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Disputes · 5 мин чтения
The nonjudicial settlement agreement
N.J.S.A. 3B:31-11 provides that interested persons — those whose consent would be required to achieve a binding settlement were the settlement approved by the court (a) — may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust (b), valid only to the extent it does not violate a material purpose of the trust and includes terms and conditions the court could properly approve (c). The matters include the interpretation or construction of the terms of the trust, the approval of a trustee's report or accounting, directing a trustee to refrain from an act or granting a power, the resignation or appointment of a trustee and the determination of a trustee's compensation, the transfer of the principal place of administration, and a trustee's liability for an action relating to the trust (d). Any interested person may ask the court to approve the agreement, to determine whether the representation was adequate and whether its terms could have been properly approved (e); an agreement may not produce a result contrary to Title 3B, including an impermissible modification or termination (f). A trustee may represent and bind the beneficiaries of the trust, and a parent a minor or unborn child, where no conflict of interest stands in the way (N.J.S.A. 3B:31-15).
The court
The Superior Court of New Jersey, Chancery Division, Probate Part, has full authority to hear and determine all controversies respecting wills, trusts and estates and over the accounts of fiduciaries (N.J.S.A. 3B:2-2), and proceeds in a summary manner (N.J.S.A. 3B:2-4) — an action in the Probate Part is begun by complaint and order to show cause, the county Surrogate acting as its Deputy Clerk (R. 4:83-1). A proceeding under the trust code may concern the appointment or removal of a trustee, the approval of a resignation, the review and settlement of a trustee's accounts, or any other matter involving the administration; a trustee settles an account in the Superior Court at the intervals the court may require (N.J.S.A. 3B:17-3), and a nontestamentary trustee may settle intermediate and final accounts there (N.J.S.A. 3B:17-10). The court may approve a modification or termination by consent (N.J.S.A. 3B:31-27), for unanticipated circumstances (N.J.S.A. 3B:31-28), or to conform the terms to the settlor's probable intent (N.J.S.A. 3B:31-32).
Consent, removal and the remedies for breach
A trustee is not liable to a beneficiary for a breach of trust if the beneficiary consented to the conduct constituting the breach, released the trustee from liability for it or ratified the transaction, unless the consent, release or ratification was induced by the trustee's improper conduct or the beneficiary, when it was given, did not know the material facts relating to the breach or the beneficiary's rights (N.J.S.A. 3B:31-78). The settlor, a co-trustee or a beneficiary may ask the court to remove a trustee, and the court may act on its own initiative, for any of the reasons stated in N.J.S.A. 3B:14-21 (N.J.S.A. 3B:31-51). A violation by a trustee of a duty owed to a beneficiary is a breach of trust, and to remedy one the court may compel performance, enjoin, compel redress, order an account, appoint a special fiduciary, suspend or remove the trustee, reduce or deny compensation, void an act, impose a lien or constructive trust, trace trust property, or order other appropriate relief (N.J.S.A. 3B:31-71); damages are the greater of the amount required to restore the trust property and distributions or the trustee's profit (N.J.S.A. 3B:31-72), and the limitation periods of N.J.S.A. 3B:31-74 apply.
Законы, дословно
General authority of Superior Court as to probate matters
N.J.S.A. 3B:2-2 ↗Понятное простое объяснение; дословный текст статута ещё не заверен в нашей библиотеке. Смотрите официальный статут по ссылке выше.
Nonjudicial settlement agreements
N.J.S.A. 3B:31-11 ↗Понятное простое объяснение; дословный текст статута ещё не заверен в нашей библиотеке. Смотрите официальный статут по ссылке выше.
Removal of trustee
N.J.S.A. 3B:31-51 ↗Понятное простое объяснение; дословный текст статута ещё не заверен в нашей библиотеке. Смотрите официальный статут по ссылке выше.
Remedies for breach of trust
N.J.S.A. 3B:31-71 ↗Понятное простое объяснение; дословный текст статута ещё не заверен в нашей библиотеке. Смотрите официальный статут по ссылке выше.
Частые вопросы
Can New Jersey beneficiaries settle a trust dispute without court?
Yes. Interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust, within the limits of N.J.S.A. 3B:31-11(c) and (f); any interested person may ask the court to approve it (N.J.S.A. 3B:31-11(e)).
Which New Jersey court hears a trust dispute?
The Superior Court of New Jersey, Chancery Division, Probate Part, which has full authority over controversies respecting trusts and the accounts of fiduciaries (N.J.S.A. 3B:2-2) and proceeds in a summary manner (N.J.S.A. 3B:2-4), by complaint and order to show cause (R. 4:83-1). The county Surrogate's Court issues letters of trusteeship to a testamentary trustee (N.J.S.A. 3B:11-2) and may not act where a dispute arises (R. 4:82).
Can a New Jersey trustee be removed?
The settlor, a co-trustee or a beneficiary may ask the court to remove a trustee, or the court may act on its own initiative (N.J.S.A. 3B:31-51(a)), for any of the reasons N.J.S.A. 3B:14-21 states — among them neglecting after notice to render an account or give security, embezzling, wasting or misapplying the estate or abusing the trust, incapacity, and, as one of two or more fiduciaries, neglecting the duties or refusing to join so that the administration is hindered (N.J.S.A. 3B:31-51(b)).
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