(a) The personal representative and all persons whose consent is required to reach a binding settlement to be approved by the court may enter into a binding nonjudicial settlement agreement regarding any matter involving estate administration.
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Terms Used In Tennessee Code 30-2-615

  • 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.
  • Marital deduction: The deduction(s) that can be taken in the determination of gift and estate tax liabilities because of the existence of a marriage or marital relationship.
  • Personal representative: when applied to those who represent a decedent, includes executors and administrators, unless the context implies heirs and distributees. See Tennessee Code 1-3-105
  • Representative: when applied to those who represent a decedent, includes executors and administrators, unless the context implies heirs and distributees. See Tennessee Code 1-3-105
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Testator: A male person who leaves a will at death.
  • Trustee: A person or institution holding and administering property in trust.
(b) A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose or intention of the testator and includes terms and conditions that could be properly approved by the court under this section or other applicable law.
(c) Matters that may be resolved by a nonjudicial settlement agreement include:

(1) The interpretation or construction of the terms of the will;
(2) Liability of a personal representative for an action relating to the administration of the estate;
(3) The approval of an investment decision, delegation, policy, plan, or program occurring during estate administration;
(4) Appointment of a trustee of a trust established by the will in the event of a vacancy in the office of the designated trustee;
(5) Change of principal place of administration of a trust established by the will;
(6) Change of governing law of a trust established by the will;
(7) Approval of attorney and personal representative fees; and
(8) Directing the decedent‘s real property to be administered as part of the estate that is subject to the control of the personal representative.
(d) A nonjudicial settlement agreement entered into pursuant to this section is final and binding on all parties to the agreement, including individuals validly represented as provided by title 35, chapter 15, part 3.
(e) Any party to the nonjudicial settlement agreement may request the court to:

(1) Approve a nonjudicial settlement agreement;
(2) Determine whether the representation as provided in subsection (d) was adequate;
(3) Determine whether the agreement violates a material purpose or intention of the testator; or
(4) Determine whether the agreement contains terms and conditions the court could have properly approved.
(f) Entering into or petitioning a court regarding a nonjudicial settlement agreement under this section does not constitute a violation of an in terrorem provision.
(g) A nonjudicial settlement agreement must not be utilized in a manner that would cause the disqualification or loss of the federal estate tax marital deduction under § 2056(a) or § 2523(a) of the Internal Revenue Code (26 U.S.C. § 2506(a) or § 2523(a)), charitable deduction under § 170(a), § 642(c), § 2055(a), or § 2522(a) of the Internal Revenue Code (26 U.S.C. § 170(a), 642(c), § 2055(a), or § 2522(a)), or any specific tax benefit under the Internal Revenue Code that would otherwise be lost under this section.
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