# Tenn. Code Ann. § 35-50-104: Purchase of annuity contract > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-104 ## Section - **Citation:** Tenn. Code Ann. § 35-50-104 - **Heading:** Purchase of annuity contract - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 35 / Chapter 50 / Section 35-50-104 ## Text (a) In order to relieve estates and trusts of the burden of an annuity, the chancery court, on petition of one (1) or more of the beneficiaries in remainder in the estate or trust, or any portion of the estate or trust, is empowered, when not in terms prohibited by the will or trust instrument, to decree the purchase, in behalf of the annuitant, of an annuity contract of some insurance company, or insurer, that will afford the accordant definite income, for the stated term of life, stipulated for the annuitant by the law, or provision of the will or trust. (b) The cost of the annuity contract shall be paid out of the funds of the estate or trust; provided, that the contract shall be purchased only from a company or insurer admitted to do business in the state; and provided further, that all persons in interest, including the trustee or other fiduciary, complainant or defendant, shall be parties to the petition, and that the annuitant shall consent to the purchase and to the release of the annuitant's claim upon the estate or trust; or the court in the annuitant's behalf, if the annuitant is a minor or incompetent. (c) The annuity contract shall be one issued by a company or insurer, selected by, or for as aforementioned, the annuitant and approved by the court. (d) Should any beneficiary of a remainder interest not concur, that person's interest in the estate or trust shall not be distributed until the death of the annuitant or expiration of the term stipulated, nor charged with any part of the cost of the contract. In that event, however, the beneficiary or beneficiaries of the remainder interest concurring shall be entitled to distribution of their respective interests, upon paying the cost of an annuity contract as will be productive of an income to the annuitant proportionate to their interest in the entire remainder estate, and paying all costs of the application. (e) Nothing in this section shall be construed to authorize the acceleration of distribution except where it appears to the court that the payment of an annuity, or its equivalent, is the sole remaining purpose of the trust's continuance. Acts 1929, ch. 23, §§ 1, 2; mod. Code 1932, §§8135-8138; T.C.A. (orig. ed.), §§ 35-603 -- 35-606. (a) In order to relieve estates and trusts of the burden of an annuity, the chancery court, on petition of one (1) or more of the beneficiaries in remainder in the estate or trust, or any portion of the estate or trust, is empowered, when not in terms prohibited by the will or trust instrument, to decree the purchase, in behalf of the annuitant, of an annuity contract of some insurance company, or insurer, that will afford the accordant definite income, for the stated term of life, stipulated for the annuitant by the law, or provision of the will or trust. (b) The cost of the annuity contract shall be paid out of the funds of the estate or trust; provided, that the contract shall be purchased only from a company or insurer admitted to do business in the state; and provided further, that all persons in interest, including the trustee or other fiduciary, complainant or defendant, shall be parties to the petition, and that the annuitant shall consent to the purchase and to the release of the annuitant's claim upon the estate or trust; or the court in the annuitant's behalf, if the annuitant is a minor or incompetent. (c) The annuity contract shall be one issued by a company or insurer, selected by, or for as aforementioned, the annuitant and approved by the court. efendant, shall be parties to the petition, and that the annuitant shall consent to the purchase and to the release of the annuitant's claim upon the estate or trust; or the court in the annuitant's behalf, if the annuitant is a minor or incompetent. (c) The annuity contract shall be one issued by a company or insurer, selected by, or for as aforementioned, the annuitant and approved by the court. (d) Should any beneficiary of a remainder interest not concur, that person's interest in the estate or trust shall not be distributed until the death of the annuitant or expiration of the term stipulated, nor charged with any part of the cost of the contract. In that event, however, the beneficiary or beneficiaries of the remainder interest concurring shall be entitled to distribution of their respective interests, upon paying the cost of an annuity contract as will be productive of an income to the annuitant proportionate to their interest in the entire remainder estate, and paying all costs of the application. (e) Nothing in this section shall be construed to authorize the acceleration of distribution except where it appears to the court that the payment of an annuity, or its equivalent, is the sole remaining purpose of the trust's continuance. Acts 1929, ch. 23, §§ 1, 2; mod. Code 1932, §§8135-8138; T.C.A. (orig. ed.), §§ 35-603 -- 35-606. ## Nearby sections - [Tenn. Code Ann. § 35-50-101 Joint control of deposits by principal and surety is lawful](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-101.md) - [Tenn. Code Ann. § 35-50-102 Insurance trusts - Creation - Validity](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-102.md) - [Tenn. Code Ann. § 35-50-103 Life insurance proceeds payable to trustee](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-103.md) - [Tenn. Code Ann. § 35-50-104 Purchase of annuity contract](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-104.md) - [Tenn. Code Ann. § 35-50-105 Fiduciaries may effect liability and accident insurance on property](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-105.md) - [Tenn. Code Ann. § 35-50-106 Trusts for employees' benefit - Rule against perpetuities](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-106.md) - [Tenn. Code Ann. § 35-50-107 Limitations on appointment of nonresident fiduciary](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-107.md) - [Tenn. Code Ann. § 35-50-108 Designation of beneficiaries of employee pension, stock bonus or investment plans](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-108.md) - [Tenn. Code Ann. § 35-50-109 Incorporation of Section 35-50-110 in will or trust instrument](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-109.md) - [Tenn. Code Ann. § 35-50-110 Specifically enumerated fiduciary powers that may be incorporated by reference](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-110.md) - [Tenn. Code Ann. § 35-50-111 Fiduciary bond on interest](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-111.md) - [Tenn. Code Ann. § 35-50-112 Impairment of marital deduction prohibited](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-112.md) - [Tenn. Code Ann. § 35-50-113 Powers exercisable by majority - Liability](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-113.md) - [Tenn. Code Ann. § 35-50-120 Blind trust](https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-120.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-104. Check the current official text before relying on it. Not legal advice.