Bill > HB0817

This bill updates Tennessee trust law with several key provisions aimed at modernizing and clarifying trust administration. The bill establishes a default rule that a beneficiary is a non-fiduciary unless specifically appointed otherwise, and introduces new provisions for electronic communication and notice. It modifies rules around trustee succession, allowing more flexibility in appointing successor trustees and expanding the methods of providing notice to include electronic means when consent is given. The bill also adds a new section allowing trustees more discretion in reimbursing a trust's settlor (creator) for personal income tax liabilities related to the trust, which becomes effective December 31, 2025. Additionally, the bill 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. The legislation also updates provisions for assigning tangible personal property to trusts, creates liens for trustee advances, and provides more flexibility in how trusts can handle various administrative and communication tasks. The bill will take effect on July 1, 2025, and applies to existing and future trusts.

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https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0817&ga=114