For example, if the trustee is dealing with the beneficiary on the trustee’s own account, the trustee must communicate material facts relating to the transaction that the trustee knows or should know.
However, special circumstances may require that the trustee take affirmative steps to provide additional information. Otherwise, the trustee is not ordinarily under a duty to furnish information to a beneficiary in the absence of a specific request for the information. With respect to the permissible distributees, the duty articulated in subsection (a) would ordinarily be satisfied by providing the beneficiary with a copy of the annual report mandated by subsection (c). This may include a duty to communicate to qualified beneficiary information about the administration of the trust that is reasonably necessary to enable the beneficiary to enforce the beneficiary’s rights and to prevent or redress a breach of trust. The comments are instructive as to the scope of “material facts”:
#Duty to inform code
The comments to the Model Uniform Trust Code explain that section (a) above limits the duty to inform to qualified beneficiaries, so that trustees do not have to furnish trust information to beneficiaries with remote remainder interests, unless those beneficiaries make a request. New Jersey has no such analogues requirements. Those sections on notification lay out specific instances in which trustees must notify beneficiaries, within a certain period, of their interest in a trust. See Uniform Trust Code Section 813 and 20 Pa C.S. Pennsylvania, unlike New Jersey, also adopted the Model Uniform Trust Code sections on notification to a beneficiary of her interest in a trust. Section (a) of the New Jersey Uniform Trust Code above - dealing with the general duty to disclose and report - is nearly identical to the Model Uniform Trust Code section (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. A trustee seeking the protection of N.J.S. A trustee, upon request of a beneficiary, shall promptly furnish to the beneficiary a copy of the trust instrument.Ĭ. Unless unreasonable under the circumstances, a trustee shall promptly respond to a beneficiary’s request for information related to the administration of a trust.ī. A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests. §3B:31-67 (Duty to Disclose and Discretion to Periodically Report) states as follows:Ī. Most notably, the New Jersey Uniform Trust Code does not have the same requirements to notify beneficiaries of their interest in a trust. §§7701- 7799.3) is substantially different from the New Jersey Uniform Trust Code (N.J.S.A.
Posted in Original Pieces: Recent Publications From Our Litigators | By Melissa Osorio Dibble Comparison of New Jersey and Pennsylvania: A Trustee’s Duty to Report and InformĪ trustee’s duty to inform and report as delineated in the Pennsylvania Uniform Trust Act (20 Pa.
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