# Tenn. Code Ann. § 35-50-106: Trusts for employees' benefit - Rule against perpetuities

> Tennessee · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-106

## Section

- **Citation:** Tenn. Code Ann. § 35-50-106
- **Heading:** Trusts for employees' benefit - Rule against perpetuities
- **Jurisdiction:** Tennessee
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TN Code / Title 35 / Chapter 50 / Section 35-50-106

## Text

No trust previously or subsequently created by an employer as a part of a pension, stock bonus, disability, death benefit, profit sharing or similar plan for the exclusive benefit of some or all of the employer's employees or their beneficiaries to which contributions are made by the employer or employees, or both employer and employees, for the purpose of distributing to the employees or their beneficiaries, the earnings or principal or both earnings and principal, of the trust, shall be deemed to be invalid by reason of any existing law or rule against perpetuities or suspension of the power of alienation; but the trust may continue for such time as may be necessary to accomplish the purposes for which it may be created. The income arising from any property held in trust may be permitted to accumulate for the length permitted by the instrument creating the trust, or, if no time is so specified, for the time the trustee or trustees deem necessary to accomplish the purposes of the trust. Acts 1955, ch. 293, § 1; T.C.A., § 35-609.
No trust previously or subsequently created by an employer as a part of a pension, stock bonus, disability, death benefit, profit sharing or similar plan for the exclusive benefit of some or all of the employer's employees or their beneficiaries to which contributions are made by the employer or employees, or both employer and employees, for the purpose of distributing to the employees or their beneficiaries, the earnings or principal or both earnings and principal, of the trust, shall be deemed to be invalid by reason of any existing law or rule against perpetuities or suspension of the power of alienation; but the trust may continue for such time as may be necessary to accomplish the purposes for which it may be created. The income arising from any property held in trust may be permitted to accumulate for the length permitted by the instrument creating the trust, or, if no time is so specified, for the time the trustee or trustees deem necessary to accomplish the purposes of the trust.
Acts 1955, ch. 293, § 1; T.C.A., § 35-609.

## 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)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T35_C50_S35-50-106. Check the current official text before relying on it. Not legal advice.