Create a Living Trust in Tennessee

A Tennessee living trust is an estate planning tool that lets you maintain the use of your assets while placing ownership of them in a trust. After your death, they are passed to beneficiaries of your choice.

Find out more about Living Trusts

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create a living trust in tennessee

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Updated on: February 6, 2024
Read time: 4 min

A Tennessee living trust is an estate planning tool that lets you maintain the use of your assets while placing ownership of them in a trust. After your death, they are passed to beneficiaries of your choice.

Living trusts in Tennessee

A living trust in Tennessee is created by the grantor, the person transferring assets into the trust. The more assets you transfer to the trust, the more advantageous the trust will become. Note that some assets, such as life insurance and retirement accounts, are not eligible for transfer to a trust. The trust assets are managed for your benefit during your lifetime. You must choose a trustee to handle this responsibility, and most people name themselves, with a successor trustee in place to step in after your death. At that point, the trustee’s responsibility is to protect and manage the trust assets and then distribute them to your beneficiaries according to the terms you create. Your revocable living trust (also known as an inter vivos trust) can be changed or eliminated at any time you choose. An irrevocable living trust cannot be altered once it is created.

A living trust Tennessee keeps your trust assets out of probate. Probate is the court process required for approving and enacting a will. Probate can take months (particularly since Tennessee does not use the Uniform Probate Code so its procedures are lengthy). Probate also involves costs: an executor and attorney will charge fees, and there are court fees to be paid. A trust bypasses all of this and has the benefit of being able to distribute your assets immediately upon your death. A will cannot make distributions until probate is concluded. A trust also allows you to avoid probate in any state where you own property if you include those assets in your trust.

Tennessee offers a streamlined small estate process for estates that are worth less than $50,000 and do not contain real estate. Faster and less inexpensive than regular probate, this procedure is also less expensive than setting up a trust.

Do I need a living trust in Tennessee?

Living trusts are not only easy to use, but they provide other benefits. A living trust allows you to keep your family’s business private. A trust is not public record. A will is always made public record when it is probated. No one need know what assets are in your trust, who your beneficiaries are, or when the assets are distributed. Living trusts are also harder to contest than wills, making your directives secure.

Living trusts give you complete control over your assets during your life and after you die. While you are alive, the assets are owned by the trust, but you use them and do anything you want with them since you have control. You live in your home and drive your car as you normally would. After your death, the assets are protected and managed by the trustee and then are distributed to you beneficiaries at the times you select. Many people choose to distribute when beneficiaries reaching specific future ages. A will does not give you this flexibility and distributes assets as soon as probate is concluded.

Your revocable living trust protects you should you become mentally incapacitated. All of your assets are already controlled, owned, and managed by the trust and a conservatorship proceeding is likely unnecessary. While a durable power of attorney can be rejected, a trust cannot be. Your financial life is protected by the trust.

Living trusts and estate taxes in Tennessee

Creating a living trust in Tennessee does not protect assets from estate tax. Tennessee applies an estate tax to estates worth over $5 million (in 2016, the estate tax will be completely eliminated, however). The federal estate tax applies to estates over $5 million. A specially written trust called a QTIP trust (also known as an AB trust or marital trust) does avoid estate tax when assets are left from a deceased spouse to a surviving spouse. Medicaid spend down laws apply to assets in a living trust. Creditors are also able to access your trust assets.

How to create a living trust in Tennessee

To create a living trust in Tennessee, prepare a written trust agreement and sign it in the presence of a notary. The trust is not effective until you transfer ownership of your assets into it. Living trusts can provide flexibility and benefits that are not available with other estate planning options.

Create a Tennessee living trust online with LegalZoom. LegalZoom living trusts include a pour-over will, transfer deeds, a document organizer, and more.

Find out more about Living TrustsStart Now
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This article is for informational purposes. This content is not legal advice, it is the expression of the author and has not been evaluated by LegalZoom for accuracy or changes in the law.

75 days ago
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Grateful to Patti Green

Patti Green helped me so much to finish my order. She was very patient and pleasant with me and guided me so well with my living trust. She made it clear and explained things that I could understand to finish this. She is an asset to your company and I would recommend her with excellence

CU
77 days ago
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I had no Idea what to do to update my…

I had no Idea what to do to update my Living Trust. They answered all my questions and they also helped me get info I did not know I needed.

Bryan Q
83 days ago
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Living Trust Premium

Our Representative, Stormy was fantastic! She stayed with us through the whole process. She was very helpful and thorough.

sremeikis
91 days ago
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I spoke to the representative today about a Trust...

I spoke to the representative today regarding a question about an existing Living Trust. She was very helpful - told me exactly what I needed to know and how to accomplish it. As a representative in the Financial field I guide clients all the time on where to get documents done right - and its always LegalZoom - easy and effecient!

Gareth
93 days ago
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LegalZoom

I was impressed by the user-friendly interface and the outstanding support I received while creating a Revocable Living Trust. The ability to connect with support representatives in real time to address my questions was incredibly valuable. For those looking to establish a straightforward trust, I can highly recommend LegalZoom.

TDM
99 days ago
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Rida has been very helpful with respect…

Rida has been very helpful with respect o guiding me through the process of properly revising the Living trust for my elderly parents. His patience has been exemplary.

Frantz Michel
107 days ago
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Elizabeth Tisdale

Elizabeth Tisdale, knowledgeable,been having problems with the forms in my living trust,for the past two weeks and had to pay every time, Elizabeth was patient with me and explained every detail until it was corrected,she get my 5 stars

MARIA CORONA
107 days ago
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Taking the Initiative

Taking the initiative to do the info. research on our living Trust...set up back in 2016..Made the call an efficient, as well as a pleasant experience. Very thorough and friendly. Set up our atty consultation Thanks for great service!

Vicki Switzer
114 days ago
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Carmen was so patient with me

Carmen was so patient with me! Thank you for all your direction and guidance with my living Trust! Great job!

Tina Garcia
117 days ago
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Tammy was wonderful and very…

Tammy was wonderful and very knowledgeable. It's because of her that I am going to open a living trust with legal zoom. She was great. Thank You

Erin
125 days ago
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Pleasant Experience

Patience and weel given explanation about the process of how a "Living Trust" & "Deed" works after transitioning and guidance on how to contact an attorney whenever I need legal advice.

Sharron Martin
125 days ago
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Excellent LegalZoom Attorney

The LegalZoom attorney was extremely helpful in the "walk thru" assistance as I prepared the Living Trust document. The service was excellent.

customer
134 days ago
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Happy with my initial contact with Legal Zoom

Rebecca fully answered my questions about creating a living trust. She is friendly and professional, and with my mind at ease, I am looking forward to starting this process with Legal Zoom. I am confident that this will be the best route for me to take to make things a lot easier for my family when I'm gone. (And, easy for me!) I plan to be in touch in the next several weeks. Thanks, Rebecca!

Carol
152 days ago
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Michelle very professionally guided me…

Michelle very professionally guided me with her knowledge and amazing patience through the entire process of setting up my Living Trust. I am so relieved and grateful for her help. I have used LegalZoom before and you are my go to for legal advice. Thank you again Michelle.

Paula Bateman
160 days ago
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Quality Staff

I needed to revise my entire living trust and had put it off for years. Your staff member Eden walked me through the process with such patience and concern. Had I known it would be so easy, I would have never put it off this long. A testament to you quality staff.

Ady Filipescu
169 days ago
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Really great job in guiding me to…

Really great job in guiding me to finish my living trust .

Ronnie Ball
175 days ago
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5 Stars

5 Stars – Outstanding Customer Service from Tammy at LegalZoom I had the pleasure of working with Tammy from LegalZoom regarding my living trust documents, and I couldn't be more impressed. She was professional, patient, and incredibly knowledgeable. Tammy took the time to walk me through every step, answered all my questions clearly, and made a complex process feel simple and stress-free. Her attention to detail and genuine care made all the difference. LegalZoom is lucky to have someone like her on their team. Thank you, Tammy!

Cn
175 days ago
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Ease and help of making changes to my…

Ease and help of making changes to my living trust. LegalZoom rep walked me through the process without any difficulties. Really like working with LegalZoom.

Gregory Bechtol
182 days ago
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Enjoyed working with Kevin to finalize…

Enjoyed working with Kevin to finalize our Living Trust language. His knowledge on this product certainly increases our confidence in the viability of the final document.

JOHN in CALIFORNIA
Rated4.6out of 5 based on24,608+ reviewson

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