On Apr. 4, 2025, TN LEG reported bill approval, assigned Chapter 101, effective Jul. 1.
Document dated Apr. 4, 2025, and was received on Apr. 15 due to a fixed feed.
On Mar. 11, TN LEG passed bill related to trust and trustee provisions.
TN LEG passed bill HB 817 / SB 534 on appointment of public trustee, established default rule that beneficiary is non-fiduciary unless appointed in such capacity.
Bill Provisions
Amend TN code annotated, TN LEG 30-1-404, court appointment of public trustee also applicable to persons currently serving as trustees who die, decline to serve, resign.
Removed requirement that market value of the trust estate does not exceed $100,000.
Appointment of public trustee also applies if instrument not contain provisions for appointment of successor, or not petition for successor within 3 months after vacancy.
Amended TN LEG 35-15-104, added that person also has knowledge of fact if person has reason to know of it because fact accessible by person through electronic means.
Provided consent to receive by electronic means in record, and consent not revoked.
Added as additional permissible method of notice by providing via electronic means when provided consent to receive by electronic means, and consent not revoked.
Added provision that tangible personal property other than money, an evidence of indebtedness, a document of title, a security, and property used in a trade or business.
May be assigned to trust, in grantor's life or after death, by written instrument signed by transferor, identifies tangible personal property in general, specifically identify trust.
Clarified certain provisions on settlor personal income tax liability not apply if disqualify trust for, or reduce amount of, marital or charitable deduction, or other tax benefit.
Authorized trust advisor or trust protector to serve in nonfiduciary capacity when appointed; in this capacity, liable only for acting in bad faith, reckless indifference.
Legislative History
On Feb. 5, 2025, bill introduced in the House; on Mar. 3, 2025, bill passed the House.
On Feb. 10, 2025, bill introduced into Senate; on Mar. 10, 2025, bill passed Senate.
On Mar. 11, 2025, bill was enrolled and ready for signature; pending governor review.
Effectiveness
Act takes effect on Jul. 1, 2025, the public welfare requiring it.
Apr. 2025 TN LEG Governor Approval
On Apr. 4, 2025, TN LEG reported bill approval, assigned Chapter 101, effective Jul. 1.
Document dated Apr. 4, 2025, and was received on Apr. 15 due to a fixed feed.
