reglab/statecodes huggingface dataset:
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 10 - LIABILITY OF TRUSTEES AND RIGHTS OF PERSONS DEALING WITH TRUSTEE (§§ 35-15-1001 — 35-15-1015) › Section 35-15-1008 - Exculpation of trustee

(a)
A provision of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it:
(1)
Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or
(2)
Was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.
(b)
An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the settlor.
Acts 2004, ch. 537, § 84.
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 10 - LIABILITY OF TRUSTEES AND RIGHTS OF PERSONS DEALING WITH TRUSTEE (§§ 35-15-1001 — 35-15-1015) › Section 35-15-1009 - Beneficiary's consent, release, or ratification

A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented in writing to the conduct or transaction constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach, unless:
(1)
The consent, release, or ratification of the beneficiary was induced by improper conduct of the trustee; or
(2)
At the time of the consent, release, or ratification, the beneficiary did not know of the beneficiary's rights or of the material facts relating to the breach.
Acts 2004, ch. 537, § 85.
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 10 - LIABILITY OF TRUSTEES AND RIGHTS OF PERSONS DEALING WITH TRUSTEE (§§ 35-15-1001 — 35-15-1015) › Section 35-15-1010 - Limitation on personal liability of trustee

(a)
Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity.
(b)
Except as otherwise provided in subsection (a) or (c), the debts, obligations and liabilities incurred by a trustee by reason of the ownership, management or control of trust property in the trustee's fiduciary capacity, shall be enforceable solely against the trust and its property, without any obligation or liability personally being borne by any trustee of such trust.
(c)
A trustee is personally liable for torts committed in the course of administering a trust only if the trustee is personally at fault on account of the trustee's own willful misconduct proven by clear and convincing evidence.
(d)
A claim based on a contract entered into by a trustee in the trustee's fiduciary capacity, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust, may be asserted in a judicial proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable for the claim.
Acts 2004, ch. 537, § 86; 2010, ch. 725, § 10.
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 10 - LIABILITY OF TRUSTEES AND RIGHTS OF PERSONS DEALING WITH TRUSTEE (§§ 35-15-1001 — 35-15-1015) › Section 35-15-1011 - Interest as general partner

(a)
Except as otherwise provided in subsection (c) or unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust's acquisition of the interest if the fiduciary capacity was disclosed in the contract or in a statement previously filed pursuant to the Uniform Partnership Act, compiled in title 61, chapter 1, or the Uniform Limited Partnership Act, compiled in title 61, chapter 2.
(b)
Except as otherwise provided in subsection (c), a trustee who holds an interest as a general partner is not personally liable for torts committed by the partnership or for obligations arising from ownership or control of the interest unless the trustee is personally at fault on account of the trustee's own willful misconduct proven by clear and convincing evidence.
(c)
The immunity provided by this section does not apply if an interest in the partnership is held by the trustee in a capacity other than that of trustee.
(d)
If the trustee of a revocable trust holds an interest as a general partner, the settlor is personally liable for contracts and other obligations of the partnership as if the settlor were a general partner.
Acts 2004, ch. 537, § 87; 2010, ch. 725, §§ 11, 12.
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 10 - LIABILITY OF TRUSTEES AND RIGHTS OF PERSONS DEALING WITH TRUSTEE (§§ 35-15-1001 — 35-15-1015) › Section 35-15-1012 - Protection of person dealing with trustee

(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.
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 10 - LIABILITY OF TRUSTEES AND RIGHTS OF PERSONS DEALING WITH TRUSTEE (§§ 35-15-1001 — 35-15-1015) › Section 35-15-1015 - Limitation on personal liability of beneficiaries

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.
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 11 - MISCELLANEOUS PROVISIONS (§§ 35-15-1101 — 35-15-1105) › Section 35-15-1101 - No consideration given to need to promote uniformity of application and construction of law

(a)
Numerous provisions of each of the following have been modified extensively relative to their respective uniform acts as such uniform acts were drafted and have been amended by the Uniform Law Commission, also known as the National Conference of Commissioners of Uniform State Laws:
(1)
Chapter 6, the Uniform Principal and Income Act;
(2)
Chapter 14, the Tennessee Uniform Prudent Investor Act of 2002; and
(3)
Chapter 15, the Tennessee Uniform Trust Code.
(b)
These modifications were undertaken deliberately and after significant consideration:
(1)
Therefore, in applying and construing title 35, no consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states, including any other state that has enacted laws covering the same general subject matter as chapters 9, 14 or 15, either by enacting such respective uniform acts as such uniform acts were originally drafted or as such were originally drafted and subsequently have been amended, or by enacting laws based on or similar to such uniform acts as originally drafted or as such have been amended; and
(2)
Unless specifically provided otherwise in this chapter, chapter 6 or chapter 14, courts shall not consult, rely on or give any persuasive value to such uniform acts or any respective other state's acts based on or similar to such uniform acts, or any comments accompanying any such uniform acts or any respective other state's acts based on or similar to such uniform acts; none of which have any force or effect relative to trusts governed by the laws of this state.
Amended by 2013 Tenn. Acts, ch. 390,s 42, eff. 7/1/2013.
Acts 2004, ch. 537, § 90.
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 11 - MISCELLANEOUS PROVISIONS (§§ 35-15-1101 — 35-15-1105) › Section 35-15-1102 - Electronic records and signatures

The provisions of this chapter governing the legal effect, validity, or enforceability of electronic records or electronic signatures, and of contracts formed or performed with the use of such records or signatures, conform to the requirements of section 102 of the Electronic Signatures in Global and National Commerce Act (
15 U.S.C. § 7002
), and supersede, modify, and limit the requirements of the Electronic Signatures in Global and National Commerce Act. However, the execution of a modification, termination, or settlement agreement pursuant to §
35-15-111
, §
35-15-411
, or §
35-15-412
is considered a transaction for purposes of §
47-10-103
.
Amended by 2021 Tenn. Acts, ch. 420, s 19, eff. 7/1/2021.
Acts 2004, ch. 537, § 91.
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 11 - MISCELLANEOUS PROVISIONS (§§ 35-15-1101 — 35-15-1105) › Section 35-15-1103 - Application to existing relationships

(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.
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 11 - MISCELLANEOUS PROVISIONS (§§ 35-15-1101 — 35-15-1105) › Section 35-15-1104 - Alter ego

(a)
Absent clear and convincing evidence, no settlor of an irrevocable trust may be deemed to be the alter ego of a trustee of such trust.
(b)
None of the following factors, by themselves or in combination, may be considered sufficient evidence for a court to conclude that the settlor controls a trustee, or is the alter ego of a trustee of such trust:
(1)
Any combination of the factors listed in §
35-15-1105
regarding dominion and control over a trust;
(2)
Isolated occurrences where the settlor has signed checks, made disbursements, or executed other documents related to such trust as a trustee, a trust advisor or a trust protector, when in fact the settlor was not such a trustee, trust advisor or trust protector;
(3)
Making any requests for distributions on behalf of beneficiaries; or
(4)
Making any requests to the trustee to hold, purchase, or sell any trust property.
Added by 2013 Tenn. Acts, ch. 390,s 52, eff. 7/1/2013.
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 11 - MISCELLANEOUS PROVISIONS (§§ 35-15-1101 — 35-15-1105) › Section 35-15-1105 - Dominion and control over a trust

In the event a person challenges a settlor's or a beneficiary's influence over a trust, none of the following factors, alone or in combination, shall enter into a determination that dominion and control over a trust exists:
(1)
The settlor or a beneficiary is serving as a trustee, a trust advisor, a trust protector or other fiduciary as described in §
35-15-508
;
(2)
The settlor or a beneficiary holds an unrestricted power to remove or replace a trustee, a trust advisor, a trust protector or other fiduciary;
(3)
The settlor or a beneficiary is a trust administrator, a general partner of a partnership, a manager of a limited liability company, an officer of a corporation, or holds any other managerial function relative to any type of entity specified in this subdivision (3), or relative to any other type of entity not so specified, and part or all of the trust property consists of an interest in such entity;
(4)
A person related by blood or adoption to the settlor or a beneficiary is appointed as a trustee, a trust advisor, a trust protector or other fiduciary;
(5)
The settlor's or a beneficiary's agent, accountant, attorney, financial advisor, or friend is appointed as a trustee, a trust advisor, a trust protector or other fiduciary;
(6)
A business associate is appointed as a trustee, a trust advisor, a trust protector or other fiduciary;
(7)
A beneficiary holds any power of appointment over any or all of the trust property;
(8)
The settlor holds a power to substitute property of equivalent value for property held by the trust, regardless of whether such power is:
(A)
Held in a fiduciary or nonfiduciary capacity;
(B)
Exercisable with or without the approval of any person in a fiduciary capacity; or
(C)
Exercisable with or without the approval of any person having an interest adverse to such settlor;
(9)
A trustee, a trust advisor, a trust protector or other fiduciary has the power to loan trust property to the settlor for less than a full and adequate rate of interest or without adequate security;
(10)
Any language relative to the power to make any distribution provides for any discretion relative to such distribution;
(11)
The trust has only one beneficiary eligible for current distributions; or
(12)
The beneficiary is serving as a cotrustee, or as a trust advisor or trust protector under part 12, or as any other fiduciary.
Added by 2013 Tenn. Acts, ch. 390,s 52, eff. 7/1/2013.
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 12 - TRUST PROTECTORS AND TRUST ADVISORS (§§ 35-15-1201 — 35-15-1206) › Section 35-15-1202 - Trust advisors and trust protectors as fiduciaries

(a)
A trust advisor or trust protector, other than a beneficiary, is a fiduciary with respect to each power granted to such trust advisor or trust protector. In exercising any power or refraining from exercising any power, a trust advisor or trust protector shall act in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.
(b)
A trust advisor or trust protector is an excluded fiduciary with respect to each power granted or reserved exclusively to any one or more other trustees, trust advisors, or trust protectors.
Added by 2013 Tenn. Acts, ch. 390,s 43, eff. 7/1/2013.
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 12 - TRUST PROTECTORS AND TRUST ADVISORS (§§ 35-15-1201 — 35-15-1206) › Section 35-15-1203 - Trust advisor and trust protector subject to court jurisdiction

By accepting appointment to serve as a trust advisor or trust protector, the trust advisor or the trust protector submits personally to the jurisdiction of the courts of this state even if investment advisory agreements or other related agreements provide otherwise, and the trust advisor or trust protector may be made a party to any action or proceeding relating to a decision, action, or inaction of the trust advisor or trust protector.
Added by 2013 Tenn. Acts, ch. 390,s 43, eff. 7/1/2013.
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 12 - TRUST PROTECTORS AND TRUST ADVISORS (§§ 35-15-1201 — 35-15-1206) › Section 35-15-1204 - No duty to review actions of trustee, trust advisor, or trust protector

(a)
Whenever, pursuant to the terms of a trust, an agreement of the qualified beneficiaries, or a court order, an excluded fiduciary is to follow the direction of a trustee, trust advisor, or trust protector with respect to investment decisions, distribution decisions, or other decisions of the non-excluded fiduciary, then, except to the extent that the terms of the trust, the agreement of the qualified beneficiaries, or the court order provide otherwise, the excluded fiduciary shall have no duty to:
(1)
Review, evaluate, perform investment reviews, suitability reviews, inquiries, or investigations, or in any other way monitor the conduct of the trustee, trust advisor, or trust protector;
(2)
Make recommendations or evaluations or in any way provide advice to the trustee, trust advisor, or trust protector or consult with the trustee, trust advisor, or trust protector; or
(3)
Communicate with or warn or apprise any beneficiary or third party concerning instances in which the excluded fiduciary would or might have exercised the excluded fiduciary's own discretion in a manner different from the manner directed by the trustee, trust advisor, or trust protector.
(b)
Absent provisions in the trust instrument to the contrary, the actions of the excluded fiduciary pertaining to matters within the scope of the trustee, trust advisor, or trust protector's authority, including but not limited to, confirming that the trustee, trust advisor, or trust protector's directions have been carried out and recording and reporting actions taken at the trustee, trust advisor, or trust protector's direction or other information pursuant to §
35-15-813
, shall be deemed to be administrative actions taken by the excluded fiduciary solely to allow the excluded fiduciary to perform those duties assigned to the excluded fiduciary under the terms of the trust, the agreement of the qualified beneficiaries, or the court order; such administrative actions, as well as any communications made by the excluded fiduciary to the trust advisor, trust protector or any of their agents or persons they have selected to provide services to the trust, shall not be deemed to constitute an undertaking by the excluded fiduciary to monitor the trustee, trust advisor, or trust protector or otherwise participate in actions within the scope of the trustee, trust advisor, or trust protector's authority.
Added by 2013 Tenn. Acts, ch. 390,s 43, eff. 7/1/2013.
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 12 - TRUST PROTECTORS AND TRUST ADVISORS (§§ 35-15-1201 — 35-15-1206) › Section 35-15-1205 - Fiduciary's liability for action or inaction of trustee, trust advisor, and trust protector

An excluded fiduciary is not liable, either individually or as a fiduciary, for:
(1)
Any loss resulting from compliance with a direction of a trustee, trust advisor or trust protector, including but not limited to, any loss from the trustee, trust advisor or trust protector breaching fiduciary responsibilities or acting beyond the trustee's, trust advisor's or trust protector's scope of authority;
(2)
Any loss resulting from any action or inaction of a trustee, trust advisor, or trust protector; or
(3)
Any loss that results from the failure of a trustee, trust advisor, or trust protector to take any action proposed by the excluded fiduciary where such action requires the authorization of the trustee, trust advisor, or trust protector; provided, that an excluded fiduciary who had a duty to propose such action timely sought but failed to obtain the authorization.
Added by 2013 Tenn. Acts, ch. 390,s 43, eff. 7/1/2013.
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 12 - TRUST PROTECTORS AND TRUST ADVISORS (§§ 35-15-1201 — 35-15-1206) › Section 35-15-1206 - [Repealed]

Repealed by 2022 Tenn. Acts, ch. 877,s 2, eff. 4/14/2022.
Added by 2013 Tenn. Acts, ch. 390,s 43, eff. 7/1/2013.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 16 - TENNESSEE INVESTMENT SERVICES ACT OF 2007 (§§ 35-16-101 — 35-16-112) › Section 35-16-101 - Short title

This chapter shall be known and may be cited as the "Tennessee Investment Services Act of 2007."
Acts 2007, ch. 144, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 16 - TENNESSEE INVESTMENT SERVICES ACT OF 2007 (§§ 35-16-101 — 35-16-112) › Section 35-16-103 - Qualified affidavit requirements

A qualified affidavit shall state that:
(1)
The transferor has full right, title, and authority to transfer the assets to the trust;
(2)
The transfer of the assets to the trust will not render the transferor insolvent;
(3)
The transferor does not intend to defraud a creditor by transferring the assets to the trust;
(4)
The transferor does not have any pending or threatened court actions against the transferor, except for those court actions identified by the transferor on an attachment to the affidavit;
(5)
The transferor is not involved in any administrative proceedings, except for those administrative proceedings identified on an attachment to the affidavit;
(6)
The transferor does not contemplate filing for relief under the federal bankruptcy code; and
(7)
The assets being transferred to the trust were not derived from unlawful activities.
Acts 2007, ch. 144, § 3.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 16 - TENNESSEE INVESTMENT SERVICES ACT OF 2007 (§§ 35-16-101 — 35-16-112) › Section 35-16-105 - Powers and rights of transferor

A transferor shall have only the powers and rights conferred by the investment services trust. The powers and rights conferred by the investment services trust upon the transferor are personal powers and rights that may not be exercised by a creditor or any other person, except as expressly permitted by the trust. Except as permitted by §§
35-16-109
and
35-16-111
, the transferor shall have no rights or authority with respect to the corpus of the investment services trust or the income from the trust, and any agreement or understanding purporting to grant or permit the retention of any greater rights or authority shall be void.
Acts 2007, ch. 144, § 5; 2010, ch. 725, § 17.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 16 - TENNESSEE INVESTMENT SERVICES ACT OF 2007 (§§ 35-16-101 — 35-16-112) › Section 35-16-106 - Avoidance of qualified dispositions

(a)
A qualified disposition to an investment services trust shall be avoided only to the extent necessary to satisfy the transferor's debt to the creditor at whose instance the disposition had been avoided, together with costs, including attorneys' fees, that the court may allow.
(b)
In the event any qualified disposition shall be avoided as provided in subsection (a), then:
(1)
If the court is satisfied that a qualified trustee has not acted in bad faith in accepting or administering the property that is the subject of the qualified disposition:
(A)
The qualified trustee shall have a first and paramount lien against the property that is the subject of the qualified disposition in an amount equal to the entire cost, including attorneys' fees, properly incurred by the qualified trustee in the defense of the action or proceedings to avoid the qualified disposition;
(B)
The qualified disposition shall be avoided subject to the proper fees, costs, preexisting rights, claims and interests of the qualified trustee and of any predecessor qualified trustee that has not acted in bad faith; and
(C)
For purposes of this subdivision (b)(1), it shall be presumed that the qualified trustee did not act in bad faith merely by accepting the property; and
(2)
If the court is satisfied that a beneficiary of an investment services trust has not acted in bad faith, the avoidance of the qualified disposition shall be subject to the right of the beneficiary to retain any distribution made upon the exercise of a trust power or discretion vested in the qualified trustee or qualified trustees of the investment services trust, which power or discretion was properly exercised prior to the creditor's commencement of an action to avoid the qualified disposition. For purposes of this subdivision (b)(2), it shall be presumed that the beneficiary, including a beneficiary who is also a transferor of the trust, did not act in bad faith merely by creating the trust or by accepting a distribution made in accordance with the terms of the trust.
(c)
A disposition by a trustee that is not a qualified trustee to a trustee that is a qualified trustee shall not be treated as other than a qualified disposition solely because the trust instrument fails to meet the requirements of §
35-16-102(7)(A)
.
(d)
In the case of a disposition to more than one (1) trustee, a disposition that is otherwise a qualified disposition shall not be treated as other than a qualified disposition solely because not all of the recipient trustees are qualified trustees.
Acts 2007, ch. 144, § 6.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 16 - TENNESSEE INVESTMENT SERVICES ACT OF 2007 (§§ 35-16-101 — 35-16-112) › Section 35-16-107 - Spendthrift provisions

A spendthrift provision as described in §
35-16-102(7)(C)
shall be deemed to be a restriction on the transfer of the transferor's beneficial interest in the trust that is enforceable under applicable nonbankruptcy law within the meaning of § 541(c)(2) of the Bankruptcy Code (
11 U.S.C. § 541(c)(2)
), or any successor provision.
Acts 2007, ch. 144, § 7.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 16 - TENNESSEE INVESTMENT SERVICES ACT OF 2007 (§§ 35-16-101 — 35-16-112) › Section 35-16-108 - Qualified trustees and advisors

(a)
For purposes of this chapter, neither the transferor nor any other natural person who is a nonresident of this state nor an entity that is not authorized by the law of this state to act as a trustee or whose activities are not subject to supervision as provided in §
35-16-102(12)(A)
shall be considered a qualified trustee; however, nothing in this chapter shall preclude a transferor from appointing one (1) or more advisors, including, but not limited to:
(1)
Advisors who have authority under the terms of the trust instrument to remove and appoint qualified trustees or trust advisors;
(2)
Advisors who have authority under the terms of the trust instrument to direct, consent to or disapprove distributions from the trust; and
(3)
Investment advisors, whether or not the advisors would meet the requirements imposed by §
35-16-102(12)
.
(b)
For purposes of subsection (a), "advisor" includes a trust "protector" or any other person who, in addition to a qualified trustee, holds one (1) or more trust powers.
Acts 2007, ch. 144, § 8.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 16 - TENNESSEE INVESTMENT SERVICES ACT OF 2007 (§§ 35-16-101 — 35-16-112) › Section 35-16-109 - Transferor as investment advisor

A person may serve as an investment advisor notwithstanding that the person is the transferor of the qualified disposition.
Acts 2007, ch. 144, § 9; 2010, ch. 725, § 18.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 16 - TENNESSEE INVESTMENT SERVICES ACT OF 2007 (§§ 35-16-101 — 35-16-112) › Section 35-16-110 - Successor trustees

In the event that a qualified trustee of an investment services trust ceases to meet the requirements of §
35-16-102(12)(A)
, and there remains no trustee that meets the requirements, the qualified trustee shall be deemed to have resigned as of the time of that cessation, and thereupon the successor qualified trustee provided for in the investment services trust shall become a qualified trustee of the investment services trust, or in the absence of any successor qualified trustee provided for in the investment services trust, then a court of this state shall, upon application of any interested party, appoint a successor qualified trustee.
Acts 2007, ch. 144, § 10.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 16 - TENNESSEE INVESTMENT SERVICES ACT OF 2007 (§§ 35-16-101 — 35-16-112) › Section 35-16-112 - Applicability

This chapter applies to qualified dispositions to investment services trusts and dispositions by transferors who are trustees made on or after July 1, 2007.
Acts 2007, ch. 144, § 12.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 17 - TENNESSEE COMMUNITY PROPERTY TRUST ACT OF 2010 (§§ 35-17-101 — 35-17-108) › Section 35-17-101 - Short title

This chapter shall be known as the "Tennessee Community Property Trust Act of 2010."
Acts 2010, ch. 658, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 17 - TENNESSEE COMMUNITY PROPERTY TRUST ACT OF 2010 (§§ 35-17-101 — 35-17-108) › Section 35-17-102 - Chapter definitions

As used in this chapter:
(1)
"Community property" means property owned by a community property trust during the marriage of the settlor spouses;
(2)
"Community property trust" means an express trust that complies with §
35-17-103
;
(3)
"Decree" means a judgment or other order of a court;
(4)
"Dissolution" means either:
(A)
Termination of a marriage by a decree of dissolution, divorce, annulment or declaration of invalidity; or
(B)
Entry of a decree of legal separation maintenance;
(5)
"During marriage" means a period that begins at marriage and ends at dissolution or immediately after the death of a spouse;
(6)
"Qualified trustee" means either:
(A)
A natural person who is a resident of this state; or
(B)
A company authorized to act as a fiduciary in this state pursuant to §
45-2-1001
; and
(7)
"Settlor spouses" means a married couple that establishes a community property trust.
Amended by 2023 Tenn. Acts, ch. 166,s 12, eff. 4/17/2023.
Acts 2010 , ch. 658, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 17 - TENNESSEE COMMUNITY PROPERTY TRUST ACT OF 2010 (§§ 35-17-101 — 35-17-108) › Section 35-17-103 - Requirements for community property trust

An arrangement is a community property trust if one (1) or both spouses transfer property to a trust, that:
(1)
Expressly declares that the trust is a Tennessee community property trust;
(2)
Has at least one (1) trustee who is a qualified trustee whose powers include, or are limited to, maintaining records for the trust on an exclusive or a nonexclusive basis and preparing or arranging for the preparation of, on an exclusive or a nonexclusive basis, any income tax returns that must be filed by the trust. Both spouses or either spouse may be a trustee;
(3)
Is signed by both spouses; and
(4)
Contains the following language in capital letters at the beginning of the trust:
THE CONSEQUENCES OF THIS TRUST MAY BE VERY EXTENSIVE, INCLUDING, BUT NOT LIMITED TO, YOUR RIGHTS WITH YOUR SPOUSE BOTH DURING THE COURSE OF YOUR MARRIAGE AND AT THE TIME OF A DIVORCE. ACCORDINGLY, THIS AGREEMENT SHOULD ONLY BE SIGNED AFTER CAREFUL CONSIDERATION. IF YOU HAVE ANY QUESTIONS ABOUT THIS AGREEMENT, YOU SHOULD SEEK COMPETENT ADVICE.
Acts 2010, ch. 658, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 17 - TENNESSEE COMMUNITY PROPERTY TRUST ACT OF 2010 (§§ 35-17-101 — 35-17-108) › Section 35-17-104 - Agreement establishing community property trust - Amendments and revocation

(a)
In the agreement establishing a community property trust, spouses may agree on:
(1)
The rights and obligations in the property transferred to the trust, notwithstanding when and where the property is acquired or located;
(2)
The management and control of the property transferred to the trust;
(3)
The disposition of the property transferred to the trust on dissolution, death, or the occurrence or nonoccurrence of another event;
(4)
The choice of law governing the interpretation of the trust; and
(5)
Any other matter that affects the property transferred to the trust and does not violate public policy or a statute imposing a criminal penalty.
(b)
(1)
Either spouse may amend a community property trust regarding the disposition of that spouse's one-half (1/2) share of the community property in the occurrence of such spouse's death.
(2)
Except as provided in subdivision (b)(1), a community property trust may not be amended or revoked unless the agreement itself provides for amendment or revocation.
Acts 2010 , ch. 658, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 17 - TENNESSEE COMMUNITY PROPERTY TRUST ACT OF 2010 (§§ 35-17-101 — 35-17-108) › Section 35-17-105 - Classification of property as community property - Enforcement - Duration - Management and control - Effect of distributions

(a)
Whether or not both, one (1) or neither is domiciled in this state, spouses may transmute any or all of their property to community property by transferring property to a community property trust.
(b)
A community property trust is enforceable without consideration.
(c)
All property owned by a community property trust will be community property during marriage.
(d)
The right to manage and control property that is transferred to a community property trust is determined by the terms of the trust.
(e)
When property is distributed from a community property trust, it shall no longer constitute community property.
Amended by 2023 Tenn. Acts, ch. 166,s 13, eff. 4/17/2023.
Acts 2010 , ch. 658, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 17 - TENNESSEE COMMUNITY PROPERTY TRUST ACT OF 2010 (§§ 35-17-101 — 35-17-108) › Section 35-17-106 - Satisfaction of obligations

(a)
An obligation incurred by only one (1) spouse before or during marriage may be satisfied from that spouse's one-half (1/2) share of a community property trust.
(b)
An obligation incurred by both spouses during marriage may be satisfied from a community property trust of the spouses.
Acts 2010 , ch. 658, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 17 - TENNESSEE COMMUNITY PROPERTY TRUST ACT OF 2010 (§§ 35-17-101 — 35-17-108) › Section 35-17-107 - Death of a spouse

Upon the death of a spouse, one-half (1/2) of the aggregate value of the property owned by a community property trust established by the spouses reflects the share of the surviving spouse and the other one-half (1/2) reflects the share of the decedent. Unless provided otherwise in the trust agreement, the trustee has the power to distribute assets of the trust in divided or undivided interests and to adjust resulting differences in valuation. A distribution in kind may be made on the basis of a non pro rata division of the aggregate value of the trust assets, on the basis of a pro rata division of each individual asset, or by using both methods.
Acts 2010 , ch. 658, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 17 - TENNESSEE COMMUNITY PROPERTY TRUST ACT OF 2010 (§§ 35-17-101 — 35-17-108) › Section 35-17-108 - Dissolution of marriage

Upon the dissolution of the marriage of the settlor spouses, the community property trust shall terminate and the trustee shall distribute one-half (1/2) of the trust assets to each spouse, with each spouse receiving one-half (1/2) of each asset, unless otherwise agreed to in writing by both spouses.
Acts 2010 , ch. 658, § 1.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 50 - MISCELLANEOUS PROVISIONS (§§ 35-50-101 — 35-50-125) › Section 35-50-101 - Joint control of deposits by principal and surety is lawful

It is lawful for any party of whom a bond, undertaking or other obligation is required to agree with the party's surety or sureties for the deposit of any or all moneys and assets for which the party and surety or sureties are or may be held responsible, with a bank, savings bank, safe deposit or trust company, authorized by law to do business as such, or with another depository; provided, that the other depository is approved by the court or a judge of the court, if the deposit is otherwise proper, for the safekeeping of the money or assets and in such manner as to prevent the withdrawal of the money or assets or any part of the money or assets, without the written consent of the surety or sureties, or an order of the court, or a judge of the court, made on such notice to the surety or sureties as the court or judge may direct; and provided further, that the agreement shall not in any manner release from or change the liability of the principal or sureties as established by the terms of the bond.
Acts 1941, ch. 10, § 1; C. Supp. 1950, § 7806.1 (Williams, §7810.1); T.C.A. (orig. ed.), § 35-601.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 50 - MISCELLANEOUS PROVISIONS (§§ 35-50-101 — 35-50-125) › Section 35-50-102 - Insurance trusts - Creation - Validity

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.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 50 - MISCELLANEOUS PROVISIONS (§§ 35-50-101 — 35-50-125) › Section 35-50-103 - Life insurance proceeds payable to trustee

(a)
Life insurance may be made payable to a trustee to be named as beneficiary in the policy, and the proceeds of that insurance shall be paid to the trustee and shall be held and disposed of by the trustee as provided in a trust agreement made by the insured during the insured's lifetime. It shall not be necessary to the validity of any such trust agreement or declaration of trust that it have a trust corpus other than the right of the trustee to receive the insurance proceeds as beneficiary.
(b)
A policy of life insurance may designate as beneficiary a trustee or trustees named by will, if the designation is made in accordance with the policy and the requirements of the insurance company. Upon probate of the will, the proceeds of such insurance shall be payable to the trustee or trustees to be held and disposed of under the terms of the will as they exist as of the date of the death of the testator and in the same manner as other testamentary trusts are administered; but if no qualified trustee makes claim to the proceeds from the insurance company within eighteen (18) months after the death of the insured, or if satisfactory evidence is furnished to the insurance company within the eighteen-month period showing that there is or will be no trustee to receive the proceeds, payment shall be made by the insurance company to the executors, administrators or assigns of the insured, unless otherwise provided by agreement with the insurance company during the lifetime of the insured.
(c)
The proceeds of the insurance as received by the trustee or trustees shall not be subject to debts of the insured.
(d)
Insurance proceeds so held in trust shall not be considered part of the insured's estate for administration purposes.
(e)
Insurance proceeds so held in trust may be commingled with any other assets that may properly come into the trust.
(f)
Nothing in this section shall affect the validity of any life insurance policy beneficiary designation previously made naming trustees of trusts established by living trust or by will.
Acts 1969, ch. 262, § 1; T.C.A., § 35-620.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 50 - MISCELLANEOUS PROVISIONS (§§ 35-50-101 — 35-50-125) › Section 35-50-104 - Purchase of annuity contract

(a)
In order to relieve estates and trusts of the burden of an annuity, the chancery court, on petition of one (1) or more of the beneficiaries in remainder in the estate or trust, or any portion of the estate or trust, is empowered, when not in terms prohibited by the will or trust instrument, to decree the purchase, in behalf of the annuitant, of an annuity contract of some insurance company, or insurer, that will afford the accordant definite income, for the stated term of life, stipulated for the annuitant by the law, or provision of the will or trust.
(b)
The cost of the annuity contract shall be paid out of the funds of the estate or trust; provided, that the contract shall be purchased only from a company or insurer admitted to do business in the state; and provided further, that all persons in interest, including the trustee or other fiduciary, complainant or defendant, shall be parties to the petition, and that the annuitant shall consent to the purchase and to the release of the annuitant's claim upon the estate or trust; or the court in the annuitant's behalf, if the annuitant is a minor or incompetent.
(c)
The annuity contract shall be one issued by a company or insurer, selected by, or for as aforementioned, the annuitant and approved by the court.
(d)
Should any beneficiary of a remainder interest not concur, that person's interest in the estate or trust shall not be distributed until the death of the annuitant or expiration of the term stipulated, nor charged with any part of the cost of the contract. In that event, however, the beneficiary or beneficiaries of the remainder interest concurring shall be entitled to distribution of their respective interests, upon paying the cost of an annuity contract as will be productive of an income to the annuitant proportionate to their interest in the entire remainder estate, and paying all costs of the application.
(e)
Nothing in this section shall be construed to authorize the acceleration of distribution except where it appears to the court that the payment of an annuity, or its equivalent, is the sole remaining purpose of the trust's continuance.
Acts 1929, ch. 23, §§ 1, 2; mod. Code 1932, §§8135-8138; T.C.A. (orig. ed.), §§ 35-603 -- 35-606.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 50 - MISCELLANEOUS PROVISIONS (§§ 35-50-101 — 35-50-125) › Section 35-50-105 - Fiduciaries may effect liability and accident insurance on property

(a)
All guardians, executors, administrators and trustees are authorized to effect liability and accident insurance, in such amount as may be reasonable and proper, on any or all real or personal property under their management and control.
(b)
Premiums paid on insurance effected according to subsection (a) shall be a proper charge against the estate under management or control, and shall be allowed as a credit on settlements made.
Acts 1925, ch. 24, §§ 1, 2; Shan. Supp., §§3349a3, 3349a4; Code 1932, §§ 6215, 6216; T.C.A. (orig. ed.) §§ 35-607, 35-608.
2023 Tennessee Code › Title 35 - FIDUCIARIES AND TRUST ESTATES (§§ 35-1-101 — 35-50-125) › Chapter 50 - MISCELLANEOUS PROVISIONS (§§ 35-50-101 — 35-50-125) › Section 35-50-106 - Trusts for employees' benefit - Rule against perpetuities

No trust previously or subsequently created by an employer as a part of a pension, stock bonus, disability, death benefit, profit sharing or similar plan for the exclusive benefit of some or all of the employer's employees or their beneficiaries to which contributions are made by the employer or employees, or both employer and employees, for the purpose of distributing to the employees or their beneficiaries, the earnings or principal or both earnings and principal, of the trust, shall be deemed to be invalid by reason of any existing law or rule against perpetuities or suspension of the power of alienation; but the trust may continue for such time as may be necessary to accomplish the purposes for which it may be created. The income arising from any property held in trust may be permitted to accumulate for the length permitted by the instrument creating the trust, or, if no time is so specified, for the time the trustee or trustees deem necessary to accomplish the purposes of the trust.
Acts 1955, ch. 293, § 1; T.C.A., § 35-609.