TennesseeHB 0817114th General Assembly (2025-2026)HouseWALLET

AN ACT to amend Tennessee Code Annotated, Title 30 and Title 35, relative to trusts.

Sponsored By: Johnny Garrett (Republican)

Became Law

Trusts

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 0 costs, 3 mixed.

Trust may pay settlor income taxes

Beginning December 31, 2025, a disinterested trustee may reimburse a settlor for the settlor’s personal income taxes that come from trust income, unless the trust says otherwise. The trustee may pay the settlor or send the money directly to the tax agency. The law bars using life‑insurance cash value or loans to fund these payments and says this alone does not make the settlor a beneficiary. The power cannot be used if it would reduce a marital or charitable deduction or another specific tax benefit. A holder can renounce the power in writing. It applies to trusts made before, on, and after December 31, 2025.

Advisors and protectors owe fiduciary duties

Beginning July 1, 2025, a trust advisor or protector must act as a fiduciary for the powers they hold. They must act in good faith, follow the trust, and protect the beneficiaries’ interests. A trust can appoint someone in a nonfiduciary role; then they are liable only for bad faith or reckless indifference. Powers given only to others do not make the advisor or protector responsible for those actions.

Simpler to put personal items in trusts

Beginning July 1, 2025, you can move personal items into a trust with a simple signed paper. The paper must generally describe the items and name the trust. It covers items you own then and items you later get. It does not cover money, IOUs, documents of title, securities, or business property. You can revoke or change the assignment only by delivering a signed paper to the trustee. If no revocation reaches the trustee within six months after death, the trustee may assume none exists.

Lien secures trustee advances and expenses

Beginning July 1, 2025, if a trustee, advisor, or protector advances money for the trust, they get a lien on trust property. The lien secures repayment with reasonable interest and the costs to enforce payment. If they are not repaid, the lien reaches all trust property for amounts due or to come due. This can lower what is left for beneficiaries.

Clearer rules to fill trustee vacancies

Beginning July 1, 2025, more people can serve as trustee. The law now covers people already serving and removes the old $100,000 trust-value cap. If a trust has no workable way to name a successor, the then‑serving trustee, an adult income beneficiary, or a vested remainderman must ask the court to appoint one within three months after the vacancy, unless all entitled parties waive sooner. This sets a clear path to keep the trust running.

Electronic notice and signing rules for trusts

Beginning July 1, 2025, trust notices can be sent by first‑class mail, personal delivery, to a last known address, or electronically if you consented in a record and did not revoke. If you consented to e‑delivery, information posted online for at least 60 days counts as notice, and you are treated as knowing it when the access method was provided or you actually used it. Notice to your authorized representative counts as notice to you. You may sign inter vivos trust documents, transfers to or from a trust, and related consents or settlements electronically under the state’s e‑records rules.

Sponsors & Cosponsors

Sponsor

Johnny Garrett
Republican • House

Cosponsors

Andrew Farmer
Republican • House

Roll Call Votes

All Roll Calls

Yes: 145 • No: 1

Senate vote • 3/10/2025

FLOOR VOTE: Third Consideration 3/10/2025

Yes: 29 • No: 0

House vote • 3/3/2025

FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 3/3/2025

Yes: 90 • No: 1

House vote • 3/3/2025

HOUSE CALENDAR & RULES COMMITTEE

Yes: 0 • No: 0

House vote • 2/26/2025

HOUSE COMMERCE COMMITTEE

Yes: 21 • No: 0

House vote • 2/19/2025

HOUSE BANKING AND CONSUMER AFFAIRS SUBCOMMITTEE

Yes: 5 • No: 0

Actions Timeline

Pub. Ch. 101
4/4/2025
Effective date(s) 07/01/2025
4/4/2025
Signed by Governor.
3/28/2025
Transmitted to Governor for his action.
3/20/2025House
Signed by H. Speaker
3/19/2025House
Signed by Senate Speaker
3/19/2025Senate
Enrolled; ready for sig. of H. Speaker.
3/11/2025House
Senate substituted House Bill for companion Senate Bill.
3/10/2025Senate
Amendment withdrawn. (Amendment 1 - SA0047)
3/10/2025Senate
Passed Senate, Ayes 29, Nays 0
3/10/2025Senate
Received from House, Passed on First Consideration
3/6/2025Senate
Engrossed; ready for transmission to Sen.
3/4/2025House
Sponsor(s) Added.
3/3/2025House
H. adopted am. (Amendment 1 - HA0021)
3/3/2025House
Passed H., as am., Ayes 90, Nays 1, PNV 0
3/3/2025House
H. Placed on Regular Calendar for 3/3/2025
2/27/2025House
Rec. for pass. if am., ref. to Calendar & Rules Committee
2/26/2025House
Placed on cal. Calendar & Rules Committee for 2/27/2025
2/26/2025House
Rec for pass if am by s/c ref. to Commerce Committee
2/19/2025House
Placed on cal. Commerce Committee for 2/26/2025
2/19/2025House
Placed on s/c cal Banking & Consumer Affairs Subcommittee for 2/19/2025
2/12/2025House
Assigned to s/c Banking & Consumer Affairs Subcommittee
2/10/2025House
P2C, ref. to Commerce Committee
2/6/2025House
Intro., P1C.
2/5/2025House
Filed for introduction
2/4/2025House

Bill Text

HA0021 (Substitute)
3/3/2025
PDF
Enrolled / Public Chapter
PDF
Fiscal Note
PDF
Introduced
PDF
SA0047
PDF

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