(a) Except as otherwise provided in subsection (b), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this chapter.

Terms Used In Tennessee Code 35-14-103

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Trust: means any fiduciary relationship created by a governing instrument. See Tennessee Code 35-14-102
  • Trustee: A person or institution holding and administering property in trust.
  • Trustee: means any fiduciary as defined in §. See Tennessee Code 35-14-102
(b) The prudent investor rule, a default rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust. A trustee is not liable to a beneficiary to the extent that the trustee acted in reliance on the provisions of the trust.
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