Title 35, Fiduciaries And Trust Estates

If a trust has two (2) or more beneficiaries, the trustee shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.

In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee.

Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight.

(a) A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in:(1) Selecting an agent;(2) Establishing the scope and term…

The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this chapter: “investments permissible by law for investment of trust funds,” “legal investments,” “authorized inve…

(a) This chapter applies to trusts existing on and created after July 1, 2002. As applied to trusts existing on July 1, 2002, this chapter governs only decisions or actions occurring after that date. (b) This section shall not apply in any situation governed by the Uniform Vetera…

Nothing in this chapter abrogates or restricts the power of an appropriate court in proper cases to direct or permit the fiduciary to deviate from the terms of the governing instrument or restrains a fiduciary from taking any action regarding the making or retention of investment…

(a) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. (b) To remedy a breach of trust that has occurred or may occur, the court may:(1) Compel the trustee to perform the trustee's duties;(2) Enjoin the trustee from committing a breach of t…

(a) Except as otherwise provided in § 35-3-117(a)-(d) with regard to investment of trust funds or elsewhere in this chapter, a trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of:(1) The amount required to restore the value of the trus…

Absent a breach of trust, a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or for not having made a profit.

(a) In a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney's fees, to any party, to be paid by another party or from the trust that is the subject of the controver…

(a) A beneficiary, trustee, trust advisor, or trust protector shall not commence a proceeding against a trustee, former trustee, trust advisor, or trust protector for breach of trust more than one (1) year after the earlier of:(1) The date the beneficiary, trustee, trust advisor,…

A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance.

If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss result…

(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 t…

(1) 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 …

This chapter shall be known and may be cited as the “Tennessee Uniform Trust Code.”

(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 oth…

(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 tr…

(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 liabi…

(a) Instead of furnishing a copy of the trust instrument to any person to evidence the existence and validity of the trust, the trustee may furnish to such person a certification of trust, signed by the trustee or trustees having signatory authority as identified in subdivision (…

(a) (a) For the purposes of this section, “no-contest provision” includes a “no-contest provision,” “in terrorem provision” or “forfeiture provision” of a trust instrument. A “no-contest provision” means a provision that, if given effect, would reduce or eliminate the interest of…

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…

This chapter applies to express trusts, charitable or noncharitable, and trusts created pursuant to a statute, judgment, or decree that requires the trust to be administered in the manner of an express trust.

(1) As used in this chapter, unless the context otherwise requires:(1) “Action” with respect to an act of a trustee, includes a failure to act;(2) “Another state” or “other state” means any state other than this state;(3) “Ascertainable standard” means a standard relating to an i…

(a) Subject to subsection (b), a person has knowledge of a fact if the person:(1) Has actual knowledge of it;(2) Has received a notice or notification of it;(3) From all the facts and circumstances known to the person at the time in question, has reason to know it; or(4) Has reas…

(a) Except as otherwise provided in the terms of the trust, this chapter governs the duties and powers of a trustee or any other fiduciary under this chapter, relations among trustees and such other fiduciaries, and the rights and interests of a beneficiary. The terms of a trust …

(a) The common law of trusts and principles of equity supplement this chapter, except to the extent modified by this chapter or another statute of this state. (b) Notwithstanding subsection (a):(1) No provision in a trust directing or authorizing accumulation of trust income shal…

(a) The validity and construction of a trust are determined by the law of the jurisdiction designated in the terms of the trust instrument, which is called a state jurisdiction provision. (b) When a state jurisdiction provision designates that the law of this state controls:(1) T…

(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…

(a) (1) Notice to a person under this chapter or the sending of a document to a person under this chapter must be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document.(2) Permissible methods of notice or fo…

(a) A charitable organization expressly designated to receive distributions under the terms of a trust has the rights of a qualified beneficiary under this chapter, if the charitable organization, on the date the charitable organization's qualification is being determined, would …

(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…

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 Sig…

(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…

(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 se…

(1) 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 trus…

(a) Confidential information related to trusts that is contained in court filings, including court orders, may be redacted or filed under seal without a prior court order so long as unredacted and complete copies of such filings are promptly provided to the court in camera and to…

(a) Except as otherwise provided in subsection (b), the trustee and the qualified beneficiaries may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust. (b) A nonjudicial settlement agreement is valid only to the extent it does not v…

The rules of construction that apply in this state to the interpretation of and disposition of property by will also apply as appropriate to the interpretation of the terms of a trust and the disposition of the trust property.

(a) The trustee of a trust that has the trust's principal place of administration in this state may register the trust with the secretary of state. For purposes of this section, a trust is considered to have the trust's principal place of administration in this state if one (1) o…

(a) An estate in real property may be acquired in the name of the trust or in the name of the trustee on behalf of the named trust, and title to real property conveyed by the trust must be conveyed by the trustee, as trustee of the trust. (b) Subsection (a) applies to documents e…

(a) A trust protector or trust advisor is any person, and may be a committee of more than one person, other than a trustee, who under the terms of the trust, a nonjudicial settlement agreement, or a court order has a power or duty with respect to a trust, including but not limite…

(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 a power or refraining from exercising a power, a trust advisor or trust protector acting as a fiduciary shal…

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…

(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 d…