Moving a revocable living trust from Arizona to Tennessee is made possible by the trust statutes of both states. Arizona allows trusts created in the state to designate another jurisdiction as controlling, and Tennessee statutes accept jurisdiction of trusts created in other states. You may want to move the trust from Arizona to Tennessee because you as trust creator, beneficiary or trustee moved from one jurisdiction to the other; or perhaps Tennessee property was purchased and transferred into the trust. Whatever the reason, moving the trust from one state to the other is simply a matter of modifying the trust document.
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Obtain agreement from the trust creator, known as the trustor, to move the trust from Arizona to Tennessee. Revocable living trusts are usually created by a trustor for his own benefit during his lifetime and remains revocable by the trustor until his death. Thus, as long as the trust exists as a revocable living trust, the trustor is alive and available for consultation.
Modify the trust document to designate the state of Tennessee as the controlling jurisdiction for the trust. The trustor must be the individual to modify the trust document, as he is the trust's creator. Section 14-10107 of the Arizona Revised Statutes states that any controlling designation made in the trust document is recognized as valid under Arizona law. Additionally, section 35-15-403 of the Tennessee Uniform Trust Code provides that a trust is valid if it complies with the laws of the jurisdiction where it is created. Thus, replacing Arizona with Tennessee as the trust's controlling jurisdiction in the trust document makes the designation of Tennessee legally valid under Arizona law, which also makes it valid under Tennessee law.
Move to Tennessee and relocate the trust assets to Tennessee. Any Arizona real property held by the trust obviously cannot be relocated, but relocate all other assets, such as personal property, automobiles and businesses. Continue to maintain trust assets and administer the trust from Tennessee.
Sue in Tennessee state court to resolve any dispute concerning the trust after it is moved to Tennessee. Upon the trustor's death, follow the laws of Tennessee when distributing trust assets to secondary beneficiaries and dissolving the trust.