IF:

(1) a gift made to a trust is to take effect at a date later than the date of the gift instrument; and

Terms Used In Tennessee Code 35-13-107

  • 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
  • charitable: as used in this chapter , unless expressly indicated not to be charitable by the context in which they are used. See Tennessee Code 35-13-102
  • Court: means the chancery court or other court exercising equity jurisdiction or a probate court of record. See Tennessee Code 35-13-102
  • Donor: The person who makes a gift.
  • Donor: means the person making the lifetime or testamentary charitable gift. See Tennessee Code 35-13-102
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Gift instrument: means a will, deed, grant, conveyance, trust agreement, memorandum, writing or other governing document that creates the charitable gift. See Tennessee Code 35-13-102
  • Internal Revenue Code: means the Internal Revenue Code of 1986 (U. See Tennessee Code 35-13-102
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Tax-exempt: means that the organization, trust or beneficiary referred to is one that is described in §. See Tennessee Code 35-13-102
(2) when the gift instrument is executed, the gift to the trust would qualify for a charitable deduction under the Internal Revenue Code (26 U.S.C.), if the gift were then effective; and
(3) the trust, or beneficiary of the trust, loses its tax-exempt status before the gift takes effect; THEN

the donor shall be presumed to have intended that the trust should be tax-exempt when the gift was to take effect, unless the donor clearly indicated in the gift instrument that the designated beneficiary should receive the gift even if the gift is not eligible for the charitable deduction. The court has jurisdiction to reform the trust by selecting another tax-exempt beneficiary, or to select another tax-exempt trust, and to select one (1) or more charitable purposes of the gift.

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