Senate Bill 534 amends various sections of the Tennessee Code Annotated related to trusts, primarily focusing on the roles and responsibilities of trustees, trust advisors, and trust protectors. Key changes include the modification of language regarding who is entitled to serve as a trustee, removing the limitation on the market value of the trust estate for certain provisions. The bill also introduces new requirements for notice and information dissemination, allowing for electronic communication under specific conditions, and clarifies the process for contesting the validity of trusts, establishing a two-year limit post-settlor's death or 120 days after notification of the trust's existence.

Additionally, the bill outlines the fiduciary responsibilities of trust advisors and protectors, emphasizing their duty to act in good faith and in accordance with the trust's terms. It allows for the reimbursement of settlors for personal income tax liabilities attributable to the trust under certain conditions, while ensuring that such actions do not affect the trust's tax benefits. The act is set to take effect on July 1, 2025, and includes provisions for the Tennessee Code Commission to update the official comments to reflect these changes.

Statutes affected:
Introduced: 30-1-404(b), 30-1-404, 30-1-404(b)(2), 35-15-104(a), 35-15-104, 35-15-109(a), 35-15-109, 35-15-817(h)(1), 35-15-817, 35-15-301, 35-15-402(d), 35-15-402, 35-15-604, 35-15-709(b), 35-15-709, 35-15-1005, 35-15-1102, 35-15-1202