Title 3B, Title 3B: ADMINISTRATION OF ESTATES--DECEDENTS AND OTHERS

3B:30-5. Designation of beneficiary, registration in beneficiary form 5. A security, whether evidenced by certificate or account, is registered in beneficiary form when the registration includes a designation of a beneficiary to take the ownership at the death of the owner or the…

3B:30-6. "Transfer on death," "pay on death" 6. Registration in beneficiary form may be shown by the words "transfer on death" or the abbreviation "TOD," or by the words "pay on death" or the abbreviation "POD," after the name of the registered owner and before the name of the be…

3B:30-7. No effect on ownership, cancellation, change permitted 7. The designation of a TOD beneficiary on a registration in beneficiary form has no effect on ownership until the owner's death. A registration of a security in beneficiary form may be cancelled or changed at any ti…

3B:30-8. Passage of security to beneficiary, reregistration 8. On death of a sole owner or the last to die of all multiple owners, ownership of securities registered in beneficiary form passes to the beneficiary or beneficiaries who survive all owners. On proof of death of all ow…

3B:30-9. Rights of registering entity 9. a. A registering entity is not required to offer or to accept a request for security registration in beneficiary form. If a registration in beneficiary form is offered by a registering entity, the owner requesting registration in beneficia…

3B:31-1. Short Title. 3B:31-1. Short Title. This act shall be known and may be cited as the "Uniform Trust Code." L.2015, c.276, s.1.

3B:31-10 Others treated as qualified beneficiaries. 3B:31-10. Others Treated as Qualified Beneficiaries. a. Whenever notice to qualified beneficiaries of a trust is required under this act, the trustee shall also give notice to any other beneficiary who has sent the trustee a req…

3B:31-11 Nonjudicial settlement agreements. 3B:31-11. Nonjudicial Settlement Agreements. a. For purposes of this section, "interested persons" means persons whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the court. b…

3B:31-12 Rules of construction. 3B:31-12. Rules of Construction. The rules of construction that apply in this State to the interpretation of and disposition of property by will also apply as appropriate to the interpretation of the terms of a trust and the disposition of the trus…

3B:31-13 Representation: basic effect. 3B:31-13. Representation: Basic Effect. a. Notice to a person who may represent and bind another person under this article has the same effect as if notice were given directly to the other person. b. The consent of a person who may represent…

3B:31-14 Representation by holder of general testamentary power of appointment. 3B:31-14. Representation by Holder of General Testamentary Power of Appointment. a. To the extent there is no conflict of interest between the holder of a general testamentary power of appointment and…

3B:31-15 Representation by fiduciaries and parents. 3B:31-15. Representation by Fiduciaries and Parents. To the extent there is no conflict of interest between the representative and the person represented or among those being represented with respect to a particular question or …

3B:31-16 Representation by person having substantially identical interest. 3B:31-16. Representation by Person Having Substantially Identical Interest. Unless otherwise represented, a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown and…

3B:31-17 Appointment of representative. 3B:31-17. Appointment of Representative. a. If the court determines that an interest is not represented under this article or that the otherwise available representation might be inadequate, the court may appoint a guardian ad litem or othe…

3B:31-18 Methods of creating trust. 3B:31-18. Methods of Creating Trust. A trust may be created by: a. transfer of property under a written instrument to another person as trustee during the settlor's lifetime or by will or other written disposition taking effect upon the settlor…

3B:31-19. Requirements for creation. 3B:31-19. Requirements for Creation. a. A trust is created only if: (1) the settlor has capacity to create a trust; (2) the settlor indicates an intention to create the trust; (3) the trust has a definite beneficiary or is: (a) a charitable tr…

3B:31-2. Scope. 3B:31-2. Scope. This act applies to express trusts, charitable or noncharitable, and trusts created pursuant to a statute, judgment, or decree that requires the trust to be administered in the manner of an express trust. L.2015, c.276, s.1.

3B:31-20 Written trusts created in other jurisdictions. 3B:31-20. Written Trusts Created in Other Jurisdictions. A written trust not created by will is validly created if its creation complies with the law of the jurisdiction in which: a. the trust instrument was executed; b. at …

3B:31-21 Trust purposes. 3B:31-21. Trust Purposes. A trust may be enforced only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve. A trust and its terms shall be for the benefit of its beneficiaries. L.2015, c.276, s.1.

3B:31-22 Charitable purposes, enforcement. 3B:31-22. Charitable Purposes; Enforcement. a. A charitable trust is one that is created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purpose t…

3B:31-23 Creation of trust induced by fraud, duress, or undue influence. 3B:31-23. Creation of Trust Induced by Fraud, Duress, or Undue Influence. A trust is void to the extent its creation was induced by fraud, duress, or undue influence. L.2015, c.276, s.1.

3B:31-24 Trust for care of animal. 3B:31-24. Trust for Care of Animal. a. A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of mor…

3B:31-25 Noncharitable trust without ascertainable beneficiary. 3B:31-25. Noncharitable Trust Without Ascertainable Beneficiary. Except as otherwise provided in N.J.S.3B:31-24 or by another statute, the following rules apply: a. A trust may be created for a noncharitable but othe…

3B:31-26 Modification or termination of trust; proceedings for approval or disapproval. 3B:31-26. Modification or Termination of Trust; Proceedings for Approval or Disapproval. a. In addition to the methods of termination prescribed by N.J.S.3B:31-27 through N.J.S.3B:31-33, a tru…

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 benefici…

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 adminis…

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, impossibl…

3B:31-3. Definitions. 3B:31-3. Definitions. As used in this act: "Action," with respect to an act of a trustee, includes a failure to act. "Beneficiary," as it relates to trust beneficiaries, includes a person: (1) who has any present or future interest, vested or contingent; (2)…

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…

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 …

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 settlo…

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 m…

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 pa…

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 re…

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 …

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; (…

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) T…

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…

3B:31-4. Knowledge. 3B:31-4. Knowledge. a. Subject to subsection b. of this section, a person has knowledge of a fact if the person: (1) has actual knowledge of it; (2) has received a notice or notification of it; or (3) from all the facts and circumstances known to the person at…

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 up…

3B:31-41 Personal obligations of trustee. 3B:31-41. Personal Obligations of Trustee. Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent.

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 m…

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 …

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.

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…

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 testamenta…