N.J. Stat. tit. 3B, ch. 18

in effect

N.J. Stat. § 3B:18-2 Commissions of nontestamentary trustee

On the settlement of the account of a nontestamentary trustee, as defined in N.J.S. 3B:17-9, the court shall allow him the compensation as may have been agreed upon by the instrument creating the trust; and in the absence of any express provision concerning compensation, shall allow him commissions in accordance with this chapter. L.1981, c. 405, s. 3B:18-2, eff. May 1, 1982.

N.J. Stat. § 3B:18-3 Provision in will for specific compensation

Where provision is made in a will for specific compensation to a fiduciary, the compensation shall be deemed full payment for services in lieu of commissions provided by this chapter, unless the fiduciary shall in writing filed with the surrogate or clerk of the Superior Court renounce the specific compensation. L.1981, c. 405, s. 3B:18-3, eff. May 1, 1982.

N.J. Stat. § 3B:18-4 Disputes between fiduciaries as to apportionment

When a difference arises between fiduciaries concerning the apportionment of commissions between them, the Superior Court shall determine the apportionment of commissions, having regard to their respective services. L.1981, c. 405, s. 3B:18-4, eff. May 1, 1982.

N.J. Stat. § 3B:18-5 Fiduciary removed from office; forfeiture of commissions

Where a fiduciary is removed for any cause, the Superior Court may direct that his commissions be forfeited. L.1981, c. 405, s. 3B:18-5, eff. May 1, 1982.

N.J. Stat. § 3B:18-6 Legal fees for attorney also serving as fiduciary

If the fiduciary is a duly licensed attorney of this State and shall have performed professional services in addition to his fiduciary duties, the court shall, in addition to the commissions provided by this chapter, allow him a just counsel fee. If more than one fiduciary shall have performed the professional services, the court shall apportion the fee among them according to the services rendered by them respectively. L.1981, c. 405, s. 3B:18-6, eff. May 1, 1982.

N.J. Stat. § 3B:18-7 Annual statement relating to corpus commissions taken

A trustee under a will or a guardian shall, within 60 days after the end of each tax year of the trust or guardianship furnish to each beneficiary currently receiving income, and to any other beneficiary interested in the income and to any person interested in the principal of the trust or guardianship who shall make a demand therefor, a statement showing any corpus commissions taken during the tax year and the basis upon which those commissions were computed, including the inventory value and value as of the date the commissions were computed. L.1981, c. 405, s. 3B:18-7, eff. May 1, 1982.

N.J. Stat. § 3B:18-8 Definitions

As used in this article: a. "Fiduciary" means executor, administrator with the will annexed, substituted administrator with the will annexed, administrator, substituted administrator, or trustee or substituted trustee under a will of a decedent; b. "Property" means any property, real or personal, tangible or intangible, or any interest or estate therein, which does not come into the hands of a fiduciary as part of a decedent's estate, and which, by operation of law or otherwise, has been received or is receivable by anyone other than the fiduciary, and which a taxing authority attempts to tax or does tax, as a decedent's taxable estate, or as part of a decedent's taxable estate, for the purposes of Federal estate tax, New Jersey estate tax, other state or foreign estate taxes, or New Jersey or other state or foreign transfer inheritance, legacy or succession taxes. L.1981, c. 405, s. 3B:18-8, eff. May 1, 1982.

N.J. Stat. § 3B:18-9 Additional compensation

The court upon the settlement and allowance of a fiduciary's accounts, in addition to the compensation as may otherwise be allowable, may allow reasonable compensation to the fiduciary for services required by law to be rendered by the fiduciary in connection with or arising out of any property as defined in N.J.S. 3B:18-8, including, but not by way of limitation, services rendered in connection with apportionment of any taxes specified in N.J.S. 3B:18-8 between a decedent's estate and the recipient of the property, or between the decedent's estate and the property, and in collecting or attempting to collect, the apportionment of the taxes applicable to the property. L.1981, c. 405, s. 3B:18-9, eff. May 1, 1982.

N.J. Stat. § 3B:18-10 Notice to recipient of property

The court shall prescribe the notice to be given to the recipient of the property of the fiduciary's application for additional compensation. L.1981, c. 405, s. 3B:18-10, eff. May 1, 1982.

N.J. Stat. § 3B:18-11 Manner of payment of additional compensation

The additional compensation of the fiduciary shall be payable by the recipient of the property if the recipient is within the jurisdiction of the court, or if the recipient is not within the jurisdiction of the court, shall be payable out of the property, if the property is within the jurisdiction of the court. If the recipient of the property is not within the jurisdiction of the court and if the property is not within the jurisdiction of the court, or if the fiduciary does not succeed in collecting the additional fiduciary's compensation from the recipient of the property or out of the property, the court may order the fiduciary's additional compensation to be paid out of the corpus of the decedent's estate which comes into the hands of the fiduciary. L.1981, c. 405, s. 3B:18-11, eff. May 1, 1982.

N.J. Stat. § 3B:18-12 Definition of fiduciary

As used in this article "fiduciary" means personal representative and fiduciaries appointed under chapter 26 of this title for absentees. L.1981, c. 405, s. 3B:18-12, eff. May 1, 1982.

N.J. Stat. § 3B:18-13 Income commissions

Commissions in the amount of 6% may be taken without court allowance on all income received by the fiduciary. For the purposes of this section, income which is withheld from payment to a fiduciary or fiduciaries pursuant to any law of this State, or of the United States, or any other state, country or sovereignty, or of any political subdivision or governmental unit of any of the foregoing, requiring the withholding for income tax or other tax purposes, shall be deemed to be income received by the fiduciary, and shall be subject to income commissions as provided in this section in the same manner as if actually received by the fiduciary. L.1981, c. 405, s. 3B:18-13, eff. May 1, 1982.

N.J. Stat. § 3B:18-14 Corpus commissions.

3B:18-14. Corpus commissions. Commissions on all corpus received by the fiduciary may be taken as follows: 5% on the first $200,000 of all corpus received by the fiduciary; 3.5% on the excess over $200,000 up to $1,000,000; 2% on the excess over $1,000,000; and 1% of all corpus for each additional fiduciary provided that no one fiduciary shall be entitled to any greater commission than that which would be allowed if there were but one fiduciary involved. Such commissions may be reduced by the court having jurisdiction over the estate only upon application by a beneficiary adversely affected upon an affirmative showing that the services rendered were materially deficient or that the actual pains, trouble and risk of the fiduciary in settling the estate were substantially less than generally required for estates of comparable size. Amended 1983, c.394, s.1; 2000, c.29, s.1.

N.J. Stat. § 3B:18-16 Corpus commissions; unusual or extraordinary services

The court may, on an intermediate or the final settlement of the fiduciary's accounts, allow corpus commissions in addition to those hereinabove provided, on a showing that unusual or extraordinary services have been rendered by the fiduciary for which the fiduciary should receive extra compensation. L.1981, c. 405, s. 3B:18-16, eff. May 1, 1982.

N.J. Stat. § 3B:18-17 Taking annual amounts on account of corpus commissions

Fiduciaries may annually, without court allowance, take sums as follows on account of corpus commissions: if there is but one fiduciary, the amount so taken may equal one-fifth of 1% of the value of the corpus and, if there are two or more fiduciaries, the amount so taken may equal the commissions which may be taken pursuant to this section when there is but one fiduciary, plus one-fifth of the commissions for each fiduciary more than one. L.1981, c. 405, s. 3B:18-17, eff. May 1, 1982.

N.J. Stat. § 3B:18-18 Value of assets for computing commissions taken annually

In computing the amount of commissions which may be taken annually pursuant to N.J.S. 3B:18-17, the value of any item of corpus at the time when the item is received by the fiduciary, referred to in this section as the "presumptive value" of the item, may be used as the value of the item, or, at the option of the fiduciary, the value of the item at the end of the period for which the commissions are taken may be used. L.1981, c. 405, s. 3B:18-18, eff. May 1, 1982.

N.J. Stat. § 3B:18-19 Failure to take commissions annually shall not constitute a waiver thereof

The failure of a fiduciary to take commissions in any year as provided in N.J.S. 3B:18-17 shall not constitute a waiver of the right of the fiduciary to take in a subsequent year the commissions not taken for that year. L.1981, c. 405, s. 3B:18-19, eff. May 1, 1982.

N.J. Stat. § 3B:18-20 Corpus commissions taken annually subject to review

Commissions taken as provided in N.J.S. 3B:18-17 shall be subject to review on intermediate and final accountings, and to the extent that aggregate commissions so taken exceed the commissions allowable under N.J.S. 3B:18-14 and N.J.S. 3B:18-15, they may be disallowed. L.1981, c. 405, s. 3B:18-20, eff. May 1, 1982.

N.J. Stat. § 3B:18-21 Burden of proving value

In the event of a dispute as to the value of corpus on the settlement of the account of a fiduciary, the burden of proving that the value of any item of corpus differs from the presumptive value of the item shall be upon the fiduciary or other party claiming the difference. L.1981, c. 405, s. 3B:18-21, eff. May 1, 1982.

N.J. Stat. § 3B:18-22 When rates for corpus commissions taken annually effective

With respect to a fiduciary's annual corpus commissions, the rates set forth in this article shall apply for all yearly periods ending after February 29, 1980. L.1981, c. 405, s. 3B:18-22, eff. May 1, 1982.

N.J. Stat. § 3B:18-23 "Fiduciary" defined

As used in this article "fiduciary" means a trustee acting under a will, a nontestamentary trustee as defined in N.J.S. 3B:17-9 or a guardian. L. 1981, c. 405, s. 3B:18-23, eff. May 1, 1982. Amended by L. 1985, c. 434, s. 1, eff. Jan. 13, 1986.

N.J. Stat. § 3B:18-24 Income commissions

Commissions in the amount of 6% may be taken without court allowance on all income received by the fiduciary. For the purposes of this section, income which is withheld from payment to the fiduciary pursuant to any law of this State, or of the United States, or any other state, country or sovereignty or of any political subdivision or governmental unit of any of the foregoing, for income tax or other tax purposes, shall be deemed to be income received by the fiduciary, and shall be subject to income commissions as if actually received by the fiduciary. L.1981, c. 405, s. 3B:18-24, eff. May 1, 1982.

N.J. Stat. § 3B:18-25 Fiduciaries may take annual commissions on corpus

3B:18-25. a. Fiduciaries may annually, without court allowance, take commissions on corpus (including accumulated income which has been invested by the fiduciary) in the amount of $5.00 per thousand dollars of corpus value on the first $400,000.00 of value of corpus and $3.00 per thousand dollars of the corpus value in excess of $400,000.00. b. Notwithstanding the provisions of subsection a. of this section, if the fiduciary is a banking institution, foreign bank or savings and loan association authorized to exercise fiduciary powers, the fiduciary shall be entitled to such commissions as may be reasonable. c. Notwithstanding the provisions of subsection a. of this section, a fiduciary may take a minimum commission of $100.00 annually. d. The value of the corpus for the purpose of this section shall be the "presumptive value" as defined in N.J.S.3B:18-18 or, at the option of the fiduciary, the value at the end of the period. e. Upon application of a person interested in the trust or guardianship, a court may review the reasonableness of the commissions of the fiduciary, provided, however, the fiduciary shall be entitled to receive at least the compensation provided for all fiduciaries as set forth in subsections a. and c. of this section. Amended 1988, c.165; 1999, c.159, s.11.

N.J. Stat. § 3B:18-25.1 Taking annual amount on accounts of corpus commissions: two or more fiduciaries

Taking annual amount on accounts of corpus commissions: two or more fiduciaries. If there are two or more fiduciaries, the amount of the annual commissions taken pursuant to N.J.S. 3B:18-25 may equal the commissions which may be taken pursuant to that section when there is but one fiduciary, plus one-fifth of the commissions for each fiduciary more than one. No one fiduciary shall be entitled to any greater commission than that which would be allowed if there were but one fiduciary involved. L. 1989, c. 7, s. 1.

N.J. Stat. § 3B:18-25.2 Powers of qualified bank; duties of agent

12. a. Notwithstanding any law to the contrary, a qualified bank acting in any capacity authorized pursuant to section 28 of P.L.1948, c.67 (C. 17:9A-28) on behalf of a trust or estate may employ and pay reasonable compensation to any person, including attorneys, auditors, investment advisers or other agents, even if they are affiliated or associated with the qualified bank, to advise or assist the qualified bank in the performance of any of its administrative duties, whether or not discretionary, and to act without independent investigation upon their recommendation, so long as the qualified bank exercises care, skill, and caution in: selecting the agent; establishing the scope and terms of the agent's duties consistent with the purpose and terms of the governing trust instrument; and periodically reviewing the agent's actions in order to monitor the agent's performance. A qualified bank that delegates investment functions to an investment adviser shall also comply with the requirements of sections 8 and 10 of P.L.1997, c.26 (C.3B:20-11.8 and 3B:20-11.10). b. In performing any agency function, the agent shall owe to the qualified bank and the beneficiaries the same duties as the qualified bank and shall be held to the same fiduciary standards as the qualified bank. c. In the absence of express contrary provisions in the trust instrument, a qualified bank which employs an agent other than an investment adviser or investment manager, may pay the agent from the fiduciary fund if the qualified bank reasonably believes in the exercise of its discretion that such an arrangement is in the best interests of all interested persons and will improve the efficiency of the administration of the fiduciary fund. In the absence of express contrary provisions in the trust instrument, a qualified bank which delegates investment and trust asset management functions to an investment adviser or an investment manager shall comply with the cost control and other requirements of sections 8 and 10 of P.L.1997, c.26 (C.3B:20-11.8 and 3B:20-11.10). d. A qualified bank which substantially complies with the requirements of subsections a. and c. of this section shall not be liable to the beneficiaries or to the trust or estate for the decisions or actions of the agent, and shall not, solely by reason of the delegation, be deemed to engage in acts of self-dealing or a conflict of interest. e. By accepting an appointment as agent from a qualified bank acting as a fiduciary of a trust or estate that is subject to the law of New Jersey, the agent submits to the jurisdiction of the courts of New Jersey, even if the agency agreement provides otherwise. L.1999,c.159,s.12.

N.J. Stat. § 3B:18-26 Failure to take commissions annually shall not constitute a waiver thereof

The failure of a fiduciary to take commissions in any year shall not constitute a waiver by the fiduciary to take in a subsequent year the commissions not taken for that year. L.1981, c. 405, s. 3B:18-26, eff. May 1, 1982.

N.J. Stat. § 3B:18-27 Commissions taken annually subject to review

Commissions taken as provided in N.J.S. 3B:18-25 shall be subject to review on intermediate and final accountings, and to the extent that aggregate commissions so taken exceed the commissions allowable under this article, they may be disallowed. L.1981, c. 405, s. 3B:18-27, eff. May 1, 1982.

N.J. Stat. § 3B:18-28 Corpus commissions on termination of trust, guardianship or upon distribution of assets

In addition to the annual commissions on corpus, upon termination of the trust or guardianship, or upon distribution of assets from the trust or guardianship, the fiduciary may take a commission on corpus distributed, including accumulated income which has been invested by the fiduciary. The value of the corpus for the purpose of computing the commissions shall be the "presumptive value" or, at the option of the fiduciary, the value at the time of distribution, as defined in N.J.S. 3B:18-18. The amounts of the commissions to be taken are as follows: a. If the distribution of corpus occurs within 5 years of the date when the corpus is received by the fiduciary, an amount equal to the annual commissions on corpus authorized pursuant to N.J.S. 3B:18-25, but not actually taken by the fiduciary, plus an amount equal to 2% of the value of the corpus distributed; b. If distribution of the corpus occurs between 5 and 10 years of the date when the corpus is received by the fiduciary, an amount equal to the annual commissions on corpus authorized pursuant to N.J.S. 3B:18-25, but not actually received by the fiduciary, plus an amount equal to 1 1/2 % of the value of the corpus distributed; c. If the distribution of corpus occurs more than 10 years after the date the corpus is received by the fiduciary, an amount equal to the annual commissions on corpus authorized pursuant to N.J.S. 3B:18-25, but not actually received by the fiduciary, plus an amount equal to 1% of the value of the corpus distributed; and d. If there are two or more fiduciaries, their corpus commissions shall be the same as for a single fiduciary plus an additional amount of one-fifth of the commissions for each additional fiduciary. L.1981, c. 405, s. 3B:18-28, eff. May 1, 1982.

N.J. Stat. § 3B:18-29 Corpus commissions; unusual or extraordinary services

The court may, on an intermediate or the final settlement of fiduciaries' accounts, allow corpus commissions in addition to those provided in this article, on a showing that unusual or extraordinary services have been rendered by the fiduciary for which he should receive additional compensation. L.1981, c. 405, s. 3B:18-29, eff. May 1, 1982.

N.J. Stat. § 3B:18-30 Burden of proving value

In the event of a dispute as to the value of corpus on the settlement of the account of a fiduciary, the burden of proving that the value of any item of corpus differs from the presumptive value of the item shall be upon the party claiming the difference. L.1981, c. 405, s. 3B:18-30, eff. May 1, 1982.

N.J. Stat. § 3B:18-31 Authorization in testator's will as to commissions exceeding legal rates

No commissions in excess of those authorized in this article shall be paid to a fiduciary acting as a trustee under a will unless the testator, in his last will acknowledges that he is aware of the commissions specified in this article and expressly authorizes payment of commissions in excess thereof. The absence of an express authorization to pay excess commissions shall not preclude the court from allowing commissions as provided in N.J.S. 3B:18-29. L.1981, c. 405, s. 3B:18-31, eff. May 1, 1982.

N.J. Stat. § 3B:18-32 When rates for corpus commissions taken annually effective

With respect to fiduciaries' annual corpus commissions, the rates set forth in this article shall apply for all annual periods ending after February 29, 1980. L.1981, c. 405, s. 3B:18-32, eff. May 1, 1982.

N.J. Stat. § 3B:18-33 When rates of corpus commissions on termination of trusts or guardianship effective

With respect to the computation of corpus commissions pursuant to N.J.S. 3B:18-28 as to all corpus held by a fiduciary on February 29, 1980, the commissions which may be taken shall be the greater of (i) the commission permitted by law effective prior to February 29, 1980, or (ii) the commission computed pursuant to N.J.S. 3B:18-28; provided that the "annual commissions authorized" to be take for yearly periods ending prior to February 29, 1980, shall be at the rate authorized by the applicable law in effect during that yearly period. L.1981, c. 405, s. 3B:18-33, eff. May 1, 1982. Amended by L.1983, c. 394, s. 3, eff. Dec. 14, 1983.

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