reglab/statecodes huggingface dataset:
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-27 - Modification or termination of noncharitable irrevocable trust by consent.

3B:31-27 Modification or termination of noncharitable irrevocable trust by consent.
3B:31-27. Modification or Termination of Noncharitable Irrevocable Trust by Consent.
a. A noncharitable irrevocable trust may be modified or terminated upon consent of the trustee and all beneficiaries, if the modification or termination is not inconsistent with a material purpose of the trust.
b. A noncharitable irrevocable trust may be terminated upon consent of all of the beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust. A noncharitable irrevocable trust may be modified upon consent of all of the beneficiaries if the court concludes that modification is not inconsistent with a material purpose of the trust.
c. A spendthrift provision in the terms of the trust is not presumed to constitute a material purpose of the trust.
d. Upon termination of a trust under subsection a. or b. of this section, the trustee shall distribute the trust property as agreed by the beneficiaries.
e. If not all of the beneficiaries consent to a proposed modification or termination of the trust under subsection a. or b. of this section, the modification or termination may be approved by the court if the court is satisfied that:
(1) if all of the beneficiaries had consented, the trust could have been modified or terminated under this section; and
(2) the interests of a beneficiary who does not consent will be adequately protected.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-28 - Modification or termination because of unanticipated circumstances or inability to administer trust effectively.

3B:31-28 Modification or termination because of unanticipated circumstances or inability to administer trust effectively.
3B:31-28. Modification or Termination Because of Unanticipated Circumstances or Inability to Administer Trust Effectively.
a. The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the extent practicable, the modification shall be made in accordance with the settlor's probable intent.
b. The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the trust's administration.
c. Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-29 - Modification or termination of charitable trust (Cy Pres).

3B:31-29 Modification or termination of charitable trust (Cy Pres).
3B:31-29. Modification or Termination of Charitable Trust (Cy Pres).
a. Except as otherwise provided in subsection b. of this section, if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful:
(1) the trust does not fail, in whole or in part;
(2) the trust property does not revert to the settlor or the settlor's estate; and
(3) the court may modify or terminate the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor's charitable purposes.
b. A provision in the terms of a charitable trust that would result in distribution of the trust property to a noncharitable beneficiary prevails over the power of the court under subsection a. of this section.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-30 - Modification or termination of uneconomic trust.

3B:31-30 Modification or termination of uneconomic trust.
3B:31-30. Modification or Termination of Uneconomic Trust.
a. After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than $100,000 may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.
b. The court may modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration.
c. Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
d. This section does not apply to an easement for conservation or preservation.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-31 - Reformation to correct mistakes.

3B:31-31 Reformation to correct mistakes.
3B:31-31. Reformation to Correct Mistakes.
The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's probable intent if it is proved by clear and convincing evidence that there was a mistake of fact or law, whether in expression or inducement.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-32 - Construction to conform trust terms to probably intent of settlor.

3B:31-32 Construction to conform trust terms to probably intent of settlor.
3B:31-32. Construction to Conform Trust Terms to Probable Intent of Settlor.
Nothing in this act shall prevent the court from construing the terms of a trust, even if unambiguous, to conform to the settlor's probable intent.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-33 - Modification to achieve settlor's tax objectives.

3B:31-33 Modification to achieve settlor's tax objectives.
3B:31-33. Modification to Achieve Settlor's Tax Objectives.
To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intent. The court may provide that the modification has retroactive effect.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-34 - Combination and division of trusts.

3B:31-34 Combination and division of trusts.
3B:31-34. Combination and Division of Trusts.
a. Subject to subsection b. of this section,
(1) the trustees of two or more trusts or parts of trusts may combine the trusts or parts thereof into a single trust, even if such trusts or parts thereof are created by different settlors or under different instruments, and even if the trusts have different trustees; and
(2) the trustees of a single trust may divide the trust into two or more separate trusts, in which case distributions provided by the governing instrument may be made from one or more of the separate trusts.
b. A combination or division under this section may be effected only if the result does not impair rights of any beneficiary or adversely affect the achievement of the purposes of the trust.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-35 - Rights of beneficiary's creditor or assignee.

3B:31-35 Rights of beneficiary's creditor or assignee.
3B:31-35. Rights of Beneficiary's Creditor or Assignee.
Except as otherwise provided by law, to the extent a beneficiary's interest is not protected by a spendthrift provision, a creditor or assignee of the beneficiary may reach the beneficiary's interest by attachment of present or future distributions to or for the benefit of the beneficiary, subject to N.J.S.2A:17-50 through N.J.S.2A:17-56 and sections 3 and 4 of P.L.1981, c.203 (C.2A:17-56.1a and C.2A:17-56.6) or other applicable law. The court may limit the award to such relief as is appropriate under the circumstances.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-36 - Spendthrift provision.

3B:31-36 Spendthrift provision.
3B:31-36. Spendthrift Provision.
a. A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest.
b. A term of the trust providing that the interest of a beneficiary is held subject to a "spendthrift trust," or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the beneficiary's interest.
c. A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this article, a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before its receipt by the beneficiary.
d. A spendthrift provision is valid even though a beneficiary is named as the sole trustee or as a co-trustee of the trust.
e. A valid spendthrift provision does not prevent the appointment of interests through the exercise of a power of appointment.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-37 - Special needs trusts.

3B:31-37 Special needs trusts.
3B:31-37. Special Needs Trusts.
Even if a trust contains a spendthrift provision, the following shall apply:
a. Special Needs
(1) "Protected person" means a person who is:
(a) an aged, blind, or disabled individual as defined at 42 U.S.C. s.1382c;
(b) developmentally disabled as defined in section 2 of P.L.1979, c.105 (C.30:1AA-2); or
(c) under age 18, or over age 18 and a full-time student, with serious disabilities that reasonably may prevent the individual from being self sufficient as an adult.
(2) "Special needs trust" means an OBRA '93 trust, as defined in subsection a. of section 3 of P.L.2000, c.96 (C.3B:11-37), or trust governed by a written instrument which:
(a) grants a trustee broad discretion to determine whether and when to distribute;
(b) limits distributions during the trust term to distributions to benefit one or more protected persons, although the trust shall have at least one protected person as beneficiary;
(c) provides that the trustee does not have any obligation to pay the protected person's obligations or fund his support;
(d) does not give the protected person any right to require the trustee to distribute at a specific time or for a particular purpose or to assign or encumber interests in the trust; and
(e) evidences the grantor's intent to supplement rather than replace or impair government assistance that the protected person receives or for which he otherwise may be eligible.
b. Notwithstanding any other provision of this act or other law:
(1) trustees of a special needs trust have broad discretion over distributions;
(2) no creditor of a protected person may reach or attach a protected person's interest in a special needs trust and no creditor may require the trustees to distribute to satisfy a protected person's creditor's claim; and
(3) a special needs trust shall terminate at such time as provided in its governing instrument.
c. A special needs trust shall not be required to repay government aid provided to a protected person unless the aid was provided on the basis that the special needs trust would repay the aid when the protected person dies, or the special needs trust terminates sooner and the special needs trust instrument expressly calls for such repayment. This provision does not apply to a first-party, self-settled OBRA '93 trust as defined in subsection a. of section 3 of P.L.2000, c.96 (C.3B:11-37).
d. Notwithstanding N.J.S.3B:31-35 and N.J.S.3B:31-36, trustees of a special needs trust shall exercise their discretion in good faith to further trust purposes and courts may exercise their equity authority to remedy trustee abuses of discretion.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-38 - Discretionary trusts; effect of standard.

3B:31-38 Discretionary trusts; effect of standard.
3B:31-38. Discretionary Trusts; Effect of Standard.
a. Whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject to the trustee's discretion, even if:
(1) The discretion is expressed in the form of a standard of distribution; or
(2) The trustee has abused the discretion.
b. This section does not limit the right of a beneficiary to maintain a judicial proceeding against a trustee for an abuse of discretion or failure to comply with a standard for distribution.
c. With respect to the powers set forth in section 1 of P.L.1996, c.41 (C.3B:11-4.1), the provisions of this section shall apply even though the beneficiary is the sole trustee or a co-trustee of the trust.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-39 - Creditor's claim against settlor.

3B:31-39 Creditor's claim against settlor.
3B:31-39. Creditor's Claim Against Settlor.
a. Whether or not the terms of a trust contain a spendthrift provision, the following rules apply:
(1) During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors.
(2) With respect to an irrevocable trust, a creditor or assignee of the settlor may reach the maximum amount that can be distributed to or for the settlor's benefit. If a trust has more than one settlor, the amount the creditor or assignee of a particular settlor may reach may not exceed the settlor's interest in the portion of the trust attributable to that settlor's contribution.
(3) After the death of a settlor, and subject to the settlor's right to direct the source from which liabilities will be paid, the property of a trust that was revocable at the settlor's death is subject to claims of the settlor's creditors, costs of administration of the settlor's estate, the expenses of the settlor's funeral and disposal of remains, and to a surviving spouse or partner in a civil union and children to the extent the settlor's probate estate is inadequate to satisfy those claims, costs, expenses.
b. For purposes of this section:
(1) during the period the power may be exercised, the holder of a power of withdrawal is treated in the same manner as the settlor of a revocable trust to the extent of the property subject to the power; and
(2) upon the lapse, release, or waiver of the power, the holder is treated as the settlor of the trust only to the extent the value of the property affected by the lapse, release, or waiver exceeds the greater of the amount specified in section 2041(b)(2) or 2514(e) of the federal Internal Revenue Code of 1986 (26 U.S.C. s.2041(b)(2) or 26 U.S.C. s.2514(e)), or section 2503(b) of the federal Internal Revenue Code of 1986 (26 U.S.C. s.2503(b)), in each case as in effect on the effective date of this act, or as later amended.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-40 - Overdue distribution.

3B:31-40 Overdue distribution.
3B:31-40. Overdue Distribution.
a. For the purposes of this section, "mandatory distribution" means a distribution of income or principal that the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. The term excludes a distribution subject to the exercise of the trustee's discretion, regardless of whether the terms of the trust (1) include a support or other standard to guide the trustee in making distribution decisions, or
(2) provide that the trustee "may" or "shall" make discretionary distributions, including distributions pursuant to a support or other standard.
b. Except as otherwise provided in section 1 of P.L.1996, c.41 (C.3B:11-4.1), whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the mandated distribution date.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-42 - Capacity of settlor of revocable trust.

3B:31-42 Capacity of settlor of revocable trust.
3B:31-42. Capacity of Settlor of Revocable Trust.
The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-43 - Revocation or amendment of revocable trust.

3B:31-43 Revocation or amendment of revocable trust.
3B:31-43. Revocation or Amendment of Revocable Trust.
a. Unless the terms of a trust expressly provide that the trust is irrevocable, or that it is proved by clear and convincing evidence that the settlor intended for it to be irrevocable, the settlor may revoke or amend the trust. This subsection does not apply to a trust created under an instrument executed before the effective date of this act.
b. If a revocable trust is created or funded by more than one settlor:
(1) to the extent the trust consists of community property, the trust may be revoked by either spouse or partner in a civil union acting alone but may be amended only by joint action of both spouses or partners; and
(2) to the extent the trust consists of property other than community property, each settlor may revoke or amend the trust with regard to the portion of the trust property attributable to that settlor's contribution.
c. The settlor may revoke or amend a revocable trust:
(1) by substantial compliance with a method provided in the terms of the trust; or
(2) if the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by:
(a) executing a later will or codicil that expressly refers to the trust or specifically devises property that would otherwise have passed according to the terms of the trust; or
(b) any other writing manifesting clear and convincing evidence of the settlor's intent.
d. Upon revocation of a revocable trust, the trustee shall deliver the trust property to the settlor as the settlor directs.
e. A settlor's powers with respect to revocation, amendment, or distribution of trust property may be exercised by an agent under a power of attorney only to the extent expressly authorized by the terms of the trust and the power.
f. A guardian of the property of the settlor may exercise a settlor's powers with respect to revocation, amendment, or distribution of trust property only with the approval of the court supervising the guardianship.
g. A trustee who does not know that a trust has been revoked or amended is not liable to the settlor or settlor's successors in interest for distributions made and other actions taken on the assumption that the trust had not been amended or revoked.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-44 - Settlor's powers.

3B:31-44 Settlor's powers.
3B:31-44. Settlor's Powers.
While a trust is revocable, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-45 - Limitation on action contesting validity of revocable trust; distribution of trust property.

3B:31-45 Limitation on action contesting validity of revocable trust; distribution of trust property.
3B:31-45. Limitation on Action Contesting Validity of Revocable Trust; Distribution of Trust Property.
a. A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death within the earlier of:
(1) Three years after the settlor's death; or
(2) Four months, in the case of a resident, or six months, in the case of a nonresident, after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust's existence, of the trustee's name and address, and of the time allowed for commencing a proceeding.
b. Upon the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. The trustee is not subject to liability for doing so unless:
(1) the trustee knows of a pending judicial proceeding contesting the validity of the trust; or
(2) a potential contestant has notified the trustee in writing of a possible judicial proceeding to contest the validity of the trust and the trustee has received written notice of a judicial proceeding commenced within 90 days after the contestant sent the notification.
c. A beneficiary of a trust that is determined to have been invalid is liable to return any distribution received.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-46 - Accepting or declining trusteeship.

3B:31-46 Accepting or declining trusteeship.
3B:31-46. Accepting or Declining Trusteeship.
a. Except as otherwise provided in subsection c. of this section, a person designated as trustee accepts the trusteeship:
(1) in the case of a testamentary trustee or substituted testamentary trustee, as provided in N.J.S.3B:11-2, and
(2) in the case of any other trustee,
(a) by substantially complying with a method of acceptance provided in the terms of the trust; or
(b) if the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
b. A person designated as trustee who has not yet accepted the trusteeship may renounce the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have renounced the trusteeship.
c. A person designated as trustee, without accepting the trusteeship, may:
(1) act to preserve the trust property if, within a reasonable time after acting, the person sends a renunciation of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to the qualified beneficiaries and to any designated successor trustee; and
(2) inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-47 - Trustee's bond.

3B:31-47 Trustee's bond.
3B:31-47. Trustee's Bond.
a. A trustee shall give bond to secure performance of the trustee's duties as prescribed by N.J.S.3B:15-1 et seq. if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with that requirement.
b. Unless otherwise directed by the court, the cost of the bond is an expense of the trust.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-48 - Co-trustees.

3B:31-48 Co-trustees.
3B:31-48. Co-trustees.
a. Co-trustees who are unable to reach a unanimous decision may act by majority decision. A dissenting trustee who joins in carrying out a decision of the majority but expresses his dissent in writing promptly to his co-trustees shall not be liable for the act of the majority.
b. If a vacancy occurs in a co-trusteeship, the remaining co-trustees shall act for the trust unless the trust instrument provides otherwise.
c. A co-trustee shall participate in the performance of a trustee's function unless the co-trustee is unavailable to perform the function because of absence, illness, disqualification under other law, or other temporary incapacity or the co-trustee has properly delegated the performance of the function to another trustee.
d. If a co-trustee is unavailable to perform duties because of absence, illness, disqualification under other law, other temporary incapacity, or a vacancy remains unfilled and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining co-trustee or a majority of the remaining co-trustees shall act for the trust.
e. A trustee may not delegate to a co-trustee the performance of a function the settlor reasonably expected the trustees to perform jointly. Unless a delegation was irrevocable, a trustee may revoke a delegation previously made.
f. A trustee who does not join in an action of a co-trustee or co-trustees because of absence, illness, disqualification or other temporary incapacity shall not be liable for that action.
g. Notwithstanding subsection a. or f. of this section, every trustee shall exercise reasonable care to:
(1) prevent a co-trustee from committing a breach of trust; and
(2) compel a co-trustee to redress a breach of trust.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-49 - Vacancy in trusteeship; appointment of successor.

3B:31-49 Vacancy in trusteeship; appointment of successor.
3B:31-49. Vacancy in Trusteeship; Appointment of Successor.
a. A vacancy in a trusteeship occurs if:
(1) a person designated as trustee renounces the trusteeship;
(2) a person designated as trustee cannot be identified or does not exist;
(3) a trustee resigns or is discharged;
(4) a trustee is disqualified or removed;
(5) a trustee dies; or
(6) a guardian or conservator is appointed for an individual serving as trustee.
b. If one or more co-trustees remain in office, a vacancy in a trusteeship need not be filled unless the trust instrument provides otherwise. A vacancy in a trusteeship shall be filled if the trust has no remaining trustee.
c. A vacancy in a trusteeship of a noncharitable trust that is required to be filled shall be filled in the following order of priority:
(1) by a person designated pursuant to the terms of the trust to act as successor trustee;
(2) by a procedure established pursuant to the terms of the trust to appoint a successor trustee;
(3) by a person appointed by unanimous agreement of the qualified beneficiaries; or
(4) by a person appointed by the court.
d. A vacancy in a trusteeship of a charitable trust that is required to be filled shall be filled in the following order of priority:
(1) by a person designated pursuant to the terms of the trust to act as successor trustee; or
(2) by a person appointed by the court.
e. Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may appoint an additional trustee or special fiduciary whenever the court considers the appointment desirable for the administration of the trust.
f. A person appointed to fill a vacancy in a trusteeship shall have all the powers and discretions of the original trustee.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-50 - Resignation of trustee.

3B:31-50 Resignation of trustee.
3B:31-50. Resignation of Trustee.
a. A trustee may resign:
(1) upon at least 30 days' notice to the qualified beneficiaries, the settlor, if living, all co-trustees, and the trustee or trustees, if any, designated pursuant to the terms of the trust to succeed the resigning trustee; or
(2) with the approval of the court.
b. In approving a resignation, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property.
c. Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or omissions of the trustee is not discharged or affected by the trustee's resignation.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-51 - Removal of trustee.

3B:31-51 Removal of trustee.
3B:31-51. Removal of Trustee.
a. The settlor, a co-trustee, or a beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative.
b. The court may remove a trustee for any of the reasons stated in N.J.S.3B:14-21.
c. Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order such appropriate relief as may be necessary to protect the trust property or the interests of the beneficiaries.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-52 - Delivery of property by former trustee.

3B:31-52 Delivery of property by former trustee.
3B:31-52. Delivery of Property by Former Trustee.
a. Unless a co-trustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.
b. A trustee who has resigned or been removed shall proceed expeditiously to deliver the trust property within the trustee's possession to the co-trustee, successor trustee, or other person entitled to it, but a resigning trustee may retain a reasonable reserve for the costs of finalizing that trustee's administration of the trust.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-53 - Reimbursement of expenses.

3B:31-53 Reimbursement of expenses.
3B:31-53. Reimbursement of Expenses.
a. In addition to the compensation allowed by N.J.S.3B:18-2 et seq., a trustee is entitled to be reimbursed out of the trust property for:
(1) expenses that were properly incurred in the administration of the trust; and
(2) to the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust.
b. An advance by a trustee of money or other property for the protection of the trust gives rise to a lien against trust property to secure reimbursement.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-54 - Duty to administer trust.

3B:31-54 Duty to administer trust.
3B:31-54. Duty to Administer Trust.
Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this act and other applicable law.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-56 - Duty of impartiality.

3B:31-56 Duty of impartiality.
3B:31-56. Duty of Impartiality.
If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-57 - Duty of prudent administration.

3B:31-57 Duty of prudent administration.
3B:31-57. Duty of Prudent Administration.
A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-58 - Costs of administration.

3B:31-58 Costs of administration.
3B:31-58. Costs of Administration.
In administering a trust, the trustee may incur only costs that are appropriate and reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-59 - Duty to use special skills.

3B:31-59 Duty to use special skills.
3B:31-59. Duty to Use Special Skills.
A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-60 - Delegation by trustee.

3B:31-60 Delegation by trustee.
3B:31-60. Delegation by Trustee.
a. A trustee may delegate ministerial, administrative and management duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances.
b. The trustee shall exercise reasonable care, skill, and caution in:
(1) selecting an agent;
(2) establishing in writing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and
(3) periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.
c. A trustee shall provide reasonable written notice to the qualified beneficiaries on each occasion upon which the trustee delegates duties pursuant to this section, including the identity of the agent.
d. A trustee who complies with subsections b. and c. of this section is not liable to the beneficiaries or to the trust for an action of the agent to whom the function was delegated.
e. In performing a delegated function, the agent shall owe to the trustee and the beneficiaries the same duties as the fiduciary and shall be held to the same standards as the fiduciary.
f. By accepting a delegation of powers or duties from the trustee of a trust that is subject to the law of this State, an agent submits to the jurisdiction of the courts of this State, even if the delegation agreement provides otherwise.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-61 - Powers to direct.

3B:31-61 Powers to direct.
3B:31-61. Powers to Direct.
a. While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust.
b. If the terms of a trust confer upon a person other than the settlor of a revocable trust the power to direct certain actions of the trustee, the trustee shall act in accordance with a written exercise of the power unless the attempted exercise is contrary to the terms of the trust or the trustee knows the attempted exercise would constitute a breach of a fiduciary duty that the person holding the power owes to the beneficiaries of the trust.
c. The terms of a trust may confer upon a trustee or other person a power to direct the modification or termination of the trust.
d. A person, other than a beneficiary, who holds a power to direct is required to act in good faith with regard to the purposes of the trust and the interests of the beneficiaries. The holder of a power to direct is liable for any loss that results from the holder's failure to act in good faith.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-62 - Powers to direct investment functions.

3B:31-62 Powers to direct investment functions.
3B:31-62. Powers to Direct Investment Functions.
a. When one or more persons are given authority by the terms of a governing instrument to direct, consent to or disapprove a fiduciary's actual or proposed investment decisions, such persons shall be considered to be investment advisers and fiduciaries when exercising such authority unless the governing instrument otherwise provides.
b. If a governing instrument provides that a fiduciary is to follow the direction of an investment adviser, and the fiduciary acts in accordance with such a direction, then except in cases of willful misconduct or gross negligence on the part of the fiduciary so directed, the fiduciary shall not be liable for any loss resulting directly or indirectly from any such act.
c. If a governing instrument provides that a fiduciary is to make decisions with the consent of an investment adviser, then except in cases of willful misconduct or gross negligence on the part of the fiduciary, the fiduciary shall not be liable for any loss resulting directly or indirectly from any act taken or omitted as a result of such investment adviser's failure to provide such consent after having been requested to do so by the fiduciary.
d. For purposes of this section, "investment decision" means with respect to any investment, the retention, purchase, sale, exchange, tender or other transaction affecting the ownership thereof or rights therein and with respect to nonpublicly traded investments, the valuation thereof, and an adviser with authority with respect to such decisions is an investment adviser.
e. Whenever a governing instrument provides that a fiduciary is to follow the direction of an investment adviser with respect to investment decisions, then, except to the extent that the governing instrument provides otherwise, the fiduciary shall have no duty to:
(1) Monitor the conduct of the investment adviser;
(2) Provide advice to the investment adviser or consult with the investment adviser; or
(3) Communicate with or warn or apprise any beneficiary or third party concerning instances in which the fiduciary would or might have exercised the fiduciary's own discretion in a manner different from the manner directed by the investment adviser.
Absent clear and convincing evidence to the contrary, the actions of the fiduciary pertaining to matters within the scope of the investment adviser's authority, such as confirming that the investment adviser's directions have been carried out and recording and reporting actions taken at the investment adviser's direction, shall be presumed to be administrative actions taken by the fiduciary solely to allow the fiduciary to perform those duties assigned to the fiduciary under the governing instrument. Such administrative actions shall not be deemed to constitute an undertaking by the fiduciary to monitor the investment adviser or otherwise participate in actions within the scope of the investment adviser's authority.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-63 - Control and protection of trust property.

3B:31-63 Control and protection of trust property.
3B:31-63. Control and Protection of Trust Property.
A trustee shall take reasonable steps to take control of and protect the trust property.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-64 - Recordkeeping and identification of trust property.

3B:31-64 Recordkeeping and identification of trust property.
3B:31-64. Recordkeeping and Identification of Trust Property.
a. A trustee shall keep adequate records of the administration of the trust.
b. A trustee shall keep trust property separate from the trustee's own property.
c. Except as otherwise provided in subsection d. of this section, a trustee shall cause the trust property to be designated so that the interest of the trust, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary.
d. If the trustee maintains records clearly indicating the respective interests, a trustee may invest as a whole the property of the trust with other fiduciary accounts maintained by the trustee.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-65 - Duty to enforce and defend claims.

3B:31-65 Duty to enforce and defend claims.
3B:31-65. Duty to Enforce and Defend Claims.
A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-66 - Duty to collect trust property and redress breaches of trust.

3B:31-66 Duty to collect trust property and redress breaches of trust.
3B:31-66. Duty to Collect Trust Property and Redress Breaches of Trust.
a. A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee.
b. A trustee shall take reasonable steps to redress a breach of trust known to the trustee to have been committed by a former trustee.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-67 - Duty to disclose and discretion to periodically report.

3B:31-67 Duty to disclose and discretion to periodically report.
3B:31-67. Duty to Disclose and Discretion to Periodically Report.
a. A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests. Unless unreasonable under the circumstances, a trustee shall promptly respond to a beneficiary's request for information related to the administration of a trust.
b. A trustee, upon request of a beneficiary, shall promptly furnish to the beneficiary a copy of the trust instrument.
c. A trustee seeking the protection of N.J.S.3B:31-74 may provide the beneficiaries with a report of the trust property, liabilities, receipts, and disbursements, including the source and amount of the trustee's compensation, a listing of the trust assets, and, if feasible, their respective market values.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-68 - Discretionary powers.

3B:31-68 Discretionary powers.
3B:31-68. Discretionary Powers.
Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as "absolute," "sole," or "uncontrolled," the trustee shall exercise a discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-69 - General powers of trustee.

3B:31-69 General powers of trustee.
3B:31-69. General Powers of Trustee.
a. Except as limited by section 1 of P.L.1996, c.41 (C.3B:11-4.1) and other express statutory restrictions, a trustee, without authorization by the court, may exercise:
(1) powers conferred by the terms of the trust; or
(2) except as limited by the terms of the trust:
(a) all powers over the trust property which an unmarried competent owner has over individually owned property;
(b) any other powers appropriate to achieve the proper investment, management, and distribution of the trust property; and
(c) any other powers conferred by this act and by Title 3B of the New Jersey Statutes.
b. The exercise of a power is subject to the fiduciary duties prescribed by this act and by Title 3B of the New Jersey Statutes.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-70 - Distribution upon termination.

3B:31-70 Distribution upon termination.
3B:31-70. Distribution Upon Termination.
a. Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to it, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes.
b. Upon termination or partial termination of a trust, the trustee may mail or deliver a proposal for distribution to all persons who have a right to object to the proposed distribution. The proposal shall notify all persons who have a right to object to the proposal of their right to object and that their objection is required to be in writing and received by the trustee within 30 days after the mailing or delivery of the proposal. The right of any person to object to the proposed distribution on the basis of the kind or value of asset he or another beneficiary is to receive, if not waived earlier in writing, terminates if he fails to object in writing received by the trustee within 30 days after mailing or delivery of the proposal.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-71 - Remedies for breach of trust.

3B:31-71 Remedies for breach of trust.
3B:31-71. Remedies for Breach of Trust.
a. A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust.
b. To remedy a breach of trust that has occurred or may occur, the court may:
(1) compel the trustee to perform the trustee's duties;
(2) enjoin the trustee from committing a breach of trust;
(3) compel the trustee to redress a breach of trust by paying money, restoring property, or other means;
(4) order a trustee to account;
(5) appoint a special fiduciary to take possession of the trust property and administer the trust;
(6) suspend the trustee;
(7) remove the trustee as provided in N.J.S.3B:31-51;
(8) reduce or deny compensation to the trustee;
(9) subject to N.J.S.3B:14-37, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or its proceeds; or
(10) order any other appropriate relief.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-72 - Damages for breach of trust.

3B:31-72 Damages for breach of trust.
3B:31-72. Damages for Breach of Trust.
a. A trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of:
(1) the amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or
(2) the profit the trustee made by reason of the breach.
b. Except as otherwise provided in this subsection, if more than one trustee is liable to the beneficiaries for a breach of trust, a trustee is entitled to contribution from the other trustee or trustees based on the comparative degree of culpability for the breach. However, a trustee who committed the breach in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries is not entitled to contribution from a trustee who was not guilty of such conduct. A trustee who received a benefit from the breach of trust is not entitled to contribution from another trustee to the extent of the benefit received.
L.2015, c.276, s.1.
2023 New Jersey Revised Statutes › Title 3B - Administration of Estates--Decedents and Others › Section 3B:31-73 - Damages in absence of breach.

3B:31-73 Damages in absence of breach.
3B:31-73. Damages in Absence of Breach.
a. A trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration of the trust, even absent a breach of trust, except where the interest in the transaction involved is fully disclosed to the beneficiary and consent is freely given.
b. Absent a breach of trust, a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or for not having made a profit.
L.2015, c.276, s.1.