2013 Tenn. Acts, ch. 390,s 39, eff. 7/1/2013.
Acts 2004, ch. 537, § 76.
Tenn. Code Ann. § 35-10-106 — TN Code / Title 35 / Chapter 10 / Section 35-10-106
Release or modification of restrictions on management, investment, or purpose
Status: in_force

(a) If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution. (b) The court, upon application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if the restriction has become impracticable or wasteful, if it impairs the management or investment of the fund, or if, because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund. The institution shall notify the attorney general and reporter of the application, and the attorney general and reporter must be given an opportunity to be heard. To the extent practicable, any modification must be made in accordance with the donor's probable intention. (c) If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, or wasteful, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument. The institution shall notify the attorney general and reporter of the application, and the attorney general and reporter must be given an opportunity to be heard. (d) If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible to achieve, or wasteful, the institution, sixty (60) days after notification to the attorney general and reporter, may release or modify the restriction, in whole or part, if: (1) The institutional fund subject to the restriction has a total value of less than one hundred fifty thousand dollars ($150,000). This dollar limit shall increase by an amount of five thousand dollars ($5,000) on July 1, 2011, and on each July 1 in subsequent years; (2) More than twenty (20) years have elapsed since the fund was established; and (3) The institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.
(a) If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution.
(b) The court, upon application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if the restriction has become impracticable or wasteful, if it impairs the management or investment of the fund, or if, because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund. The institution shall notify the attorney general and reporter of the application, and the attorney general and reporter must be given an opportunity to be heard. To the extent practicable, any modification must be made in accordance with the donor's probable intention.
(c) If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, or wasteful, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument. The institution shall notify the attorney general and reporter of the application, and the attorney general and reporter must be given an opportunity to be heard.
(d) If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible to achieve, or wasteful, the institution, sixty (60) days after notification to the attorney general and reporter, may release or modify the restriction, in whole or part, if: (1) The institutional fund subject to the restriction has a total value of less than one hundred fifty thousand dollars ($150,000). This dollar limit shall increase by an amount of five thousand dollars ($5,000) on July 1, 2011, and on each July 1 in subsequent years; (2) More than twenty (20) years have elapsed since the fund was established; and (3) The institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.
(1) The institutional fund subject to the restriction has a total value of less than one hundred fifty thousand dollars ($150,000). This dollar limit shall increase by an amount of five thousand dollars ($5,000) on July 1, 2011, and on each July 1 in subsequent years;
(2) More than twenty (20) years have elapsed since the fund was established; and
(3) The institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.
Tenn. Code Ann. § 35-15-1201 — TN Code / Title 35 / Chapter 15 / Section 35-15-1201
Powers of trust advisors and trust protectors
Status: in_force

(a) A trust protector or trust advisor is any person, and may be a committee of more than one person, other than a trustee, who under the terms of the trust, an agreement of the qualified beneficiaries, or a court order has a power or duty with respect to a trust, including but not limited to, one or more of the following powers: (1) The power to modify or amend the trust instrument to achieve favorable tax status or respond to changes in any applicable federal, state, or other tax law affecting the trust, including but not limited to, any rulings, regulations, or other guidance implementing or interpreting such laws; (2) The power to amend or modify the trust instrument to take advantage of changes in the rule against perpetuities, laws governing restraints on alienation, or other state laws restricting the terms of the trust, the distribution of trust property, or the administration of the trust; (3) The power to appoint a successor trust protector or trust advisor; (4) The power to review and approve a trustee's trust reports or accountings; (5) The power to change the governing law or principal place of administration of the trust; (6) The power to remove and replace any trust advisor or trust protector for the reasons stated in the trust instrument; (7) The power to remove a trustee, cotrustee, or successor trustee, for the reasons stated in the trust instrument, and appoint a successor; (8) The power to consent to a trustee's or cotrustee's action or inaction in making distributions to beneficiaries; (9) The power to increase or decrease any interest of the beneficiaries in the trust, to grant a power of appointment to one (1) or more trust beneficiaries, or to terminate or amend any power of appointment granted in the trust; (10) The power to perform a specific duty or function that would normally be required of a trustee or cotrustee; (11) The power to advise the trustee or cotrustee concerning any beneficiary; (12) The power to consent to a trustee's or cotrustee's action or inaction relating to investments of trust assets; (13) The power to direct the acquisition, disposition, or retention of any trust investment; (14) The power to appoint under § 35-15-816(b)(27) ; (15) The power to terminate all or part of a trust; (16) The power to veto or direct all or part of any trust distribution; (17) The power to borrow money with or without security, and mortgage or pledge trust property for a period within or extending beyond the duration of the trust; (18) The power to make loans out of trust property, including but not limited to, loans to a beneficiary on terms and conditions, including without interest, considered to be fair and reasonable under the circumstances; (19) The power to vote proxies and exercise all other rights of ownership relative to securities and business entities held by the trust; (20) The power to select one (1) or more investment advisors, managers or counselors, including but not limited to, a trustee and delegate to them any of its powers; and (21) The power to direct the trustee with respect to any additional powers and discretions over investment and management of trust assets provided in the trust instrument. (b) The exercise of a power by a trust advisor or a trust protector shall be exercised in the sole and absolute discretion of the trust advisor or trust protector and shall be binding on all other persons. (c) Any power of a trust advisor or trust protector to directly or indirectly modify a trust may be granted notwithstanding §§ 35-15-410 - 35-15-412 and 35-15-414. (d) An excluded fiduciary may continue to follow the direction of a trust protector or trust advisor upon the incapacity or death of the grantor of a trust to the extent provided in the trust instrument. (e) Notwithstanding anything in this section to the contrary, no modification, amendment or grant of a power of appointment with respect to a trust all of whose beneficiaries are charitable organizations may authorize a trust protector or trust advisor to grant a beneficial interest in such trust to any noncharitable interest or purpose. Added by 2013 Tenn. Acts, ch. 390, s 43, eff. 7/1/2013.
(a) A trust protector or trust advisor is any person, and may be a committee of more than one person, other than a trustee, who under the terms of the trust, an agreement of the qualified beneficiaries, or a court order has a power or duty with respect to a trust, including but not limited to, one or more of the following powers: (1) The power to modify or amend the trust instrument to achieve favorable tax status or respond to changes in any applicable federal, state, or other tax law affecting the trust, including but not limited to, any rulings, regulations, or other guidance implementing or interpreting such laws; (2) The power to amend or modify the trust instrument to take advantage of changes in the rule against perpetuities, laws governing restraints on alienation, or other state laws restricting the terms of the trust, the distribution of trust property, or the administration of the trust; (3) The power to appoint a successor trust protector or trust advisor; (4) The power to review and approve a trustee's trust reports or accountings; (5) The power to change the governing law or principal place of administration of the trust; (6) The power to remove and replace any trust advisor or trust protector for the reasons stated in the trust instrument; (7) The power to remove a trustee, cotrustee, or successor trustee, for the reasons stated in the trust instrument, and appoint a successor; (8) The power to consent to a trustee's or cotrustee's action or inaction in making distributions to beneficiaries; (9) The power to increase or decrease any interest of the beneficiaries in the trust, to grant a power of appointment to one (1) or more trust beneficiaries, or to terminate or amend any power of appointment granted in the trust; (10) The power to perform a specific duty or function that would normally be required of a trustee or cotrustee; (11) The power to advise the trustee or cotrustee concerning any beneficiary; (12) The power to consent to a trustee's or cotrustee's action or inaction relating to investments of trust assets; (13) The power to direct the acquisition, disposition, or retention of any trust investment; (14) The power to appoint under § 35-15-816(b)(27) ; (15) The power to terminate all or part of a trust; (16) The power to veto or direct all or part of any trust distribution; (17) The power to borrow money with or without security, and mortgage or pledge trust property for a period within or extending beyond the duration of the trust; (18) The power to make loans out of trust property, including but not limited to, loans to a beneficiary on terms and conditions, including without interest, considered to be fair and reasonable under the circumstances; (19) The power to vote proxies and exercise all other rights of ownership relative to securities and business entities held by the trust; (20) The power to select one (1) or more investment advisors, managers or counselors, including but not limited to, a trustee and delegate to them any of its powers; and (21) The power to direct the trustee with respect to any additional powers and discretions over investment and management of trust assets provided in the trust instrument.
(1) The power to modify or amend the trust instrument to achieve favorable tax status or respond to changes in any applicable federal, state, or other tax law affecting the trust, including but not limited to, any rulings, regulations, or other guidance implementing or interpreting such laws;
(2) The power to amend or modify the trust instrument to take advantage of changes in the rule against perpetuities, laws governing restraints on alienation, or other state laws restricting the terms of the trust, the distribution of trust property, or the administration of the trust;
(3) The power to appoint a successor trust protector or trust advisor;
(4) The power to review and approve a trustee's trust reports or accountings;
(5) The power to change the governing law or principal place of administration of the trust;
(6) The power to remove and replace any trust advisor or trust protector for the reasons stated in the trust instrument;
(7) The power to remove a trustee, cotrustee, or successor trustee, for the reasons stated in the trust instrument, and appoint a successor;
(8) The power to consent to a trustee's or cotrustee's action or inaction in making distributions to beneficiaries;
(9) The power to increase or decrease any interest of the beneficiaries in the trust, to grant a power of appointment to one (1) or more trust beneficiaries, or to terminate or amend any power of appointment granted in the trust;
(10) The power to perform a specific duty or function that would normally be required of a trustee or cotrustee;
(11) The power to advise the trustee or cotrustee concerning any beneficiary;
(12) The power to consent to a trustee's or cotrustee's action or inaction relating to investments of trust assets;
(13) The power to direct the acquisition, disposition, or retention of any trust investment;
(14) The power to appoint under § 35-15-816(b)(27) ;
(15) The power to terminate all or part of a trust;
(16) The power to veto or direct all or part of any trust distribution;
(17) The power to borrow money with or without security, and mortgage or pledge trust property for a period within or extending beyond the duration of the trust;
(18) The power to make loans out of trust property, including but not limited to, loans to a beneficiary on terms and conditions, including without interest, considered to be fair and reasonable under the circumstances;
(19) The power to vote proxies and exercise all other rights of ownership relative to securities and business entities held by the trust;
(20) The power to select one (1) or more investment advisors, managers or counselors, including but not limited to, a trustee and delegate to them any of its powers; and
(21) The power to direct the trustee with respect to any additional powers and discretions over investment and management of trust assets provided in the trust instrument.
(b) The exercise of a power by a trust advisor or a trust protector shall be exercised in the sole and absolute discretion of the trust advisor or trust protector and shall be binding on all other persons.
(c) Any power of a trust advisor or trust protector to directly or indirectly modify a trust may be granted notwithstanding §§ 35-15-410 - 35-15-412 and 35-15-414.
(d) An excluded fiduciary may continue to follow the direction of a trust protector or trust advisor upon the incapacity or death of the grantor of a trust to the extent provided in the trust instrument.
(e) Notwithstanding anything in this section to the contrary, no modification, amendment or grant of a power of appointment with respect to a trust all of whose beneficiaries are charitable organizations may authorize a trust protector or trust advisor to grant a beneficial interest in such trust to any noncharitable interest or purpose.
Added by 2013 Tenn. Acts, ch. 390, s 43, eff. 7/1/2013.
Tenn. Code Ann. § 35-9-108 — TN Code / Title 35 / Chapter 9 / Section 35-9-108
Information or actions that cannot be required
Status: in_force

(a) For the purposes of this section, "private foundation" has the same meaning ascribed to "private foundation" in § 509(a) of the Internal Revenue Code of 1986 ( 26 U.S.C. § 509(a) ), as amended. (b) No private foundation shall be required by a department, agency, board, or other entity of state or local government to: (1) Disclose the race, religion, gender, national origin, socioeconomic status, age, ethnicity, disability, marital status, or sexual orientation of: (A) The foundation's employees, officers, directors, trustees, or contributors, without the prior written consent of the individual or individuals in question; or (B) Any individual, or of the employees, officers, directors, trustees, members, or owners of any entity, that has received monetary or in-kind contributions or grants from, or contracted with, the foundation, without the prior written consent of the individual or individuals in question; (2) Hire, appoint, or elect an individual of any particular race, religion, gender, national origin, socioeconomic status, age, ethnicity, disability, marital status, or sexual orientation as an employee, officer, director, or trustee of the foundation; (3) Disqualify, remove, or prohibit service of an individual as an officer, director, or trustee of the foundation based upon such individual's familial relationship to other officers, directors, or trustees of the foundation or a contributor to the foundation; (4) Hire, appoint, or elect an individual as an officer, director, or trustee of the foundation who does not share a familial relationship with the other officers, directors, or trustees of the foundation or with a contributor to the foundation; or (5) Except as a lawful condition or requirement on the expenditure of particular funds imposed by the contributor or grantor of such funds, distribute the foundation's funds to, or contract with, any individual or entity based upon the: (A) Race, religion, gender, national origin, socioeconomic status, age, ethnicity, disability, marital status, or sexual orientation of the individual or of the employees, officers, directors, trustees, members, or owners of the entity; or (B) Populations, locales, or communities served by the individual or entity. Added by 2013 Tenn. Acts, ch. 193, s 1, eff. 4/23/2013.
(a) For the purposes of this section, "private foundation" has the same meaning ascribed to "private foundation" in § 509(a) of the Internal Revenue Code of 1986 ( 26 U.S.C. § 509(a) ), as amended.
(b) No private foundation shall be required by a department, agency, board, or other entity of state or local government to: (1) Disclose the race, religion, gender, national origin, socioeconomic status, age, ethnicity, disability, marital status, or sexual orientation of: (A) The foundation's employees, officers, directors, trustees, or contributors, without the prior written consent of the individual or individuals in question; or (B) Any individual, or of the employees, officers, directors, trustees, members, or owners of any entity, that has received monetary or in-kind contributions or grants from, or contracted with, the foundation, without the prior written consent of the individual or individuals in question; (2) Hire, appoint, or elect an individual of any particular race, religion, gender, national origin, socioeconomic status, age, ethnicity, disability, marital status, or sexual orientation as an employee, officer, director, or trustee of the foundation; (3) Disqualify, remove, or prohibit service of an individual as an officer, director, or trustee of the foundation based upon such individual's familial relationship to other officers, directors, or trustees of the foundation or a contributor to the foundation; (4) Hire, appoint, or elect an individual as an officer, director, or trustee of the foundation who does not share a familial relationship with the other officers, directors, or trustees of the foundation or with a contributor to the foundation; or (5) Except as a lawful condition or requirement on the expenditure of particular funds imposed by the contributor or grantor of such funds, distribute the foundation's funds to, or contract with, any individual or entity based upon the: (A) Race, religion, gender, national origin, socioeconomic status, age, ethnicity, disability, marital status, or sexual orientation of the individual or of the employees, officers, directors, trustees, members, or owners of the entity; or (B) Populations, locales, or communities served by the individual or entity.
(1) Disclose the race, religion, gender, national origin, socioeconomic status, age, ethnicity, disability, marital status, or sexual orientation of: (A) The foundation's employees, officers, directors, trustees, or contributors, without the prior written consent of the individual or individuals in question; or (B) Any individual, or of the employees, officers, directors, trustees, members, or owners of any entity, that has received monetary or in-kind contributions or grants from, or contracted with, the foundation, without the prior written consent of the individual or individuals in question;
(A) The foundation's employees, officers, directors, trustees, or contributors, without the prior written consent of the individual or individuals in question; or
(B) Any individual, or of the employees, officers, directors, trustees, members, or owners of any entity, that has received monetary or in-kind contributions or grants from, or contracted with, the foundation, without the prior written consent of the individual or individuals in question;
(2) Hire, appoint, or elect an individual of any particular race, religion, gender, national origin, socioeconomic status, age, ethnicity, disability, marital status, or sexual orientation as an employee, officer, director, or trustee of the foundation;
(3) Disqualify, remove, or prohibit service of an individual as an officer, director, or trustee of the foundation based upon such individual's familial relationship to other officers, directors, or trustees of the foundation or a contributor to the foundation;
(4) Hire, appoint, or elect an individual as an officer, director, or trustee of the foundation who does not share a familial relationship with the other officers, directors, or trustees of the foundation or with a contributor to the foundation; or
(5) Except as a lawful condition or requirement on the expenditure of particular funds imposed by the contributor or grantor of such funds, distribute the foundation's funds to, or contract with, any individual or entity based upon the: (A) Race, religion, gender, national origin, socioeconomic status, age, ethnicity, disability, marital status, or sexual orientation of the individual or of the employees, officers, directors, trustees, members, or owners of the entity; or (B) Populations, locales, or communities served by the individual or entity.
(A) Race, religion, gender, national origin, socioeconomic status, age, ethnicity, disability, marital status, or sexual orientation of the individual or of the employees, officers, directors, trustees, members, or owners of the entity; or
(B) Populations, locales, or communities served by the individual or entity.
Added by 2013 Tenn. Acts, ch. 193, s 1, eff. 4/23/2013.
Tenn. Code Ann. § 35-6-102 — TN Code / Title 35 / Chapter 6 / Section 35-6-102
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Accounting period" means a calendar year unless another twelve-month period is selected by a fiduciary. The term includes a portion of a calendar year or other twelve-month period that begins when an income interest begins or ends when an income interest ends; (2) "Beneficiary" includes, in the case of a decedent's estate, an heir, legatee, and devisee and, in the case of a trust, an income beneficiary and a remainder beneficiary; (3) "Fiduciary" means a personal representative or a trustee. The term includes an executor, administrator, successor personal representative, special administrator, and a person performing substantially the same function; (4) "Income" means money or property that a fiduciary receives as current return from a principal asset. The term includes a portion of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in part 4 of this chapter; (5) "Income beneficiary" means a person to whom net income of a trust is or may be payable; (6) "Income interest" means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion; (7) "Mandatory income interest" means the right of an income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute; (8) "Net income" means the total receipts allocated to income during an accounting period minus the disbursements made from income during the period, plus or minus transfers under this chapter to or from income during the period; (9) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency or instrumentality, public corporation, or any other legal or commercial entity; (10) "Principal" means property held in trust for distribution to a remainder beneficiary when the trust terminates; (11) "Remainder beneficiary" means a person entitled to receive principal when an income interest ends; (12) "Terms of a trust" means the manifestation of the intent of a settlor or decedent with respect to the trust, expressed in a manner that admits of its proof in a judicial proceeding, whether by written or spoken words or by conduct; (13) "Trustee" includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court. Acts 2000, ch. 829, § 1.
As used in this chapter, unless the context otherwise requires:
(1) "Accounting period" means a calendar year unless another twelve-month period is selected by a fiduciary. The term includes a portion of a calendar year or other twelve-month period that begins when an income interest begins or ends when an income interest ends;
(2) "Beneficiary" includes, in the case of a decedent's estate, an heir, legatee, and devisee and, in the case of a trust, an income beneficiary and a remainder beneficiary;
(3) "Fiduciary" means a personal representative or a trustee. The term includes an executor, administrator, successor personal representative, special administrator, and a person performing substantially the same function;
(4) "Income" means money or property that a fiduciary receives as current return from a principal asset. The term includes a portion of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in part 4 of this chapter;
(5) "Income beneficiary" means a person to whom net income of a trust is or may be payable;
(6) "Income interest" means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion;
(7) "Mandatory income interest" means the right of an income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute;
(8) "Net income" means the total receipts allocated to income during an accounting period minus the disbursements made from income during the period, plus or minus transfers under this chapter to or from income during the period;
(9) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency or instrumentality, public corporation, or any other legal or commercial entity;
(10) "Principal" means property held in trust for distribution to a remainder beneficiary when the trust terminates;
(11) "Remainder beneficiary" means a person entitled to receive principal when an income interest ends;
(12) "Terms of a trust" means the manifestation of the intent of a settlor or decedent with respect to the trust, expressed in a manner that admits of its proof in a judicial proceeding, whether by written or spoken words or by conduct;
(13) "Trustee" includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-4-105 — TN Code / Title 35 / Chapter 4 / Section 35-4-105
Fiduciary relationships to which chapter applicable
Status: in_force

This chapter applies to fiduciary relationships in existence on April 8, 1953, or established after that date. Acts 1953, ch. 148, § 7; T.C.A. (orig. ed.), § 35-405.
This chapter applies to fiduciary relationships in existence on April 8, 1953, or established after that date.
Acts 1953, ch. 148, § 7; T.C.A. (orig. ed.), § 35-405.
Tenn. Code Ann. § 35-7-122 — TN Code / Title 35 / Chapter 7 / Section 35-7-122
Applicability
Status: in_force

This chapter also applies to a transfer made on or after October 1, 1992, if: (1) The transfer purports to have been made under the Tennessee Uniform Gifts to Minors Act; or (2) The instrument by which the transfer purports to have been made uses in substance the designation "as custodian under the Uniform Gifts to Minors Act" or "as custodian under the Uniform Transfers to Minors Act" of any other state, and the application of this chapter is necessary to validate the transfer. Acts 1992, ch. 664, § 1; T.C.A. § 35-7-222.
This chapter also applies to a transfer made on or after October 1, 1992, if:
(1) The transfer purports to have been made under the Tennessee Uniform Gifts to Minors Act; or
(2) The instrument by which the transfer purports to have been made uses in substance the designation "as custodian under the Uniform Gifts to Minors Act" or "as custodian under the Uniform Transfers to Minors Act" of any other state, and the application of this chapter is necessary to validate the transfer.
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-222.
Tenn. Code Ann. § 35-15-711 — TN Code / Title 35 / Chapter 15 / Section 35-15-711
Directed trusts - Accepting or declining fiduciary appointment
Status: in_force

(a) A trust advisor, trust protector or other fiduciary other than a cotrustee, such cotrustee already being provided for in § 35-15-701(a) , may accept its appointment as such respective fiduciary in a like manner as provided for a trustee under § 35-15-701(a) . (b) A trust advisor, trust protector or other fiduciary other than a cotrustee, such cotrustee already being provided for in § 35-15-701(b) , may reject its appointment as such respective fiduciary in a like manner as provided for a trustee under § 35-15-701(b) . (c) A trust advisor, trust protector or other fiduciary other than a cotrustee, such cotrustee already being provided for in § 35-15-701(c) , may, without accepting its appointment as such respective fiduciary, carry out the appropriate activities relative to such respective fiduciary as are provided for a trustee under § 35-15-701(c) . 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 already being provided for in § 35-15-701(a) , may accept its appointment as such respective fiduciary in a like manner as provided for a trustee under § 35-15-701(a) .
(b) A trust advisor, trust protector or other fiduciary other than a cotrustee, such cotrustee already being provided for in § 35-15-701(b) , may reject its appointment as such respective fiduciary in a like manner as provided for a trustee under § 35-15-701(b) .
(c) A trust advisor, trust protector or other fiduciary other than a cotrustee, such cotrustee already being provided for in § 35-15-701(c) , may, without accepting its appointment as such respective fiduciary, carry out the appropriate activities relative to such respective fiduciary as are provided for a trustee under § 35-15-701(c) .
Added by 2013 Tenn. Acts, ch. 390, s 29, eff. 7/1/2013.
Tenn. Code Ann. § 35-15-812 — TN Code / Title 35 / Chapter 15 / Section 35-15-812
Collecting trust property
Status: in_force

A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to redress a breach of trust known to the trustee to have been committed by a former trustee. No successor trustee appointed after the examination of the accounts of a trustee or the waiver of the examination by the beneficiaries shall be responsible for the acts and omissions of the prior trustee. Acts 2004, ch. 537, § 70.
A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to redress a breach of trust known to the trustee to have been committed by a former trustee. No successor trustee appointed after the examination of the accounts of a trustee or the waiver of the examination by the beneficiaries shall be responsible for the acts and omissions of the prior trustee.
Acts 2004, ch. 537, § 70.
Tenn. Code Ann. § 35-3-123 — TN Code / Title 35 / Chapter 3 / Section 35-3-123
Trustee liability - Action upon written directions
Status: in_force

(a) A trustee of a revocable, irrevocable or testamentary trust is not liable to any beneficiary for any act performed or omitted pursuant to written directions from the person holding the power to revoke, terminate or amend the trust. (b) A trustee of a revocable, irrevocable or testamentary trust is not liable for any investment action performed or omitted pursuant to written directions from the person to whom the power to direct the investment or management of the account is delegated by the trustor. Acts 1989, ch. 288, § 3.
(a) A trustee of a revocable, irrevocable or testamentary trust is not liable to any beneficiary for any act performed or omitted pursuant to written directions from the person holding the power to revoke, terminate or amend the trust.
(b) A trustee of a revocable, irrevocable or testamentary trust is not liable for any investment action performed or omitted pursuant to written directions from the person to whom the power to direct the investment or management of the account is delegated by the trustor.
Acts 1989, ch. 288, § 3.
Tenn. Code Ann. § 35-15-112 — TN Code / Title 35 / Chapter 15 / Section 35-15-112
Rules of construction
Status: in_force

The rules of construction that apply in this state to the interpretation of and disposition of property by will also apply as appropriate to the interpretation of the terms of a trust and the disposition of the trust property. Acts 2004, ch. 537, § 13.
The rules of construction that apply in this state to the interpretation of and disposition of property by will also apply as appropriate to the interpretation of the terms of a trust and the disposition of the trust property.
Acts 2004, ch. 537, § 13.
Tenn. Code Ann. § 35-6-502 — TN Code / Title 35 / Chapter 6 / Section 35-6-502
Disbursements from principal
Status: in_force

(a) A trustee shall make the following disbursements from principal: (1) The remaining one-half (½) of the disbursements described in § 35-6-501(1) and (2) ; however, if in the judgment of the trustee, the charging of a part or all of that portion of the compensation described under § 35-6-501(1) to principal is impracticable because of the lack of sufficient principal cash and readily marketable intangible personal property, or inadvisable because of the nature of the assets, then that part or all of the compensation must be paid out of income so long as the adjustment does not violate § 35-6-104(c) . The decision of the trustee to pay a larger portion or all of the compensation out of income is conclusive, and the income of the trust is not entitled to reimbursement from principal at any subsequent time or times; (2) All of the trustee's compensation calculated on principal as a fee for acceptance, distribution, or termination, and disbursements made to prepare property for sale; (3) Payments on the principal of a trust debt; (4) Expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property; (5) Premiums paid on a policy of insurance not described in § 35-6-501(4) of which the trust is the owner and beneficiary; (6) Estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust; and (7) Disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of those activities, penalties imposed under environmental laws or regulations and other payments made to comply with those laws or regulations, statutory or common law claims by third parties, and defending claims based on environmental matters. (b) If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation. Amended by 2021 Tenn. Acts, ch. 420, s 18, eff. 7/1/2021. Acts 2000, ch. 829, § 1.
(a) A trustee shall make the following disbursements from principal: (1) The remaining one-half (½) of the disbursements described in § 35-6-501(1) and (2) ; however, if in the judgment of the trustee, the charging of a part or all of that portion of the compensation described under § 35-6-501(1) to principal is impracticable because of the lack of sufficient principal cash and readily marketable intangible personal property, or inadvisable because of the nature of the assets, then that part or all of the compensation must be paid out of income so long as the adjustment does not violate § 35-6-104(c) . The decision of the trustee to pay a larger portion or all of the compensation out of income is conclusive, and the income of the trust is not entitled to reimbursement from principal at any subsequent time or times; (2) All of the trustee's compensation calculated on principal as a fee for acceptance, distribution, or termination, and disbursements made to prepare property for sale; (3) Payments on the principal of a trust debt; (4) Expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property; (5) Premiums paid on a policy of insurance not described in § 35-6-501(4) of which the trust is the owner and beneficiary; (6) Estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust; and (7) Disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of those activities, penalties imposed under environmental laws or regulations and other payments made to comply with those laws or regulations, statutory or common law claims by third parties, and defending claims based on environmental matters.
(1) The remaining one-half (½) of the disbursements described in § 35-6-501(1) and (2) ; however, if in the judgment of the trustee, the charging of a part or all of that portion of the compensation described under § 35-6-501(1) to principal is impracticable because of the lack of sufficient principal cash and readily marketable intangible personal property, or inadvisable because of the nature of the assets, then that part or all of the compensation must be paid out of income so long as the adjustment does not violate § 35-6-104(c) . The decision of the trustee to pay a larger portion or all of the compensation out of income is conclusive, and the income of the trust is not entitled to reimbursement from principal at any subsequent time or times;
(2) All of the trustee's compensation calculated on principal as a fee for acceptance, distribution, or termination, and disbursements made to prepare property for sale;
(3) Payments on the principal of a trust debt;
(4) Expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property;
(5) Premiums paid on a policy of insurance not described in § 35-6-501(4) of which the trust is the owner and beneficiary;
(6) Estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust; and
(7) Disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of those activities, penalties imposed under environmental laws or regulations and other payments made to comply with those laws or regulations, statutory or common law claims by third parties, and defending claims based on environmental matters.
(b) If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.
Amended by 2021 Tenn. Acts, ch. 420, s 18, eff. 7/1/2021.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-7-119 — TN Code / Title 35 / Chapter 7 / Section 35-7-119
Renunciation, resignation, death, or removal of custodian - Designation of successor custodian
Status: in_force

(a) A person nominated under § 35-7-104 , or designated under § 35-7-110 , as custodian may decline to serve by delivering a written disclaimer to the person who made the nomination or to the transferor or the transferor's legal representative. If the event giving rise to a transfer has not occurred and no substitute custodian able, willing and eligible to serve was nominated, the person who made the nomination may nominate a substitute custodian; otherwise, the transferor or the transferor's legal representative shall designate a substitute custodian at the time of the transfer, in either case from among the persons eligible to serve as custodian for that kind of property. The custodian so designated has the rights of a successor custodian. (b) A custodian at any time may designate a trust company or an adult other than a transferor under this chapter as successor custodian by executing and dating an instrument of designation before a subscribing witness other than the successor. If the instrument of designation does not contain or is not accompanied by the resignation of the custodian, the designation of the successor does not take effect until the custodian resigns, dies, becomes incapacitated, or is removed. (c) A custodian may resign at any time by delivering written notice to the minor if the minor has attained fourteen (14) years of age and to the successor custodian and by delivering the custodial property to the successor custodian. (d) If a custodian is ineligible, dies, or becomes incapacitated without having effectively designated a successor and the minor has attained fourteen (14) years of age, the minor may designate as a successor custodian, in the manner prescribed in subsection (b), an adult member of the minor's family, a guardian or conservator of the minor, or a trust company. If the minor has not attained fourteen (14) years of age or fails to act within sixty (60) days after the ineligibility, death, or incapacity, the guardian of the minor becomes successor custodian. If the minor has no guardian or the guardian declines to act, the transferor, the legal representative of the transferor or of the custodian, an adult member of the minor's family, or any other interested person may petition the court to designate a successor custodian. (e) A custodian who declines to serve under subsection (a) or resigns under subsection (c), or the legal representative of a deceased or incapacitated custodian, as soon as practicable, shall put the custodial property and records in the possession and control of the successor custodian. The successor custodian by action may enforce the obligation to deliver custodial property and records and becomes responsible for each item as received. (f) A transferor, the legal representative of a transferor, an adult member of the minor's family, a guardian or conservator of the person or property of the minor, or the minor if the minor has attained fourteen (14) years of age may petition the court to remove the custodian for cause and to designate a successor custodian other than a transferor under § 35-7-105 , or to require the custodian to give appropriate bond. Acts 1992, ch. 664, § 1; T.C.A. § 35-7-219.
(a) A person nominated under § 35-7-104 , or designated under § 35-7-110 , as custodian may decline to serve by delivering a written disclaimer to the person who made the nomination or to the transferor or the transferor's legal representative. If the event giving rise to a transfer has not occurred and no substitute custodian able, willing and eligible to serve was nominated, the person who made the nomination may nominate a substitute custodian; otherwise, the transferor or the transferor's legal representative shall designate a substitute custodian at the time of the transfer, in either case from among the persons eligible to serve as custodian for that kind of property. The custodian so designated has the rights of a successor custodian.
(b) A custodian at any time may designate a trust company or an adult other than a transferor under this chapter as successor custodian by executing and dating an instrument of designation before a subscribing witness other than the successor. If the instrument of designation does not contain or is not accompanied by the resignation of the custodian, the designation of the successor does not take effect until the custodian resigns, dies, becomes incapacitated, or is removed.
(c) A custodian may resign at any time by delivering written notice to the minor if the minor has attained fourteen (14) years of age and to the successor custodian and by delivering the custodial property to the successor custodian.
(d) If a custodian is ineligible, dies, or becomes incapacitated without having effectively designated a successor and the minor has attained fourteen (14) years of age, the minor may designate as a successor custodian, in the manner prescribed in subsection (b), an adult member of the minor's family, a guardian or conservator of the minor, or a trust company. If the minor has not attained fourteen (14) years of age or fails to act within sixty (60) days after the ineligibility, death, or incapacity, the guardian of the minor becomes successor custodian. If the minor has no guardian or the guardian declines to act, the transferor, the legal representative of the transferor or of the custodian, an adult member of the minor's family, or any other interested person may petition the court to designate a successor custodian.
(e) A custodian who declines to serve under subsection (a) or resigns under subsection (c), or the legal representative of a deceased or incapacitated custodian, as soon as practicable, shall put the custodial property and records in the possession and control of the successor custodian. The successor custodian by action may enforce the obligation to deliver custodial property and records and becomes responsible for each item as received.
(f) A transferor, the legal representative of a transferor, an adult member of the minor's family, a guardian or conservator of the person or property of the minor, or the minor if the minor has attained fourteen (14) years of age may petition the court to remove the custodian for cause and to designate a successor custodian other than a transferor under § 35-7-105 , or to require the custodian to give appropriate bond.
Acts 1992, ch. 664, § 1; T.C.A. § 35-7-219.
Tenn. Code Ann. § 35-15-302 — TN Code / Title 35 / Chapter 15 / Section 35-15-302
Representation by holder of power of appointment - "General power of appointment" defined
Status: in_force

(a) (1) To the extent there is no material conflict of interest between the holder of a power of appointment and the persons represented with respect to the particular question or dispute, the holder may represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to the power. Notwithstanding this section to the contrary, the holder of any general power of appointment may, regardless of whether there is a material conflict of interest between the holder of such general power of appointment and the persons represented with respect to the particular question or dispute, represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to such power. (2) As used in this section, "general power of appointment" means a power, regardless of when exercisable, to appoint in favor of any one (1) or more of the following: such power holder, such power holder's creditors, such power holder's estate, and the creditors of the estate of such power holder. (3) Notwithstanding this section to the contrary, if a disinterested trustee is serving as a trustee of a trust, then the holder of any non-general power of appointment may, regardless of whether there is a material conflict of interest between the holder of the non-general power of appointment and the persons represented with respect to the particular question or dispute, represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to such power. (b) Notwithstanding subsection (a) to the contrary, if the holder, under the terms of the governing instrument, may only exercise such general power of appointment with the consent of another person, then the written consent of such other person is required in order for the holder of the general power of appointment to represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to the power. Amended by 2024 Tenn. Acts, ch. 695,s 2, eff. 7/1/2024. Amended by 2019 Tenn. Acts, ch. 340, s 13, eff. 5/10/2019. Acts 2004, ch. 537, § 19; 2010 , ch. 725, § 3; 2012 , ch. 886, § 11.
(a) (1) To the extent there is no material conflict of interest between the holder of a power of appointment and the persons represented with respect to the particular question or dispute, the holder may represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to the power. Notwithstanding this section to the contrary, the holder of any general power of appointment may, regardless of whether there is a material conflict of interest between the holder of such general power of appointment and the persons represented with respect to the particular question or dispute, represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to such power. (2) As used in this section, "general power of appointment" means a power, regardless of when exercisable, to appoint in favor of any one (1) or more of the following: such power holder, such power holder's creditors, such power holder's estate, and the creditors of the estate of such power holder. (3) Notwithstanding this section to the contrary, if a disinterested trustee is serving as a trustee of a trust, then the holder of any non-general power of appointment may, regardless of whether there is a material conflict of interest between the holder of the non-general power of appointment and the persons represented with respect to the particular question or dispute, represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to such power.
(1) To the extent there is no material conflict of interest between the holder of a power of appointment and the persons represented with respect to the particular question or dispute, the holder may represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to the power. Notwithstanding this section to the contrary, the holder of any general power of appointment may, regardless of whether there is a material conflict of interest between the holder of such general power of appointment and the persons represented with respect to the particular question or dispute, represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to such power.
(2) As used in this section, "general power of appointment" means a power, regardless of when exercisable, to appoint in favor of any one (1) or more of the following: such power holder, such power holder's creditors, such power holder's estate, and the creditors of the estate of such power holder.
(3) Notwithstanding this section to the contrary, if a disinterested trustee is serving as a trustee of a trust, then the holder of any non-general power of appointment may, regardless of whether there is a material conflict of interest between the holder of the non-general power of appointment and the persons represented with respect to the particular question or dispute, represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to such power.
(b) Notwithstanding subsection (a) to the contrary, if the holder, under the terms of the governing instrument, may only exercise such general power of appointment with the consent of another person, then the written consent of such other person is required in order for the holder of the general power of appointment to represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to the power.
Amended by 2024 Tenn. Acts, ch. 695,s 2, eff. 7/1/2024.
Amended by 2019 Tenn. Acts, ch. 340, s 13, eff. 5/10/2019.
Acts 2004, ch. 537, § 19; 2010 , ch. 725, § 3; 2012 , ch. 886, § 11.
Tenn. Code Ann. § 35-2-109 — TN Code / Title 35 / Chapter 2 / Section 35-2-109
Deposit in fiduciary's personal account - Drawing checks
Status: in_force

If a fiduciary makes a deposit in a bank or savings institution to the fiduciary's personal credit of checks drawn by the fiduciary upon an account in the fiduciary's own name as fiduciary, or of checks payable to the fiduciary as fiduciary, or of checks drawn by the fiduciary upon an account in the name of the principal if the fiduciary is empowered to draw checks thereon, or of checks payable to the principal and endorsed by the fiduciary, if the fiduciary is empowered to endorse such checks, or if the fiduciary otherwise makes a deposit of funds held by the fiduciary as fiduciary, the bank or savings institution receiving such deposit is not bound to inquire whether the fiduciary is committing thereby a breach of the obligation as fiduciary. The bank or savings institution is authorized to pay the amount of the deposit or any part thereof upon the personal check of the fiduciary without being liable to the principal unless the bank or savings institution receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of the obligation as fiduciary in making such deposit or in drawing such check or with knowledge of such facts that its action in receiving the deposit or paying the check amounts to bad faith. Acts 1953, ch. 82, § 9 (Williams, § 9596.26); T.C.A. (orig. ed.), § 35-210; Acts 1985, ch. 167, § 2.
If a fiduciary makes a deposit in a bank or savings institution to the fiduciary's personal credit of checks drawn by the fiduciary upon an account in the fiduciary's own name as fiduciary, or of checks payable to the fiduciary as fiduciary, or of checks drawn by the fiduciary upon an account in the name of the principal if the fiduciary is empowered to draw checks thereon, or of checks payable to the principal and endorsed by the fiduciary, if the fiduciary is empowered to endorse such checks, or if the fiduciary otherwise makes a deposit of funds held by the fiduciary as fiduciary, the bank or savings institution receiving such deposit is not bound to inquire whether the fiduciary is committing thereby a breach of the obligation as fiduciary. The bank or savings institution is authorized to pay the amount of the deposit or any part thereof upon the personal check of the fiduciary without being liable to the principal unless the bank or savings institution receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of the obligation as fiduciary in making such deposit or in drawing such check or with knowledge of such facts that its action in receiving the deposit or paying the check amounts to bad faith.
Acts 1953, ch. 82, § 9 (Williams, § 9596.26); T.C.A. (orig. ed.), § 35-210; Acts 1985, ch. 167, § 2.
Tenn. Code Ann. § 35-50-102 — TN Code / Title 35 / Chapter 50 / Section 35-50-102
Insurance trusts - Creation - Validity
Status: in_force

Any trust previously or subsequently established by the depositing with or transferring to a trustee of any life, accident or health insurance policies with proceeds assigned or otherwise made payable to the trustee, irrespective of whether the designation of policy beneficiary is revocable or irrevocable, or whether the insured reserves loan privileges, the right to receive the cash surrender values under any of the policies, the right to receive dividends, or any other or all benefits under any of the policies and/or avails the insured thereof, and irrespective also of whether or not the creator of the trust reserves to the creator the right to modify the trust or withdraw part or all of the property from the trust, shall be valid and legally effective as to all the property and the disposition of the property, except any that may have been affected by the exercise of any of the reserved rights, and it shall not be necessary to the validity of the trust that the instrument creating the trust be executed according to the formalities prescribed for the execution of wills. Code 1932, § 9596; T.C.A. (orig. ed.), § 35-602.
Any trust previously or subsequently established by the depositing with or transferring to a trustee of any life, accident or health insurance policies with proceeds assigned or otherwise made payable to the trustee, irrespective of whether the designation of policy beneficiary is revocable or irrevocable, or whether the insured reserves loan privileges, the right to receive the cash surrender values under any of the policies, the right to receive dividends, or any other or all benefits under any of the policies and/or avails the insured thereof, and irrespective also of whether or not the creator of the trust reserves to the creator the right to modify the trust or withdraw part or all of the property from the trust, shall be valid and legally effective as to all the property and the disposition of the property, except any that may have been affected by the exercise of any of the reserved rights, and it shall not be necessary to the validity of the trust that the instrument creating the trust be executed according to the formalities prescribed for the execution of wills.
Code 1932, § 9596; T.C.A. (orig. ed.), § 35-602.
Tenn. Code Ann. § 35-8-112 — TN Code / Title 35 / Chapter 8 / Section 35-8-112
Disclosure of digital assets held in trust when trustee is not original user
Status: in_force

Unless otherwise ordered by the court, directed by the user, or provided in a trust, a custodian shall disclose to a trustee that is not an original user of an account the content of an electronic communication sent or received by an original or successor user and carried, maintained, processed, received, or stored by the custodian in the account of the trust if the trustee gives the custodian: (1) A written request for disclosure in physical or electronic form; (2) A certified copy of the trust instrument or a certification of the trust under § 35-15-1013 , that includes consent to disclosure of the content of electronic communications to the trustee; (3) A certification by the trustee, under penalty of perjury, that the trust exists and the trustee is a currently acting trustee of the trust; and (4) If requested by the custodian: (A) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the trust's account; or (B) Evidence linking the account to the trust. Added by 2016 Tenn. Acts, ch. 570,s 13, eff. 7/1/2016.
Unless otherwise ordered by the court, directed by the user, or provided in a trust, a custodian shall disclose to a trustee that is not an original user of an account the content of an electronic communication sent or received by an original or successor user and carried, maintained, processed, received, or stored by the custodian in the account of the trust if the trustee gives the custodian:
(1) A written request for disclosure in physical or electronic form;
(2) A certified copy of the trust instrument or a certification of the trust under § 35-15-1013 , that includes consent to disclosure of the content of electronic communications to the trustee;
(3) A certification by the trustee, under penalty of perjury, that the trust exists and the trustee is a currently acting trustee of the trust; and
(4) If requested by the custodian: (A) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the trust's account; or (B) Evidence linking the account to the trust.
(A) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the trust's account; or
(B) Evidence linking the account to the trust.
Added by 2016 Tenn. Acts, ch. 570,s 13, eff. 7/1/2016.
Tenn. Code Ann. § 35-50-112 — TN Code / Title 35 / Chapter 50 / Section 35-50-112
Impairment of marital deduction prohibited
Status: in_force

No executor, trustee or other fiduciary may take, or refuse to take, any action, or make or retain any investment, the result of which would defeat an otherwise available marital deduction under the Internal Revenue Code (26 U.S.C.), or under the laws of this state, if the obvious and expressed intent of the testator or settlor was to take advantage of this deduction. After May 23, 1977, this section applies to all acts or investments, by all executors, trustees or other fiduciaries, as to all wills and trusts, whenever these instruments were executed or created. Acts 1977, ch. 336, §§ 1, 2; T.C.A., § 35-622; Acts 1985, ch. 140, § 33.
No executor, trustee or other fiduciary may take, or refuse to take, any action, or make or retain any investment, the result of which would defeat an otherwise available marital deduction under the Internal Revenue Code (26 U.S.C.), or under the laws of this state, if the obvious and expressed intent of the testator or settlor was to take advantage of this deduction. After May 23, 1977, this section applies to all acts or investments, by all executors, trustees or other fiduciaries, as to all wills and trusts, whenever these instruments were executed or created.
Acts 1977, ch. 336, §§ 1, 2; T.C.A., § 35-622; Acts 1985, ch. 140, § 33.
Tenn. Code Ann. § 35-12-102 — TN Code / Title 35 / Chapter 12 / Section 35-12-102
Chapter definitions
Status: in_force

As used in this chapter, unless the context otherwise requires: (1) "Beneficiary form" means a registration of a security which indicates the present owner of the security and the intention of the owner regarding the person who will become the owner of the security upon the death of the owner; (2) "Devisee" means any person designated in a will to receive a disposition of real or personal property; (3) "Heirs" means those persons, including the surviving spouse, who are entitled under the statutes of intestate succession to the property of a decedent; (4) "Person" means an individual, a corporation, an organization, or other legal entity; (5) "Personal representative" includes executor, administrator, successor personal representative, special administrator, and persons who perform substantially the same function under the law governing their status; (6) "Property" includes both real and personal property or any interest therein and means anything that may be the subject of ownership; (7) "Register," including its derivatives, means to issue a certificate showing the ownership of a certificated security or, in the case of an uncertificated security, to initiate or transfer an account showing ownership of securities; (8) "Registering entity" means a person who originates or transfers a security title by registration, and includes a broker maintaining security accounts for customers and a transfer agent or other person acting for or as an issuer of securities; (9) "Security" means a share, participation, or other interest in property, in a business, or in an obligation of an enterprise or other issuer, and includes a certificated security, an uncertificated security, and a security account; (10) "Security account" means a: (A) Reinvestment account associated with a security, a securities account with a broker, a cash balance in a brokerage account, cash, interest, earnings, or dividends earned or declared on a security in an account, a reinvestment account, or a brokerage account, whether or not credited to the account before the owner's death; (B) Custody account or an investment management account with a trust company or a trust division of a bank with trust powers, including the securities in the account, a cash balance in the account, cash, cash equivalents, interest, earnings, or dividends earned or declared on a security in the account, whether or not credited to the account before the owner's death; or (C) Cash balance or other property held for or due to the owner of a security as a replacement for or product of an account security, whether or not credited to the account before the owner's death; and (11) "State" includes any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession subject to the legislative authority of the United States. Acts 1995, ch. 471, §1; 2012 , ch. 562, § 1.
As used in this chapter, unless the context otherwise requires:
(1) "Beneficiary form" means a registration of a security which indicates the present owner of the security and the intention of the owner regarding the person who will become the owner of the security upon the death of the owner;
(2) "Devisee" means any person designated in a will to receive a disposition of real or personal property;
(3) "Heirs" means those persons, including the surviving spouse, who are entitled under the statutes of intestate succession to the property of a decedent;
(4) "Person" means an individual, a corporation, an organization, or other legal entity;
(5) "Personal representative" includes executor, administrator, successor personal representative, special administrator, and persons who perform substantially the same function under the law governing their status;
(6) "Property" includes both real and personal property or any interest therein and means anything that may be the subject of ownership;
(7) "Register," including its derivatives, means to issue a certificate showing the ownership of a certificated security or, in the case of an uncertificated security, to initiate or transfer an account showing ownership of securities;
(8) "Registering entity" means a person who originates or transfers a security title by registration, and includes a broker maintaining security accounts for customers and a transfer agent or other person acting for or as an issuer of securities;
(9) "Security" means a share, participation, or other interest in property, in a business, or in an obligation of an enterprise or other issuer, and includes a certificated security, an uncertificated security, and a security account;
(10) "Security account" means a: (A) Reinvestment account associated with a security, a securities account with a broker, a cash balance in a brokerage account, cash, interest, earnings, or dividends earned or declared on a security in an account, a reinvestment account, or a brokerage account, whether or not credited to the account before the owner's death; (B) Custody account or an investment management account with a trust company or a trust division of a bank with trust powers, including the securities in the account, a cash balance in the account, cash, cash equivalents, interest, earnings, or dividends earned or declared on a security in the account, whether or not credited to the account before the owner's death; or (C) Cash balance or other property held for or due to the owner of a security as a replacement for or product of an account security, whether or not credited to the account before the owner's death; and
(A) Reinvestment account associated with a security, a securities account with a broker, a cash balance in a brokerage account, cash, interest, earnings, or dividends earned or declared on a security in an account, a reinvestment account, or a brokerage account, whether or not credited to the account before the owner's death;
(B) Custody account or an investment management account with a trust company or a trust division of a bank with trust powers, including the securities in the account, a cash balance in the account, cash, cash equivalents, interest, earnings, or dividends earned or declared on a security in the account, whether or not credited to the account before the owner's death; or
(C) Cash balance or other property held for or due to the owner of a security as a replacement for or product of an account security, whether or not credited to the account before the owner's death; and
(11) "State" includes any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession subject to the legislative authority of the United States.
Acts 1995, ch. 471, §1; 2012 , ch. 562, § 1.
Tenn. Code Ann. § 35-15-304 — TN Code / Title 35 / Chapter 15 / Section 35-15-304
Representation by person having substantially identical interest
Status: in_force

Unless otherwise represented, a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another having a substantially identical interest with respect to the particular question or dispute, but only to the extent there is no material conflict of interest between the representative and the person represented. Acts 2004, ch. 537, § 21; 2010, ch. 725, § 5.
Unless otherwise represented, a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another having a substantially identical interest with respect to the particular question or dispute, but only to the extent there is no material conflict of interest between the representative and the person represented.
Acts 2004, ch. 537, § 21; 2010, ch. 725, § 5.
Tenn. Code Ann. § 35-12-105 — TN Code / Title 35 / Chapter 12 / Section 35-12-105
Designation
Status: in_force

A security, whether evidenced by certificate or account, is registered in beneficiary form when the registration includes a designation of a beneficiary to take the ownership at the death of the owner or the deaths of all multiple owners. Acts 1995, ch. 471, § 1.
A security, whether evidenced by certificate or account, is registered in beneficiary form when the registration includes a designation of a beneficiary to take the ownership at the death of the owner or the deaths of all multiple owners.
Acts 1995, ch. 471, § 1.
Tenn. Code Ann. § 35-12-107 — TN Code / Title 35 / Chapter 12 / Section 35-12-107
No effect until death
Status: in_force

The designation of a TOD beneficiary on a registration in beneficiary form has no effect on ownership until the owner's death. A registration of a security in beneficiary form may be cancelled or changed at any time by the sole owner or all then surviving owners without the consent of the beneficiary. Acts 1995, ch. 471, § 1.
The designation of a TOD beneficiary on a registration in beneficiary form has no effect on ownership until the owner's death. A registration of a security in beneficiary form may be cancelled or changed at any time by the sole owner or all then surviving owners without the consent of the beneficiary.
Acts 1995, ch. 471, § 1.
Tenn. Code Ann. § 35-8-117 — TN Code / Title 35 / Chapter 8 / Section 35-8-117
Uniformity of application and construction
Status: in_force

In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. Added by 2016 Tenn. Acts, ch. 570,s 18, eff. 7/1/2016.
In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
Added by 2016 Tenn. Acts, ch. 570,s 18, eff. 7/1/2016.
Tenn. Code Ann. § 35-15-1013 — TN Code / Title 35 / Chapter 15 / Section 35-15-1013
Certification of trust
Status: in_force

(a) Instead of furnishing a copy of the trust instrument to any person to evidence the existence and validity of the trust, the trustee may furnish to such person a certification of trust, signed by the trustee or trustees having signatory authority as identified in subdivision (a)(5) and attested by a notary public and shall contain the following: (1) An affirmation of the current existence of the trust and the date on which the trust came into existence; (2) The identity of the settlor or settlors, the currently acting trustee or trustees, and the named successor trustee or trustees of the trust or a statement that no successor is named; (3) The administrative or managerial powers of the trustee, or both; (4) The revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust; (5) When there are multiple trustees or multiple successor trustees, the signature authority of the trustees indicating whether all or less than all of the currently acting trustees are required to sign in order to exercise various powers of the trustee; (6) Where there are successor trustees designated, a statement detailing the conditions for their succession or a statement that a third party may rely on the authority of one (1) or more successors without proof of their succession; (7) The trust's identification number, whether a social security or an employer identification number, but only if the trust's identification number is essential to the transaction for which the request for the trust document was made; (8) The manner in which trust assets should properly be titled; and (9) A statement that, to the best of the trustee's knowledge, the trust has not been revoked, modified or amended in any manner that would cause the representations contained in the certification of trust to be incorrect. (b) The certification of trust shall not be required to contain the dispositive provisions of the trust that set forth the distribution of the trust estate. (c) The trustee offering the certification of trust may provide copies of all or any part of the trust document and amendments, if any. Nothing in this section is intended to require or imply an obligation to provide dispositive provisions of the trust or a copy of the entire trust document and amendments. (d) A person who acts in reliance on a certification of trust without actual knowledge that the representations contained therein are incorrect is not liable to any person for so acting. A person who does not have actual knowledge that the facts contained in the certification of trust are incorrect may assume without inquiry the existence of the facts contained in the certification of trust. Actual knowledge shall not be inferred solely from the fact that a copy of all or part of the trust instrument is held by the person relying on the trust certification. Nothing contained in this section shall limit the rights of the beneficiaries of the trust against the trustee. Any person relying on the certification of trust shall be indemnified from the assets of the trust to the extent of the share of the trust attributable to the beneficiary or beneficiaries bringing any action against the person for any costs, damage, attorney fees or other expenses incurred in defending any action against the person arising for the transaction to which a certification of trust related. (e) A person's failure to request a certification of trust does not affect the protections provided that person in this section. No inference that the person has not acted in good faith or that the person was negligent may be drawn from the failure of the person to request a certification of trust. Nothing in this section is intended to create an implication that a person is liable for acting in reliance on a certification of trust under circumstances where the requirements of this section are not satisfied. (f) Nothing in this section shall be construed to require a third party, when presented with a trust certificate, to enter into a contract with a trustee relating to trust assets or obligations, or to preclude a third party from demanding as a precondition to any contract that the trustee provide additional information in order to clarify any ambiguities or inconsistencies in the trust certificate. (g) This section does not limit the right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the trust. Acts 2004, ch. 537, § 89; 2007, ch. 24, § 32.
(a) Instead of furnishing a copy of the trust instrument to any person to evidence the existence and validity of the trust, the trustee may furnish to such person a certification of trust, signed by the trustee or trustees having signatory authority as identified in subdivision (a)(5) and attested by a notary public and shall contain the following: (1) An affirmation of the current existence of the trust and the date on which the trust came into existence; (2) The identity of the settlor or settlors, the currently acting trustee or trustees, and the named successor trustee or trustees of the trust or a statement that no successor is named; (3) The administrative or managerial powers of the trustee, or both; (4) The revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust; (5) When there are multiple trustees or multiple successor trustees, the signature authority of the trustees indicating whether all or less than all of the currently acting trustees are required to sign in order to exercise various powers of the trustee; (6) Where there are successor trustees designated, a statement detailing the conditions for their succession or a statement that a third party may rely on the authority of one (1) or more successors without proof of their succession; (7) The trust's identification number, whether a social security or an employer identification number, but only if the trust's identification number is essential to the transaction for which the request for the trust document was made; (8) The manner in which trust assets should properly be titled; and (9) A statement that, to the best of the trustee's knowledge, the trust has not been revoked, modified or amended in any manner that would cause the representations contained in the certification of trust to be incorrect.
(1) An affirmation of the current existence of the trust and the date on which the trust came into existence;
(2) The identity of the settlor or settlors, the currently acting trustee or trustees, and the named successor trustee or trustees of the trust or a statement that no successor is named;
(3) The administrative or managerial powers of the trustee, or both;
(4) The revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust;
(5) When there are multiple trustees or multiple successor trustees, the signature authority of the trustees indicating whether all or less than all of the currently acting trustees are required to sign in order to exercise various powers of the trustee;
(6) Where there are successor trustees designated, a statement detailing the conditions for their succession or a statement that a third party may rely on the authority of one (1) or more successors without proof of their succession;
(7) The trust's identification number, whether a social security or an employer identification number, but only if the trust's identification number is essential to the transaction for which the request for the trust document was made;
(8) The manner in which trust assets should properly be titled; and
(9) A statement that, to the best of the trustee's knowledge, the trust has not been revoked, modified or amended in any manner that would cause the representations contained in the certification of trust to be incorrect.
(b) The certification of trust shall not be required to contain the dispositive provisions of the trust that set forth the distribution of the trust estate.
(c) The trustee offering the certification of trust may provide copies of all or any part of the trust document and amendments, if any. Nothing in this section is intended to require or imply an obligation to provide dispositive provisions of the trust or a copy of the entire trust document and amendments.
(d) A person who acts in reliance on a certification of trust without actual knowledge that the representations contained therein are incorrect is not liable to any person for so acting. A person who does not have actual knowledge that the facts contained in the certification of trust are incorrect may assume without inquiry the existence of the facts contained in the certification of trust. Actual knowledge shall not be inferred solely from the fact that a copy of all or part of the trust instrument is held by the person relying on the trust certification. Nothing contained in this section shall limit the rights of the beneficiaries of the trust against the trustee. Any person relying on the certification of trust shall be indemnified from the assets of the trust to the extent of the share of the trust attributable to the beneficiary or beneficiaries bringing any action against the person for any costs, damage, attorney fees or other expenses incurred in defending any action against the person arising for the transaction to which a certification of trust related.
(e) A person's failure to request a certification of trust does not affect the protections provided that person in this section. No inference that the person has not acted in good faith or that the person was negligent may be drawn from the failure of the person to request a certification of trust. Nothing in this section is intended to create an implication that a person is liable for acting in reliance on a certification of trust under circumstances where the requirements of this section are not satisfied.
(f) Nothing in this section shall be construed to require a third party, when presented with a trust certificate, to enter into a contract with a trustee relating to trust assets or obligations, or to preclude a third party from demanding as a precondition to any contract that the trustee provide additional information in order to clarify any ambiguities or inconsistencies in the trust certificate.
(g) This section does not limit the right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the trust.
Acts 2004, ch. 537, § 89; 2007, ch. 24, § 32.
Tenn. Code Ann. § 35-15-509 — TN Code / Title 35 / Chapter 15 / Section 35-15-509
Judicial foreclosure of beneficial interests, powers of appointment, and reserved powers prohibited - Certain reaches prohibited
Status: repealed

Regardless of whether or not a trust contains a spendthrift provision: (1) No beneficial interest, power of appointment, or reserved power in a trust shall be judicially foreclosed; (2) No creditor or assignee shall reach a power of appointment or a remainder interest at the trust level and such creditor or assignee shall wait until any funds are distributed relative to such power of appointment or remainder interest before such creditor or assignee may reach such funds; (3) No creditor or assignee shall reach property transferred pursuant to a power of appointment exercised by a decedent unless the power of appointment was actually exercised in favor of the decedent or the decedent's estate; and (4) No power of appointment is a property interest. Amended by 2021 Tenn. Acts, ch. 420, s 20, eff. 7/1/2021. Added by 2013 Tenn. Acts, ch. 390, s 24, eff. 7/1/2013.
Regardless of whether or not a trust contains a spendthrift provision:
(1) No beneficial interest, power of appointment, or reserved power in a trust shall be judicially foreclosed;
(2) No creditor or assignee shall reach a power of appointment or a remainder interest at the trust level and such creditor or assignee shall wait until any funds are distributed relative to such power of appointment or remainder interest before such creditor or assignee may reach such funds;
(3) No creditor or assignee shall reach property transferred pursuant to a power of appointment exercised by a decedent unless the power of appointment was actually exercised in favor of the decedent or the decedent's estate; and
(4) No power of appointment is a property interest.
Amended by 2021 Tenn. Acts, ch. 420, s 20, eff. 7/1/2021.
Added by 2013 Tenn. Acts, ch. 390, s 24, eff. 7/1/2013.
Tenn. Code Ann. § 35-12-109 — TN Code / Title 35 / Chapter 12 / Section 35-12-109
Registration
Status: in_force

(a) A registering entity is not required to offer or to accept a request for security registration in beneficiary form. If a registration in beneficiary form is offered by a registering entity, the owner requesting registration in beneficiary form assents to the protections given to the registering entity by this chapter. (b) By accepting a request for registration of a security in beneficiary form, the registering entity agrees that the registration will be implemented on death of the deceased owner as provided in this chapter. (c) A registering entity is discharged from all claims to a security by the estate, creditors, heirs, or devisees of a deceased owner if it registers a transfer of the security in accordance with § 35-12-108 and does so in good faith reliance on the registration, on this chapter, and on information provided to it by affidavit of the personal representative of the deceased owner, or by the surviving beneficiary or by the surviving beneficiary's representatives, or other information available to the registering entity. The protections of this chapter do not extend to a reregistration or payment made after a registering entity has received written notice from any claimant to any interest in the security objecting to implementation of a registration in beneficiary form. No other notice or other information available to the registering entity affects its right to protection under this chapter. (d) The protection provided by this chapter to the registering entity of a security does not affect the rights of beneficiaries in disputes between themselves and other claimants to ownership of the security transferred or its value or proceeds. Acts 1995, ch. 471, § 1.
(a) A registering entity is not required to offer or to accept a request for security registration in beneficiary form. If a registration in beneficiary form is offered by a registering entity, the owner requesting registration in beneficiary form assents to the protections given to the registering entity by this chapter.
(b) By accepting a request for registration of a security in beneficiary form, the registering entity agrees that the registration will be implemented on death of the deceased owner as provided in this chapter.
(c) A registering entity is discharged from all claims to a security by the estate, creditors, heirs, or devisees of a deceased owner if it registers a transfer of the security in accordance with § 35-12-108 and does so in good faith reliance on the registration, on this chapter, and on information provided to it by affidavit of the personal representative of the deceased owner, or by the surviving beneficiary or by the surviving beneficiary's representatives, or other information available to the registering entity. The protections of this chapter do not extend to a reregistration or payment made after a registering entity has received written notice from any claimant to any interest in the security objecting to implementation of a registration in beneficiary form. No other notice or other information available to the registering entity affects its right to protection under this chapter.
(d) The protection provided by this chapter to the registering entity of a security does not affect the rights of beneficiaries in disputes between themselves and other claimants to ownership of the security transferred or its value or proceeds.
Acts 1995, ch. 471, § 1.
Tenn. Code Ann. § 35-14-114 — TN Code / Title 35 / Chapter 14 / Section 35-14-114
Court authority
Status: in_force

Nothing in this chapter abrogates or restricts the power of an appropriate court in proper cases to direct or permit the fiduciary to deviate from the terms of the governing instrument or restrains a fiduciary from taking any action regarding the making or retention of investments. Acts 2002, ch. 696, § 14.
Nothing in this chapter abrogates or restricts the power of an appropriate court in proper cases to direct or permit the fiduciary to deviate from the terms of the governing instrument or restrains a fiduciary from taking any action regarding the making or retention of investments.
Acts 2002, ch. 696, § 14.
Tenn. Code Ann. § 35-9-104 — TN Code / Title 35 / Chapter 9 / Section 35-9-104
Powers of courts and attorney general and reporter unimpaired
Status: in_force

Nothing in this chapter shall impair the rights and powers of the courts or the attorney general and reporter of this state with respect to any trust. Acts 1971, ch. 3, § 4; T.C.A., § 35-1004.
Nothing in this chapter shall impair the rights and powers of the courts or the attorney general and reporter of this state with respect to any trust.
Acts 1971, ch. 3, § 4; T.C.A., § 35-1004.
Tenn. Code Ann. § 35-12-101 — TN Code / Title 35 / Chapter 12 / Section 35-12-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Uniform Transfer on Death Security Registration Act." Acts 1995, ch. 471, § 1.
This chapter shall be known and may be cited as the "Uniform Transfer on Death Security Registration Act."
Acts 1995, ch. 471, § 1.
Tenn. Code Ann. § 35-6-106 — TN Code / Title 35 / Chapter 6 / Section 35-6-106
Remedy
Status: in_force

With respect to a trustee's exercise or nonexercise of the power to make an adjustment under § 35-5-104 , the sole remedy is to direct, deny, or revise an adjustment between principal and income. Acts 2000, ch. 829, § 1.
With respect to a trustee's exercise or nonexercise of the power to make an adjustment under § 35-5-104 , the sole remedy is to direct, deny, or revise an adjustment between principal and income.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-15-102 — TN Code / Title 35 / Chapter 15 / Section 35-15-102
Scope
Status: in_force

This chapter applies to express trusts, charitable or noncharitable, and trusts created pursuant to a statute, judgment, or decree that requires the trust to be administered in the manner of an express trust. Acts 2004, ch. 537, § 3.
This chapter applies to express trusts, charitable or noncharitable, and trusts created pursuant to a statute, judgment, or decree that requires the trust to be administered in the manner of an express trust.
Acts 2004, ch. 537, § 3.
Tenn. Code Ann. § 35-3-115 — TN Code / Title 35 / Chapter 3 / Section 35-3-115
Public housing 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 a housing authority pursuant to the Housing Authorities Law, compiled in title 13, chapter 20, and any amendments to that law, or issued pursuant to the Memphis Housing Authority Law, chapter 615 of the Private Acts of 1935, as amended by chapter 900 of the Private Acts of 1937, and any amendments to that law, or issued by any public housing authority or agency in the United States, when the bonds or other obligations are secured by a pledge of annual contributions to be paid by the United States government or any agency of the United States government. 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; provided, that 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 1939, ch. 155, § 1; C. Supp. 1950, § 9596.4 (Williams, §9596.8); T.C.A. (orig. ed.), § 35-315.
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 a housing authority pursuant to the Housing Authorities Law, compiled in title 13, chapter 20, and any amendments to that law, or issued pursuant to the Memphis Housing Authority Law, chapter 615 of the Private Acts of 1935, as amended by chapter 900 of the Private Acts of 1937, and any amendments to that law, or issued by any public housing authority or agency in the United States, when the bonds or other obligations are secured by a pledge of annual contributions to be paid by the United States government or any agency of the United States government. 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; provided, that 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 1939, ch. 155, § 1; C. Supp. 1950, § 9596.4 (Williams, §9596.8); T.C.A. (orig. ed.), § 35-315.
Tenn. Code Ann. § 35-15-101 — TN Code / Title 35 / Chapter 15 / Section 35-15-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Tennessee Uniform Trust Code." Acts 2004, ch. 537, § 2.
This chapter shall be known and may be cited as the "Tennessee Uniform Trust Code."
Acts 2004, ch. 537, § 2.
Tenn. Code Ann. § 35-5-103 — TN Code / Title 35 / Chapter 5 / Section 35-5-103
Posting written notices
Status: in_force

Whenever the advertisement cannot be made in a newspaper, the officer shall make publication of the sale for thirty (30) days by written notices posted in at least five (5) of the most public places in the county, one (1) of which shall be the courthouse door, and another in the neighborhood of the defendant; if of realty, in the civil district where the land lies. Code 1858, § 2148 (deriv. Acts 1855-1856, ch. 83, § 3); Shan., §3841; Code 1932, § 7796; Acts 1943, ch. 123, § 2; C. Supp. 1950, § 7796; T.C.A. (orig. ed.), § 35-503.
Whenever the advertisement cannot be made in a newspaper, the officer shall make publication of the sale for thirty (30) days by written notices posted in at least five (5) of the most public places in the county, one (1) of which shall be the courthouse door, and another in the neighborhood of the defendant; if of realty, in the civil district where the land lies.
Code 1858, § 2148 (deriv. Acts 1855-1856, ch. 83, § 3); Shan., §3841; Code 1932, § 7796; Acts 1943, ch. 123, § 2; C. Supp. 1950, § 7796; T.C.A. (orig. ed.), § 35-503.
Tenn. Code Ann. § 35-6-414 — TN Code / Title 35 / Chapter 6 / Section 35-6-414
Derivatives and options
Status: in_force

(a) In this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets. (b) To the extent that a trustee does not account under § 35-6-403 for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions. (c) If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option must be allocated to principal. An amount paid to acquire the option must be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, must be allocated to principal. Acts 2000, ch. 829, § 1.
(a) In this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.
(b) To the extent that a trustee does not account under § 35-6-403 for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions.
(c) If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option must be allocated to principal. An amount paid to acquire the option must be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, must be allocated to principal.
Acts 2000, ch. 829, § 1.
Tenn. Code Ann. § 35-8-107 — TN Code / Title 35 / Chapter 8 / Section 35-8-107
Disclosure of content of electronic communications of deceased user
Status: in_force

If a deceased user consented or a court directs disclosure of the contents of electronic communications of the user, the custodian shall disclose to the personal representative of the estate of the user the content of an electronic communication sent or received by the user if the representative gives the custodian: (1) A written request for disclosure in physical or electronic form; (2) A certified copy of the death certificate of the user; (3) A certified copy of any of the following: the letters of administration or letters testamentary appointing the personal representative; a small-estate affidavit under title 30, chapter 4; or a court order; (4) Unless the user provided direction using an online tool, a copy of the user's will, trust, power of attorney, or other dispositive or nominative instrument evidencing the user's consent to disclosure of the content of electronic communications; and (5) If requested by the custodian: (A) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the user's account; (B) Evidence linking the account to the user; or (C) A finding by the court that: (i) The user had a specific account with the custodian, identifiable by the information specified in subdivision (5)(A); (ii) Disclosure of the content of electronic communications of the user would not violate 18 U.S.C. §§ 2701 et seq., 47 U.S.C. § 222 , or other applicable law; (iii) Unless the user provided direction using an online tool, the user consented to disclosure of the content of electronic communications; or (iv) Disclosure of the content of electronic communications of the user is reasonably necessary for administration of the estate. Added by 2016 Tenn. Acts, ch. 570,s 8, eff. 7/1/2016.
If a deceased user consented or a court directs disclosure of the contents of electronic communications of the user, the custodian shall disclose to the personal representative of the estate of the user the content of an electronic communication sent or received by the user if the representative gives the custodian:
(1) A written request for disclosure in physical or electronic form;
(2) A certified copy of the death certificate of the user;
(3) A certified copy of any of the following: the letters of administration or letters testamentary appointing the personal representative; a small-estate affidavit under title 30, chapter 4; or a court order;
(4) Unless the user provided direction using an online tool, a copy of the user's will, trust, power of attorney, or other dispositive or nominative instrument evidencing the user's consent to disclosure of the content of electronic communications; and
(5) If requested by the custodian: (A) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the user's account; (B) Evidence linking the account to the user; or (C) A finding by the court that: (i) The user had a specific account with the custodian, identifiable by the information specified in subdivision (5)(A); (ii) Disclosure of the content of electronic communications of the user would not violate 18 U.S.C. §§ 2701 et seq., 47 U.S.C. § 222 , or other applicable law; (iii) Unless the user provided direction using an online tool, the user consented to disclosure of the content of electronic communications; or (iv) Disclosure of the content of electronic communications of the user is reasonably necessary for administration of the estate.
(A) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the user's account;
(B) Evidence linking the account to the user; or
(C) A finding by the court that: (i) The user had a specific account with the custodian, identifiable by the information specified in subdivision (5)(A); (ii) Disclosure of the content of electronic communications of the user would not violate 18 U.S.C. §§ 2701 et seq., 47 U.S.C. § 222 , or other applicable law; (iii) Unless the user provided direction using an online tool, the user consented to disclosure of the content of electronic communications; or (iv) Disclosure of the content of electronic communications of the user is reasonably necessary for administration of the estate.
(i) The user had a specific account with the custodian, identifiable by the information specified in subdivision (5)(A);
(ii) Disclosure of the content of electronic communications of the user would not violate 18 U.S.C. §§ 2701 et seq., 47 U.S.C. § 222 , or other applicable law;
(iii) Unless the user provided direction using an online tool, the user consented to disclosure of the content of electronic communications; or
(iv) Disclosure of the content of electronic communications of the user is reasonably necessary for administration of the estate.
Added by 2016 Tenn. Acts, ch. 570,s 8, eff. 7/1/2016.
Tenn. Code Ann. § 35-15-1103 — TN Code / Title 35 / Chapter 15 / Section 35-15-1103
Application to existing relationships
Status: in_force

(a) Except as otherwise provided in this chapter, on July 1, 2004: (1) This chapter applies to all trusts created before, on, or after July 1, 2004; (2) This chapter applies to all judicial proceedings concerning trusts commenced on or after July 1, 2004; (3) This chapter applies to judicial proceedings concerning trusts commenced before July 1, 2004, unless the court finds that application of a particular provision of this chapter would substantially interfere with the effective conduct of the judicial proceedings or prejudice the rights of the parties, in which case the particular provision of this chapter does not apply and the superseded law applies; (4) Any rule of construction or presumption provided in this chapter applies to trust instruments executed before July 1, 2004, unless there is a clear indication of a contrary intent in the terms of the trust; and (5) An act done before July 1, 2004, is not affected by this chapter. (b) If a right is acquired, extinguished, or barred upon the expiration of a prescribed period that has commenced to run under any other statute before July 1, 2004, that statute continues to apply to the right even if it has been repealed or superseded. Acts 2004, ch. 537, § 94.
(a) Except as otherwise provided in this chapter, on July 1, 2004: (1) This chapter applies to all trusts created before, on, or after July 1, 2004; (2) This chapter applies to all judicial proceedings concerning trusts commenced on or after July 1, 2004; (3) This chapter applies to judicial proceedings concerning trusts commenced before July 1, 2004, unless the court finds that application of a particular provision of this chapter would substantially interfere with the effective conduct of the judicial proceedings or prejudice the rights of the parties, in which case the particular provision of this chapter does not apply and the superseded law applies; (4) Any rule of construction or presumption provided in this chapter applies to trust instruments executed before July 1, 2004, unless there is a clear indication of a contrary intent in the terms of the trust; and (5) An act done before July 1, 2004, is not affected by this chapter.
(1) This chapter applies to all trusts created before, on, or after July 1, 2004;
(2) This chapter applies to all judicial proceedings concerning trusts commenced on or after July 1, 2004;
(3) This chapter applies to judicial proceedings concerning trusts commenced before July 1, 2004, unless the court finds that application of a particular provision of this chapter would substantially interfere with the effective conduct of the judicial proceedings or prejudice the rights of the parties, in which case the particular provision of this chapter does not apply and the superseded law applies;
(4) Any rule of construction or presumption provided in this chapter applies to trust instruments executed before July 1, 2004, unless there is a clear indication of a contrary intent in the terms of the trust; and
(5) An act done before July 1, 2004, is not affected by this chapter.
(b) If a right is acquired, extinguished, or barred upon the expiration of a prescribed period that has commenced to run under any other statute before July 1, 2004, that statute continues to apply to the right even if it has been repealed or superseded.
Acts 2004, ch. 537, § 94.
Tenn. Code Ann. § 35-3-113 — TN Code / Title 35 / Chapter 3 / Section 35-3-113
Life, endowment or annuity contracts of life insurance companies
Status: in_force

(a) Executors, trustees and guardians are authorized, with the approval of a probate court or other court of competent jurisdiction, to invest out of income or principal of funds in their custody, in single or annual premium life, endowment or annuity contracts of legal reserve life insurance companies duly licensed and qualified to transact business within the state. (b) Such contracts may be issued on the life or lives of any beneficiary, cestui que trust or ward, who may have a vested or contingent interest in the estate, or on the life or lives of any parent, trustor or other person in whom any beneficiary, cestui que trust or ward may have an insurable interest, and shall such be so drawn that the legal title of the policy or contract shall be in and the proceeds or avails of the proceeds payable to and in the control of the fiduciary making the investment, and may be retained and shall be subject to transfer, assignment and conveyance by the fiduciary as other personal property held in the account. Acts 1939, ch. 133, §§ 1-3; 1945, ch. 150, § 1; mod. C. Supp. 1950, § 9596.2; T.C.A. (orig. ed.), §35-313; Acts 2010 , ch. 725, § 22.
(a) Executors, trustees and guardians are authorized, with the approval of a probate court or other court of competent jurisdiction, to invest out of income or principal of funds in their custody, in single or annual premium life, endowment or annuity contracts of legal reserve life insurance companies duly licensed and qualified to transact business within the state.
(b) Such contracts may be issued on the life or lives of any beneficiary, cestui que trust or ward, who may have a vested or contingent interest in the estate, or on the life or lives of any parent, trustor or other person in whom any beneficiary, cestui que trust or ward may have an insurable interest, and shall such be so drawn that the legal title of the policy or contract shall be in and the proceeds or avails of the proceeds payable to and in the control of the fiduciary making the investment, and may be retained and shall be subject to transfer, assignment and conveyance by the fiduciary as other personal property held in the account.
Acts 1939, ch. 133, §§ 1-3; 1945, ch. 150, § 1; mod. C. Supp. 1950, § 9596.2; T.C.A. (orig. ed.), §35-313; Acts 2010 , ch. 725, § 22.
Tenn. Code Ann. § 35-8-105 — TN Code / Title 35 / Chapter 8 / Section 35-8-105
Rights of custodian or user
Status: in_force

(a) This chapter does not change or impair a right of a custodian or a user under a terms-of-service agreement to access and use digital assets of the user. (b) This chapter does not give a fiduciary or designated recipient any new or expanded rights other than those held by the user for whom, or for whose estate, the fiduciary or designated recipient acts or represents. (c) A fiduciary's or designated recipient's access to digital assets may be modified or eliminated by a user, by federal law, or by a terms-of-service agreement if the user has not provided direction under § 35-8-104 . Added by 2016 Tenn. Acts, ch. 570,s 6, eff. 7/1/2016.
(a) This chapter does not change or impair a right of a custodian or a user under a terms-of-service agreement to access and use digital assets of the user.
(b) This chapter does not give a fiduciary or designated recipient any new or expanded rights other than those held by the user for whom, or for whose estate, the fiduciary or designated recipient acts or represents.
(c) A fiduciary's or designated recipient's access to digital assets may be modified or eliminated by a user, by federal law, or by a terms-of-service agreement if the user has not provided direction under § 35-8-104 .
Added by 2016 Tenn. Acts, ch. 570,s 6, eff. 7/1/2016.
Tenn. Code Ann. § 35-14-111 — TN Code / Title 35 / Chapter 14 / Section 35-14-111
Delegation of investment and management functions
Status: in_force

(a) A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in: (1) Selecting an agent; (2) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and (3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation. (b) In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation. (c) A trustee who complies with the requirements of subsection (a) is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated. (d) By accepting the delegation of a trust function from the trustee of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state. Acts 2002, ch. 696, § 11.
(a) A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in: (1) Selecting an agent; (2) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and (3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.
(1) Selecting an agent;
(2) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and
(3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.
(c) A trustee who complies with the requirements of subsection (a) is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated.
(d) By accepting the delegation of a trust function from the trustee of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state.
Acts 2002, ch. 696, § 11.
Tenn. Code Ann. § 35-50-108 — TN Code / Title 35 / Chapter 50 / Section 35-50-108
Designation of beneficiaries of employee pension, stock bonus or investment plans
Status: in_force

(a) If a person, entitled to receive payment in money, securities, or other property under a pension, retirement, death benefit, stock bonus, profit-sharing or employees' savings and investment plan, system or trust, designates, as provided in this section, a payee or beneficiary to receive payment of the money, securities, or other property upon death of the person making the designation or to receive payment of the money, securities, or other property upon the death of any other person, the right of the person or persons so designated to receive payment in accordance with the designation, and the ownership of the money, securities or other property so received, shall not be defeated or impaired by any statute or rule of law governing the transfer of property by will or gift or on intestacy. (b) This section is applicable to a designation even though it is revocable or subject to change by the person who makes it, and even though the money, securities or other property under the designation are not yet payable at the time the designation is made or the money, securities or other property are subject to withdrawal, collection or assignment by the person making the designation. (c) A person entitled to receive payment includes: (1) An employee or participant in a pension, retirement, death benefit, stock bonus, profit-sharing or employees' savings and investment plan, system or trust; and (2) Any person entitled to receive payment by reason of a payee or beneficiary designation described in this section. (d) A designation of a beneficiary or payee to receive payment upon death either of the person making the designation or of any other person must be made in writing and signed by the person making the designation, and must be agreed to by the employer or be made in accordance with rules prescribed for the pension, retirement, death benefit, stock bonus, profit-sharing or employees' savings and investment plan, system or trust. (e) This section shall not alter, abridge or limit title 29, chapter 12; title 31, chapter 1; title 66, chapter 3; or title 67, chapter 8, parts 2-4. Acts 1961, ch. 133, §§ 1-4; T.C.A., §§ 35-611 -- 35-614.
(a) If a person, entitled to receive payment in money, securities, or other property under a pension, retirement, death benefit, stock bonus, profit-sharing or employees' savings and investment plan, system or trust, designates, as provided in this section, a payee or beneficiary to receive payment of the money, securities, or other property upon death of the person making the designation or to receive payment of the money, securities, or other property upon the death of any other person, the right of the person or persons so designated to receive payment in accordance with the designation, and the ownership of the money, securities or other property so received, shall not be defeated or impaired by any statute or rule of law governing the transfer of property by will or gift or on intestacy.
(b) This section is applicable to a designation even though it is revocable or subject to change by the person who makes it, and even though the money, securities or other property under the designation are not yet payable at the time the designation is made or the money, securities or other property are subject to withdrawal, collection or assignment by the person making the designation.
(c) A person entitled to receive payment includes: (1) An employee or participant in a pension, retirement, death benefit, stock bonus, profit-sharing or employees' savings and investment plan, system or trust; and (2) Any person entitled to receive payment by reason of a payee or beneficiary designation described in this section.
(1) An employee or participant in a pension, retirement, death benefit, stock bonus, profit-sharing or employees' savings and investment plan, system or trust; and
(2) Any person entitled to receive payment by reason of a payee or beneficiary designation described in this section.
(d) A designation of a beneficiary or payee to receive payment upon death either of the person making the designation or of any other person must be made in writing and signed by the person making the designation, and must be agreed to by the employer or be made in accordance with rules prescribed for the pension, retirement, death benefit, stock bonus, profit-sharing or employees' savings and investment plan, system or trust.
(e) This section shall not alter, abridge or limit title 29, chapter 12; title 31, chapter 1; title 66, chapter 3; or title 67, chapter 8, parts 2-4.
Acts 1961, ch. 133, §§ 1-4; T.C.A., §§ 35-611 -- 35-614.
Tenn. Code Ann. § 35-3-122 — TN Code / Title 35 / Chapter 3 / Section 35-3-122
Liability of fiduciaries for losses
Status: in_force

Whenever an instrument under which a fiduciary is acting reserves to the settlor or vests an advisory or investment committee or in any other person or persons including one (1) or more other fiduciaries, to the exclusion of the fiduciary or to the exclusion of one (1) or more of several fiduciaries, authority to direct the making or retention of any investment, or to perform any other act in the management or administration of the fiduciary account, the excluded fiduciary or fiduciaries shall not be liable, either individually or as a fiduciary, for any loss resulting from the making or retention of any investment or other act pursuant to that direction. Acts 1987, ch. 89, § 2.
Whenever an instrument under which a fiduciary is acting reserves to the settlor or vests an advisory or investment committee or in any other person or persons including one (1) or more other fiduciaries, to the exclusion of the fiduciary or to the exclusion of one (1) or more of several fiduciaries, authority to direct the making or retention of any investment, or to perform any other act in the management or administration of the fiduciary account, the excluded fiduciary or fiduciaries shall not be liable, either individually or as a fiduciary, for any loss resulting from the making or retention of any investment or other act pursuant to that direction.
Acts 1987, ch. 89, § 2.
Tenn. Code Ann. § 35-50-121 — TN Code / Title 35 / Chapter 50 / Section 35-50-121
Delayed receipt of trust corpus
Status: in_force

Any trust agreement or declaration of trust may be valid even if no corpus is delivered to the trustee at the time of execution of the instrument if the trustee has the right to receive corpus at a later time or times from the trustor, the trustor's estate or other persons or sources. Acts 1989, ch. 288, § 4.
Any trust agreement or declaration of trust may be valid even if no corpus is delivered to the trustee at the time of execution of the instrument if the trustee has the right to receive corpus at a later time or times from the trustor, the trustor's estate or other persons or sources.
Acts 1989, ch. 288, § 4.
Tenn. Code Ann. § 35-15-803 — TN Code / Title 35 / Chapter 15 / Section 35-15-803
Impartiality
Status: in_force

If a trust has two (2) or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests. Acts 2004, ch. 537, § 62.
If a trust has two (2) or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests.
Acts 2004, ch. 537, § 62.
Tenn. Code Ann. § 35-15-713 — TN Code / Title 35 / Chapter 15 / Section 35-15-713
Vacancy - Directed trusts
Status: in_force

(a) Except as otherwise provided by the terms of the trust upon obtaining knowledge of a vacancy in the office of trust advisor or trust protector, the trustee shall be vested with any fiduciary power or duty that otherwise would be vested in the trustee but that by the terms of the trust was vested in the trust advisor or trust protector, until such time that the vacancy in the office of trust advisor or trust protector, as applicable is filled. (b) Such vacancy shall be filled in the same manner as would a vacancy in trusteeship that is required to be filled, either as provided by § 35-15-704(c) if the trust is a noncharitable trust, or as provided by § 35-15-704(d) if the trust is a charitable trust. Section 35-15-704(e) shall also apply relative to trust advisors and trust protectors in the same manner as that subsection does to trustees and vacancies in trusteeship. (c) Notwithstanding subsection (a), a trustee shall not be liable for failing to exercise or assume any power or duty held by a trust advisor or trust protector and conferred upon the trustee by subsection (a) for the sixty-day period immediately following the date the trustee obtains knowledge of such vacancy. Added by 2013 Tenn. Acts, ch. 390, s 29, eff. 7/1/2013.
(a) Except as otherwise provided by the terms of the trust upon obtaining knowledge of a vacancy in the office of trust advisor or trust protector, the trustee shall be vested with any fiduciary power or duty that otherwise would be vested in the trustee but that by the terms of the trust was vested in the trust advisor or trust protector, until such time that the vacancy in the office of trust advisor or trust protector, as applicable is filled.
(b) Such vacancy shall be filled in the same manner as would a vacancy in trusteeship that is required to be filled, either as provided by § 35-15-704(c) if the trust is a noncharitable trust, or as provided by § 35-15-704(d) if the trust is a charitable trust. Section 35-15-704(e) shall also apply relative to trust advisors and trust protectors in the same manner as that subsection does to trustees and vacancies in trusteeship.
(c) Notwithstanding subsection (a), a trustee shall not be liable for failing to exercise or assume any power or duty held by a trust advisor or trust protector and conferred upon the trustee by subsection (a) for the sixty-day period immediately following the date the trustee obtains knowledge of such vacancy.
Added by 2013 Tenn. Acts, ch. 390, s 29, eff. 7/1/2013.
Tenn. Code Ann. § 35-13-114 — TN Code / Title 35 / Chapter 13 / Section 35-13-114
Cy pres
Status: in_force

Section 35-15-413 shall also apply to charitable gifts, as defined in § 35-13-102 , whether given before or after April 12, 2007, on the same basis as charitable trusts. Acts 2007, ch. 24, § 34.
Section 35-15-413 shall also apply to charitable gifts, as defined in § 35-13-102 , whether given before or after April 12, 2007, on the same basis as charitable trusts.
Acts 2007, ch. 24, § 34.
Tenn. Code Ann. § 35-1-101 — TN Code / Title 35 / Chapter 1 / Section 35-1-101
Real property - Documents to be recorded - Trust property
Status: in_force

(a) When real estate is held as a part of the trust property, the court order accepting the resignation or ordering the removal of a trustee and appointing a successor, or an acknowledged memorandum of the order, shall be recorded in the county where any real estate is located, identifying each parcel of real estate held by the trust. (b) (1) When real estate is held as part of the trust property and a trustee has resigned or been removed without order of a court, the resigning or removed trustee shall execute and record an instrument that: (A) Recites the resignation or removal of the trustee; (B) Gives the name and address of the successor trustee, if any; and (C) Identifies each parcel of real estate held by the trust. (2) A successor trustee, or a remaining trustee if there is no successor, shall execute and record the instrument described in subdivision (b)(1) if the resigning or removed trustee fails to record the required instrument within thirty (30) days after resigning or being removed.
(a) When real estate is held as a part of the trust property, the court order accepting the resignation or ordering the removal of a trustee and appointing a successor, or an acknowledged memorandum of the order, shall be recorded in the county where any real estate is located, identifying each parcel of real estate held by the trust.
(b) (1) When real estate is held as part of the trust property and a trustee has resigned or been removed without order of a court, the resigning or removed trustee shall execute and record an instrument that: (A) Recites the resignation or removal of the trustee; (B) Gives the name and address of the successor trustee, if any; and (C) Identifies each parcel of real estate held by the trust. (2) A successor trustee, or a remaining trustee if there is no successor, shall execute and record the instrument described in subdivision (b)(1) if the resigning or removed trustee fails to record the required instrument within thirty (30) days after resigning or being removed.
(1) When real estate is held as part of the trust property and a trustee has resigned or been removed without order of a court, the resigning or removed trustee shall execute and record an instrument that: (A) Recites the resignation or removal of the trustee; (B) Gives the name and address of the successor trustee, if any; and (C) Identifies each parcel of real estate held by the trust.
(A) Recites the resignation or removal of the trustee;
(B) Gives the name and address of the successor trustee, if any; and
(C) Identifies each parcel of real estate held by the trust.
(2) A successor trustee, or a remaining trustee if there is no successor, shall execute and record the instrument described in subdivision (b)(1) if the resigning or removed trustee fails to record the required instrument within thirty (30) days after resigning or being removed.
Tenn. Code Ann. § 35-4-101 — TN Code / Title 35 / Chapter 4 / Section 35-4-101
Short title
Status: in_force

This chapter shall be known and may be cited as the "Uniform Common Trust Fund Act." Acts 1953, ch. 148, § 4 (Williams, § 9596.35); T.C.A. (orig. ed.), § 35-401.
This chapter shall be known and may be cited as the "Uniform Common Trust Fund Act."
Acts 1953, ch. 148, § 4 (Williams, § 9596.35); T.C.A. (orig. ed.), § 35-401.
Tenn. Code Ann. § 35-15-604 — TN Code / Title 35 / Chapter 15 / Section 35-15-604
Limitation on action contesting validity of revocable trust - Distribution of trust property
Status: in_force

(a) A person may commence a judicial proceeding to contest the validity of a trust that was revocable immediately preceding the settlor's death within the earlier of: (1) Two (2) years after the settlor's death; or (2) One hundred twenty (120) days after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust's existence, the trustee's name and address, and the time allowed for commencing a proceeding to contest the validity of the trust. (b) Upon the death of the settlor of a trust that was revocable immediately preceding the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. Except as provided in § 35-15-817 , the trustee is subject to liability for making the distribution only if at the time of the distribution: (1) The trustee had actual knowledge of a pending judicial proceeding contesting the validity of the trust; or (2) A potential contestant had notified the trustee in writing of a possible judicial proceeding to contest the trust and the judicial proceeding is commenced within sixty (60) days following the trustee's receipt of the notification. (c) In the event a trust or trust provision is adjudged to be invalid, or if a distribution is adjudged to have been made in error, by the final judgment of the court having jurisdiction, which judgment is subject to no further appeal, any beneficiary having received an improper distribution shall, upon receipt of a copy of such order, return the improper distribution to the court. If the beneficiary fails to return the improper distribution to the court, the beneficiary is liable for costs, including reasonable attorney's fees, incurred to recover the improper distribution from the beneficiary. Amended by 2023 Tenn. Acts, ch. 166, s 3, eff. 4/17/2023. Amended by 2022 Tenn. Acts, ch. 877, s 7, eff. 4/14/2022. Acts 2004, ch. 537, § 50.
(a) A person may commence a judicial proceeding to contest the validity of a trust that was revocable immediately preceding the settlor's death within the earlier of: (1) Two (2) years after the settlor's death; or (2) One hundred twenty (120) days after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust's existence, the trustee's name and address, and the time allowed for commencing a proceeding to contest the validity of the trust.
(1) Two (2) years after the settlor's death; or
(2) One hundred twenty (120) days after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust's existence, the trustee's name and address, and the time allowed for commencing a proceeding to contest the validity of the trust.
(b) Upon the death of the settlor of a trust that was revocable immediately preceding the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. Except as provided in § 35-15-817 , the trustee is subject to liability for making the distribution only if at the time of the distribution: (1) The trustee had actual knowledge of a pending judicial proceeding contesting the validity of the trust; or (2) A potential contestant had notified the trustee in writing of a possible judicial proceeding to contest the trust and the judicial proceeding is commenced within sixty (60) days following the trustee's receipt of the notification.
(1) The trustee had actual knowledge of a pending judicial proceeding contesting the validity of the trust; or
(2) A potential contestant had notified the trustee in writing of a possible judicial proceeding to contest the trust and the judicial proceeding is commenced within sixty (60) days following the trustee's receipt of the notification.
(c) In the event a trust or trust provision is adjudged to be invalid, or if a distribution is adjudged to have been made in error, by the final judgment of the court having jurisdiction, which judgment is subject to no further appeal, any beneficiary having received an improper distribution shall, upon receipt of a copy of such order, return the improper distribution to the court. If the beneficiary fails to return the improper distribution to the court, the beneficiary is liable for costs, including reasonable attorney's fees, incurred to recover the improper distribution from the beneficiary.
Amended by 2023 Tenn. Acts, ch. 166, s 3, eff. 4/17/2023.
Amended by 2022 Tenn. Acts, ch. 877, s 7, eff. 4/14/2022.
Acts 2004, ch. 537, § 50.