Tennessee § 30-2-713 - Satisfaction of pecuniary bequests, devises or transfers by distribution in kind — Agreements with beneficiaries and governmental authorities.

§ 30-2-713. Satisfaction of pecuniary bequests, devises or transfers by distribution in kind — Agreements with beneficiaries and governmental authorities.

Whenever an executor, administrator with will annexed or a trustee is empowered under the will or trust of a decedent to satisfy a pecuniary bequest, devise or transfer in trust, in kind with assets at their value for federal estate tax purposes, that fiduciary, in order to implement such a bequest, devise or transfer in trust, must, unless the governing instrument provides otherwise, distribute assets, including cash, fairly representative of appreciation or depreciation in the value of all property thus available for distribution in satisfaction of the pecuniary bequest, devise or transfer. This section is not intended to change the law presently applicable to fiduciaries in this state, but is a statement of the fiduciary principles applicable to fiduciaries and is declaratory of the present law of this state. The personal representative of an estate and trustees are authorized to enter into agreements with beneficiaries and with governmental authorities, agreeing to make distribution in accordance with this section for any purpose that they deem to be in the best interests of the estate, including the purpose of protecting and preserving the federal estate tax marital deduction for a decedent without regard to the decedent's date of death, or the state inheritance tax marital deduction for a decedent dying before January 1, 2016, as applicable to the estate. The guardian or conservator of a surviving beneficiary or the personal representative of a deceased beneficiary is empowered to enter into agreements pursuant to this subsection (c) for and on behalf of the beneficiary or deceased beneficiary. Acts 1965, ch. 284, §§ 1-3; T.C.A., § 30-1317; Acts 1984, ch. 579, § 1; 2017, ch. 290, § 4. Code Commission Notes. Acts 2017, ch. 290, § 16 provided that section 4 of the act, which amended this section, should take effect January 1, 2017. However, since a public chapter cannot become effective on a date prior to becoming law, the code commission deems the amendment by that act to take effect on July 23, 2017, in accordance with Tenn. Const. art. II, § 20. See Opinion of the Attorney General, June 25, 1982 (OAG 82-191). Amendments. The 2017 amendment rewrote (c) which read: “The personal representative of an estate and trustees are authorized to enter into agreements with beneficiaries and with governmental authorities, agreeing to make distribution in accordance with this section for any purpose that they deem to be in the best interests of the estate, including the purpose of protecting and preserving the federal estate tax or state inheritance tax marital deduction as applicable to the estate, and the guardian or conservator of a surviving beneficiary or the personal representative of a deceased beneficiary shall be empowered to enter into such agreements for and on behalf of the beneficiary or deceased beneficiary.” Effective Dates. Acts 2017, ch. 290, § 16. July 23, 2017. See the Code Commission Notes. Cross-References. Inheritance tax deductions, § 67-8-315 . Textbooks. Pritchard on Wills and Administration of Estates (4th ed., Phillips and Robinson), §§ 955, 986. Law Reviews. Inheritance Taxation — The “Tainted Asset” Rule: A Problem With Tennessee's Marital Deduction, 11 Mem. St. U.L. Rev. 643 (1981). Some Whys and Wherefores of Will-Drafting — Revised (Robert L. McMurray), 15 No. 2 Tenn. B.J. 2 (1979). The Marital Deduction — Effect of Revenue Procedure 64-19 (Robert W. Knolton), 33 Tenn. L. Rev. 493 (1966).