Title 35, Fiduciaries And Trust Estates

If the terms of the trust, a nonjudicial settlement agreement, an exercise of the authority described in § 35-15-716, or a court order requires a trustee, trust advisor, or trust protector to follow the direction of a trust advisor, trust protector, or trustee, and the trustee, t…

(a) A trust advisor, trust protector or other fiduciary other than a cotrustee, such cotrustee already being provided for in § 35-15-701(a), may accept its appointment as such respective fiduciary in a like manner as provided for a trustee under § 35-15-701(a). (b) A trust adviso…

(a) Section 35-15-702 applies to trust advisors, trust protectors or other fiduciaries other than cotrustees, such cotrustees already being provided for in § 35-15-702. (b) When exercising its powers under this section, the court shall consider the powers, duties and liabilities …

(a) Except as otherwise provided by the terms of the trust upon obtaining knowledge of a vacancy in the office of trust advisor or trust protector, the trustee shall be vested with any fiduciary power or duty that otherwise would be vested in the trustee but that by the terms of …

(a) A trust advisor, trust protector or other fiduciary other than a cotrustee, such cotrustee's resignation already being provided for in § 35-15-705, may resign its appointment as such respective fiduciary in a like manner as provided for a trustee under § 35-15-705. (b) When e…

(a) A trust advisor, trust protector or other fiduciary other than a cotrustee, such cotrustee's removal already being provided for in § 35-15-706, may be removed as such respective fiduciary in a like manner as provided for a trustee under § 35-15-706. (b) When exercising its po…

(a) The power to appoint a successor trustee under a trust instrument includes the power to appoint multiple successor trustees, trust protectors, and trust advisors. An exercisable power to remove and replace a trustee under a trust instrument includes the power to appoint addit…

Upon acceptance of a trusteeship, the trustee shall administer the trust until such time as the trust terminates or a successor trustee is appointed and all assets are delivered in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and i…

(a) A trustee shall administer the trust solely in the interests of the beneficiaries as the beneficiaries' interests are defined under the terms of the trust. (b) Subject to the rights of persons dealing with or assisting the trustee as provided in § 35-15-1012 or as may otherwi…

If a trust has two (2) or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests.

A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill and caution.

In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee.

A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise.

(a) A trustee may delegate duties and powers 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 terms of the delegatio…

(a) While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust or contrary to the normal practice of the trustee in regard to the action requested. (b) If the terms of a trust, a nonjudicial settlement agreement, or a …

A trustee shall take reasonable steps to take control of and protect the trust property.

(a) A trustee shall keep adequate records of the administration of the trust. (b) A trustee shall keep trust property separate from the trustee's own property. (c) Except as otherwise provided in subsection (d), a trustee shall cause the trust property to be designated so that th…

(a) A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust. (b) A trustee may abandon or assign any claim that it believes is unreasonable to enforce to one or more of the beneficiaries of the trust holding the claim.

A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to redress a breach of trust known to the trustee to have been committed by a former trustee. No successor trustee appointed after the examination of the…

(a) (1) A trustee shall keep the beneficiaries of the trust who are current mandatory or permissible distributees of trust income or principal, or both, reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interes…

(a) Relative to exercise of powers over discretionary and other interests:(1) “Improper motive” means to demonstrate action such as the following:(A) A trustee refusing to make or limiting distributions to beneficiaries other than the trustee due to the trustee's self interest wh…

(a) A trustee, without authorization by the court, may exercise:(1) Powers conferred by the terms of the trust; and(2) Except as limited by the terms of the trust:(A) All powers over the trust property which an unmarried competent owner has over individually owned property;(B) An…

(a) Any references contained in a will or trust incorporating by reference the powers enumerated in § 35-50-110 as they relate to a trustee will incorporate by reference the powers contained in this section. (b) Unless the terms of the instrument expressly provide otherwise and w…

(a) Upon the occurrence of an event terminating or partially terminating a trust, or upon the trustee's removal or resignation, the trustee shall proceed to distribute the trust property to the persons entitled to it within a reasonable period of time, subject to the right of the…

(1) Unless the terms of the instrument expressly provide otherwise:(1) A trustee who has authority, under the terms of a testamentary instrument or irrevocable inter vivos trust agreement, to invade the principal of a trust to make distributions to, or for the benefit of, one (1)…

(a) Unless the terms of a trust instrument expressly provide that a settlor shall not be reimbursed by a trust for the settlor's personal income tax liability attributable to the trust, if the settlor of a trust is treated under 26 U.S.C. § 671 et seq. as the owner of all or part…

(a) When acting in a managerial capacity with respect to a closely held business, including serving as a director, officer, manager, general partner, or other controlling person of such entity, a trustee, trust advisor, or trust protector is not liable for any resulting loss or f…

Title 35, chapter 6 and chapter 14 are incorporated in this chapter by reference.

This chapter shall be known and may be cited as the “Tennessee Investment Services Act of 2007.”

(1) As used in this chapter, unless the context otherwise requires:(1) “Claim” means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured;…

(1) 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 …

(a) Notwithstanding any law to the contrary, no action of any kind, including, but not limited to, an action to enforce a judgment entered by a court or other body having adjudicative authority, shall be brought at law or in equity for an attachment or other provisional remedy ag…

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 a…

(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.…

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…

(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…

A person may serve as an investment advisor notwithstanding that the person is the transferor of the qualified disposition.

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 ther…

(1) An investment services trust shall not be deemed revocable on account of its inclusion of one (1) or more of the following:(1) A transferor's power to veto a distribution from the trust;(2) A power of appointment, other than a power to appoint to the transferor, the transfero…

This chapter applies to qualified dispositions to investment services trusts and dispositions by transferors who are trustees made on or after July 1, 2007.

This chapter shall be known as the “Tennessee Community Property Trust Act of 2010.”

(1) 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 …

(1) 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 li…

(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 transferre…

(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 pr…

(a) An obligation incurred by only one (1) spouse before or during marriage may be satisfied from that spouse's one-half (½) 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 spo…