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TennesseeSB 1910114th General Assembly (2025-2026)SenateWALLET

AN ACT to amend Tennessee Code Annotated, Title 32; Title 35 and Title 67, relative to trust and estate law.

Sponsored By: John Stevens (Republican)

Became Law

Trusts

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 4 benefits, 1 costs, 3 mixed.

Higher dollar limit for small trusts

Beginning July 1, 2026, the limit in § 35-15-414(a) rises from $100,000 to $250,000. Trusts at or below $250,000 now qualify under that section’s streamlined process. Check your trust value to see if this applies.

Trustees can pay legal bills from trusts

Beginning July 1, 2026, a trustee may pay proper expenses from the trust, including lawyer fees to defend a lawsuit. A court can stop payments, order the trustee to repay, or award other remedies. These payments can lower what beneficiaries receive.

New protections for trustees managing businesses

Starting July 1, 2026, trustees, trust advisors, and protectors who manage a closely held business are not liable for losses if they act in good faith, with proper care, in the trust’s best interest, and without an improper motive—or if they follow valid directions as excluded fiduciaries. Reasonable, disclosed pay is allowed unless the trust says otherwise. Courts can still address breaches, and prudent‑investor duties stay in place.

Easier proof for out-of-state wills

Beginning July 1, 2026, Tennessee accepts a will if it could be probated where it was signed, under the testator’s home‑state law at signing, or under listed Tennessee rules. This makes probate admission simpler and can cut delays and costs for families.

Simpler trust changes using appointment power

Starting July 1, 2026, a trustee can use a power to appoint principal by modifying or restating the trust. The law defines the original trust and the second trust. You do not need to retitle property or change payable‑on‑death or beneficiary designations to the original trust when using a restatement. The appointment power is now expressly listed among the enumerated powers.

Charities get beneficiary rights in trusts

Starting July 1, 2026, a charity named to receive trust money is treated like a qualified beneficiary for notice, information, and nonjudicial settlements, if it would qualify as an individual. For charitable trusts run in Tennessee, the Attorney General may exercise these rights when the combined charitable interests would qualify. This boosts oversight of charitable gifts.

Shorter and stricter trust objection rules

Starting July 1, 2026, you have five business days to object, not ten. Your objection must name the exact parts you dispute and say why. Vague, general objections do not count. You can withdraw an objection in writing at any time, and it has no effect once withdrawn.

New family-owned test for business tax

Starting July 1, 2026, a business is “family‑owned” for § 67-4-2008 if at least 95% of voting rights, capital, or profits are owned by relatives, trusts for them, or an estate. Relatives include up to first cousins, spouses and former spouses, and their lineal descendants. Two subparts—(a)(11)(B)(ii) and (a)(11)(B)(v)—are deleted. These changes may shift which firms get any tax treatment tied to family‑owned status.

Sponsors & Cosponsors

Sponsor

  • John Stevens

    Republican • Senate

Cosponsors

  • Jessie Seal

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 113 • No: 11

House vote • 3/12/2026

FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 3/12/2026

Yes: 81 • No: 4

Senate vote • 3/5/2026

FLOOR VOTE: Third Consideration 3/5/2026

Yes: 25 • No: 5

Senate vote • 2/24/2026

SENATE JUDICIARY COMMITTEE

Yes: 7 • No: 2

Actions Timeline

  1. Pub. Ch. 616

    4/6/2026

  2. Effective date(s) 07/01/2026

    4/6/2026

  3. Signed by Governor.

    3/26/2026Senate

  4. Signed by Senate Speaker

    3/16/2026Senate

  5. Signed by H. Speaker

    3/16/2026House

  6. Transmitted to Governor for action.

    3/16/2026Senate

  7. Enrolled and ready for signatures

    3/13/2026Senate

  8. Subst. for comp. HB.

    3/12/2026House

  9. Passed H., Ayes 81, Nays 4, PNV 1

    3/12/2026House

  10. Rcvd. from S., held on H. desk.

    3/9/2026House

  11. Passed Senate, Ayes 25, Nays 5

    3/5/2026Senate

  12. Sponsor(s) Added.

    3/5/2026Senate

  13. Engrossed; ready for transmission to House

    3/5/2026Senate

  14. Placed on Senate Regular Calendar for 3/5/2026

    3/3/2026Senate

  15. Recommended for passage, refer to Senate Calendar Committee

    2/24/2026Senate

  16. Placed on Senate Judiciary Committee calendar for 2/24/2026

    2/18/2026Senate

  17. Passed on Second Consideration, refer to Senate Judiciary Committee

    2/2/2026Senate

  18. Introduced, Passed on First Consideration

    1/22/2026Senate

  19. Filed for introduction

    1/21/2026Senate

Bill Text

  • Enrolled / Public Chapter

    PDF

  • Fiscal Note

    PDF

  • Introduced

    PDF

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