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

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 trus…

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 …

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 wh…

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 th…

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 oth…

3B:31-55 Duty of loyalty. 3B:31-55. Duty of Loyalty. a. A trustee shall administer the trust with undivided loyalty to and solely in the best interests of the beneficiaries. b. Subject to the rights of persons dealing with or assisting the trustee as provided in N.J.S.3B:14-37, a…

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…

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, t…

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.

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 …

3B:31-6. Common Law of Trusts; Principles of Equity. 3B:31-6. Common Law of Trusts; Principles of Equity. The common law of trusts and principles of equity supplement this act, except to the extent modified by this act or another statute of this State. L.2015, c.276, s.1.

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 reaso…

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 powe…

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 …

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.

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.…

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.

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 truste…

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 …

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 g…

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 t…

3B:31-7 Governing law. 3B:31-7. Governing Law. The meaning and effect of the terms of a trust are determined by: a. the law of the jurisdiction designated in the terms unless the designation of that jurisdiction's law is contrary to a strong public policy of the jurisdiction havi…

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…

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 per…

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 t…

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 t…

3B:31-74 Limitation of action against trustee. 3B:31-74. Limitation of Action Against Trustee. a. A beneficiary may not commence a proceeding against a trustee for breach of trust more than six months after the date the beneficiary or a representative of the beneficiary was sent …

3B:31-75 Reliance on trust instrument. 3B:31-75. Reliance on Trust Instrument. A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the …

3B:31-76 Event affecting administration or distribution. 3B:31-76. Event Affecting Administration or Distribution. If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, …

3B:31-77 Exculpation of trustee. 3B:31-77. Exculpation of Trustee. a. A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: (1) relieves the trustee of liability for breach of trust committed in bad faith or with reckless i…

3B:31-78 Beneficiary's consent, release, or ratification. 3B:31-78. Beneficiary's Consent, Release, or Ratification. A trustee is not liable to a beneficiary for breach of trust if the beneficiary, while having capacity, consented to the conduct constituting the breach, released …

3B:31-79 Limitation on personal liability of trustee. 3B:31-79. Limitation on Personal Liability of Trustee. a. Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course o…

3B:31-8 Principal place of administration. 3B:31-8. Principal Place of Administration. a. Without precluding other means for establishing a sufficient connection with the designated jurisdiction, terms of a trust designating the principal place of administration are valid and con…

3B:31-80 Interest as general partner. 3B:31-80. Interest as General Partner. a. Except as otherwise provided in subsection c. of this section or unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited part…

3B:31-81 Certification of trust. 3B:31-81. Certification of Trust. a. Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing the following information: (1) that the trust…

3B:31-82 Electronic records and signatures. 3B:31-82. Electronic Records and Signatures. The provisions of this act governing the legal effect, validity, or enforceability of electronic records or electronic signatures, and of contracts formed or performed with the use of such re…

3B:31-83 Severability clause. 3B:31-83. Severability Clause. If any provision of this act or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this act which can be given effect without the invalid p…

3B:31-84 Application to existing relationships. 3B:31-84. Application to Existing Relationships. a. Except as otherwise provided in this act: (1) this act applies to all trusts created before, on, or after its effective date; (2) this act applies to all judicial proceedings conce…

3B:31-9 Methods and waiver of notice. 3B:31-9. Methods and Waiver of Notice. a. Notice to a person under this act or the sending of a document to a person under this act shall be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt …