Families and caregivers who rely on special needs trusts (SNTs) work hard to protect the long-term wellbeing of their loved ones. Tennessee’s 2025 legislative updates, with some taking effect in 2026, bring meaningful improvements to how these trusts work.
Whether you manage an existing SNT or are considering creating one, it’s crucial to know how these changes affect eligibility for benefits, how trustees carry out their responsibilities and how to protect beneficiaries’ private information.
ABLE TN accounts now open to more people
An ABLE account, often opened alongside an SNT, is a tax-advantaged way to set aside smaller amounts of money without affecting their benefit eligibility. Previously, only individuals whose disability began before age 26 could open an ABLE account.
The ABLE Age Adjustment Act raises that threshold to age 46 starting on January 1, 2026. This allows more adults and those diagnosed with conditions later in life to qualify.
Updates to the Tennessee Trust Code simplify trust administration
Recent legislation (Public Chapter 101) has reduced some of the administrative burden that made managing an SNT difficult, especially when it comes to sending notices and accountings. Trustees can now:
- Send notices and accountings electronically with the beneficiary’s or representative’s consent: Before the updates, the law lacked clear standards around electronic messages, leading many trustees to stick with traditional mail to avoid liability.
- Send notices to a parent or legal guardian: Previously, notices sometimes had to go directly to beneficiaries who may not have had the capacity to act on them.
Public Chapter 101 also removes the $100,000 cap on appointing a public trustee. Larger trusts used to face complications if a private trustee became unavailable, since a public trustee could not be appointed if the trust’s market value went beyond the $100,000 threshold. Now, courts can appoint a public trustee for trusts of any size when a private trustee is unavailable
Court filing privacy protections are easier to use
Protecting a beneficiary’s sensitive information in court filings used to require a court order before any redaction or sealing could take place. Under Senate Bill 1910, parties can now redact or request to seal trust-related filings without that prior court order. This can make it faster and more practical to keep a beneficiary’s information out of the public record.
Keep your trust up to date
If your family relies on or will rely on an SNT, it is worth reviewing whether your plan takes full advantage of what the law now allows. Getting the right legal guidance can help make sure your trust can fully serve the people who depend on it.