Estates

Plain English Breakdown

The bill does not explicitly state when employers must make payments after learning about an employee's death, leaving some uncertainty in the timing of these obligations.

Changes to Estate Payments for Deceased Employees

This bill removes the $10,000 cap on payments an employer must make to a decedent's surviving spouse or children and requires employers to pay any outstanding wages or compensation owed to deceased employees directly to their surviving spouse or children as tenants in common.

What This Bill Does

• Removes the $10,000 cap on payments an employer must make to a decedent's surviving spouse or children.
• Requires employers to pay any outstanding wages or compensation owed to deceased employees directly to their surviving spouse or children as tenants in common.

Who It Names or Affects

• Employers who have outstanding wages or compensation owed to deceased employees.
• Surviving spouses and children of deceased employees.

Terms To Know

tenants in common

A type of property ownership where each owner has the right to sell or transfer their share, and upon death, it passes to their heirs rather than the other owners.

elective share

The legal right of a surviving spouse to claim a portion of an estate if they are not satisfied with what is left in the will.

Limits and Unknowns

• Does not specify how much time employers have to make payments after learning about an employee's death.
• Does not detail the process for appointing a personal representative when one has not been named.
• The bill does not address situations where there are no surviving spouses or children.

Official Summary Text

Present law authorizes an employee to designate a beneficiary to receive payment for any wages or salary due such employee at the time of the e
mployee's death. However, if the employee fails to designate such beneficiary, then the employer must pay out such wages and salary according to the following:



A sum not exceeding $10,000 is authorized to be paid directly to the surviving spouse of a decedent.



If there is no surviving spouse, then such sum is authorized to be paid directly to the surviving children of the decedent as tenants in common, as follows: (i) by an employer any wages or other compensation owed a deceased employee at the time of the employee's death; (ii) by any other person owing, or holding funds for, a decedent if six months have passed since the decedent's death without application having been made for the appointment of a personal representative. However, if such funds exceed $10,000, the excess must be paid to the personal representative or as otherwise ordered by the court.

This bill removes the above provisions relative to when a beneficiary has not been designated and, instead, requires, an employer to pay any wages or
other compensation owed a deceased employee at the time of the employee's death directly to the surviving spouse of a decedent or, if there is no surviving spouse, to the surviving children of the decedent as tenants in common. If six months have passed

since the decedent's death without an application being made for the appointment of a personal representative, then a person other than an employer owing or holding funds for a decedent is authorized to pay a sum not exceeding $10,000 directly to the surv
i
ving spouse of a decedent or, if no surviving spouse exists, to the surviving children of the decedent as tenants in common. However, if such funds exceed $10,000, then the excess must be paid to the personal representative or as otherwise ordered by the

court. Additionally, all sums paid pursuant to this bill must be charged against the elective share, homestead allowance, and year's support allowance as applicable. If a person entitled to receive payment under this bill is a minor, then the sum must b
e
paid to the guardian or custodian for the minor's benefit.

ON MARCH 17, 2025, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 755, AS AMENDED.

AMENDMENT #1 authorizes the payments made by an employer to the surviving spouse or surviving children
of a decedent to be made to a trust for the benefit of the spouse or children as an alternative to making the payments directly to such persons.

Current Bill Text

SENATE BILL 1127
By Rose

HOUSE BILL 755
By Faison

HB0755
002634
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 30
and Title 31, relative to estates.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 30-2-103(b), is amended by deleting
the subsection and substituting:
(b)
(1) An employer shall pay any wages or other compensation owed a
deceased employee at the time of the employee's death directly to the surviving
spouse of a decedent or, if there is no surviving spouse, to the surviving children
of the decedent as tenants in common.
(2)
(A) If six (6) months have passed since the decedent's death
without an application being made for the appointment of a personal
representative, then a person other than an employer owing or holding
funds for a decedent is authorized to pay a sum not exceeding ten
thousand dollars ($10,000) directly to the surviving spouse of a decedent
or, if no surviving spouse exists, to the surviving children of the decedent
as tenants in common.
(B) If such funds exceed ten thousand dollars ($10,000), then the
excess must be paid to the personal representative or as otherwise
ordered by the court.

- 2 - 002634

(3) All sums paid pursuant to this subsection (b) must be charged against
the elective share, homestead allowance, and year's support allowance as
applicable. If a person entitled to receive payment under this subsection (b) is a
minor, then the sum must be paid to the guardian or custodian for the minor's
benefit.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.