2026 Tennessee Estate Planning Laws Every Family Should Know

Estate planning laws can change over time, and staying informed helps ensure your clients' plans continue to reflect their wishes and protect their loved ones.

As we move through 2026, Tennessee financial advisors should be aware of important estate planning strategies that may impact how their clients' assets are protected and managed in the future.

At Cook Tillman Law Group, we help financial advisors and their clients understand how changes in the law may affect long-term goals and navigate the estate planning process.

State and Federal Estate Taxes

It is important for Tennessee families to understand current estate tax laws and how they may affect their planning.

While Tennessee does not currently have a state estate tax, federal estate tax rules still impact certain estates.

Today:

● A single individual who has not made lifetime gifts can transfer up to $15M at his death without federal estate tax.

● A married couple who has not made lifetime gifts can transfer $30M at the death of the Survivor without federal estate tax.

● Federal estate tax is imposed at a rate of 40% on transfers in excess of these amounts.

For those who may be subject to federal estate tax, there are ways to reduce future estate tax, such as with lifetime gifts or sales or testamentary charitable bequests, or plan strategically to pay future estate tax, such as with life insurance held in an irrevocable trust.

For those without an estate tax problem, the planning objectives may shift to certain income tax and asset protection planning.

Helping your clients regularly review their estate plans ensures their strategies continue to align with their present financial goals.

Tennessee Community Property Trust

A Tennessee Community Property Trust may be an important planning consideration for married clients who own appreciated assets.

Married couples can form a joint revocable trust with a Tennessee resident trustee and designate trust property as Tennessee community property.

When properly structured, this strategy reduces or eliminates a surviving spouse’s capital gain tax liability when assets are sold after the death of the first spouse.

It may be useful for clients with appreciated:

● Homes and rental properties

● Stocks and private investments

● Closely held businesses

● Cryptocurrency

● Collectibles and investment metals

Financial advisors should consider whether clients with significant appreciated assets could benefit from discussing this strategy with their estate planning attorney.

Tenancy by the Entirety Trust

A Tenancy by the Entirety Trust can provide married clients with an additional layer of creditor protection.

The property must first be transferred to the husband and wife as tenants by the entirety before being transferred to the trust.

When properly structured, this type of trust may:

● Protect assets from a creditor of one spouse

● Help shelter one-half of the estate from the surviving spouse's individual creditors

Note, this protection does not apply to a creditor of both spouses, making proper planning and coordination with an estate planning attorney important.

Partner With Cook Tillman Law Group

Estate planning should work alongside a client's overall financial strategy. When assets, tax considerations, or family circumstances change, the estate plan may need to change as well.

At Cook Tillman Law Group, we work with financial advisors and their clients to develop thoughtful estate planning strategies tailored to their individual goals in accordance with state and federal law.

Call us today at (615) 370-2444 or visit our website to schedule a consultation and begin planning for your future.