Official Summary Text
Present law provides that an individual, whether a head of family or not, is entitled to a homestead exemption upon real property which is owned by the individual and used by the individual or the individual's spouse or dependent, as a principal place of
residence. The aggregate value of such homestead exemption must generally not exceed $35,000. However, individuals who jointly own and use real property as their principal place of residence are entitled to homestead exemptions, the aggregate value of
wh
ich exemptions combined must not exceed $52,500, which must be divided equally among them in the event the homestead exemptions are claimed in the same proceeding. If only one of the joint owners of real property used as their principal place of residenc
e is involved in the proceeding wherein homestead exemption is claimed, then the individual's homestead exemption is $35,000.
Upon the death of an individual who is head of a family, present law requires any such exemption as described above to inure to the benefit of the surviving spouse and their minor children for as long as the spouse or the minor children use such property
as a principal place of residence. This bill requires such exemption to also inure to the benefit of a surviving child who is 18 or older and has a developmental disability or an intellectual disability.
Present law provides, if real estate is so situated that homestead cannot be set apart, then the realty is to be sold and $35,000 of the proceeds invested in real estate, under the direction of the court having jurisdiction to be held as homestead subjec
t to the law governing homestead, or if the court deems it more desirable and practical, it may order the payment of $35,000 in cash or other personal property outright and in fee to the surviving spouse, if any, otherwise to the minor children, if any, i
n
lieu of all other homestead rights in the realty of the deceased. This bill requires the order of payment of the $35,000 to also include a child who is 18 or older and has a developmental disability or an intellectual disability.
ON MARCH 26, 2026, THE HOUSE SUBSTITUTED SENATE BILL 1935, ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1935,AS AMENDED.
AMENDMENT #1
makes the following revisions:
S
ubject to federal law, authorizes some or all of the $35,000 cash payment, up to the achieving a better life experience program annual contribution limit, made to a minor child or a child 18 or older meeting the qualifications to participate in the achieving a better life experience program, to be deposited into the child's achieving a better life experience program account by the child or someone on behalf of the child.
Changes the effective date of the bill from J
uly 1, 2026
, to upon becoming a law.
Current Bill Text
Read the full stored bill text
SENATE BILL 1935
By Reeves
HOUSE BILL 1903
By Terry
HB1903
010914
- 1 -
AN ACT to amend Tennessee Code Annotated, Title 26;
Title 30; Title 33 and Title 52, relative to
homestead exemptions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 26-2-301(a), is amended by deleting
the last sentence and substituting:
Upon the death of an individual who is head of a family, any such exemption shall inure
to the benefit of the surviving spouse and their minor child or child who is eighteen (18)
years of age or older and has a developmental disability or intellectual disability for as
long as the spouse, minor child, or child who is eighteen (18) years of age or older and
has a developmental disability or intellectual disability uses such property as a principal
place of residence.
SECTION 2. Tennessee Code Annotated, Section 26-2-301(a), is amended by
redesignating the existing subsection (a) as subdivision (a)(1) and adding the following as a new
subdivision (a)(2):
(2) As used in this subsection (a), "developmental disability" and "intellectual
disability" have the same meaning as defined in § 52-1-101.
SECTION 3. Tennessee Code Annotated, Section 30-2-201, is amended by deleting the
section and substituting:
The homestead in lands of a decedent, inuring to the benefit of a surviving
spouse, minor child, or a child who is eighteen (18) years of age or older and has a
developmental disability or intellectual disability, is assigned and set apart in the manner
provided in this part.
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SECTION 4. Tennessee Code Annotated, Section 30-2-209, is amended by deleting the
section and substituting:
If real estate is so situated that homestead cannot be set apart, as provided in
this part, then the realty must be sold and thirty-five thousand dollars ($35,000) of the
proceeds invested in real estate, under the direction of the court having jurisdiction to be
held as homestead subject to the law governing homestead, or if the court deems it
more desirable and practical, then the court may order the payment of thirty-five
thousand dollars ($35,000) in cash or other personal property outright and in fee to the
surviving spouse, if any, otherwise to a minor child or a child who is eighteen (18) years
of age or older and has a developmental disability or intellectual disability, if any, in lieu
of all other homestead rights in the realty of the deceased.
SECTION 5. Tennessee Code Annotated, Title 30, Chapter 2, Part 2, is amended by
adding the following as a new section:
As used in this part, "developmental disability" and "intellectual disability" have
the same meaning as defined in § 52-1-101.
SECTION 6. This act takes effect July 1, 2026, the public welfare requiring it.