Tennessee Senate Bill SB1935

Tennessee 2025-2026 Regular Session

• Introduced: 1/21/26
• Engrossed: 2/23/26
• Enrolled: 4/1/26
• Passed: 4/14/26
• Chaptered: 5/5/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 26; Title 30; Title 33 and Title 52, relative to homestead exemptions.

Summary

SB1935 revises Tennessee’s homestead exemption laws to expand and clarify who may benefit from a decedent’s homestead rights. The bill provides that, upon the death of a head of household, the homestead exemption continues for a surviving spouse and for a minor child, as well as for a child age 18 or older who has a developmental disability or intellectual disability, so long as that person uses the property as a principal residence. It also updates related probate provisions governing how homestead is assigned and set apart after death. The bill further addresses situations where homestead property cannot be practically set apart. In those cases, the court may order the real estate sold and direct $35,000 of the proceeds to be invested as homestead property or paid outright to the eligible surviving spouse or child. The measure specifically allows some or all of that cash payment, up to the annual ABLE account contribution limit, to be deposited into an Achieving a Better Life Experience (ABLE) account for an eligible child, including by court order. The bill also adds definitions for “developmental disability” and “intellectual disability” by cross-reference to existing Tennessee law.

Impact

SB1935 amends Tennessee Code Annotated Titles 26 and 30, and cross-references Title 52 for disability definitions, to broaden and modernize homestead protections in probate and estate administration. It affects surviving spouses, minor children, and adult children with developmental or intellectual disabilities by preserving or substituting homestead benefits after the death of the family head, and it gives courts explicit authority to route part of a homestead cash payment into an ABLE account when appropriate.

Sentiment

The bill appears to have been received very positively and moved through the legislature without recorded opposition. It was recommended for passage unanimously in the Senate Judiciary Committee and then passed subsequent floor actions with no nays recorded, including concurrence in a House amendment. The voting history suggests broad bipartisan support and little controversy over the measure’s overall purpose.

Contention

There is little evidence of substantive contention in the available record. The only potentially notable policy issue is the bill’s interaction with estate administration and the new ability to direct homestead proceeds into ABLE accounts, which may raise implementation questions for courts and estate practitioners. However, the unanimous votes indicate that any such concerns were not significant enough to generate recorded opposition.