2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 15 - TENNESSEE UNIFORM TRUST CODE (§§ 35-15-101 — 35-15-1301) › Part 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 35-15-101 — 35-15-114) › Section 35-15-108 - Place of administration - Sufficient nexus for a state jurisdiction provision - Transfer of place of administration

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