Homestead Exemptions - As enacted, adds a child who is 18 or older and has a developmental or intellectual disability to whom the homestead exemption extends upon the death of the head of the household. - Amends TCA Titl, the official text

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                             PUBLIC CHAPTER NO. 709

                                                   SENATE BILL NO. 1935

                                     By Reeves, Massey, Pody, Powers, Yarbro

                                           Substituted for: House Bill No. 1903

                                     By Terry, Powell, Salinas, Russell, Hardaway

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.

          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. Subject to § 529A of the Internal Revenue Code of 1986 (26
          U.S.C. § 529A), as amended and all rules, regulations, notices, and interpretations released
          by the United States department of treasury, including the internal revenue service, and
          applicable laws and rules of this state relative to the achieving a better life experience act,
          some or all of the thirty-five thousand dollar ($35,000) cash payment up to the achieving a
          better life experience program annual contribution limit, made to a minor child or a child
          eighteen (18) years of age or older meeting the qualifications to participate in the achieving a
          better life experience program, may be deposited into the child's achieving a better life
SB 1935
         experience program account by the child or someone on behalf of the child, including, but not
         limited to, a court order requiring the cash deposit into the child's achieving a better life
         experience program account.
         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 upon becoming a law, the public welfare requiring it.

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         SENATE BILL NO. 1935

PASSED:  March 30, 2026

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                                            RANDY I  ■

                                    SPEAKER OF THE

                         CAMERO~XTON,SPEAKER

                         HOUSE OF REPRESENTATIVES

APPROVED this 141:l- day of (\pri\          2026

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                        BILL LEE, GOVERNOR

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