Единообразный трастовый кодекс Нью-Джерси, раздел за разделом

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Сверено с законами Нью-Джерси 2026-10-25. Общая информация, не юридическая консультация; официальный текст имеет приоритет.

Article 1: General Provisions and Definitions

N.J.S.A. 3B:31-1 ↗ Short Title: The act is known, and may be cited, as the "Uniform Trust Code."
N.J.S.A. 3B:31-2 ↗ Scope: New Jersey's Uniform Trust Code applies to express trusts, charitable or noncharitable, and to trusts created pursuant to a statute, judgment or decree that requires the trust to be administered in the manner of an express trust.
N.J.S.A. 3B:31-3 ↗ Definitions: Defines the terms of New Jersey's Uniform Trust Code — among them "action" (including a trustee's failure to act); "beneficiary" (a person who has any present or future interest, vested or contingent, who holds a power of appointment over trust property in a capacity other than trustee, who owns an interest by assignment or other transfer, or, for a charitable trust, who is entitled to enforce it); "charitable trust" (a trust, or portion of one, created for a charitable purpose described in subsection a. of N.J.S.A. 3B:31-22); "power of withdrawal" (a presently exercisable general power of appointment other than one exercisable only on the consent of the trustee or of a person holding an adverse interest); "qualified beneficiary" (a beneficiary who, on the date the qualification is determined, is a distributee or permissible distributee of trust income or principal, would be one if the interests of those distributees terminated on that date, or would be one if the trust terminated on that date); "revocable" (revocable by the settlor without the consent of the trustee or of a person holding an adverse interest); "settlor" (a person, including a testator, who creates or contributes property to a trust, several settlors each being a settlor of the portion attributable to that person's contribution except to the extent another person has the power to revoke or withdraw it); "spendthrift provision" (a term restraining both voluntary and involuntary transfer of a beneficiary's interest); "terms of a trust" (the manifestation of the settlor's intent as expressed in the trust instrument or established by other evidence admissible in a judicial proceeding); "trust instrument" (an instrument executed by the settlor that contains terms of the trust, including amendments); and "trustee" (in addition to the definition in N.J.S.A. 3B:1-2, a corporate entity in its capacity as trustee and a co-trustee where two or more are appointed). It also defines "environmental law," "interests of the beneficiaries," "jurisdiction," "property" and "state."
N.J.S.A. 3B:31-4 ↗ Knowledge: A person has knowledge of a fact if the person has actual knowledge of it, has received a notice or notification of it, or, from all the facts and circumstances known to the person at the time, has reason to know it. An organization that conducts activities through employees has notice or knowledge of a fact involving a trust only from the time the information was received by an employee having responsibility to act for the trust, or would have been brought to that employee's attention had the organization exercised reasonable diligence — reasonable routines for communicating significant information to that employee, reasonably complied with; reasonable diligence does not require an employee to communicate information unless that is part of the individual's regular duties or the individual knows a matter involving the trust would be materially affected by it.
N.J.S.A. 3B:31-5 ↗ Default and mandatory rules: Except as the terms of the trust provide otherwise, New Jersey's Uniform Trust Code governs a trustee's duties and powers, relations among trustees and a beneficiary's rights and interests, and the terms of a trust prevail over the act except as to: the requirements for creating a trust; the trustee's duty to act in good faith and in accordance with the purposes of the trust; the requirement that a trust and its terms be for the benefit of its beneficiaries and have a purpose that is lawful, not contrary to public policy and possible to achieve; the court's power to modify or terminate a trust under N.J.S.A. 3B:31-26 through 3B:31-33; the effect of a spendthrift provision and the rights of certain creditors and assignees to reach a trust under article 4; the court's power under N.J.S.A. 3B:31-47 to require, dispense with, modify or terminate a bond; the duty under subsections a. and b. of N.J.S.A. 3B:31-67 to respond to the request of a qualified beneficiary of an irrevocable trust who has attained the age of 35 for a copy of the trust instrument or for other information reasonably related to the administration; the effect of an exculpatory term under N.J.S.A. 3B:31-77; the rights under N.J.S.A. 3B:31-79 through 3B:31-81 of a person other than a trustee or beneficiary; the periods of limitation for commencing a judicial proceeding; and the court's power to act and exercise jurisdiction as the interests of justice require.
N.J.S.A. 3B:31-6 ↗ Common Law of Trusts; Principles of Equity: The common law of trusts and principles of equity supplement New Jersey's Uniform Trust Code, except to the extent modified by the act or by another statute of the State.
N.J.S.A. 3B:31-7 ↗ Governing law: The meaning and effect of the terms of a trust are determined by the law of the jurisdiction designated in the terms, unless that designation is contrary to a strong public policy of the jurisdiction having the most significant relationship to the matter at issue, or, absent a controlling designation, by the law of the jurisdiction having the most significant relationship to the matter.
N.J.S.A. 3B:31-8 ↗ Principal place of administration: Without precluding other means of establishing a sufficient connection, terms of a trust designating the principal place of administration are valid and controlling if a trustee maintains a place of business in, or is a resident of, the designated jurisdiction, or all or part of the administration occurs there; absent such terms, a nontestamentary trust governed by New Jersey law has its initial principal place of administration in the State, and a testamentary trust's is the jurisdiction of the decedent's domicile at death. The trustee is under a continuing duty to administer the trust at a place appropriate to its purposes, its administration and the interests of the beneficiaries, and in furtherance of that duty may transfer the principal place of administration to another state or outside the United States after notifying the qualified beneficiaries not less than 60 days before initiating the transfer — naming the new jurisdiction, the address and telephone number at the new location, the anticipated date and a date, not less than 60 days after the notice, by which a qualified beneficiary must object. The trustee's authority to transfer terminates if a qualified beneficiary objects on or before that date, unless the trustee secures judicial approval; in connection with a transfer, the trustee may transfer some or all of the trust property to a successor trustee designated in the terms or appointed under N.J.S.A. 3B:31-49.
N.J.S.A. 3B:31-9 ↗ Methods and waiver of notice: Notice to a person, or the sending of a document, under New Jersey's Uniform Trust Code is accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt; permissible methods include first-class mail, personal delivery, delivery to the person's last known place of residence or place of business, or a properly directed textual electronic message. A notice or document need not be provided to a person whose identity or location is unknown to and not reasonably ascertainable by the trustee; the person to be notified or sent the document may waive it; and notice of a judicial proceeding is given as the New Jersey Rules of Court provide.
N.J.S.A. 3B:31-10 ↗ Others treated as qualified beneficiaries: Whenever New Jersey's Uniform Trust Code requires notice to qualified beneficiaries, the trustee also gives notice to any other beneficiary who has sent the trustee a request for notice. A charitable organization expressly designated to receive distributions under the terms of a charitable trust, and a person appointed to enforce a trust for the care of an animal or another noncharitable purpose under N.J.S.A. 3B:31-24 or 3B:31-25, have the rights of a qualified beneficiary; so does the Attorney General with respect to a charitable trust having its principal place of administration in the State.
N.J.S.A. 3B:31-11 ↗ Nonjudicial settlement agreements: Interested persons — those whose consent would be required for a binding settlement were the court to approve it — may enter into a binding nonjudicial settlement agreement on any matter involving a trust, 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 under the act or other applicable law. Matters it may resolve include the interpretation or construction of the terms; the approval of a trustee's report or accounting; direction to a trustee to refrain from an act or the grant of a necessary or desirable power; a trustee's resignation, appointment or compensation; the transfer of the principal place of administration; and a trustee's liability for an action relating to the trust. Any interested person may ask the court to approve the agreement, to determine whether the representation under article 2 was adequate and whether the terms could have been approved; a nonjudicial settlement may not produce a result contrary to other sections of Title 3B, including terminating or modifying a trust in an impermissible manner.
N.J.S.A. 3B:31-12 ↗ Rules of construction: The rules of construction that apply in New Jersey to the interpretation of, and the disposition of property by, a will also apply, as appropriate, to the interpretation of the terms of a trust and the disposition of the trust property.

Article 2: Representation

N.J.S.A. 3B:31-13 ↗ Representation: basic effect: Notice to a person who may represent and bind another under article 2 has the same effect as notice given directly to the other, and the representative's consent binds the person represented unless that person objects before the consent would otherwise become effective. Except as N.J.S.A. 3B:31-27 and 3B:31-43 provide, a person who may represent a settlor lacking capacity may receive notice and give binding consent on the settlor's behalf; a settlor may not represent and bind a beneficiary as to a termination or modification under subsection a. of N.J.S.A. 3B:31-27.
N.J.S.A. 3B:31-14 ↗ Representation by holder of general testamentary power of appointment: To the extent there is no conflict of interest between the holder of a general testamentary power of appointment and the persons represented on the particular question or dispute, the holder may represent and bind the persons whose interests — as permissible appointees, takers in default or otherwise — are subject to the power; the holder of a general power in favor of the holder or the holder's estate is not deemed to have a conflict with the permissible appointees and takers in default.
N.J.S.A. 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 represented, on the particular question or dispute: a guardian of the property may represent and bind the estate the guardian controls; a guardian of the person, the ward if no guardian of the property has been appointed; an agent with authority over the question, the principal; a trustee, the beneficiaries of the trust; a personal representative, the persons interested in the decedent's estate; and a parent, the parent's minor or unborn child if no guardian for the child has been appointed.
N.J.S.A. 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 not reasonably ascertainable, may be represented and bound by another having a substantially identical interest on the particular question or dispute, but only to the extent there is no conflict of interest between the representative and the person represented.
N.J.S.A. 3B:31-17 ↗ Appointment of representative: If the court determines that an interest is not represented under article 2, or that the available representation might be inadequate, it may appoint a guardian ad litem or other representative — one may serve for several persons or interests — to receive notice, give consent and otherwise represent, bind and act for a minor, incapacitated or unborn individual or a person whose identity or location is unknown, on any matter arising under the act, whether or not a judicial proceeding concerning the trust is pending; the representative may consider the benefit accruing to the living members of the individual's family.

Article 3: Creation, Validity, Modification and Termination of Trust

N.J.S.A. 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 on the settlor's death; by the written declaration of the owner of property that the owner holds identifiable property as trustee; or by the written exercise of a power of appointment in favor of a trustee.
N.J.S.A. 3B:31-19 ↗ Requirements for creation: A trust is created only if the settlor has capacity and indicates an intention to create it; the trust has a definite beneficiary or is a charitable trust, an animal-care trust under N.J.S.A. 3B:31-24 or a noncharitable-purpose trust under N.J.S.A. 3B:31-25; the trustee has duties to perform; and the same person is not the sole trustee and sole beneficiary of all beneficial interests. A beneficiary is definite if ascertainable now or in the future, subject to N.J.S.A. 46:2F-10 or another applicable rule against perpetuities; a trustee's power to select a beneficiary from an indefinite class is valid if exercised within a reasonable time and not void under that rule or a restraint on alienation, and if invalid the power fails and the property passes to those who would have taken had it not been conferred. A written instrument creating a trust or transferring property to it is not invalid or ineffective because the transferee is identified as the trust rather than the trustee.
N.J.S.A. 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 the trust instrument was executed, or in which, at the time of creation, the settlor was domiciled, had a place of abode or was a national, a trustee was domiciled or had a place of business, or any trust property was located.
N.J.S.A. 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, and a trust and its terms must be for the benefit of its beneficiaries.
N.J.S.A. 3B:31-22 ↗ Charitable purposes, enforcement: A charitable trust is one created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or another purpose whose achievement is beneficial to the community. Where the terms state no particular charitable purpose or beneficiary and the trustee or other authorized person fails to select one, the court may select one or more, consistent with the settlor's intention to the extent it can be ascertained; a proceeding to enforce a charitable trust may be brought by the settlor, the Attorney General, the trust's beneficiaries or other persons with standing.
N.J.S.A. 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.
N.J.S.A. 3B:31-24 ↗ Trust for care of animal: A trust may be created to provide for the care of an animal alive during the settlor's lifetime; it terminates on the death of the animal or, where it provides for more than one, of the last surviving animal. It may be enforced by the settlor, by a person appointed in the terms or, failing that, by one the court appoints, and a person interested in the animal's welfare may ask the court to appoint or remove an enforcer. The trust property may be applied only to its intended use, except to the extent the court determines its value exceeds the amount required; unless the terms provide otherwise, property not required passes to the settlor, if living, otherwise to the settlor's estate.
N.J.S.A. 3B:31-25 ↗ Noncharitable trust without ascertainable beneficiary: Except as N.J.S.A. 3B:31-24 or another statute provides, a trust may be created for a noncharitable but otherwise valid purpose without a definite or definitely ascertainable beneficiary, or for such a purpose to be selected by the trustee; it may be enforced by the settlor, by a person appointed in the terms or, failing that, by one the court appoints; and its property may be applied only to its intended use, except to the extent the court determines its value exceeds the amount required — property not required passing, unless the terms provide otherwise, to the settlor if living, otherwise to the settlor's estate.
N.J.S.A. 3B:31-26 ↗ Modification or termination of trust; proceedings for approval or disapproval: In addition to the methods of termination in N.J.S.A. 3B:31-27 through 3B:31-33, a trust terminates to the extent it is revoked or expires under its terms, no purpose of the trust remains to be achieved, or its purposes have become unlawful, contrary to the public policy of the State or impossible to achieve. A trustee or beneficiary may commence a proceeding to approve or disapprove a proposed modification or termination under those sections, or a trust combination or division under N.J.S.A. 3B:31-34; the settlor of a charitable trust may maintain a proceeding to modify it under N.J.S.A. 3B:31-29.
N.J.S.A. 3B:31-27 ↗ Modification or termination of noncharitable irrevocable trust by consent: A noncharitable irrevocable trust may be modified or terminated on the consent of the trustee and all beneficiaries if that is not inconsistent with a material purpose of the trust; on the consent of all beneficiaries alone, it may be terminated if the court concludes its continuance is not necessary to achieve any material purpose, and modified if the court concludes the modification is not inconsistent with a material purpose. A spendthrift provision is not presumed to be a material purpose; on termination the trustee distributes the trust property as the beneficiaries agree; and where not all beneficiaries consent, the court may approve the modification or termination if satisfied that the trust could have been modified or terminated had all consented and that the interests of a non-consenting beneficiary will be adequately protected.
N.J.S.A. 3B:31-28 ↗ Modification or termination because of unanticipated circumstances or inability to administer trust effectively: The court may modify the administrative or dispositive terms of a trust, or terminate it, if, because of circumstances the settlor did not anticipate, that will further the trust's purposes — to the extent practicable in accordance with the settlor's probable intent; it may modify the administrative terms if continuing the trust on its existing terms would be impracticable or wasteful or impair its administration. On a termination under the section, the trustee distributes the property in a manner consistent with the trust's purposes.
N.J.S.A. 3B:31-29 ↗ Modification or termination of charitable trust (Cy Pres): If a particular charitable purpose becomes unlawful, impracticable, impossible to achieve or wasteful, the trust does not fail in whole or in part, the trust property does not revert to the settlor or the settlor's estate, and the court may modify or terminate the trust by directing that the property be applied or distributed, in whole or in part, in a manner consistent with the settlor's charitable purposes; a provision of the terms that would distribute the property to a noncharitable beneficiary prevails over that power.
N.J.S.A. 3B:31-30 ↗ Modification or termination of uneconomic trust: After notice to the qualified beneficiaries, the trustee of a trust whose property has a total value of less than $100,000 may terminate the trust if the trustee concludes that the value is insufficient to justify the cost of administration; the court may modify or terminate a trust, or remove the trustee and appoint another, on the same finding. On termination the trustee distributes the property in a manner consistent with the trust's purposes; the section does not apply to an easement for conservation or preservation.
N.J.S.A. 3B:31-31 ↗ Reformation to correct mistakes: The court may reform the terms of a trust, even if unambiguous, to conform them 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 in inducement.
N.J.S.A. 3B:31-32 ↗ Construction to conform trust terms to probably intent of settlor: Nothing in the act prevents the court from construing the terms of a trust, even if unambiguous, to conform to the settlor's probable intent.
N.J.S.A. 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 not contrary to the settlor's probable intent, and may give the modification retroactive effect.
N.J.S.A. 3B:31-34 ↗ Combination and division of trusts: The trustees of two or more trusts, or parts of trusts, may combine them into a single trust, even if created by different settlors or under different instruments or with different trustees, and the trustees of a single trust may divide it into two or more separate trusts, from any of which the distributions the governing instrument provides may be made — but only if the result does not impair the rights of any beneficiary or adversely affect the achievement of the trust's purposes.

Article 4: Creditor's Claims; Spendthrift and Discretionary Trusts

N.J.S.A. 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 interest by attachment of present or future distributions to or for the beneficiary's benefit, subject to N.J.S.A. 2A:17-50 through 2A:17-56, N.J.S.A. 2A:17-56.1a and 2A:17-56.6 or other applicable law; the court may limit the award to the relief appropriate under the circumstances.
N.J.S.A. 3B:31-36 ↗ Spendthrift provision: A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest; a term providing that the interest is held subject to a "spendthrift trust," or words of similar import, suffices. A beneficiary may not transfer an interest in violation of a valid spendthrift provision and, except as article 4 provides, a creditor or assignee may not reach the interest or a distribution before the beneficiary receives it; the provision is valid even though a beneficiary is the sole trustee or a co-trustee, and it does not prevent the appointment of interests through the exercise of a power of appointment.
N.J.S.A. 3B:31-37 ↗ Special needs trusts: Whether or not a trust contains a spendthrift provision, a special needs trust — an OBRA '93 trust under N.J.S.A. 3B:11-37, or a trust under a written instrument that grants the trustee broad discretion whether and when to distribute, limits distributions during the term to the benefit of one or more protected persons, imposes no obligation to pay the protected person's obligations or fund support, gives the protected person no right to compel a distribution or to assign or encumber an interest, and evidences the grantor's intent to supplement rather than replace or impair government assistance — has these rules: the trustees have broad discretion over distributions; no creditor of a protected person may reach or attach the protected person's interest or compel a distribution to satisfy a claim; and the trust terminates as its instrument provides. A protected person is an aged, blind or disabled individual under 42 U.S.C. s.1382c, a developmentally disabled person under N.J.S.A. 30:1AA-2, or a person under 18, or over 18 and a full-time student, with serious disabilities that may prevent self-sufficiency as an adult. The trust need not repay government aid unless the aid was provided on the basis that the trust would repay it at the protected person's death or earlier termination and the instrument expressly calls for repayment (not so for a first-party, self-settled OBRA '93 trust); the trustees exercise their discretion in good faith to further the trust's purposes, and the courts may remedy abuses of discretion in equity.
N.J.S.A. 3B:31-38 ↗ Discretionary trusts; effect of standard: 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 the discretion is expressed as a standard of distribution or the trustee has abused it; the section does not limit a beneficiary's right to maintain a judicial proceeding against the trustee for an abuse of discretion or a failure to comply with a standard, and as to the powers in N.J.S.A. 3B:11-4.1 it applies even though the beneficiary is the sole trustee or a co-trustee.
N.J.S.A. 3B:31-39 ↗ Creditor's claim against settlor: Whether or not the terms contain a spendthrift provision: during the settlor's lifetime the property of a revocable trust is subject to the claims of the settlor's creditors; as 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, and where there is more than one settlor no more than that settlor's interest in the portion attributable to that settlor's contribution; after the settlor's death, and subject to the settlor's right to direct the source from which liabilities are paid, the property of a trust that was revocable at the death is subject to the claims of the settlor's creditors, the costs of administration of the estate, the expenses of the funeral and the disposal of remains, and the claims of a surviving spouse or partner in a civil union and children, to the extent the probate estate is inadequate to satisfy them. The holder of a power of withdrawal is treated as the settlor of a revocable trust to the extent of the property subject to the power while it may be exercised, and after its lapse, release or waiver only to the extent the value affected exceeds the greater of the amounts in sections 2041(b)(2) or 2514(e) and 2503(b) of the Internal Revenue Code.
N.J.S.A. 3B:31-40 ↗ Overdue distribution: A mandatory distribution is one of income or principal the trustee is required to make under the terms of the trust, including a distribution on termination, and excludes a distribution subject to the trustee's discretion whether or not the terms include a support or other standard or say the trustee "may" or "shall" make discretionary distributions. Except as N.J.S.A. 3B:11-4.1 provides, whether or not the trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution, including one on termination, if the trustee has not made it within a reasonable time after the mandated distribution date.
N.J.S.A. 3B:31-41 ↗ Personal obligations of trustee: Trust property is not subject to the personal obligations of the trustee, even if the trustee becomes insolvent.

Article 5: Revocable Trusts

N.J.S.A. 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 its trustee, is the same as that required to make a will.
N.J.S.A. 3B:31-43 ↗ Revocation or amendment of revocable trust: Unless the terms expressly provide that the trust is irrevocable, or it is proved by clear and convincing evidence that the settlor intended it to be irrevocable, the settlor may revoke or amend the trust (for a trust created under an instrument executed on or after the act's effective date). Where more than one settlor created or funded a revocable trust, community property may be revoked by either spouse or partner in a civil union alone but amended only jointly, and as to other property each settlor may revoke or amend as to the portion attributable to that settlor's contribution. The settlor revokes or amends by substantial compliance with a method the terms provide or, if none is provided or the method is not expressly exclusive, by a later will or codicil that expressly refers to the trust or specifically devises property that would otherwise pass under it, or by any other writing manifesting clear and convincing evidence of the settlor's intent. On revocation the trustee delivers the property as the settlor directs; an agent under a power of attorney may exercise the settlor's powers only to the extent the terms of the trust and the power expressly authorize, and a guardian of the settlor's property only with the approval of the court supervising the guardianship; a trustee who does not know of a revocation or amendment is not liable for distributions made and other actions taken on the assumption that the trust had not been changed.
N.J.S.A. 3B:31-44 ↗ Settlor's powers: While a trust is revocable, the rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor.
N.J.S.A. 3B:31-45 ↗ Limitation on action contesting validity of revocable trust; distribution of trust property: 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 three years after the death, or four months (a resident) or six months (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. On the settlor's death the trustee may proceed to distribute the trust property in accordance with the terms and is not liable for doing so unless the trustee knows of a pending proceeding contesting the validity, or a potential contestant notified the trustee in writing of a possible proceeding and the trustee received written notice of one commenced within 90 days after that notification; a beneficiary of a trust determined to have been invalid is liable to return any distribution received.

Article 6: Office of Trustee

N.J.S.A. 3B:31-46 ↗ Accepting or declining trusteeship: A person designated as trustee accepts the trusteeship — a testamentary or substituted testamentary trustee as N.J.S.A. 3B:11-2 provides; any other trustee by substantially complying with a method of acceptance in the terms of the trust or, if none is provided or the method is not expressly exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance. A designated trustee who has not accepted may renounce, and one who does not accept within a reasonable time after knowing of the designation is deemed to have renounced; without accepting, the designated trustee may act to preserve the trust property if, within a reasonable time after acting, the person sends a renunciation to the settlor or, if the settlor is dead or lacks capacity, to the qualified beneficiaries and any designated successor trustee, and may inspect or investigate the trust property to determine potential liability under environmental or other law or for any other purpose.
N.J.S.A. 3B:31-47 ↗ Trustee's bond: A trustee gives bond to secure the performance of the trustee's duties, as N.J.S.A. 3B:15-1 et seq. prescribes, if the court finds a bond is needed to protect the interests of the beneficiaries or the terms of the trust require one and the court has not dispensed with the requirement; unless the court directs otherwise, the cost of the bond is an expense of the trust.
N.J.S.A. 3B:31-48 ↗ Co-trustees: Co-trustees who cannot reach a unanimous decision may act by majority decision, and a dissenting trustee who joins in carrying out the majority's decision but promptly expresses the dissent in writing to the co-trustees is not liable for the act of the majority. If a vacancy occurs, the remaining co-trustees act for the trust unless the instrument provides otherwise; a co-trustee participates in the performance of a trustee's function unless unavailable because of absence, illness, disqualification under other law or other temporary incapacity, or the function has been properly delegated to another trustee, and where a co-trustee is unavailable or a vacancy remains unfilled and prompt action is necessary to achieve the trust's purposes or avoid injury to the property, the remaining co-trustee or a majority of them acts. A trustee may not delegate to a co-trustee a function the settlor reasonably expected the trustees to perform jointly, and may revoke a delegation unless it was irrevocable; a trustee who does not join in a co-trustee's action because of absence, illness, disqualification or other temporary incapacity is not liable for it; but every trustee exercises reasonable care to prevent a co-trustee from committing a breach of trust and to compel a co-trustee to redress one.
N.J.S.A. 3B:31-49 ↗ Vacancy in trusteeship; appointment of successor: A vacancy in a trusteeship occurs if a designated trustee renounces, cannot be identified or does not exist, or a trustee resigns or is discharged, is disqualified or removed, dies, or a guardian or conservator is appointed for an individual trustee. A vacancy need not be filled while a co-trustee remains in office unless the instrument provides otherwise, and must be filled when no trustee remains: for a noncharitable trust, by the person the terms designate as successor, by a procedure the terms establish, by a person the qualified beneficiaries unanimously appoint, or by a person the court appoints, in that order; for a charitable trust, by the person the terms designate or by the court. Whether or not a vacancy exists, the court may appoint an additional trustee or special fiduciary whenever it considers that desirable for the administration; a person appointed to fill a vacancy has all the powers and discretions of the original trustee.
N.J.S.A. 3B:31-50 ↗ Resignation of trustee: A trustee may resign on at least 30 days' notice to the qualified beneficiaries, the settlor if living, all co-trustees and any trustee designated in the terms to succeed the resigning trustee, or with the approval of the court, which may issue orders and impose conditions reasonably necessary to protect the trust property; a resigning trustee's liability, and that of any sureties on the trustee's bond, for the trustee's acts or omissions is not discharged or affected by the resignation.
N.J.S.A. 3B:31-51 ↗ Removal of trustee: The settlor, a co-trustee or a beneficiary may ask the court to remove a trustee, and the court may remove one on its own initiative, for any of the reasons stated in N.J.S.A. 3B:14-21; pending a final decision, or in lieu of or in addition to removal, the court may order the relief necessary to protect the trust property or the interests of the beneficiaries.
N.J.S.A. 3B:31-52 ↗ Delivery of property by former trustee: Unless a co-trustee remains in office or the court orders otherwise, a trustee who has resigned or been removed keeps the duties of a trustee and the powers necessary to protect the trust property until it is delivered to a successor trustee or other person entitled to it, and proceeds expeditiously to deliver the property within the trustee's possession to the co-trustee, the successor or that person; a resigning trustee may retain a reasonable reserve for the costs of finalizing the administration.
N.J.S.A. 3B:31-53 ↗ Reimbursement of expenses: In addition to the compensation N.J.S.A. 3B:18-2 et seq. allows, a trustee is entitled to reimbursement from the trust property for expenses properly incurred in the administration and, to the extent necessary to prevent unjust enrichment of the trust, for expenses not properly incurred; an advance by the trustee of money or other property for the protection of the trust gives rise to a lien against the trust property to secure reimbursement.

Article 7: Duties and Powers of Trustee

N.J.S.A. 3B:31-54 ↗ Duty to administer trust: On accepting a trusteeship, the trustee administers the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with the act and other applicable law.
N.J.S.A. 3B:31-55 ↗ Duty of loyalty: The trustee administers the trust with undivided loyalty to, and solely in the best interests of, the beneficiaries. Subject to the rights of persons dealing with or assisting the trustee under N.J.S.A. 3B:14-37, a sale, encumbrance or other transaction involving the investment or management of trust property entered into for the trustee's own account, or otherwise affected by a conflict between the trustee's fiduciary and personal interests, is voidable by an affected beneficiary unless the terms authorized it, the court approved it, the beneficiary did not commence a proceeding within the time N.J.S.A. 3B:31-74 allows, the beneficiary consented, ratified or released under N.J.S.A. 3B:31-78, or it involves a contract or claim the trustee acquired before becoming trustee. A transaction is presumed conflicted if entered into with the trustee's spouse or partner in a civil union, the trustee's parents or their descendants or those persons' spouses or partners, the trustee's agent, accountant or attorney, or an enterprise in which the trustee or a significant owner of the trustee has an interest that might affect the trustee's judgment. A transaction with a beneficiary not concerning trust property, during the trust or while the trustee retains significant influence, from which the trustee gains an advantage attributable to the trust, is voidable if the beneficiary shows it was unfair; a transaction in the trustee's individual capacity concerning an opportunity properly belonging to the trust involves a conflict. In voting shares or exercising control over other enterprises the trustee acts in the beneficiaries' best interests. The section does not preclude, if fair to the beneficiaries, an agreement with a beneficiary on the trustee's appointment or compensation, payment of reasonable compensation, a transaction with another trust, estate, guardianship, conservatorship or fiduciary relationship of which the trustee is a fiduciary or in which a beneficiary has an interest, a deposit of trust money in a regulated financial-service institution operated by or affiliated with the trustee, or the trustee's advance of money for the protection of the trust; the court may appoint a special fiduciary to decide a proposed transaction that might violate the section.
N.J.S.A. 3B:31-56 ↗ Duty of impartiality: If a trust has two or more beneficiaries, the trustee acts impartially in investing, managing and distributing the trust property, giving due regard to the beneficiaries' respective interests.
N.J.S.A. 3B:31-57 ↗ Duty of prudent administration: The trustee administers the trust as a prudent person would, considering the purposes, terms, distributional requirements and other circumstances of the trust, and in doing so exercises reasonable care, skill and caution.
N.J.S.A. 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.
N.J.S.A. 3B:31-59 ↗ Duty to use special skills: A trustee who has special skills or expertise, or is named trustee in reliance on the trustee's representation of having them, has a duty to use those skills or expertise.
N.J.S.A. 3B:31-60 ↗ Delegation by trustee: A trustee may delegate ministerial, administrative and management duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances, exercising reasonable care, skill and caution in selecting the agent, establishing in writing the scope and terms of the delegation consistent with the purposes and terms of the trust, and periodically reviewing the agent's actions to monitor performance and compliance with the delegation's terms. The trustee provides reasonable written notice to the qualified beneficiaries on each occasion on which the trustee delegates duties under the section, including the identity of the agent; a trustee who complies with those requirements is not liable to the beneficiaries or the trust for the agent's action. The agent owes the trustee and the beneficiaries the same duties as the fiduciary and is held to the same standards, and by accepting a delegation from the trustee of a trust subject to New Jersey law submits to the jurisdiction of the State's courts, even if the delegation agreement provides otherwise.
N.J.S.A. 3B:31-61 ↗ Powers to direct: While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust. If the terms confer on a person other than the settlor of a revocable trust the power to direct certain actions of the trustee, the trustee acts in accordance with a written exercise of the power unless the attempted exercise is contrary to the terms or the trustee knows it would be a breach of a fiduciary duty the holder owes the beneficiaries; the terms may confer on a trustee or other person a power to direct the modification or termination of the trust; and a holder of a power to direct who is not a beneficiary must act in good faith with regard to the purposes of the trust and the interests of the beneficiaries, and is liable for any loss resulting from a failure to do so.
N.J.S.A. 3B:31-62 ↗ Powers to direct investment functions: Persons given authority by a governing instrument to direct, consent to or disapprove a fiduciary's actual or proposed investment decisions are investment advisers and fiduciaries when exercising that authority unless the instrument provides otherwise. A fiduciary directed to follow an investment adviser who acts in accordance with the direction is not liable for any resulting loss except for the fiduciary's own willful misconduct or gross negligence, nor, where the instrument requires the adviser's consent, for a loss from an act taken or omitted because the adviser failed to consent after being asked. An investment decision is the retention, purchase, sale, exchange, tender or other transaction affecting an investment's ownership or rights, and for nonpublicly traded investments their valuation. Except as the instrument provides, a directed fiduciary has no duty to monitor the adviser, to advise or consult with the adviser, or to communicate with, warn or apprise a beneficiary or third party of instances in which the fiduciary would or might have exercised its own discretion differently; absent clear and convincing evidence to the contrary, the fiduciary's actions within the adviser's authority, such as confirming that directions were carried out and recording and reporting them, are presumed administrative and are not an undertaking to monitor or participate.
N.J.S.A. 3B:31-63 ↗ Control and protection of trust property: The trustee takes reasonable steps to take control of and protect the trust property.
N.J.S.A. 3B:31-64 ↗ Recordkeeping and identification of trust property: The trustee keeps adequate records of the administration of the trust and keeps the trust property separate from the trustee's own property; except where the trustee maintains records clearly indicating the respective interests and invests the trust property as a whole with other fiduciary accounts the trustee maintains, the trustee causes the trust property to be designated so that the trust's interest, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary.
N.J.S.A. 3B:31-65 ↗ Duty to enforce and defend claims: The trustee takes reasonable steps to enforce claims of the trust and to defend claims against the trust.
N.J.S.A. 3B:31-66 ↗ Duty to collect trust property and redress breaches of trust: The trustee takes reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to redress a breach of trust known to the trustee to have been committed by a former trustee.
N.J.S.A. 3B:31-67 ↗ Duty to disclose and discretion to periodically report: The trustee keeps the qualified beneficiaries reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests, and, unless unreasonable under the circumstances, promptly responds to a beneficiary's request for information related to the administration; on a beneficiary's request the trustee promptly furnishes a copy of the trust instrument. A trustee seeking the protection of N.J.S.A. 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 (the section's heading: a discretion to periodically report).
N.J.S.A. 3B:31-68 ↗ Discretionary powers: Notwithstanding the breadth of discretion the terms grant, including words such as "absolute," "sole" or "uncontrolled," the trustee exercises a discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.
N.J.S.A. 3B:31-69 ↗ General powers of trustee: Except as N.J.S.A. 3B:11-4.1 and other express statutory restrictions limit, a trustee may, without court authorization, exercise the powers the terms of the trust confer and, except as the terms limit, all powers over the trust property that an unmarried competent owner has over individually owned property, any other powers appropriate to achieve the proper investment, management and distribution of the trust property, and any other powers conferred by the act and by Title 3B; the exercise of a power is subject to the fiduciary duties the act and Title 3B prescribe.
N.J.S.A. 3B:31-70 ↗ Distribution upon termination: On an event terminating or partially terminating a trust, the trustee proceeds expeditiously to distribute the trust property to the persons entitled to it, subject to the right to retain a reasonable reserve for the payment of debts, expenses and taxes. The trustee may mail or deliver a proposal for distribution to all persons with a right to object, notifying them of that right and that an objection must be in writing and received by the trustee within 30 days after the mailing or delivery; a person's right to object on the basis of the kind or value of the asset that person or another beneficiary is to receive, if not waived earlier in writing, terminates if no written objection is received within those 30 days.

Article 8: Liability of Trustees and Rights of Persons Dealing with Trustee

N.J.S.A. 3B:31-71 ↗ Remedies for breach of trust: A trustee's violation of a duty owed to a beneficiary is a breach of trust. To remedy a breach that has occurred or may occur, the court may compel the trustee to perform the trustee's duties, enjoin a breach, compel redress by paying money, restoring property or other means, order an account, appoint a special fiduciary to take possession of the trust property and administer the trust, suspend the trustee, remove the trustee under N.J.S.A. 3B:31-51, reduce or deny compensation, subject to N.J.S.A. 3B:14-37 void an act of the trustee, impose a lien or a constructive trust on trust property or trace property wrongfully disposed of and recover it or its proceeds, or order any other appropriate relief.
N.J.S.A. 3B:31-72 ↗ Damages for breach of trust: A trustee who commits a breach of trust is liable to the affected beneficiaries for the greater of 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 the profit the trustee made by reason of the breach. Where more than one trustee is liable, a trustee is entitled to contribution from the others based on the comparative degree of culpability, except that 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 may not seek contribution from a trustee not guilty of such conduct, and a trustee who received a benefit from the breach may not seek contribution to the extent of the benefit.
N.J.S.A. 3B:31-73 ↗ Damages in absence of breach: The trustee is accountable to an affected beneficiary for any profit arising from the administration of the trust, even absent a breach, except where the trustee's interest in the transaction was fully disclosed to the beneficiary and consent was freely given; absent a breach of trust, the trustee is not liable for a loss or depreciation in the value of the trust property or for not having made a profit.
N.J.S.A. 3B:31-74 ↗ Limitation of action against trustee: A beneficiary may not commence a proceeding against a trustee for breach of trust more than six months after the date the beneficiary, or the beneficiary's representative, was sent a report that adequately disclosed the existence of a potential claim and informed the beneficiary of the time allowed for commencing a proceeding; a report adequately discloses a potential claim if it provides sufficient information that the beneficiary or representative knows of the claim or should have inquired into its existence. Where that rule does not apply, the proceeding may be commenced only within five years after the first of the trustee's removal, resignation or death, the termination of the beneficiary's interest, or the termination of the trust — never, though, before five years after the beneficiary has attained majority, knows the trust exists and knows that the beneficiary is or was a beneficiary. A beneficiary is deemed sent a report if it is sent to a beneficiary having capacity or received by the representative of one who may be represented under article 2; the section does not preclude an action to recover for fraud or misrepresentation related to the report.
N.J.S.A. 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 reliance.
N.J.S.A. 3B:31-76 ↗ Event affecting administration or distribution: If the happening of an event, including marriage, divorce, the performance of educational requirements or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the trustee's lack of knowledge.
N.J.S.A. 3B:31-77 ↗ Exculpation of trustee: A term relieving a trustee of liability for breach of trust is unenforceable to the extent it relieves the trustee of liability for a breach committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries, or was inserted as the result of the trustee's abuse of a fiduciary or confidential relationship to the settlor; an exculpatory term drafted or caused to be drafted by the trustee is invalid as such an abuse unless the trustee proves it is fair under the circumstances and that its existence and contents were adequately communicated to the settlor.
N.J.S.A. 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, 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, at the time, the beneficiary did not know of the beneficiary's rights or of the material facts relating to the breach.
N.J.S.A. 3B:31-79 ↗ Limitation on personal liability of trustee: Except as the contract provides otherwise, a trustee is not personally liable on a contract properly entered into in a fiduciary capacity in the course of administering the trust if the trustee disclosed the fiduciary capacity in the contract, and is personally liable for torts committed in the course of administering the trust, or for obligations arising from ownership or control of trust property, including violations of environmental law, only if personally at fault; a claim on such a contract, obligation or tort may be asserted in a judicial proceeding against the trustee in the fiduciary capacity whether or not the trustee is personally liable.
N.J.S.A. 3B:31-80 ↗ Interest as general partner: Unless the contract imposes personal liability, a trustee holding an interest as a general partner in a general or limited partnership is not personally liable on a contract the partnership enters after the trust acquired the interest if the fiduciary capacity was disclosed in the contract or in a statement previously filed under the Uniform Partnership Act (1996) or the Uniform Limited Partnership Law (1976), and is not personally liable for the partnership's torts or for obligations arising from ownership or control of the interest unless personally at fault. The immunity does not apply where an interest in the partnership is held by the trustee in another capacity or by the trustee's spouse or partner in a civil union, descendants, siblings or parents or their spouses or partners; if the trustee of a revocable trust holds an interest as a general partner, the settlor is personally liable for the partnership's contracts and other obligations as if a general partner.
N.J.S.A. 3B:31-81 ↗ Certification of trust: Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish a certification of trust stating that the trust exists and the date the instrument was executed, the identity of the settlor, the identity and address of the currently acting trustee, the powers of the trustee, the revocability or irrevocability of the trust and the identity of any person holding a power to revoke, the authority of co-trustees to sign and whether all or fewer than all are required to exercise the trustee's powers, and the name in which title to trust property may be taken. The certification is signed by all persons identified as currently acting as trustee, states that the trust has not been revoked, modified or amended in any manner that would make its representations incorrect, and need not contain the dispositive terms; the recipient may require copies of the excerpts of the instrument and later amendments that designate the trustee and confer the power to act in the pending transaction. A person who acts in reliance on a certification without knowledge that its representations are incorrect is not liable for so acting and may assume the facts it states without inquiry, and knowledge of the terms is not inferred solely from holding a copy of all or part of the instrument; a person who demands the trust instrument in addition to the certification or excerpts is liable for damages if the court determines the demand was not in good faith; the section does not limit the right to obtain a copy of the instrument in a judicial proceeding concerning the trust.

Article 9: Miscellaneous Provisions

N.J.S.A. 3B:31-82 ↗ Electronic records and signatures: The act's provisions governing the legal effect, validity or enforceability of electronic records or electronic signatures, and of contracts formed or performed with them, conform to section 102 of the federal Electronic Signatures in Global and National Commerce Act (15 U.S.C. s.7002) and supersede, modify and limit that act's requirements.
N.J.S.A. 3B:31-83 ↗ Severability clause: If any provision of the act, or its application to any person or circumstances, is held invalid, the invalidity does not affect the other provisions or applications that can be given effect without it; the act's provisions are severable.
N.J.S.A. 3B:31-84 ↗ Application to existing relationships: Except as the act provides otherwise, it applies to all trusts created before, on or after its effective date and to all judicial proceedings concerning trusts commenced on or after it; it applies to proceedings commenced before the effective date unless the court finds that applying a particular provision would substantially interfere with the effective conduct of the proceedings or prejudice the rights of the parties, in which case the superseded law applies; its rules of construction and presumptions apply to instruments executed before the effective date unless the terms clearly indicate a contrary intent; an act done before the effective date is not affected; and a right acquired, extinguished or barred on the expiration of a period that began to run under another statute before the effective date remains governed by that statute, even if repealed or superseded.

Prudent Investor Act: New Jersey Prudent Investor Act (N.J.S.A. 3B:20-11.1 et seq.)

N.J.S.A. 3B:20-11.1 ↗ Short title: Sections 1 through 12 of the 1997 act are known, and may be cited, as the "Prudent Investor Act."
N.J.S.A. 3B:20-11.2 ↗ Compliance by fiduciary with prudent investor rule: A fiduciary who invests and manages trust assets owes the beneficiaries a duty to comply with the prudent investor rule as the act sets it out. The rule is a default rule that express provisions of the trust instrument may expand, restrict, eliminate or otherwise alter, and a fiduciary is not liable to a beneficiary to the extent the fiduciary acted in reasonable reliance on those provisions; the Superior Court keeps its jurisdiction to order or authorize a deviation from the instrument's express terms for the causes, in the manner and to the extent the law otherwise provides.
N.J.S.A. 3B:20-11.3 ↗ Investments, management of trust assets by fiduciary: A fiduciary invests and manages trust assets as a prudent investor would, considering the purposes, terms, distribution requirements and other circumstances of the trust, and exercises reasonable care, skill and caution. Decisions on individual assets are evaluated not in isolation but in the context of the portfolio as a whole and as part of an overall strategy with risk and return objectives reasonably suited to the trust; a fiduciary may invest in any kind of property or type of investment, none being inherently imprudent. The circumstances to consider, as relevant, are general economic conditions; the possible effect of inflation or deflation; the expected tax consequences; the role each investment plays in the portfolio; the expected total return from income and appreciation; the beneficiaries' other resources; the need for liquidity, regularity of income and preservation or appreciation of capital; and an asset's special relationship or value to the trust's purposes or a beneficiary. The fiduciary takes reasonable steps to verify relevant facts and may rely on published statistical, financial, corporate or rating information accepted as reliable by investors, or on a prospectus filed with the Securities and Exchange Commission; a fiduciary with special skills or expertise, or named in reliance on representations of them, has a duty to use them.
N.J.S.A. 3B:20-11.4 ↗ Diversification of investments: A fiduciary diversifies the investments of the trust unless the fiduciary reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying.
N.J.S.A. 3B:20-11.5 ↗ Assets to be managed in interest of beneficiaries: A fiduciary invests and manages the trust assets solely in the interest of the beneficiaries.
N.J.S.A. 3B:20-11.6 ↗ Impartiality of fiduciary: If a trust has two or more beneficiaries, the fiduciary acts impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.
N.J.S.A. 3B:20-11.7 ↗ Review of trust assets: Within six months after accepting trust assets, the fiduciary reviews them and makes and implements decisions concerning the retention and disposition of the assets received at the inception of the trust, in order to bring the portfolio into compliance with the provisions of the trust instrument or the requirements of the act.
N.J.S.A. 3B:20-11.8 ↗ Incurrence of costs by fiduciary: In investing and managing trust assets, a fiduciary may incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the trust and the skills of the fiduciary; a fiduciary who delegates investment and management functions under N.J.S.A. 3B:20-11.10 controls the overall costs of the delegation, including a reduction in the corpus commissions otherwise allowable on the assets whose investment responsibility was delegated, taking account of the duties the fiduciary retains.
N.J.S.A. 3B:20-11.9 ↗ Rule expresses standard of conduct: The prudent investor rule expresses a standard of conduct, not outcome; compliance is determined in light of the facts and circumstances existing at the time of the fiduciary's decision or action.
N.J.S.A. 3B:20-11.10 ↗ Delegation of investment, management functions by fiduciary: A fiduciary may delegate investment and management functions that a prudent fiduciary of comparable skills could properly delegate under the circumstances, exercising reasonable care, skill and caution in selecting an agent with special investment skills and expertise and of sound financial standing, establishing the scope and terms of the delegation consistent with the purpose and terms of the instrument, and periodically reviewing the agent's actions. The agent owes the trustee and the beneficiaries the same duties and standards as the fiduciary and, by accepting a delegation from the fiduciary of a trust subject to New Jersey law, submits to the jurisdiction of New Jersey's courts; a fiduciary who complies is not liable for the agent's decisions or actions. Where two or more fiduciaries serve and only one has special investment skills, the others may delegate to that fiduciary as if to an agent under the section. The fiduciary gives reasonable advance written notice on each occasion on which the fiduciary intends to delegate, including the identity of the agent, to the beneficiaries eligible to receive income on the date of the intended delegation, and on giving it is authorized to delegate.
N.J.S.A. 3B:20-11.11 ↗ Construction of terms: Terms such as "investments permissible by law for investment of trust funds," "legal investment," "authorized investments," the prudent-man formulation, "prudent man rule," "prudent trustee rule," "prudent person rule" and "prudent investor rule," or comparable language in a trust instrument, are construed, unless the instrument limits or modifies them, as authorizing any investment or strategy the act permits.
N.J.S.A. 3B:20-11.12 ↗ Applicability of act: The act applies to and governs trusts existing on and created after its effective date; as applied to trusts existing on that date, it governs only actions or omissions occurring after it.

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