New Jersey Law Journal, Volume 222
This is the fourth in a series of articles that explores New Jersey's version of the Uniform Trust Code, which will take effect on July 17. p.L. 2015, c. 276, section 4.
This segment addresses the major new developments in the Trust Code, including the directed trust provisions (akin to an oft-touted advantage of Delaware trusts), modification and termination provisions and "nonjudicial settlement agreements."
As noted in prior segments, the Trust Code is derived from the model Uniform Trust Code (UTC) promulgated by the National Conference of Commissioners on Uniform State Laws (NCCUSL) in 2000 (also known as the Uniform Law Commission). The NCCUSL website contains the model UTC with extensive commentary (the "NCCUSL Comments" ).http://www.uniformlaws.org/shared/docs/trust_code/utc_final_rev2010.pdf. The new Trust Code has been engrafted upon our existing Probate Code, which is codified in Title 3B of the New Jersey Statutes. The Trust Code is codified as N.J.S.A. 3B:31-1 et seq.
The Trust Code generally contemplates that the terms of a trust prevail over its provisions. See N.J.S.A. 3B:31-5(a). The terms of the trust, however, do not prevail over certain mandatory requirements set forth in N.J.S.A. 3B:31-5(b) (1) to (11).