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Using The Tennessee Investment Services Trust Act To Create A Self-Settled Asset Protection Trust

Focused, personal representation for Tennessee families and businesses, with offices in Nashville and Memphis.

Last Updated: Aug 25, 2026

Read Time: 3 mins

The Knowledge You Need on the Tennessee Investment Services Act of 2007

The “Tennessee Investment Services Act of 2007,” (the “Act”) allows a person to create a self-settled asset protection trust. Tennessee is still one of only a handful of states to enact legislation permitting the creation of a self-settled, or self-created, asset protection trust.

Before the Act was passed in Tennessee, an individual could not protect his or her wealth from creditors and lawsuits while also retaining some control of his or her assets. The Act allows an individual to create his or her own trust and maintain a certain level of control over the trust, while also protecting his or her assets from creditors and lawsuits.

One of the biggest perks of the Act is the trustmaker’s ability to retain a certain level of control over the trust. The trustmaker may retain the following rights, which include, but are not limited to, the rights to:

direct the investment of the assets;
receive distributions of principal at 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

In order to meet the statutory requirements, the trust must be carefully drafted and administered. For example, the trust must be irrevocable, meaning that the terms of the trust cannot be modified. Additionally, Tennessee law must govern the trust, and at least a portion of the assets of the trust must be administered in Tennessee. The person creating the trust cannot serve as Trustee, and the trustee of the trust must either be a resident of Tennessee or a corporate fiduciary authorized to conduct business in Tennessee. The trustmaker must also sign an affidavit that states, among other things, that the transferor of the assets to the trust is solvent and does not intend to defraud his or her creditors.

The Act implements a two year “look back” rule. This means that, after two years have passed since the assets were transferred to the trust, the trustmaker’s creditors cannot seize the assets of the trust to satisfy claims against the trustmaker.

It is important to note that the Act does NOT apply to certain creditors, claims or judgments, including those for past due child support, past due alimony or support of a spouse of former spouse or agreements setting forth division of marital property.

In summary, the Tennessee Investment Services Act of 2007 provides an asset protection opportunity for individuals who are concerned about the loss of their assets due to unforeseen creditors. The trust 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.

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Client Reviews

    
 
 
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   Nancy Wallace 
 7 days ago
 
 
 Trustindex 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!
  
 
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   Cheryl Adkins 
 8 days ago
 
 
 Trustindex verifies that the original source of the review is Google. We 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.
  
 
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   Hailey Wade 
 32 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Patterson 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.
  
 
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   Deb Clark 
 37 days ago
 
 
 Trustindex verifies that the original source of the review is Google. My 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.
  
 
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   Tanya White 
 37 days ago
 
 
 Trustindex verifies that the original source of the review is Google. PattersonBray 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.
  
 
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   Charmaine Sego 
 38 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Patterson Bray did a great job with my mother's trust.
  
 
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   Phil Chamberlain 
 54 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Patterson Bray PLLC - first class lawyers.
  
 
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   Catherine McGee 
 74 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Heath 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!!
  
 
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   Marva Johnson 
 80 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I 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.JOHNSON
  
 
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   Pam Nicole 
 81 days ago
 
 
 Trustindex verifies that the original source of the review is Google. We 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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Using The Tennessee Investment Services Trust Act To Create A Self-Settled Asset Protection Trust

The Knowledge You Need on the Tennessee Investment Services Act of 2007

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