35-15-817 - Distribution upon termination. - Tennessee Statutes

35-15-817. Distribution upon termination.

(a)  Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary to object to the proposed distribution terminates if the beneficiary does not notify the trustee of an objection within thirty (30) days after the proposal was sent but only if the proposal informed the beneficiary of the right to object and of the time allowed for objection. For the purpose of determining the date a proposed distribution was sent, where exact confirmation is unavailable, it can be assumed it was received five (5) days after the date of mailing.

(b)  Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to it, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes.

(c)  A release by a beneficiary of a trustee from liability for breach of trust is invalid to the extent:

     (1)  It was induced by improper conduct of the trustee; or

     (2)  The beneficiary, at the time of the release, did not know of the beneficiary's rights or of the material facts relating to the breach.

[Acts 2004, ch. 537, § 75.]