Bill > SB0534

This bill makes several technical amendments to Tennessee's trust laws, focusing on modernizing and clarifying various provisions related to trusts. The bill establishes a default rule that a beneficiary is a non-fiduciary unless specifically appointed otherwise, and introduces several key changes. These include updating notification methods to allow electronic communication when consent is given, modifying rules for trustee succession and appointments, and providing new guidelines for asset assignment to trusts. A significant addition is a provision allowing trustees (under certain conditions) to reimburse a trust's settlor for personal income tax liabilities attributable to the trust, which becomes effective on December 31, 2025. The bill also clarifies the fiduciary responsibilities of trust advisors and protectors, specifying that they must act in good faith and in the interests of beneficiaries when exercising their powers. Additionally, the bill updates provisions about notice delivery, permitting methods like electronic messages and personal delivery, and establishes that notices can be considered received if electronic access was provided or actually utilized. The changes aim to provide more flexibility and clarity in trust management and administration, reflecting modern communication and financial practices.

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https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0534&ga=114