Wills and Trusts

Wyatt, Tarrant & Combs, LLP

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July 1, 2013 Amendment to Tennessee Trust Law May Change Existing Trusts

On July 1, 2013, an extensive amendment to Tennessee Trust Law came into effect.  The length of the amendment was about fifty pages.  Although practitioners (including myself) are still wrapping their heads around the changes, a brief perusal of the amendment reveals three essential themes which permeate the new law:

  • Creditor Protection for Trust Beneficiaries:  Trusts are better than ever at protecting the assets from the beneficiary’s creditors, divorce, and lawsuits.
  • Protection for Trustees:  Trustees have significantly more discretion and significantly less exposure to potential liability under the new law.
  • Directed Trusts:  There are more options and detailed rules on “Directed Trusts,” which are Trusts where you name a third party to advise and direct the trustee on a particular issue, such as an investment advisor, or trust distribution committee.

With respect to protection from creditors, arguably pre-July 1 Tennessee law had very good protection for Continue reading