WeVote
Log In

Bill

Bill

HB 817

Trusts - As enacted, establishes as a default rule of state trust law that a beneficiary is a non-fiduciary unless appointed in such capacity, and makes certain other changes relative to trusts. - Amends TCA Title 30 and Title 35.

114th Regular Session (2025-2026) Introduced by Johnny Garrett

Tennessee law now presumes trust beneficiaries are non-fiduciaries by default unless explicitly appointed as fiduciaries in trust documents, effective July 1, 2025.

Pub. Ch. 101
#trusts
0
WeVote Research Nonpartisan
Bill Summary · HB 817

Legislative bill overview

HB 817 establishes a default legal rule in Tennessee that beneficiaries of trusts are automatically considered non-fiduciaries unless explicitly appointed to a fiduciary role by the trust document. The bill amends Tennessee's trust law statutes (Title 30 and Title 35) to clarify this distinction and makes related modifications to trust governance provisions.

Why is this important

This clarification affects thousands of Tennesseans with trust arrangements by defining legal responsibilities and liability exposure. The change reduces potential confusion about whether beneficiaries have legal duties to manage trust property or act in advisory capacities, which can have significant financial and legal consequences for both beneficiaries and trustees.

Potential points of contention

  • Beneficiary expectations: Some beneficiaries in existing trusts may have assumed informal advisory roles without formal appointment, and this default rule could create disputes about their actual legal standing and responsibilities.
  • Trust document interpretation: The rule applies only as a "default," meaning it affects trusts that don't explicitly address beneficiary roles, potentially leaving ambiguous older trust documents subject to new interpretive frameworks.
  • Trustee protection: While this protects beneficiaries from unwanted fiduciary duties, it may also insulate trustees from beneficiary claims of insufficient communication or transparency if beneficiaries lack formal governance status.

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

Sign in to ask a question.