The New Jersey Uniform Trust Code – Part One: Introduction
On January 19, 2016, New Jersey enacted the Uniform Trust Code (“UTC”), to take effect on July 17, 2016. The new statute is in Chapter 31 of Title 3B of the New Jersey statutes.
This article delineates New Jersey law generally, and the UTC as enacted in New Jersey (at times referred to as “NJ UTC”). In addition, at times this text compares other national standards, including the model UTC and the Restatement of Trusts.
In particular, this survey considers the following topics (with references below to the articles of the NJ UTC as applicable):
- General effect – and what is not changed by the NJ UTC;
- The general provisions and definitions of the NJ UTC (Article 1), including the provisions on representation (Article 2) and miscellaneous provisions (Article 9);
- The creation of trusts, including whether a valid trust exists (Article 3);
- Reformation, modification, interpretation, revocation and termination of trusts (Article 3);
- Probable intent as to trusts;
- Creditor’s claims and spendthrift and discretionary trusts (Article 4);
- Revocable trusts (Article 5);
- The office of the trustee, and the duties and powers of the trustee (Articles 6 and 7);
- Liability of trustees and the rights of persons dealing with trustees (Article 8);
- Directed trusts (Article 7);
- Special needs trusts;
- Secret trusts;
- Jurisdiction and venue (Article 1).