Estate Planning in Tennessee: A Complete Guide

Does Tennessee have a state estate tax?

No — Tennessee eliminated its estate tax in 2016. The federal estate tax applies only to estates exceeding $13.61 million (2024). Tennessee also has no state income tax on wages or salary, and the investment income tax ('Hall tax') was phased out in 2021.

How does Tennessee probate work?

Tennessee probate is handled through Chancery or Circuit Court (or a specialized Probate Court in larger counties). Tennessee has simplified procedures for small estates. Standard probate typically takes 6–12 months. Tennessee law allows independent administration without ongoing court supervision.

Can Tennessee residents use a transfer-on-death deed?

Yes — Tennessee allows transfer-on-death deeds for real property. The deed must be executed, notarized, and recorded before death. It is revocable at any time and transfers property to named beneficiaries without probate.

What are the unique estate planning considerations for Tennessee farmland and timberland?

Tennessee has significant farmland and timberland values that have risen sharply. Agricultural use assessment (Greenbelt Law) allows qualifying land to be assessed at agricultural value rather than market value — but conversion after death can trigger rollback taxes. Include this in your estate plan.

What is the Tennessee small estate affidavit process and when can I use it?

Tennessee allows a simplified small estate affidavit for estates under $50,000 in total value, which avoids formal probate entirely. The affidavit must be signed by the executor or interested party, notarized, and filed with the Probate Court or Chancery Court in your county. This process is significantly faster and less expensive than standard probate, typically taking only a few weeks rather than 6–12 months.

Does Tennessee have TennCare estate recovery, and how does it affect my heirs?

Yes — Tennessee's TennCare (Medicaid) program can seek recovery from the estates of deceased beneficiaries who received long-term care services, placing a claim against real property and other assets. Tennessee law allows recovery only against real property in the deceased's name, meaning strategic use of trusts, TOD deeds, or joint ownership can protect assets from recovery. An estate planning attorney in Tennessee should review your Medicaid situation to minimize this risk.

If I die without a will in Tennessee, who inherits my estate?

Tennessee's intestacy law prioritizes a surviving spouse (who takes one-third to one-half of the estate depending on whether you have children) and then your children, parents, or siblings in order. If you have a surviving spouse and children, your spouse receives one-third and your children share the remainder; if no spouse, your children inherit equally. Without a will, the Probate Court in your county will appoint an administrator and the process becomes more expensive and time-consuming, which is why having a written will or trust is strongly recommended.