New Jersey adopted the Uniform Trust Code in 2016, making it one of the later adopters in the Northeast. The state follows standard UTC rules as a baseline, but New Jersey recently made a major move for dynasty trust planning: in 2024, it extended the maximum trust duration to 1,000 years. Combined with no inheritance tax on transfers to lineal descendants (repealed in 2018), New Jersey is positioning itself as a more competitive trust jurisdiction than it used to be.
This guide applies to both revocable and irrevocable trusts in New Jersey.
Where New Jersey trust law lives
The New Jersey Uniform Trust Code is at N.J.S.A. 3B:31-1 et seq., effective 2016. The dynasty trust provision is at N.J.S.A. 46:2F-9.
Accounting and notice requirements
New Jersey follows the standard UTC framework. Trustees must notify qualified beneficiaries within 60 days of accepting trusteeship and when the trust becomes irrevocable. Annual accounting to qualified beneficiaries is required under the UTC duty to inform.
Trustee compensation
New Jersey uses the "reasonable under the circumstances" standard. No statutory fee schedule. Professional trustees typically charge 0.5% to 1.5% of trust assets annually.
What makes New Jersey different
1,000-year dynasty trusts. As of 2024, N.J.S.A. 46:2F-9 allows trusts to last up to 1,000 years. This puts New Jersey in the same league as Utah (also 1,000 years) and makes it far more competitive than neighboring New York, which still limits trusts to lives in being plus 21 years.
No state inheritance tax on close family. New Jersey repealed its estate tax entirely in 2018. The inheritance tax still exists but exempts surviving spouses and lineal descendants (children, grandchildren). Siblings are taxed at 11-16%, and others at 15-16%. This is a significant improvement from the pre-2018 regime.
Relatively clean UTC adoption. New Jersey's 2016 adoption is recent enough that it incorporated lessons from other states. The code follows the UTC structure closely, making general UTC guidance relatively reliable for New Jersey trusts.
Proximity to New York creates interstate complexity. Many families have connections to both states. Moving a trust from New York (non-UTC, statutory commissions, judicial accounting) to New Jersey (UTC, reasonable compensation, informational reporting) changes compliance obligations significantly.
TrustHelm tip: TrustHelm tracks your New Jersey trust obligations and alerts you to the 60-day notice deadlines. If you've recently moved a trust from New York, the platform adjusts your compliance calendar to reflect New Jersey's UTC rules.
The most common New Jersey trust mistakes
Not exploring the 1,000-year option for new trusts. If you're creating a new trust in New Jersey, the dynasty trust option is worth discussing with your attorney for long-term wealth planning.
Assuming New York rules apply. Many New Jersey residents have attorneys, accountants, or financial advisors based in New York. New York trust law is fundamentally different from New Jersey's UTC-based system. Make sure your advisors are applying the right state's rules.
Not funding the trust. The universal mistake. Assets not titled in the trust's name go through probate.
When to talk to an attorney
You should consult a New Jersey trust attorney if you're interested in dynasty trust planning under the 1,000-year provision, you're moving a trust to or from New York, you need to understand the inheritance tax implications for non-lineal beneficiaries, or you're a successor trustee taking over after a death.
For finding a qualified estate planning attorney in your area, visit TrustHelm's Find an Attorney directory.
This guide is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for decisions about your trust.