AN ACT to amend Tennessee Code Annotated, Title 32; Title 35 and Title 67, relative to trust and estate law.
SB1910 makes a broad set of revisions to Tennessee’s trust, probate, and estate statutes. It expands when a will may be admitted to probate in Tennessee by recognizing wills that could be probated in the state where signed, in the testator’s domicile at execution, or under certain Tennessee proof procedures. The bill also updates multiple provisions of the Tennessee Uniform Trust Code to clarify the use of nonjudicial settlement agreements, expand the rights of expressly named charitable beneficiaries, and allow the attorney general and reporter to exercise beneficiary rights in certain charitable trusts.
The bill further raises the threshold for a trust to qualify for a particular statutory treatment from $100,000 to $250,000, permits trustees to pay properly incurred expenses and attorney’s fees directly from trust assets in defending trustee actions, and tightens the process for beneficiary objections by requiring specificity, allowing withdrawal in writing, and shortening one response period from 10 business days to 5. It also clarifies trust decanting and modification powers, including how an original trust may be restated or modified into a second trust without retitling assets in some cases.
SB1910 amends Tennessee Code Annotated Titles 32, 35, and 67, affecting probate practice, trust administration, charitable trusts, trustee powers, and certain tax-related definitions for family-owned entities. It creates new protections and procedures for trustees and trust-related court filings, including a framework for redacting or sealing confidential trust information in appropriate cases without a prior court order, while preserving court oversight and beneficiary access. The bill also adds liability protections for trustees, trust advisors, and trust protectors acting in a managerial capacity with closely held businesses, while expressly preserving fiduciary duties under the prudent investor law and the court’s authority to remedy breaches of trust.
The bill appears to have been generally well received and moved with strong support through the legislative process. It passed the Senate Judiciary Committee 7-2, then cleared the Senate floor 25-5 on third consideration, and ultimately passed the legislature 80-4 on regular calendar passage. The voting pattern suggests broad bipartisan acceptance of the bill’s trust and estate modernization provisions, with only limited opposition.
The main points of potential contention are the bill’s increased protections for trustees and related fiduciaries, especially the ability to pay defense costs from trust assets, the reduced time for objections, and the new sealing/redaction rules for trust-related court filings. Critics could view these provisions as limiting beneficiary oversight or public transparency, while supporters likely see them as efficiency measures that reduce litigation burden and protect private trust matters. The liability shield for trustees, trust advisors, and trust protectors managing closely held businesses may also be a point of concern for those worried about reduced accountability, though the bill preserves court review for breaches of trust and maintains existing prudent-investor duties.