Trustee Resignation
(NJ)

Summary

This template may be used by a trustee of either an irrevocable or revocable trust to provide notice to interested parties of his or her intention to resign. It is for use in New Jersey. This template includes practical guidance, drafting notes, and alternate and optional clauses. Under N.J. Stat. Ann. § 3B:31-50, unless the trust terms provide otherwise, a trustee may resign (1) upon at least 30 days' written notice to all interested parties (i.e., the grantor, co-trustees, qualified beneficiaries, and successor trustees), or (2) with court approval. N.J. Stat. Ann. §§ 3B:31-5, 3B:31-50. The resigning trustee has a duty to protect trust property until it is turned over to a co-trustee or successor trustee. N.J. Stat. Ann. § 3B:31-52(a). Resignation does not relieve the trustee from liability for his or her actions taken while administering the trust. N.J. Stat. Ann. § 3B:31-50(c). For this reason, if court approval is not sought, it may be advisable for the resigning trustee to prepare an accounting and release to be approved by the trust beneficiaries. For a full listing of key content on creating an estate plan for an individual with a spouse or partner residing in New Jersey, see Estate Plan for Individual with Spouse or Partner Resource Kit (NJ). For a template trustee acceptance, see Trusteeship Acceptance (NJ) more information about trusts, see Characteristics and Uses of Trusts (NJ) and Revocation, Amendment, and Termination of Trusts (NJ).