TN Code § 35-15-1301 (2021)
2021 Tennessee Code|Title 35 - Fiduciaries and Trust Estates|Chapter 15 - Tennessee Uniform Trust Code|Part 13 - Special Purpose Entity|§ 35-15-1301. Special Purpose Entity

  As used in this part:  “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;   “Department” means the department of financial institutions;   “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;   “Entity” means a corporation or a limited liability company;    “Family member” means a designated ancestor and:   An individual within the twelfth degree of lineal kinship of a designated ancestor;   An individual within the eleventh degree of collateral kinship of a designated ancestor;   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   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.     For purposes of determining whether a person is a family member as defined in this subdivision (a)(5):   A legally adopted person shall be treated as a natural child of the adoptive parents;   A stepchild shall be treated as a natural child of the individual who is or was the stepparent of that child;   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;   A child of a spouse or former spouse of an individual shall be treated as a natural child of that individual;   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   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       “Special purpose entity” means an entity that meets the requirements provided under subsection (b).     A special purpose entity shall not be subject to chapters 1 and 2 of title 45 regulating fiduciary activity if:  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;   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;   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;   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;   The entity files an annual report with the secretary of state and provides a copy to the department;   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;   The entity agrees to pay the department the actual expenses of the examination at the time of the examination described in subdivision (b)(6);   The entity does not use the word “trust” or “trustee” in the entity's name in any manner;   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;   The entity does not act as a fiduciary other than as provided in this part;   Within thirty (30) days of beginning operations as a trust protector or trust advisor, or any combination thereof, the entity:  Notifies the department of:   Its existence;   Its capacity to act;   The name of the corporate trustee for each separate trust for which such entity is engaged as a trust protector or trust advisor; and     Pays a one-time initial fee of one thousand dollars ($1,000); and     The entity submits annually to the department, no later than April 15 and no earlier than January 1:  An annual fee of one thousand dollars ($1,000);   An updated list of the name of the corporate trustee for each separate trust for which such entity is engaged as a trust protector or trust advisor; and   A certification to the department in which:   The corporate trustee certifies that it is the corporate trustee of the applicable trust; and   The entity certifies that it is acting as a trust protector or trust advisor for the applicable trust, and that such entity's actions are in compliance with this part.