New Private Trust Company Instruction Letter

Formation of a Private Trust Company in Tennessee

A private trust company is a company acting as a fiduciary in Tennessee that does not transact a trust business with the general public.

The Tennessee statutes specifically applicable to private trust companies may be found at Tenn. Code Ann. §§ 45-2-2001, et seq. and allow a private trust company applicant to request exemption from certain provisions of the Tennessee Banking Act. To obtain exempt status as a private trust company operating in Tennessee, an applicant should submit a letter application addressed to the Commissioner of the Department of Financial Institutions containing the following information:

1. The name (or proposed name) of the private trust company.
2. A non-refundable application fee in the amount of one thousand dollars ($1,000), as required by Tenn. Code Ann.§ 45-2-2002(a)(1 )(A) & Rule 0180-7.08(1 )(m) of the Rules of the Department of Financial Institutions. The Applicant should forward the application fee to the Department via ACH. Please contact Chief Administrator - Chad Holbert at chad.holbert@tn.gov for ACH instructions.
3. A detailed statement under oath showing the private trust company's assets and liabilities as of the end of the month previous to filing the application, as required by Tenn. Code Ann.§ 45-2-2002(a)(1)(B).
4. A statement under oath of the reason for requesting the exemption and listing of the specific provisions of the Tennessee Banking Act from which the company is requesting an exemption, including the reason(s) for each requested exemption, as required by Tenn. Code Ann.§§ 45-2-2002(a)(1)(C) and (F).
5. A statement under oath that the private trust company is not currently transacting business with the public and that the company will not conduct business with the public without the prior written permission of the Commissioner of the Department of Financial Institutions, as required by Tenn. Code Ann.§ 45-2-2002(a)(1)(D).
6. The current street mailing address and telephone number of the physical location in this state at which the private trust company will be located and maintains its books and records, together with a statement under oath that the address given is true and correct and is not a United States postal service post office box or a private mail box, postal box or mail drop; as required by Tenn. Code Ann.§ 45-2-2002(a)(1)(E). 
7. A statement under oath of the name of the individual who will be the "designated ancestor'' of the private trust company as defined in Tenn. Code Ann. § 45-2-2001(b)(2)(B), and as required by Tenn. Code Ann. § 45-2-2002(a)(1)(G). Please provide the individual's birth date and if deceased, please provide their date of death.
8. A statement of general purpose describing the nature of the private trust company's proposed fiduciary activities, as well as, the persons that the company intends to serve.
9. A description of how the company is or will be structured, including, but not limited to:
   1. The identity of each individual who will have an ownership interest in the company, and the extent of each ownership interest;
   2. Copy of proposed Charter; Articles of Organization; or other organizing documents;
   3. Copy of the proposed By-Laws or Operating Agreement; and
   4. The company's capital structure.
10. The names of the directors and officers of the company.
11. An Affirmation page signed by an individual competent to attest to the truthfulness of the application (attached to this letter).

As set forth in Item 4 above, a private trust company must list the provisions of the Banking Act and the rules thereof from which it is requesting an exemption and include the reason for requesting each exemption. Pursuant to Tenn. Code Ann. § 45-2-2001 (b)(1 ), the Commissioner may grant an exemption in whole or in part if the Commissioner finds that the private trust company does not and will not transact business with the general public. Additionally the Commissioner, in granting an exemption, may, pursuant to Tenn. Code Ann. § 45-2-2001(d), impose limitations or conditions consistent with Chapter 2 of the Tennessee Banking Act. In order to provide guidance to private trust company applicants in requesting exemptions, a chart is attached.

In addition to the foregoing, and pursuant to Tenn. Code Ann. § 45-2-2001 (c), the Commissioner reserves the right to request any additional information deemed necessary in order to complete the review of the application.

Any questions may be directed to Chad Holbert, Chief Administrator-Trust, at (865) 347-4635 or (615) 741-6013 or via email at chad.holbert@tn.gov. Applications should be addressed as follows:

Affirmation (downloadable PDF)

Private Trust - Requested Exemption

Certificate of Private (Family) Trust Company Status (downloadable PDF)