The State Senate on Feb. 23 unanimously approved legislation to update and improve Tennessee’s trust laws to keep the state competitive as a prime location for investments.
The bill, sponsored by State Sen. Doug Overbey of Maryville, amends the Uniform Principal and Income Act and other provisions of state law which govern the management of trusts and location of trust assets.
“This legislation improves our trust laws to make us even more competitive as a desirable location for trust investments,” Overbey said. “The more up-to-date and flexible our trust laws, more trusts we will have sited in Tennessee, and the more fund managers we will locate here, all of which means more opportunities for those trusts to invest in our Tennessee businesses and enterprises. This is important as we continue to make our state more competitive with other states for investment.”
The bill improves Tennessee’s Uniform Principal and Income Act, the Uniform Trust Code and the Investment Services Act by adding a number of statues to upgrade and improve the state’s trust laws. It also creates a new type of trust in Tennessee called the unitrust.
This legislation employs the top features of trust laws in other states and best practices in trust administration. Besides updating various provisions of the state’s trust laws, it tweaks the statute to add flexibility in administering trust estates.
The bill, Senate Bill 3522, now moves to the House of Representatives, where it is sponsored by Representative Kent Coleman (D-Murfreesboro).