Tennessee Code Title 35. Fiduciaries and Trust Estates § 35-15-402

Current as of January 02, 2024 | Updated by Findlaw Staff

(a) A trust is created only if:

(1) The settlor has capacity to create a trust;

(2) The settlor indicates an intention to create the trust;

(3) The trust has a definite beneficiary or is:

(A) A charitable trust;

(B) A trust for the care of an animal, as provided in § 35-15-408; or

(4) The trustee has duties to perform; and

(5) The same person is not the sole trustee and sole beneficiary.

(b) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.

(c) A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.

(d) A lifetime trust is valid as to any assets held by the trust to the extent the assets have been transferred to the trust. For purposes of this subsection (d):

(1) Assets capable of registration, such as real estate, stocks, bonds, bank and brokerage accounts, and the like, are transferred to the trust through the recording of the deed or the completion of registration of the asset in the name of the trust or trustee. Assets that are capable of registration are not transferred to the trust through only a recital of assignment, holding, or receipt in the trust instrument;

(2) Assets not capable of registration, are transferred to the trust through a recital of assignment describing the asset; and

(3)(A) Tangible personal property other than money, an evidence of indebtedness, a document of title, a security, and property used in a trade or business may be assigned to a trust, either during the grantor's life or after the grantor's death, by delivery of a written instrument that:

(i) Is signed by the transferor;

(ii) Identifies the tangible personal property in general terms; and

(iii) Specifically identifies the trust.

(B) Subdivision (d)(3)(A) applies to such tangible personal property that is owned when such written instrument is signed, and to property that is subsequently acquired by the transferor. Moreover, such assignment is subject to revocation or amendment pursuant to a written instrument delivered by the transferor to the trustee, either during the transferor's life or following the transferor's death, including pursuant to the terms of the transferor's last will and testament. If such revocation or amendment is not delivered to the trustee within six (6) months of transferor's death, then the trustee may presume that such revocation or amendment does not exist.

(e) Notwithstanding subdivision (a)(4), a passive trust is not terminable because it is passive.

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Cite this article: FindLaw.com - Tennessee Code Title 35. Fiduciaries and Trust Estates § 35-15-402 - last updated January 02, 2024 | https://codes.findlaw.com/tn/title-35-fiduciaries-and-trust-estates/tn-code-sect-35-15-402/

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