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What are the Requirements for a Valid TAPT?
In order for a trust to be a valid TAPT, the trust must comply with the following statutory framework and requirements:

1. The trust must be a Tennessee trust;

2. The trust must be irrevocable;

3. The trust must contain a spendthrift clause stating that the assets of the trust are not subject to the creditors of the settlor/beneficiary;

4. The settlor must sign an Affidavit under oath stating that: (1) the settlor has full right, title and authority to transfer the assets to the TAPT; (2) the transfer to the TAPT will not render the settlor insolvent; (3) the settlor does not intend to defraud a creditor by transferring the assets to the TAPT; (4) no pending or threatened court actions exist against the settlor, except for those identified in the affidavit; (5) the settlor is not involved in any administrative proceedings, except for those identified in the affidavit; (6) the settlor does not contemplate filing federal bankruptcy; and (7) the settlor did not obtain the assets being transferred to the TAPT through unlawful activities; and

5. The trustee must either be a Tennessee resident or a trust company authorized to do business in Tennessee, must maintain custody of the assets of the TAPT in Tennessee, and must not be the settlor.