AN ACT to amend Tennessee Code Annotated, Title 30 and Title 31, relative to estates.
Summary
SB1127 amends Tennessee’s probate and estates laws to change how certain amounts owed to a deceased person are paid out when there is no immediate estate administration. The bill requires an employer to pay wages or other compensation owed to a deceased employee directly to the surviving spouse, or to a trust for that spouse’s benefit; if there is no surviving spouse, payment goes to the surviving children as tenants in common or to a trust for their benefit.
The bill also expands a separate small-estate payment procedure for non-employers holding funds for a decedent. If six months have passed since death and no personal representative has been appointed, a person holding money for the decedent may pay up to $10,000 directly to the surviving spouse, or if none exists, to the surviving children. Any amount above $10,000 must be paid to the personal representative or as the court orders. Payments made under this section are charged against applicable elective share, homestead allowance, and year’s support rights, and if the recipient is a minor, payment must be made to a guardian or custodian for the minor’s benefit.
Impact
The bill amends Tennessee Code Annotated Title 30 and Title 31, specifically Section 30-2-103(b), to create a clearer statutory pathway for distributing wages and other funds owed to a decedent without requiring immediate probate administration in every case. It affects employers, financial holders of decedents’ funds, surviving spouses, surviving children, personal representatives, and minors receiving inherited funds, while preserving court authority and estate administration for amounts above the statutory cap.
Sentiment
The available voting history suggests broad support for the bill. The Senate Judiciary Committee recommended passage with amendment on an 8-0 vote, indicating no recorded opposition in committee. The bill ultimately passed and became law, which is consistent with a generally favorable view of the measure as a practical estates-and-probate update.
Contention
No committee transcript was provided, so there is no recorded debate over specific objections. The main policy issues implied by the text are the $10,000 cap on direct payment by non-employers, the six-month waiting period before such payments can be made, and the decision to prioritize surviving spouses and children over other potential heirs or claimants. Any contention would likely center on whether these streamlined payment rules adequately protect creditors, other heirs, and estate administration interests while reducing delay for families.
AN ACT to amend Tennessee Code Annotated, Title 8; Title 30; Title 31; Title 32; Title 35; Title 55; Title 66 and Section 67-4-409, relative to the automatic transfer of property upon death.
AN ACT to amend Tennessee Code Annotated, Title 8; Title 30; Title 31; Title 32; Title 35; Title 55; Title 66 and Section 67-4-409, relative to the automatic transfer of property upon death.