Reforming, Amending, Decanting and Administering Special Needs Trusts Under New Jersey's ...

53 Pages·2016·2.76 MB·English

Reforming, Amending,

Decanting and Administering

Special Needs Trusts Under

New Jersey’s New Trust Code

Regina M. Spiegelberg, Esq
Schenck Price Smith & King, LLP, Florham Park
Shirley B. Whitenack, Esq.
Schenck Price Smith & King, LLP, Florham Park

WEST002316
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The material contained in these pages is for educational purposes only and not intended as a substitute for
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research.
Regina M. Spielberg, Esq.
Shirley B. Whitenack, Esq.
Schenck, Price, Smith & King, LLP
The Uniform Trust Code (UTC) is a model

which codifies the law on trusts.
New Jersey joined 30 other states thus far

and the District of Columbia in enacting the
UTC.
Schenck, Price, Smith & King, LLP
The UTC is codified at N.J.S.A. 3B:31-84, et

seq.
Schenck, Price, Smith & King, LLP
New Jersey’s UTC became effective on July 17,

2016.
It applies to new and existing trusts

It applies to “all judicial proceedings

concerning trusts commenced on or after”
July 17, 2016.
N.J.S.A. 3B:31-84
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It applies to express charitable or

noncharitable trusts, and 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:31-2
Schenck, Price, Smith & King, LLP
The UTC also applies to judicial proceedings

concerning trusts commenced before July 16,
2016 “unless the court finds that application of a
particular provision of this act would
substantially interfere with the effective conduct
of the judicial proceedings or prejudice the rights
of the parties, in which case the particular
provision of this act does not apply and the
superseded law applies.”
Schenck, Price, Smith & King, LLP
The UTC does not affect acts taken prior to

July 16, 2016.
N.J.S.A. 3B:31-84
Schenck, Price, Smith & King, LLP
The trust instrument terms
govern except for:
Requirements to create a trust;

Duty of trustee to act in good faith;

Trust must be for the benefit of its

beneficiaries;
Trust must be for a lawful purpose

that is not contrary to public policy;