After a settlor dies, the successor trustee must act quickly. Tennessee law sets duties that begin within days of the settlor’s death. The first 90 days often include the trustee’s most urgent tasks. These steps, including securing trust property, identifying beneficiaries and documenting the trust’s assets and transactions, provide the foundation for proper trust administration.
What beneficiary notices may be required
Tennessee law requires certain trustees of irrevocable or nongrantor trusts to provide specified notice within 60 days after acceptance and funding. The notice requirements that apply after a settler’s death can depend on the type of trust, its terms and the circumstances of administration.
For trusts subject to the statutory notice requirement, the trustee generally must:
- Send the notice by first-class mail or personal delivery
- Provide either a complete copy of the trust document with the trustee’s contact information or an abstract containing the information specified by Tennessee law
Under Tennessee law, the assets of a revocable trust may be subject to claims from the settlor’s creditors after death, particularly if the probate estate is insufficient to satisfy those claims. Trustees should consult legal counsel to understand how creditor obligations apply to the specific trust. Under Tennessee trust law, trustees must balance their obligations to beneficiaries with the rights of valid creditors. Proper and timely notice protects the trustee from certain future claims and ensures qualified beneficiaries can exercise their rights under Tennessee law.
How to secure and document assets
Tennessee trustees must locate every asset the trust controls and protect them from loss or harm. This includes real estate, bank accounts, investment accounts and personal property of key value. Changing locks on properties and updating insurance stops unauthorized access or coverage gaps that could expose the estate to risk.
Creating a detailed inventory can help trustees identify and track trust assets, their approximate values and related records. Tennessee law requires trustees to maintain adequate records of all trust assets and transactions. Trustees must keep qualified beneficiaries reasonably informed about trust administration and provide accountings when requested. If a dispute arises about asset management or distribution decisions, a court may closely examine these records. Trustees should photograph valuable items and store important papers in a secure location during trust administration to maintain clear records for all beneficiaries.
When to consult a Tennessee trust attorney
The first 90 days of trust administration involve some of the most time-sensitive obligations a trustee will face. Failing to comply with applicable notice or recordkeeping duties or mishandling trust assets or creditor claims can expose a trustee to court-ordered remedies for a breach of trust. The consequences depend on the trust terms, the trustee’s conduct and the applicable Tennessee law. An attorney who handles trust administration in Tennessee can review the trust document, confirm applicable deadlines and help the trustee carry out these duties correctly from the start.