Tennessee § 35-15-508 - Removal or replacement power over trustee or other fiduciary not reachable by holder's creditors — Interests of beneficiary who is also a trustee or other fiduciary not reachable.

§ 35-15-508. Removal or replacement power over trustee or other fiduciary not reachable by holder's creditors — Interests of beneficiary who is also a trustee or other fiduciary not reachable.

No creditor or assignee of a beneficiary shall have the power to reach an interest of a beneficiary or any other person who holds an unconditional or conditional removal or replacement power over a trustee or other fiduciary. Such power over a trustee or other fiduciary is personal to the holder and shall not be exercised by the holder's creditors. No court shall direct a holder to exercise the power. Subject to § 35-15-504(b)(3): No creditor or assignee of a beneficiary may reach an interest of a beneficiary who is also a trustee, cotrustee or other fiduciary, or otherwise compel a distribution because the beneficiary is then serving as a trustee, cotrustee or other fiduciary; and No court may foreclose against a beneficiary's interest described in subdivision (b)(1). Acts 2013, ch. 390, § 23. 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or prejudice the rights of the parties, in which case the particular provision of the act does not apply and the superseded law applies; Any rule of construction or presumption provided in the act applies to trust instruments executed before July 1, 2013, unless there is a clear and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. Section Comment. Unless provided otherwise hereinafter, any reference to “section,” “subsection” or “subdivision” means all, or such portion of, T.C.A. § 35-15-508 . This section adds further creditor protection to the Tennessee Uniform Trust Code in two cases covered in subsections (a) and (b), respectively. This section has no similar provision in the Uniform Trust Code. 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. Subsection (a) provides that No creditor or assignee (hereinafter in the comments to this section, individually and collectively, simply “creditor”) of a beneficiary can reach the interest of any beneficiary or other person who holds any power to remove or replace any trustee, cotrustee or other fiduciary (hereinafter in the comments to this section, individually and collectively, simply “fiduciary”). Such power is personal to the holder solely in their capacity as its holder and not as a beneficiary or other person having a relationship to the trust. The preceding also has the effect that no court can force any such holder to exercise such power. Subsection (b) provides that, subject to the provisions of T.C.A. § 35-15-504(b)(5) (regarding beneficiaries under discretionary interests also serving as a fiduciary), the fact that a beneficiary is also serving as a fiduciary in no way lessens the creditor protection offered by the various provisions of the Tennessee Uniform Trust Code, even to the extent that no court may foreclose on any such beneficiary-fiduciary’s interest. 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.