Last Updated: Aug 25, 2026
Read Time: 2 mins
Before 2007, if an individual created a trust under which he is a beneficiary, the assets of the trust were subject to the claims of his creditors. As a result, an individual could not protect his wealth from creditors and lawsuits while retaining control of his assets. With the passing of the “Tennessee Investment Services Act,” Tennessee has become one of a few states in the nation to enact legislation permitting the creation of self-created (self-settled) asset protection trusts.
The law allows this protection by permitting the individual to create a self-settled asset protection trust referred to as an “Investment Services Trust” (IST).
An IST is an irrevocable trust into which an individual transfers assets while retaining the following rights: ability to direct the investment of the IST assets; receive distributions of principal upon the discretion of the Trustee; live in a home owned by the trust; veto distributions to any other permissible beneficiaries; direct the distribution of the trust assets upon death to any one or more persons; remove the Trustee and other trust advisors and appoint their successors under certain provisions. The settlor may not serve as the Trustee of the IST.
The Trustee must be either an individual residing in Tennessee or a corporate Trustee who is authorized to conduct business in Tennessee. At least a portion of the assets of the IST must be administered in Tennessee. At the creation of an IST, the settlor must provide an affidavit stating under oath that he does not intend to defraud a creditor and that he does not have any pending or threatened court action against him.
The Tennessee Investment Services Act provides an asset protection opportunity for individuals who are concerned about the loss of their assets due to unforeseen creditors. An IST presents a unique solution to those who wish to protect their assets during their lifetime while still retaining the ability to manage those assets and benefit from them.
If you are interested in protecting your assets from future creditors, please contact our office to schedule an appointment to discuss the use of an IST in your estate plan.
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Nancy Wallace10 days agoTrustindex verifies that the original source of the review is Google.
If you are looking to do estate planning, go with Patterson Bray! They are excellent to deal with!Posted on Google
Cheryl Adkins11 days agoWe loved the staff at Patterson Bray. Everyone was very professional. Judith was very thorough and explained everything extremely well. We would recommend Patterson Bray to anyone.Posted on Google
Hailey Wade35 days agoPatterson Bray PLLC did an excellent job with my grandmother's estate planning, and made everything easy to understand! She recommended them to a friend who went and is also very satisfied with their services.Posted on Google
Deb Clark40 days agoMy experience with this firm, particularly Judith Denham has been truly exceptional. From the consultation to the finish, the attention to detail, listening and responding to my needs. My documents were completed timely and professionally. I highly recommend Patterson Bray.Posted on Google
Tanya White40 days agoPattersonBray Estate Planning was an incredible firm to work with setting up our Trust. Judith Denham was thorough, very smart, and personable as she patiently explained each part. Gabby put together a very professional beautiful binder for us to have, and has answered questions we have had since then. I am so glad they were recommended to us, and we had them to walk us through this procedure.Posted on Google
Charmaine Sego41 days agoPatterson Bray did a great job with my mother's trust.Posted on Google
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Catherine McGee77 days agoHeath Taylor was a genuine joy to work with during my divorce: straight forward, professional, and knowledgeable. I do hope I never have the need to acquire more legal help, but if I do, he'll be my first call. Thank you for everything, Heath!!Posted on Google
Marva Johnson83 days agoI FOUND PATTERSON BRAY AND JUDITH DENHAM TO BE PROFESSIONAL, VERY THOROUGH, AND PERSONAL. I DID NOT FEEL LIKE A CLIENT, BUT A PERSON. I AM SO IMPRESSED WITH THEM, ESPECIALLY JUDITH AND GABBY. VERY GRATEFUL FOR ASSISTANCE. M.JOHNSONPosted on Google
Pam Nicole84 days agoWe set up a trust with Judith, at Patterson Bray and we received excellent service. Everything was explained thoroughly and everyone was very friendly and professional. I would definitely use her and the firm again, if needed.
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