Trusts – Trust Certificates – Tennessee
Tennessee Code 35 FIDUCIARIES AND TRUST ESTATES CHAPTER 50 MISCELLANEOUS PROVISIONS
Certification of trust.
(a) The trustee may present a certification of trust to any person to evidence the existence and validity of the trust in the manner set forth in this section.
(b) The certification of trust shall be in the form of a sworn declaration, signed by the trustee or trustees having signatory authority as identified in subdivision (5) and shall contain the following:
(1) An affirmation of the current existence of the trust and the date on which the trust came into existence;
(2) The identity of the trustor. or trustors, the currently acting trustee or trustees, and the named successor trustee or trustees of the trust or a statement that no successor is named;
(3) The administrative and/or managerial powers of the trustee;
(4) The revocability or irrevocability of the trust and the identity of any person holding any power to revoke the trust;
(5)When there are multiple trustees or multiple successor trustees, the signature authority of the trustees or successor trustees indicating whether all or less than all of the currently acting trustees are required to sign in order to exercise various powers of the trustee;
(6) Where there are successor trustees designated, a statement detailing the conditions for their succession or a statement that a third party may rely on the authority of one (1) or more successors without proof of their succession;
(7) The trust identification number, whether a social security number or an employer identification number;
(8) The manner in which trust assets should properly be titled; and
(9) A statement that to the best of the trustee’s knowledge, the trust has not been revoked, modified, or amended in any manner which would cause the representations contained in the certification of trust to be incorrect.
(c) The certification of trust shall not be required to contain the dispositive provisions of the trust which set forth the distribution of the trust estate.
(d) The trustee offering the certification of trust may provide copies of all or any part of the trust document and amendments, if any. Nothing in this section is intended to require or imply an obligation to provide the dispositive provisions of the trust or a copy of the entire trust document and amendments.
(e) A person who acts in reliance on a certification of trust without actual knowledge that the representations contained therein are incorrect is not liable to any person for so acting. A person who does not have actual knowledge that the facts contained in the certification of trust are incorrect may assume without inquiry the existence of the facts contained in the certification of trust. Actual knowledge shall not be inferred solely from the fact that a copy of all or part of the trust instrument is held by the person relying on the trust certification. Nothing contained herein shall limit the rights of the beneficiaries of the trust against the trustee. Any person relying on the certification of trust shall be indemnified from the assets of the trust to the extent of the share of the trust attributable to the beneficiary or beneficiaries bringing any action against the person for any costs, damage, attorney fees or other expenses incurred in defending any action against the person arising from the transaction to which a certification of trust related.
(f) A person’s failure to request a certification of trust does not affect the protections provided that person by this section. No inference that the person has not acted in good faith or that the person was negligent may be drawn from the failure of that person to request a certification of trust. Nothing in this section is intended to create an implication that a person is liable for acting in reliance on a certification of trust under circumstances where the requirements of this section are not satisfied.
(g) Nothing in this section shall be construed to require a third party, when presented with a trust certificate, to enter into a contract with a trustee relating to trust assets or obligations, or to preclude a third party from demanding as a pre-condition to any contract that the trustee provide additional information in order to clarify any ambiguities or inconsistencies in the trust certificate. Title 35, Chap. 50, §35-50-126.