A Premier Destination for Trust Administration
With a new round of legislative updates to the Tennessee Trust Code having taken effect on July 1, 2025, the state reaffirms its commitment to making Tennessee a premier destination for modern trust administration.
Tennessee has long earned a reputation as one of the most progressive and flexible jurisdictions for trust law in the country, and that reputation is only growing stronger.
These updates are designed to:
- Enhance the administration of trusts,
- Improve beneficiary representation, and
- Offer even greater flexibility for managing and investing wealth.
What Sets Tennessee Trust Law Apart?
Tennessee’s favorable trust environment is the result of years of proactive leadership and strategic policymaking, much of it led by the Tennessee Bankers Association Trust Legislative Committee.
This committee, made up of leading attorneys and trust professionals from across the state, plays a central role in keeping Tennessee’s trust code modern, practical, and competitive. Each year, the group carefully reviews current statutes and recommends thoughtful updates that reflect the evolving needs of grantors, trustees, and beneficiaries alike.
This year’s changes may seem less exciting, but that is a product of prior years’ exceptional leadership and execution, ensuring that Tennessee remains one of the best states for trusts.
What You Need to Know About the New Tennessee Trust Laws
In years past, significant and exciting changes were made to ensure Tennessee was at the forefront of trust planning innovation. The latest legislation—Senate Bill 0534 / House Bill 0817—clarifies many of the previous provisions to provide clear direction for estate planning attorneys and trustees.
Example #1: Representation
Under the updated Tennessee Trust Code, trustees now have greater flexibility when it comes to providing required information—such as trust accountings or investment updates—to beneficiaries. Specifically, clarification to the provision allows trustees to give notice or reports to a representative (such as a parent, guardian, or designated representative) on behalf of a validly represented beneficiary under the statute.
Why this matters:
Imagine a multigenerational trust established for a family with young children and grandchildren as future beneficiaries. In the past, it was unclear whether certain beneficiaries must receive notice and information or if providing such information to their representative would suffice.
With this update, it has been clarified that a trustee can now provide that same information to a parent or legally authorized representative, who can receive and respond on behalf of the validly represented beneficiary. This simplifies the communication process, maintains compliance, and reduces administrative burdens—while still protecting the interests of the beneficiaries.
For wealthy families managing trusts across generations, this change offers a more efficient, streamlined approach to trust administration, allowing trustees and advisors to focus on strategic planning and asset growth instead of navigating redundant reporting requirements.
Example #2: Knowledge of Information Accessible by Electronic Means
Another update to the Tennessee Trust Code allows trustees to satisfy their obligation to provide trust information—such as statements, tax documents, or distribution notices—via electronic means, as long as the recipient has given consent and the information remains accessible online for at least 60 days.
Why this matters:
Consider a high-net-worth family with adult children living in different states or countries. The trustee shares quarterly trust accountings and annual tax documents through a secure online portal. In the past, trustees may have needed to send paper copies or confirm receipt individually, creating delays and administrative inefficiencies.
Now, with additional clarification, beneficiaries can access information electronically. This means no more redundant paper trails, fewer delays, and less risk of missed communications.
For modern families and their advisors, this update enables smoother digital interactions, quicker access to essential information, and more efficient trust administration—all while staying in full legal compliance.
Help Your Clients Thrive with Tennessee Trust Laws
With these updates, Tennessee continues to provide a trust-friendly legal framework that prioritizes flexibility, efficiency, and forward-thinking governance. For individuals and families looking to establish or relocate a trust, or for professionals guiding clients through complex estate planning decisions, Tennessee’s trust laws remain a smart, strategic choice.
At Cumberland Trust, our team brings deep knowledge, decades of experience, and a client-first mindset to every relationship, creating custom trust solutions that align with your clients’ needs and values.
Here’s how we work with you to create better outcomes for the families you serve:
1. Centralized expertise and experience
Several members of the Cumberland Trust team actively serve on the Tennessee Bankers Association’s Trust Legislative Committee, the group responsible for helping shape trust legislation across the state. That means we’re often among the first to know when important updates are coming—and how they may impact your clients.
By staying in tune with legal developments, we hope to optimize clients’ trust administration experience for greater flexibility, control, and long-term success.
2. Tailored approach with a breadth of trust services
No two families are alike, and neither are their trusts. We tailor our approach to each family’s structure, goals, and assets. Whether your client needs help administering a trust that owns complex holdings, preserving wealth across generations, or navigating a sensitive family dynamic, we offer solutions built on decades of experience and a deep understanding of what matters most.
3. Collaborative partner with your clients’ best interests in focus
Our role is to support—not replace—the trusted relationships you’ve built with your clients. When you partner with Cumberland Trust, you gain a collaborative team that integrates seamlessly into your client’s advisory circle.
We bring a specialized perspective that complements your expertise, helping to ensure every piece of the trust plan is working in harmony. Together, we deliver a more comprehensive, thoughtful experience for your clients—and strengthen the trust they place in both of us.
If you are interested in learning more about the advantages of Tennessee trusts, contact Cumberland Trust. Our team is prepared to partner with you and your clients to achieve a secure financial legacy.