Estate planning in Tennessee involves making arrangements for the management and distribution of your assets and affairs after you pass away or become incapacitated. It's essentially a comprehensive plan that outlines how you want your property, finances, and personal matters to be handled in the event of your death or if you're unable to make decisions for yourself.

This typically includes creating legal documents such as wills, trusts, powers of attorney, and advance directives to ensure your wishes are carried out and your loved ones are taken care of according to your desires. Estate planning aims to minimize uncertainties, taxes, and potential legal disputes while providing peace of mind for you and your family.

Trick question! There actually hasn’t been state inheritance tax in Tennessee since 2016, so you don’t have to pay state inheritance tax no matter how much you inherit.

However, if you inherit over $13.61 million (as of 2024), you’ll be on the hook for federal taxes on any amount you receive over that limit.

Yes, all wills in Tennessee must be probated, regardless of the value of the decedent’s estate.

When someone dies intestate, it just means that they died without a will.

It’s important to distinguish between “heirs” and “beneficiaries”. Beneficiaries are individuals named in a will to inherit property.

Heirs are individuals who are entitled to inherit property from a person’s estate when there is no will.

Many times, these people wil be the same, but that isn’t always the case.

Generally, “heirs” are spouses, children (grandchildren, greats, etc), parents, and siblings and their descendants.

In Tennessee, if you sell an inherited property you may be subject to capital gains tax. The IRS will impose a tax on the appreciation of the property after it was inherited.

It’s best to talk to a tax expert about this.

No, a will does not need to be recorded to be valid.

A living trust is a legal arrangement created by a person while still alive, where they create a trust, transfer their assets and property to the trust, and name themself as the trustee in order to control the trust property.

Commonly, living trusts are utilized to avoid probate, as property may be distributed immediately after the grantor’s death per the terms of the trust.

As with most legal issues, the answer is “it depends.”

Trusts will usually be better for large or complex estates, as probate can be avoided. Trusts are also good if you prefer your estate to be private, as wills are public once probate is opened. Since trusts avoid probate, their contents never become public record.

For smaller estates, or estates that are not complex, wills are just fine for planning purposes. In fact, wills are sufficient for most Americans.

Keep in mind that even if you have a trust, yo should also have a will as a “backup” to direct distribution of any assets that were not tranferred to the trust.

For a Tennessee will to be valid, it must meet the following:

The person creating the will must be at least 18 years old, they must not be incompetent, it must be a written document, it must be signed by the creator, and it must be signed by at least two witnesses who are not beneficiaries of the will.

In order to transfer property to a trust in Tennessee, you must first have the trust agreement completed. Once that is done, you can “fund” the trust by titling assets in the trust’s name.

For any property that you cannot title, you can simply list the property in the trust agreement.

If you distribute assets from an estate without opening probate first, there are a few potential consequences you could face.

First, it leaves the will open to challenges of its validity. Second, creditors might be able to file suits to recover debts from beneficiaries or the personal representative who distributed the assets. Finally, you may be held personally liable for any mistakes or oversights if you distribute assets without opening probate.

The length of time it takes to settle an estate varies based on several factors:

1. The size of the estate;

2. The Court’s calendar;

3. The accessibility of assets; and,

4. Whether any individuals contest the will.

Although every case is different, 12 months is a decent estimate to plan for.

No, you can usually do it without an attorney. In fact, you can get official court forms in most courthouses, but beware: some counties require a licensed attorney to file the paperwork.

Additionally, some counties may not allow fiduciaries to represent themselves.

Unless you are experienced in estates or court procedures, you are risking delays, liability, and complications by skipping an attorney.

In most cases, it’s best to hire a professiona!