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SB 1618

Banks and Financial Institutions - As enacted, clarifies that if a financial institution reasonably believes a customer is deceased, then the financial institution does not have a duty to confirm service of a subpoena on the customer, the customer's estate, or the customer's heirs; makes other changes related to financial records. - Amends TCA Title 45, Chapter 10.

114th Regular Session (2025-2026)

Banks need not confirm subpoena service for deceased customers, streamlining estate procedures but potentially complicating heirs' access to financial records.

Pub. Ch. 580
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Bill Summary · SB 1618

Legislative bill overview

SB 1618 clarifies that Tennessee financial institutions are not required to confirm receipt of subpoenas when they reasonably believe a customer is deceased. The bill modifies Tennessee's financial records laws to streamline procedures for banks dealing with accounts of deceased customers and related legal processes.

Why is this important

This addresses a practical gap in banking operations where institutions may receive subpoenas for deceased individuals but face unclear obligations regarding service confirmation. The clarification reduces administrative burden on banks and potentially accelerates estate settlement and legal proceedings involving financial records of the deceased.

Potential points of contention

  • Due process concerns: Relaxing subpoena confirmation requirements could complicate efforts by heirs, creditors, or legal representatives to ensure they receive proper notice of proceedings affecting deceased customers' estates
  • Verification standards: The phrase "reasonably believes" is subjective and may lead to inconsistent application across different financial institutions or disputes over whether an institution's belief was actually reasonable
  • Creditor and heir access: May inadvertently create obstacles for legitimate estate administration or creditor claims if financial institutions use the exemption to avoid confirming service on estates or heirs entitled to account information

Compiled from official sources — confirm details with the bill’s official record.

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