(a) Trustees, guardians, administrators, executors, and other persons acting in a fiduciary capacity who receive income taxable under this chapter for the benefit of residents of Tennessee shall be required to make returns under this chapter and to pay the tax levied by this chapter. However, a trustee of a charitable remainder trust, as defined in Internal Revenue Code § 664 (26 U.S.C. § 664), shall not be required to make returns under this chapter nor to pay the tax, but shall report to each resident beneficiary the amount of taxable income distributed to such resident beneficiary, who shall be liable for the tax under this chapter. Additionally, the trustee of a trust, which is treated under 26 U.S.C. §§ 671-678 as owned by one (1) grantor or one (1) other person and which does not obtain a taxpayer identification number, as permitted under the Internal Revenue Code and accompanying regulations, shall not be required to file returns under this chapter nor to pay the tax, but shall report the total amount of income received by the trustee to the resident grantor or other person, who shall file the return and pay the tax levied by this chapter.
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Terms Used In Tennessee Code 67-2-110

  • 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
  • Code: includes the Tennessee Code and all amendments and revisions to the code and all additions and supplements to the code. See Tennessee Code 1-3-105
  • Decedent: A deceased person.
  • Fiduciary: A trustee, executor, or administrator.
  • Grantor: The person who establishes a trust and places property into it.
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • Stocks: means shares of stock issued by corporations chartered and organized under the laws of the state of Tennessee, or of any other state, or of the United States, or of any foreign government, and all interests in partnerships, associations, or trusts represented by transferable evidence of such interest. See Tennessee Code 67-2-101
  • Trustee: A person or institution holding and administering property in trust.
(b) Trustees, guardians, and other persons acting in a fiduciary capacity who are residents of Tennessee, and who receive income on behalf of nonresident beneficiaries, shall not be required to pay tax under this chapter even though such income be derived from stocks or bonds that would otherwise be assessable under this chapter. However, executors or administrators receiving income taxable under this chapter from stocks or bonds that were the property of a decedent who, at the time of death, resided in Tennessee shall pay tax upon the stocks or bonds until the time as such stocks or bonds have been distributed or transferred to distributees or legatees of the decedent.
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