Tennessee has a long history of being at the forefront of trust administration. In keeping with that tradition, the Tennessee legislature has passed updates to its trust code that aim to keep Tennessee among the best jurisdictions in the country for trust and estate administration. This year’s Tennessee trust law updates focus on refining existing statutes to provide additional clarity, flexibility, and practical solutions for trustees and beneficiaries. The following are a few of the updates that went into effect July 1, 2026:
Update to Foreign Execution of Wills
A new Tennessee legislative update to Tenn. Code Ann. § 32-1-107 provides clarification when wills that were validly executed in another state or country can also be admitted to probate in Tennessee.
A Will is considered sufficiently proved to be admitted to probate in Tennessee if it is proved that the Will could be admitted to probate:
(1) In the state where it was signed;
(2) Under the law of the Testator’s domicile at the time of its execution;
(3) Or in a manner prescribed by §§ 32-2-104, 32-2-105, or 32-2-110.
Why it matters:
This update provides assurance that families will not be faced with conflicts between state laws during the probate process and expands on the existing subsection (a) of the statute which provides that a Will validly executed under the laws of a foreign jurisdiction shall have the same force and effect in Tennessee as if it were validly executed in Tennessee.
What this means in practice:
An individual executes his estate planning documents in accordance with the laws of another state, which allow for a Last Will & Testament to be validly executed by electronic signature. The Testator later moved to Tennessee and was domiciled in Tennessee at the time of his passing. Under the recent change to Tennessee law, the Testator’s Will may still be probated in Tennessee because it was validly executed under the laws where it was signed.
New Trust Code Section for Confidential Trust Information in Court Filings
The new trust statute Tenn. Code Ann. § 35-15-1106 allows certain confidential trust information included in court filings, including court orders, to be redacted or filed under seal in qualifying situations, without first obtaining a court order.
Under this new code section, “confidential information related to trusts” includes:
- Trust instruments, settlement agreements, modification agreements, trustee resolutions, inventories, accountings, and reports;
- The names and addresses of trust settlors, trustees, and beneficiaries;
- Trust dispositive terms, including, without limitation:
- Purely private litigants; and
- Matters of purely private concern with little legitimate public interest;
- Corporate and company records relating to trusts;
- Personally identifying information, including, without limitation, social security numbers and dates of birth; and
- Any other information the court deems confidential, if there is a compelling interest in protecting the confidentiality of the information which outweighs the public interest in accessing such information.
Such information may be redacted or filed under seal so long as unredacted and complete copies of such filings are promptly provided to the court in camera (i.e., submitted directly to the judge for private review) and to all qualified beneficiaries, and the trustee and qualified beneficiaries consent to the redaction or filing under seal if the underlying matter:
- does not involve third parties;
- solely concerns the trustee and the qualified beneficiaries;
- and relates to matters involving the validity, construction, and administration of a trust, including the duties and powers of a trustee and the rights and interests of a beneficiary.
The existence of a compelling interest for filing documents redacted or under seal is presumed for all matters involving a trust. In determining whether the presumption is overcome, a court may consider, among other factors, whether:
(A) a public entity or official would benefit from secrecy;
(B) the information involves a matter of public concern;
(C) the information is important to other litigation such that sharing the information would promote fairness and efficiency.
Why it matters:
Privacy and confidentiality are often top priorities for high-net-worth individuals and families using trusts. This new Tennessee statute supports the goals and intentions of Grantors by maintaining confidentiality for trust matters and protecting sensitive information from public record.
What this means in practice:
A Tennessee corporate trustee is serving on a trust with a high-profile beneficiary. Any court filings required during the course of administration may be filed under seal without prior court order under the new Tennessee statute to help protect the beneficiary’s privacy.
Updated Small Trust Termination Statute
Among the recent updates that the Tennessee legislature has implemented in the Uniform Trust Code is a notable change to the small trust termination statute, Tenn. Code Ann. § 35-15-414. Previously, a Trustee was permitted to terminate a trust if the total value of the trust was less than $100,000 and the Trustee concluded that the value of the trust property is insufficient to justify the cost of administration.
The updated statute increases the threshold amount such that termination is permitted when the total value of the trust is less than $250,000. A Trustee may also terminate a trust when the Trustee’s fee for administration of the trust is at least 5% of the value of the principal of the trust. In all cases, however, the Trustee must provide notice to all qualified beneficiaries of the trust prior to termination.
Why it matters:
The increased threshold amount for termination to $250,000 reflects the changing landscape of modern trust administration. As administration of trusts becomes more complex and specialized, the cost of administration and investment management may increase, leading to higher fees and accelerated attrition of smaller sized trusts. This change allows trustees to distribute the assets of a trust to its beneficiaries in cases where continued administration no longer makes financial sense.
Flexibility and Efficiency in Seeking Approval of Trust Accountings
As modern trust administration continues to develop, the methods available to trustees and beneficiaries to agree on trust accounts have also evolved. Tenn. Code Ann. § 35-15-817 allows Trustees seeking a release from liability to furnish a detailed accounting, including the trust’s assets, liabilities, receipts, disbursements, and proposed distributions, to qualified beneficiaries, the grantors, if living, and all other then-serving trustees, trust advisors, and trust protectors.
The parties receiving the notice and trust accounting have 45 days from receipt of the notice to review the details and object to the information provided by the trustee. The statute update also makes the process clearer by explaining to beneficiaries and trustees what constitutes a valid objection. The statute includes that a beneficiary must identify with reasonable specificity the portion of the notice or exhibits to which the beneficiary objects and the basis for the objection.
The statute was also updated to allow any objection to be withdrawn. If a beneficiary has an objection, the trustee has an opportunity to work with the beneficiary and provide additional information to hopefully satisfy the beneficiary’s question or concern. If the beneficiary is satisfied that the trustee has addressed their concerns, the beneficiary may withdraw their objection, allowing the process to proceed.
Why it matters:
Both trust law updates are aimed at providing greater clarity and efficiency for all involved. Like many provisions in Tennessee’s trust code, these statutes highlight the flexibility of Tennessee law to allow beneficiaries and trustees to accomplish trust objectives or resolve issues without court involvement, which can be time consuming and costly.
Helping Clients Benefit from Tennessee’s Trust Laws
The 2026 Tennessee trust law updates continue the state’s tradition of thoughtful, forward-looking trust legislation. By strengthening privacy protections, simplifying probate for foreign wills, providing greater flexibility for trustees, and improving administrative efficiency, Tennessee further reinforces its position as one of the country’s premier jurisdictions for modern trust administration.
For families establishing new trusts, relocating existing trusts, or working through complex trust administration matters, these updates provide meaningful practical benefits while preserving the flexibility that has long distinguished Tennessee trust law.
At Cumberland Trust, our professionals work alongside clients and their advisors to understand how changes in the law may impact trust administration. Through decades of experience and close collaboration with estate planning professionals, we provide thoughtful fiduciary solutions to help preserve family legacies for generations.
Whether clients are establishing a new trust, relocating an existing trust, or considering a change in trustee, Cumberland Trust partners with families and their advisors to provide experienced, independent fiduciary services tailored to each client’s needs.
If you are interested in learning more about the advantages of a Tennessee corporate trustee, contact us. Our team is ready to partner with you and your clients to help protect family wealth for future generations.
Disclaimer: This is not intended to constitute legal advice. Please seek legal counsel to determine the best estate planning for you based on your specific needs and circumstances.