Is a Tennessee trust revocable unless it says otherwise?

Yes, for a trust created on or after July 1, 2004: unless the terms expressly provide that the trust is irrevocable, the settlor may revoke or amend it (Tenn. Code Ann. § 35-15-602(a)). While it is revocable and the settlor has capacity, the trustee's duties are owed exclusively to the settlor (Tenn. Code Ann. § 35-15-603(a)).

Can a Tennessee revocable trust shield assets from the settlor's creditors?

No. During the settlor's life the property of a revocable trust is subject to the settlor's creditors' claims, and after the death a trust revocable at the death answers for the settlor's debts, the costs of administration and the funeral expenses (Tenn. Code Ann. § 35-15-505(a)(1), (6)).

What happens to the trust when the settlor dies?

It becomes irrevocable; the successor trustee accepts (Tenn. Code Ann. § 35-15-701), gives the initial notice within 60 days after the acceptance and the funding (Tenn. Code Ann. § 35-15-813(b)), and the two-year contest window runs from the death (Tenn. Code Ann. § 35-15-604(a)(1)).

Does a Tennessee revocable trust save taxes?

Generally not by itself. Tennessee imposes no inheritance tax in the case of a person who died in 2016 or later (Tenn. Code Ann. § 67-8-318), and its tax on income from stocks and bonds ended for tax years beginning on or after January 1, 2021 (Tenn. Code Ann. § 67-2-124); a revocable trust does not reduce federal estate or income tax on its own. Tax planning is a question for a licensed Tennessee attorney or a tax advisor. General information, not legal advice.

The Tennessee Revocable Living Trust, Explained

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What a revocable living Trust is

A revocable living Trust is a legal arrangement you create during your life and can change or revoke at any time. You typically serve as your own Trustee while you're able, so day-to-day life doesn't change — but the Trust, not you personally, holds title to the assets you transfer into it.

What it does well in Tennessee

Avoids probate for the assets the Trust owns, so they pass to your beneficiaries privately and without court administration.
Plans for incapacity — if you can't manage your affairs, your named successor Trustee steps in without a court guardianship.
Keeps your affairs private — unlike a will, a Trust is generally not filed in the public court record.
Lets you stay in control — you can amend or revoke it anytime while you have capacity.

What a revocable living Trust does NOT do

Because you keep full control, a revocable living Trust does not protect your assets from your own creditors, and it does not by itself reduce estate taxes. It is an administration and probate-avoidance tool — not asset protection. Protecting assets is a separate, fact-specific question for a Tennessee attorney.

The step people miss: funding the Trust

A Trust only avoids probate for assets actually transferred into it — retitling accounts and property into the Trust's name. An unfunded Trust does little; this is why a “pour-over” will is used as a backstop, and why funding is worth reviewing with a Tennessee attorney.

Is a revocable living Trust right for you in Tennessee?

There is no single right answer — it depends on your assets, your family, and your goals, and many plans pair a Trust with a will and directives. This page is general information, not legal advice. A free role check can show you where you stand, and a Tennessee attorney can recommend what fits your situation.

General information about Tennessee law, not legal advice.

Frequently asked questions

Is a Tennessee trust revocable unless it says otherwise?: Yes, for a trust created on or after July 1, 2004: unless the terms expressly provide that the trust is irrevocable, the settlor may revoke or amend it (Tenn. Code Ann. § 35-15-602(a)). While it is revocable and the settlor has capacity, the trustee's duties are owed exclusively to the settlor (Tenn. Code Ann. § 35-15-603(a)).
Can a Tennessee revocable trust shield assets from the settlor's creditors?: No. During the settlor's life the property of a revocable trust is subject to the settlor's creditors' claims, and after the death a trust revocable at the death answers for the settlor's debts, the costs of administration and the funeral expenses (Tenn. Code Ann. § 35-15-505(a)(1), (6)).
What happens to the trust when the settlor dies?: It becomes irrevocable; the successor trustee accepts (Tenn. Code Ann. § 35-15-701), gives the initial notice within 60 days after the acceptance and the funding (Tenn. Code Ann. § 35-15-813(b)), and the two-year contest window runs from the death (Tenn. Code Ann. § 35-15-604(a)(1)).
Does a Tennessee revocable trust save taxes?: Generally not by itself. Tennessee imposes no inheritance tax in the case of a person who died in 2016 or later (Tenn. Code Ann. § 67-8-318), and its tax on income from stocks and bonds ended for tax years beginning on or after January 1, 2021 (Tenn. Code Ann. § 67-2-124); a revocable trust does not reduce federal estate or income tax on its own. Tax planning is a question for a licensed Tennessee attorney or a tax advisor. General information, not legal advice.

General information about Tennessee law, not legal advice.