Declaration of Trust — Tennessee UTC Adopted
State-specific requirements for creating a Declaration of Trust in Tennessee.Create yours now →
Certificate of Trust · At a glance
Tennessee · summary of the record on file
Tenn. Code Ann. § 35-15-101 et seq. (Tennessee Uniform Trust Code, enacted 2004, effective July 1, 2004). Certificate of trust: § 35-15-1013. Massachusetts/business trust: Tenn. Code Ann. § 48-101-202. Self-settled spendthrift trust: Tennessee Investment Services Act, § 35-16-101 et seq. (effective July 1, 2007).Citation text is shown as currently recorded. No source URL is on file for this state.Source URL missing · unverified- Notary: No statutory requirement for notary or witnesses on the certification of trust.
- Witnesses: No statutory requirement for notary or witnesses on the certification of trust.
- Recording: For a Tennessee Investment Services Trust (self-settled spendthrift trust under § 35-16-104): the trust instrument must contain specific statutory notice/registration statements and must be registered with the Tennessee Secretary of State.
- Source URL: https://law.justia.com/codes/tennessee/title-35/chapter-15/part-10/section-35-15-1013/
- Last verified: 2026-09-17
- Legal review: Not performed
Governing Statute
Tenn. Code Ann. § 35-15-101 et seq. (Tennessee Uniform Trust Code, enacted 2004, effective July 1, 2004). Certificate of trust: § 35-15-1013. Massachusetts/business trust: Tenn. Code Ann. § 48-101-202. Self-settled spendthrift trust: Tennessee Investment Services Act, § 35-16-101 et seq. (effective July 1, 2007).
Execution Requirements
Certification of trust may be signed or otherwise authenticated by any trustee. No statutory requirement for notary or witnesses on the certification of trust. For trust instruments: Tennessee does not require notarization for a revocable living trust to be valid. For a Tennessee Investment Services Trust (self-settled spendthrift trust under § 35-16-104): the trust instrument must contain specific statutory notice/registration statements and must be registered with the Tennessee Secretary of State. Recording not generally required for trust instruments. For real property transactions, a certificate of trust or affidavit suffices. Tennessee does not require witnesses for trust execution (unlike wills).
Business Trust Treatment
Tennessee recognizes Massachusetts trusts (business trusts) at common law AND by statute. Tenn. Code Ann. § 48-101-202(a) defines a Massachusetts trust as 'an unincorporated business association created at common law by an instrument under which property is held and managed by trustees for the benefit and profit of such persons as may be or may become the holders of transferable certificates evidencing beneficial interests in the trust estate, the holders of which certificates are entitled to the same limitation of personal liability extended to stockholders of private corporations.' Tennessee is one of the few states that explicitly codifies Massachusetts trust law, providing limited liability for certificate holders comparable to corporate shareholders. Tennessee business trusts are recognized as legal entities for most purposes. Tennessee does not have a comprehensive 'statutory trust act' like Maryland or Delaware, but the Massachusetts trust statute (within Title 48, Corporations and Associations) provides a framework.
Favorable Trust Laws
Tennessee is one of the most favorable trust jurisdictions in the US: (1) The Tennessee Investment Services Act (§ 35-16-101 et seq., effective July 1, 2007) allows self-settled spendthrift trusts (asset protection trusts)—a settlor can create an irrevocable trust for their own benefit with spendthrift protection against creditors, with a 2-year look-back period for fraudulent transfers (shorter than many states); (2) Tennessee has abolished the rule against perpetuities for trusts (§ 35-15-902, effective 2006), allowing perpetual/dynasty trusts; (3) Tennessee has no state income tax on wages and no state estate or inheritance tax—highly favorable for trust situs; (4) Tennessee allows trust decanting (§ 35-15-417); (5) Tennessee allows nonjudicial settlement agreements and trust modification; (6) Tennessee has strong trust protector/trust director provisions; (7) The Tennessee UTC includes modern directed trust provisions. Tennessee is consistently ranked among the top trust jurisdictions (alongside South Dakota, Alaska, Delaware, and Nevada) for asset protection and dynasty trust planning.
Unique Factors
Tennessee is unique because: (1) The Tennessee Investment Services Act (TISA) self-settled spendthrift trust has one of the shortest seasoning/look-back periods (2 years) among asset protection trust states, making it attractive for asset protection; (2) Tennessee has no state income tax AND no state estate/inheritance tax—a rare combination favorable for trust situs (only a few states like Texas, Florida, Washington, and Nevada share this); (3) Tennessee explicitly codifies Massachusetts trust law (§ 48-101-202), providing limited liability for beneficial certificate holders equivalent to corporate shareholders—this is unusual; (4) Tennessee has abolished the rule against perpetuities, allowing true dynasty trusts; (5) Tennessee requires Tennessee Investment Services Trusts to register with the Secretary of State (§ 35-16-104), providing a state-level regulatory framework for asset protection trusts; (6) Tennessee's trust code is frequently amended to remain competitive (e.g., 2023 amendments enhanced the Investment Services Act and decanting provisions); (7) Tennessee combines Southern trust law tradition with modern, competitive trust legislation designed to attract trust business from other states.
Certification of Trust in Tennessee
Under Tenn. Code Ann. § 35-15-1013(a), a certification of trust must state: (1) that the trust exists and the date the trust instrument was executed; (2) the identity of the settlor; (3) the identity and address of the currently acting trustee; (4) the powers of the trustee; (5) the revocability or irrevocability of the trust and the identity of any person holding a power to revoke; (6) the authority of cotrustees to sign/authenticate and whether all or less than all are required to exercise trustee powers; (7) the trust's taxpayer identification number; (8) the manner of taking title to trust property. Must state that the trust has not been revoked, modified, or amended in a manner that would cause representations to be incorrect. Need not contain dispositive provisions (§ 35-15-1013(b)). The certification of trust may be signed or otherwise authenticated by any trustee. No statutory form—statutory requirements only. Tennessee does not require the trust document to be recorded.
Already have a trust? You may also need a Certificate of Trust for Tennessee to prove its existence to banks and institutions.
How a Declaration of Trust works in Tennessee
A declaration of trust is the written instrument that creates a trust. The settlor states an intent to hold property for named beneficiaries and appoints a trustee to manage it. Under the Tennessee Uniform Trust Code (Tenn. Code Ann. § 35-15-101 et seq.), the instrument must be signed by the settlor. Tennessee does not require witnesses for trust execution, and notarization is not required for the trust instrument itself. The trust becomes active when it is funded: real property moves by a new deed to the trustee, and bank and brokerage accounts are retitled in the name of the trust or trustee. A successor trustee named in the document takes over if the acting trustee steps down, becomes incapacitated, or dies. When proof of the trust is needed, Tenn. Code Ann. § 35-15-1013 lists what a certification of trust may contain, and a third party may require the trustee to furnish excerpts. Tennessee also recognizes Massachusetts trusts (business trusts) under Tenn. Code Ann.
Frequently asked questions
Does a Tennessee declaration of trust have to be notarized or witnessed?
Under the Tennessee Uniform Trust Code, the trust instrument must be signed by the settlor. Witnesses are not required for trust execution, and notarization is not required for the trust instrument itself. The certification of trust may be signed or otherwise authenticated by any trustee. Notarization or an acknowledgment may still be required for recording purposes, such as real property transactions or a certificate of trust. Tennessee also recognizes electronic signing of trust instruments.
Can a Tennessee trust protect assets from the settlor's own creditors?
Yes, under certain conditions. Tennessee allows self-settled spendthrift trusts through the Tennessee Investment Services Act (§ 35-16-101 et seq., effective July 1, 2007). A settlor can create an irrevocable trust for their own benefit with spendthrift protection against creditors. The trust must comply with specific statutory requirements, including a 2-year look-back period for fraudulent transfers. Tennessee Investment Services Trusts must also be registered with the Tennessee Secretary of State under § 35-16-104.
What goes in a certification of trust under Tenn. Code Ann. § 35-15-1013?
The statute lists the contents: that the trust exists and the date the trust instrument was executed; the identity of the settlor; the identity and address of the currently acting trustee; the powers of the trustee; the revocability or irrevocability of the trust and the identity of any person holding a power to revoke; the authority of cotrustees to sign or authenticate and whether all or less than all are required to exercise trustee powers; the trust's taxpayer identification number; and the manner of taking title to trust property.
How does Tennessee treat business trusts?
Tennessee recognizes Massachusetts trusts (business trusts) at common law and by statute. Tenn. Code Ann. § 48-101-202(a) defines a Massachusetts trust as an unincorporated business association created at common law by an instrument under which property is held and managed by trustees for the benefit and profit of holders of transferable certificates evidencing beneficial interests. The holders of these certificates are entitled to the same limitation of personal liability extended to stockholders of private corporations.
Common mistakes
Common issues include assuming Tennessee law requires witnesses or notarization for the trust instrument itself (it requires neither, though recording-related steps such as deeds or certificates of trust may call for an acknowledgment), and leaving the trust unfunded so that property never actually moves into it through a new deed or retitled accounts. Another frequent mix-up is treating a business trust like a family trust: Tennessee recognizes Massachusetts trusts under § 48-101-202, which provide limited liability for certificate holders comparable to corporate shareholders, and these are governed by a separate statutory framework. People also assume asset-protection provisions apply on their own; Tennessee's self-settled spendthrift trusts under the Investment Services Act require specific statutory conditions, including registration with the Secretary of State.
Tennessee notes
Tennessee operates under the Tennessee Uniform Trust Code (Tenn. Code Ann. § 35-15-101 et seq.), enacted 2004, effective July 1, 2004. The certification of trust is governed by § 35-15-1013, and the certification may be signed or otherwise authenticated by any trustee. Tennessee levies no state income tax on wages and no state estate or inheritance tax, making it highly favorable for trust situs. The state allows self-settled spendthrift trusts under the Tennessee Investment Services Act (§ 35-16-101 et seq.) with a 2-year look-back period for fraudulent transfers. Tennessee has abolished the rule against perpetuities for trusts under § 35-15-902, allowing perpetual dynasty trusts. The state recognizes Massachusetts trusts (business trusts) at Tenn. Code Ann. § 48-101-202, providing limited liability for certificate holders equivalent to corporate shareholders. Tennessee also allows trust decanting under § 35-15-417 and has strong trust protector and trust director provisions.