The Grounds for Contesting a Trust in Tennessee: A Legal Overview
Is a Tennessee trust in your family raising questions or hard feelings? At Foust & Foust, PLLC, we focus on estate planning, probate, and trust administration. We understand that trust disputes often arise when families need clarity the most. Our team provides personal, practical solutions that protect legacies and keep transfers on track. In this article, we outline the common grounds for contesting a trust in Tennessee, as well as the applicable timelines and rules.
Types of Trusts Commonly Used in Tennessee
Trusts come in two broad buckets, revocable and irrevocable. Each serves a different purpose and carries different rules when questions arise.
Revocable Trusts
A revocable trust, often called a living trust, is established during the trustor’s lifetime and can be modified or revoked while the trustor is alive. The trustor typically serves as the initial trustee, and a successor steps in if the trustor dies or becomes unable to fulfill their duties.
Families use revocable trusts to manage assets and avoid probate for property titled in the trust during the owner’s lifetime. Once the trustor dies, the revocable trust becomes irrevocable.
With that foundation in place, it is helpful to understand how irrevocable trusts work and why they are used.
Irrevocable Trusts
An irrevocable trust, once signed and funded, generally cannot be changed or revoked. The trust owns the assets, and the trustee is obligated to adhere to the terms as written.
Common examples include the following:
- Asset Protection Trusts are built to shield assets from future creditor claims under Tennessee’s statutes.
- Special Needs Trusts are structured to allow a person with a disability to receive support without jeopardizing their public benefits.
- Charitable Trusts, created to benefit charities or the public, with potential transfer tax savings for the trustor’s plan.
Knowing the type of trust helps you gauge what proof may be needed if a dispute arises.
Grounds for Contesting a Trust in Tennessee
Contesting a trust means asking a court to rule that the trust, or part of it, is invalid. People usually raise these claims after a death, though some issues are spotted earlier.
Lack of Capacity
This claim argues the trustor was not of sound mind when the trust was created or changed. Medical records, witness testimony, and the timing of the document often play a crucial role in this context.
When capacity is not the main concern, influence and pressure from others can be the next focus.
Undue Influence
Undue influence happens when someone exerts pressure or manipulation that overpowers the trustor’s true wishes. Tennessee courts closely examine relationships, sudden changes, and who benefits.
Common warning signs include the following:
- Isolation of the trustor by a relative, caregiver, or new friend.
- Last-minute changes to the trust that are hard to explain.
- Adding new beneficiaries with little history or connection.
- Uncharacteristic behavior or choices that do not fit the trustor’s past values.
Under Tennessee law, if a confidential relationship exists and the influencer receives unusual benefits, a presumption of undue influence can arise. The influencer must then demonstrate that the deal was fair and equitable.
If deception, rather than pressure, drove the change, the issue may appear differently.
Fraud
Fraud involves lies, misstatements, or the concealment of facts that deceive the trustor into signing or amending a trust. Proof often includes emails, texts, or testimony that shows the false story.
Sometimes, pressure crosses the line into threats, which indicates a different level of concern.
Duress
Duress means the trustor signed or changed a trust under the influence of threats or coercion. This can be emotional or physical, and it undermines the concept of free choice.
Not every problem is about pressure, though. Some are simply mistakes.
Mistake
If a serious error in the trust’s terms does not reflect the trustor’s true intent, it can support a contest. Drafting errors, incorrect property descriptions, or swapped beneficiary names are examples that people often encounter.
In rare cases, the document was never signed by the trustor.
Forgery
If a signature is forged, the trust is not valid. Handwriting experts and notary records often play a big role here.
Even without bad acts, a trust can still fail if basic signing requirements are not met.
Improper Execution
Tennessee law requires the proper execution of trust documents, and many trusts also include notary or witness steps, especially for related documents such as pour-over wills. If required signatures or formalities were omitted, the trust or amendment may be invalidated.
Finally, some provisions are not allowed for public policy reasons.
Violation of Public Policy
A trust provision can be attacked if it encourages illegal acts or clearly violates public policy. Courts do not enforce clauses that cross that line.
Here is a quick reference chart that summarizes common grounds and helpful proof.
Common Grounds to Contest a Tennessee Trust and Typical Proof
| Ground | What it looks like | Helpful evidence |
| Lack of Capacity | Confusion or cognitive decline around signing | Medical records, witness statements, and timing of diagnosis |
| Undue Influence | Confidential relationship and lopsided benefit | Isolation patterns, sudden changes, caregiver involvement |
| Fraud | False statements that induced signing | Emails, texts, inconsistent stories, third-party witnesses |
| Duress | Threats or coercion to sign | Texts, recordings, testimony, protective orders |
| Mistake | Terms do not match stated intent | Prior drafts, attorney notes, consistent estate plan history |
| Forgery | Trustor did not sign | Handwriting expert reports, notary log, video, or security logs |
| Improper Execution | Missing required signatures or formalities | Execution packet, witness affidavits, notary records |
Statute of Limitations for Contesting a Trust in Tennessee
Tennessee Code § 35-15-604 sets the filing deadline for contests to a trust that was revocable right before the settlor’s death. The window is short, and missing it can result in the claim being denied.
Under the statute, a person must start a court case within the earlier of the following:
- Two years after the settlor’s death, or
- One hundred twenty days after the trustee sends a copy of the trust and a written notice that identifies the trust’s existence, the trustee’s name and address, and the time allowed to file a contest.
The statute also allows a trustee to distribute property after death, unless the trustee is aware of a pending case or receives timely written notice that a contest is pending. These rules encourage prompt action and clean administration.
No-Contest Clauses in Tennessee Trusts
A no-contest clause, also known as in terrorem or forfeiture language, can reduce or eliminate a beneficiary’s share if that person challenges the trust. Tennessee Code § 35-15-1014 recognizes and enforces these provisions.
These clauses are generally enforceable unless the beneficiary had probable cause to act based on grounds like fraud, duress, lack of capacity, undue influence, mistake, forgery, or an irregularity in execution. That probable cause safety valve matters in close cases.
The statute also lists actions that do not trigger a penalty, including the following:
- Claims for breach of fiduciary duty against a trustee.
- Court actions asking for the construction or interpretation of the trust’s terms.
- Actions by the Attorney General involving charitable trusts or charitable interests.
Good advice early can help you avoid tripping a no-contest clause while still protecting your rights.
The Process of Contesting a Trust in Tennessee
If you believe a trust has been compromised, seek legal counsel promptly. Early review helps you meet deadlines, gather evidence, and select the most suitable forum for your needs.
Most cases follow a familiar path:
- Filing a petition or complaint in the proper court.
- Collecting evidence, including medical records, financial documents, and communications.
- Pre-trial steps, such as discovery, motions, and mediation, are used to explore potential settlement options.
- A trial in which a judge, and sometimes a jury, decides the facts and applies the law.
Results can include invalidating the whole trust or only certain provisions, and courts sometimes revive an earlier version of the trust. Either side can seek an appeal within the expected time limits.
Do You Need Assistance with a Trust Dispute? Contact Foust & Foust, PLLC
Trust fights are personal, and you deserve clear answers and steady guidance. If you would like to discuss options, call us at (865) 203-4041, email contact@foustlaw.com, or reach out through our Contact Us page. We welcome your questions and work hard to protect your loved one’s intent and your peace of mind. Feel free to contact us today, and let’s create a plan that suits your situation.
