Franklin Families With Existing Trusts May Want a Review Under New Rules
BRENTWOOD, TN, November 5, 2026 /24-7PressRelease/ -- A Tennessee law that took effect July 1, 2026, changes how smaller trusts can be closed. Under Public Chapter 616, a trustee can end a trust worth less than $250,000 without going to court, as long as the trustee gives notice to the qualified beneficiaries. Before the change, the limit was $100,000.
The higher limit reflects what it costs to run a trust. Trustee fees, tax filings, and investment management can take a real share of a smaller trust each year. For example, a trust holding $200,000 for a grandchild's education would have needed a court order to close under the old rule. Now the trustee may be able to end it and distribute the assets in a way that is consistent with the trust's purposes.
The law also makes court filings about internal trust administration presumed confidential. When a dispute involves only the trustee and the qualified beneficiaries, those filings can be redacted or filed under seal without asking the court first. That keeps account balances and family details out of the public record.
Not every family will want a trust to end early. Some trusts were written to protect a beneficiary who has creditor problems or is not ready to manage money. An estate planning lawyer in Franklin, TN can review an existing trust, determine whether it now falls under the new threshold, and recommend updates for trusts that can still be amended.
Patterson Bray PLLC helps families in Franklin and across Middle Tennessee create and update trusts and other estate planning documents. Consultations can be scheduled through the firm's contact page.
About the Firm:
Patterson Bray PLLC is a Tennessee law firm with offices in Brentwood and Memphis. The firm handles estate planning, probate, trust administration, asset protection, business law, family law, and personal injury matters. Estate planning attorneys Larry Bray and Lindsay Jones have more than two decades of experience with wills, trusts, asset protection, and post-death administration. Both are members of WealthCounsel, a national network of estate planning attorneys. The firm answers calls 24 hours a day.
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