All Roll Calls
Yes: 145 • No: 1
TennesseeHB 0817114th General Assembly (2025-2026)HouseWALLET
AN ACT to amend Tennessee Code Annotated, Title 30 and Title 35, relative to trusts.
Sponsored By: Sponsor information unavailable
Signed by Governor
Trusts
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 3 benefits, 0 costs, 3 mixed.
Easier transfers of belongings into trusts
Beginning July 1, 2025, people can assign qualifying physical belongings to a trust during life or after death. They must deliver a signed writing that describes the property in general terms and specifically names the trust. It covers property owned at signing and property acquired later. Money, debt instruments, title documents, securities, and property used in a trade or business are excluded. A later writing delivered to the trustee, including a will, can revoke or change the assignment. If no change arrives within six months after the owner's death, the trustee may presume none exists.
More trusts can get replacement trustees
Beginning July 1, 2025, the law removes the $100,000 trust-value cap for this court appointment process. It applies when the trust lacks a workable way to name a successor or substitute trustee. A serving trustee, adult income beneficiary, or person with a vested right to remaining trust property can petition the court. The petition must be filed within three months after a vacancy, unless the right is waived sooner.
Trust documents can use electronic signing
Beginning July 1, 2025, specified trust documents fall under Tennessee's electronic transactions law. This includes trusts created during life and documents transferring assets into or out of trusts. It also covers specified consent, release, ratification, modification, termination, and settlement agreements. These documents can be signed and delivered electronically in accordance with that law.
Easier trust notices carry legal consequences
Beginning July 1, 2025, trust notices must use a suitable method likely to reach the recipient. Options include first-class mail, personal delivery, delivery to the last known home or business, and properly directed electronic messages. Electronic access requires consent recorded in writing or electronically that has not been revoked. The access method must be included in that record or have been used before. Those consent and access conditions also allow electronically available information to count as actual knowledge. A separate rule treats a person as having reason to know facts after at least 60 days of electronic availability. Notices, information, accountings, and reports given to an authorized representative can count as given directly to the represented person.
Trust repayment liens can shrink inheritances
Beginning July 1, 2025, money advanced for a trust creates a lien securing repayment with reasonable interest. Covered lenders include trustees, trust advisors, trust protectors, and people identified in Tennessee Code § 35-15-701(c)(1). If a trustee is not paid or reimbursed, a lien covers all trust property. It secures amounts owed now or later for services, expenses, advances, and enforcement costs. These repayment claims can leave less property for beneficiaries.
Trust tax repayments can reduce inheritances
Beginning December 31, 2025, trusts can repay their creators for personal income taxes tied to trust activity. The creator must be treated as owning all or part of the trust under federal grantor-trust tax rules. Covered taxes include federal, state, local, foreign, and other income taxes tied to trust income, gains, deductions, or credits. A disinterested trustee decides whether to pay; another trustee can act at a qualifying disinterested advisor's or protector's direction. Payment can go to the creator or directly to the taxing authority, reducing assets left for beneficiaries. The power applies to trusts created before, on, or after that date, unless the trust document expressly bars repayment. The creator cannot demand payment or agree in advance that the power will be used. Payment cannot disqualify or reduce a marital deduction, charitable deduction, or other protected state or federal tax benefit. Trust life-insurance policies on the creator, their cash value, and related secured-loan proceeds cannot fund repayment. The power can be renounced in writing, permanently unless the renunciation states a limit. Using, declining, or renouncing the power creates no liability for that decision.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
Andrew Farmer
Republican • House
Roll Call Votes
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
Effective date(s) 07/01/2025
4/4/2025Pub. Ch. 101
4/4/2025Signed by Governor.
3/28/2025Transmitted to Governor for his action.
3/20/2025HouseSigned by Senate Speaker
3/19/2025SenateSigned by H. Speaker
3/19/2025HouseEnrolled; ready for sig. of H. Speaker.
3/11/2025HousePassed Senate, Ayes 29, Nays 0
3/10/2025SenateAmendment withdrawn. (Amendment 1 - SA0047)
3/10/2025SenateSenate substituted House Bill for companion Senate Bill.
3/10/2025SenateReceived from House, Passed on First Consideration
3/6/2025SenateEngrossed; ready for transmission to Sen.
3/4/2025HousePassed H., as am., Ayes 90, Nays 1, PNV 0
3/3/2025HouseH. adopted am. (Amendment 1 - HA0021)
3/3/2025HouseSponsor(s) Added.
3/3/2025HouseH. Placed on Regular Calendar for 3/3/2025
2/27/2025HousePlaced on cal. Calendar & Rules Committee for 2/27/2025
2/26/2025HouseRec. for pass. if am., ref. to Calendar & Rules Committee
2/26/2025HousePlaced on cal. Commerce Committee for 2/26/2025
2/19/2025HouseRec for pass if am by s/c ref. to Commerce Committee
2/19/2025HousePlaced on s/c cal Banking & Consumer Affairs Subcommittee for 2/19/2025
2/12/2025HouseAssigned to s/c Banking & Consumer Affairs Subcommittee
2/10/2025HouseP2C, ref. to Commerce Committee
2/6/2025HouseIntro., P1C.
2/5/2025HouseFiled for introduction
2/4/2025House
Bill Text
HA0021 (Substitute)
3/3/2025
Enrolled / Public Chapter
Fiscal Note
Introduced
SA0047
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