You are not asking for anything unreasonable. You just want to know what is happening with a trust that directly affects your future, and the person in charge will not give you a straight answer. That kind of frustration is more common than you might think, and New Jersey law actually addresses it. Under the state’s Uniform Trust Code, trustees have a legal duty to keep qualified beneficiaries informed about the administration of a trust and to respond to requests for documents. A Morris County estate planning attorney at E.A. Goodman Law, LLC can help you understand your options when a trustee refuses to communicate.
What Does New Jersey Law Require Trustees to Disclose?
New Jersey adopted its version of the Uniform Trust Code (UTC) in 2016, and it applies to all trusts in the state, including those created before the law took effect. The UTC was added as Chapter 31 of Title 3B to the New Jersey Statutes, and it spells out what trustees owe to the people who benefit from the trust.
Under N.J.S.A. 3B:31-67, a trustee must keep qualified beneficiaries “reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests.” Unless unreasonable under the circumstances, a trustee must also promptly respond to a beneficiary’s request for information related to the administration of the trust. On top of that, a trustee, upon request of a beneficiary, must promptly furnish the beneficiary with a copy of the trust instrument.
In practical terms, this means that if you are a qualified beneficiary and you ask the trustee for a copy of the trust document or for details about trust income, expenses, and distributions, the trustee is legally obligated to respond. Ignoring those requests is not a matter of personal preference. It is a potential breach of fiduciary duty.
Who Counts as a “Qualified Beneficiary” in New Jersey?
Not every person connected to a trust has the same level of access to information. New Jersey law draws a distinction between beneficiaries generally and “qualified beneficiaries,” and this distinction matters when it comes to disclosure.
A qualified beneficiary is defined as a beneficiary who is then a permissible distributee of trust income or principal, would be a distributee if those interests terminated on that date, or would be such a distributee if the trust terminated on the date being evaluated. In simpler terms, this typically includes current beneficiaries receiving or eligible to receive distributions, as well as the people next in line (sometimes called presumptive remaindermen). If a trustee is required to give notice to a qualified beneficiary, the trustee must also give notice to any other beneficiary who has sent a request for notice.
There is one additional detail that surprises many families. The terms of a trust may attempt to limit a trustee’s disclosure obligations. The trustee’s duty to respond to requests cannot be eliminated by trust terms for qualified beneficiaries of irrevocable trusts who are at least 35 years old.
What Information Can a Trustee Reasonably Withhold?
While New Jersey law strongly favors transparency, there are a few situations where a trustee’s obligation to share information may be more limited. Understanding these exceptions can help you evaluate whether a trustee’s silence is legally defensible or genuinely problematic.
The duty to keep beneficiaries informed does not apply to revocable trusts while the settlor is still alive. 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. So if the person who created the trust is still living and the trust can still be changed, the trustee’s disclosure duties run to the creator, not to you.
Additionally, the law provides that the terms of a trust may override the duty to make affirmative disclosures regarding the existence of the trust or its administration. This means a settlor can draft the trust so that the trustee does not have to proactively reach out with updates. However, this is different from actively refusing to respond to a beneficiary who asks. As noted above, the trustee’s duty to respond to a qualified beneficiary who is at least 35 years old and requests trust records cannot be eliminated by the trust terms.
A trustee may also have limited justification for withholding specific information in narrow circumstances, such as when disclosure could harm the interests of beneficiaries as a whole or when another law prohibits it. These situations are uncommon and fact-specific, and a trustee who claims one of these exceptions should be prepared to explain the reasoning.
What Can You Do if a Trustee Refuses to Communicate?
If you have made reasonable requests for trust information and the trustee has ignored them, delayed indefinitely, or outright refused to respond, you are not without options. Here are some practical steps to consider:
- Put your request in writing. A written letter or email creates a clear record that you made the request and gives the trustee a reasonable deadline to respond.
- Identify yourself as a qualified beneficiary. Make clear that you meet the statutory definition and, if applicable, that you are at least 35 years old, so the trustee understands the mandatory nature of the obligation.
- Request specific documents. Ask for the trust instrument, an accounting of trust assets and liabilities, a record of distributions, and details about trustee compensation.
A trustee seeking certain protections under the law may provide beneficiaries with a report of trust property, liabilities, receipts, and disbursements, including the source and amount of the trustee’s compensation and a listing of trust assets with their respective market values. If the trustee continues to refuse, an experienced trust administration attorney can send a formal demand and, if necessary, petition the court to compel disclosure or remove the trustee.
A trustee’s refusal to share information is not just an inconvenience. It can affect your ability to monitor trust management and protect your financial interests. Under New Jersey law, a beneficiary may not commence a proceeding against a trustee for breach of trust more than six months after receiving a report that adequately disclosed a potential claim.
If no adequate report is provided, the time limit extends to five years after the trustee’s removal, resignation, or death, or the termination of the beneficiary’s interest or the trust itself. In other words, when a trustee withholds information, it can obscure potential problems and affect how long you have to take legal action.
Protect Your Rights as a Trust Beneficiary in Morris County
If a trustee is refusing to share trust documents, ignoring your requests, or leaving you in the dark about how trust assets are being managed, you do not have to accept that silence. The attorneys at E.A. Goodman Law, LLC have decades of experience helping New Jersey beneficiaries understand and enforce their rights under the Uniform Trust Code. Contact our office today to schedule a consultation and take the first step toward getting the answers you deserve.
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