Tennessee Living Trust Form (Revocable)

1. Competent: The grantor must have the capacity to establish a trust.
2. Intent: The grantor must indicate the intention to create a trust.
3. Definite Beneficiary: Unless it is a charitable trust or a trust for the care of an animal, the trust must have a definite beneficiary.
4. Trustee’s Duties: The trustee must have duties to perform.
5. Sole Trustee Cannot be the Sole Beneficiary: The same person cannot be both the sole trustee and the sole beneficiary of the trust.^[1]

Amending/Revoking – Unless the terms of the trust explicitly state that it is irrevocable, the grantor has the power to amend or revoke the trust.^[3]

Bond Requirement – A trustee is only required to put forward a bond if this is a requirement stated in the terms of the trust or if a bond has been found necessary by a court to protect the interests of the beneficiaries.^[4]

Certification of Trust – Instead of a copy of the trust instrument, the trustee may furnish a certification of trust to prove the existence and validity of the trust. The certification must include specific information pertaining to the trust, the trustee, and the grantor.^[5]

Co-Trustees – If co-trustees are unable to reach a unanimous decision, then they may act by majority decision.^[6]

Contesting a Trust – A person must commence a proceeding to contest the validity of a trust within 120 days of having received notice from the trustee of the trust’s existence or within two years of the grantor’s death, whichever is earlier.^[7]

Costs Related to the Trust – The trustee may only incur costs of administration that are reasonable in light of the trust’s purposes, its property, and the trustee’s skills.^[8]

Jurisdiction – A trust created in a different state is valid in Tennessee if it was created in compliance with the laws of that jurisdiction.^[9]

Oral Trusts – Only clear and convincing evidence may be used to establish the creation of an oral trust and its terms.^[10]

Pet Trusts – A trust may be created to provide for the care of one or more animals alive during the grantor’s lifetime. The trust terminates upon the animal’s death.^[11]

Signing Requirements – Tennessee law does not require that a trust be signed.

Spendthrift Provision – A spendthrift provision must restrain both the voluntary and involuntary transfer of a beneficiary’s interest in order to be valid.^[12]

Trustee’s Compensation – If the trustee’s compensation is not specified in the terms of the trust, the trustee is otherwise entitled to compensation that is reasonable under the circumstances.^[13]

Trustee’s Duties – Upon accepting a trusteeship, the trustee must prudently administer the trust in good faith, in accordance with its purposes, and in the interests of the beneficiaries.^[14]

Trustee’s Powers – In addition to those powers conferred by the terms of the trust, the trustee may collect, acquire, sell, exchange, partition, or otherwise alter the character of trust property.^[15]