Tennessee § 35-15-410 - Modification or termination of trust — Proceedings for approval or disapproval.

§ 35-15-410. Modification or termination of trust — Proceedings for approval or disapproval.

In addition to the methods of termination prescribed by §§ 35-15-411 — 35-15-414, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved, or the purposes of the trust have become unlawful or impossible to achieve. A proceeding to approve or disapprove a proposed modification or termination under §§ 35-15-411 — 35-15-416, or trust combination or division under § 35-15-417, may be commenced by a trustee or beneficiary. The settlor of a charitable trust may maintain a proceeding to modify the trust under § 35-15-413. Nothing in this section or this chapter is intended to create or imply a duty for a trustee to make or seek approval of a modification, termination, combination or division, and a trustee is not liable for not making or seeking approval of a modification, termination, combination or division. No modification, termination, combination or division may be made pursuant to §§ 35-15-411 — 35-15-417 that: Results in the trust not qualifying for the federal or state marital or charitable income, gift, estate or inheritance tax deduction if the trust would qualify but for the modification, termination, combination or division; Results in the trust being subject to the federal or state generation-skipping transfer tax if the trust would not be subject to the generation-skipping transfer tax but for the modification, termination, combination or division; or Results in an overall increase in federal or state estate, inheritance, gift or generation-skipping transfer taxes. Acts 2004, ch. 537, § 32; 2013, ch. 390, § 51. Compiler's Notes. Acts 2013, ch. 390, § 55 provided that: (b) Except as otherwise provided in the act, on July 1, 2013: The act applies to all trusts created before, on, or after July 1, 2013; The act applies to all judicial proceedings concerning trusts commenced on or after July 1, 2013; The act applies to judicial proceedings concerning trusts commenced before July 1, 2013, unless the court finds that application of a particular provision of the act would substantially interfere with the effective conduct of the judicial proceedings or prejudice the rights of the parties, in which case the particular provision of the act does not apply and the superseded law applies; Any rule of construction or presumption provided in the act applies to trust instruments executed before July 1, 2013, unless there is a clear and express indication of a contrary intent in the terms of the trust; and An act done before July 1, 2013, is not affected by the act. Law Reviews. Tennessee Uniform Trust Code: New Formulation for a Trusty Tool (Marshall H. Peterson), 41 No. 1 Tenn. B.J. 24 (2005). 1. Suit to Disapprove Proposal. 2. Trustee Duties. Co-trustee sought a declaration that the settlement, which sought termination of the trust, violated the Tennessee Uniform Trust Act and, as such, should not be enforced; in short, the co-trustee filed a suit to disapprove a proposed termination of the trust. Miller v. Maples, — S.W.3d —, 2018 Tenn. App. LEXIS 697 (Tenn. Ct. App. Nov. 30, 2018). Tennessee Uniform Trust Act contains no requirement that the trustee specifically request approval of termination or modification of the trust; rather, the trustee need only commence a proceeding to approve or disapprove a proposed modification or termination. Miller v. Maples, — S.W.3d —, 2018 Tenn. App. LEXIS 697 (Tenn. Ct. App. Nov. 30, 2018). Unless provided otherwise hereinafter, any reference to “section,” “subsection” or “subdivision” means all, or such portion of, T.C.A. § 35-15-410 . The provisions of this section in some ways diverge significantly from the Uniform Trust Code and the restatements. To the extent this section is in conflict with the Uniform Trust Code, any restatement or any other foreign law, such foreign law is not precedential or controlling and is rejected by the Tennessee Uniform Trust Code. Terminations under subsection (a) may be in either in whole or in part. Note that unlike Uniform Trust Code section 410: If a right is acquired, extinguished, or barred upon the expiration of a prescribed period that has commenced to run under any other statute before July 1, 2013, that statute continues to apply to the right even if it has been repealed or superseded.