N.J. Stat. tit. 3B, ch. 15

in effect

N.J. Stat. § 3B:15-1 Bonds of fiduciaries; exceptions.

3B:15-1. The court or surrogate appointing a fiduciary in any of the instances enumerated below shall secure faithful performance of the duties of the office by requiring the fiduciary thereby authorized to act to furnish bond to the Superior Court in a sum and with proper conditions and sureties, having due regard to the value of the estate and the extent of the fiduciary's authority, as the court shall approve: a. When an appointment is made upon failure of the will, or other instrument creating or continuing a fiduciary relationship, to name a fiduciary; b. When a person is appointed in the place of the person named as fiduciary in the will, or other instrument creating or continuing the fiduciary relationship; c. When the office to which the person is appointed is any form of administration, except: (1) administration ad litem which may be granted with or without bond; or (2) administration granted to a surviving spouse where the decedent's entire estate is payable to the surviving spouse; d. When the office to which the person is appointed is any form of guardianship of a minor or a person who is incapacitated, except as otherwise provided in N.J.S.3B:12-16 or N.J.S.3B:12-33 with respect to a guardian appointed by will; e. When letters are granted to a nonresident executor, except in cases where the will provides that no security shall be required of the person named as executor therein; f. When an additional or substituted fiduciary is appointed; g. When an appointment is made under chapter 26 of this title, of a fiduciary for the estate or property, or any part thereof, of an absentee; h. When a fiduciary moves from the State, in which case the court may require the fiduciary to give such security as the court determines; or i. (1) When an appointment is made, regardless of any direction in a last will and testament relieving a personal representative, testamentary guardian, or testamentary trustee or their successors from giving bond, that person shall, before receiving letters or exercising any authority or control over the property, provide bond to secure performance of the person's duties with respect to property to which a person with a developmental disability as defined in section 3 of P.L.1985, c.145 (C.30:6D-25) is, or shall be entitled, if: (a) the testator has identified that a devisee or beneficiary of property of the decedent's estate is a person with a developmental disability; or (b) the person seeking appointment has actual knowledge that a devisee or beneficiary of property of the decedent's estate is a person with a developmental disability. (2) No bond shall be required pursuant to paragraph (1) of this subsection if: (a) the court has appointed another person as guardian of the person or guardian of the estate for the person with a developmental disability; (b) the person seeking the appointment is a family member within the third degree of consanguinity of the person with a developmental disability; or (c) the total value of the real and personal assets of the estate or trust does not exceed $25,000. (3) A personal representative, testamentary guardian, or testamentary trustee who is required to provide bond pursuant to paragraph (1) of this subsection shall file with the Superior Court an initial inventory and a final accounting of the estate in that person's charge containing a true account of all assets of the estate. That person shall file an interim accounting every five years, or a lesser period of time if so ordered by the Superior Court, in the case of an extended estate or trust administration. (4) A personal representative, testamentary guardian, or testamentary trustee who is required to provide bond pursuant to paragraph (1) of this subsection may make application to the court to waive the bond or reduce the amount of bond for good cause shown, including the need to preserve assets of the estate. This subsection shall not apply to qualified financial institutions pursuant to section 30 of P.L.1948, c.67 (C.17:9A-30) or to non-profit community trusts organized pursuant to P.L.1985, c.424 (C.3B:11-19 et seq.). Nothing contained in this section shall be construed to require a bond in any case where it is specifically provided by law that a bond need not be required. amended 1985, c.34; 2009, c.140, s.1; 2010, c.34, s.3; 2013, c.103, s.46.

N.J. Stat. § 3B:15-2 Bonds not to be approved unless prescribed conditions are included

When specific conditions as to a particular bond are prescribed by law, the bond shall not be approved unless the prescribed conditions are included therein, and where by law security is authorized to be given other than by sureties on the bond, compliance with the law shall be deemed compliance with this section. L.1981, c. 405, s. 3B:15-2, eff. May 1, 1982.

N.J. Stat. § 3B:15-3 Bond where will requires bond and fails to name obligee; prosecution

When a will nominating an executor or devising or bequeathing property to a trustee by its terms requires the executor or trustee to give bond but is silent as to who shall be the obligee in the bond, the Superior Court of this State may be made the obligee therein and the bond shall be approved as to amount and sureties by, and filed with, the surrogate of the county wherein the will was probated, unless the will was probated before the Superior Court, in which case the bond shall, after approval, be filed with the clerk thereof. If forfeited, the bond may be prosecuted and the money recovered thereon be applied, all as in the case of other bonds of fiduciaries given to the Superior Court. L.1981, c. 405, s. 3B:15-3, eff. May 1, 1982.

N.J. Stat. § 3B:15-4 Bond when property unsafe or in danger of waste

If a fiduciary has not previously furnished a bond and proof is made to the satisfaction of the court that the property in his hands is unsafe, insecure, or in danger of being wasted, the court may, at the instance of any person interested, including creditors, in the decedent's estate or the estate held by the fiduciary, require the fiduciary to furnish a bond with sureties to the Superior Court in a sum to be fixed by the court conditioned for the faithful performance of the fiduciary's duty. L.1981, c. 405, s. 3B:15-4, eff. May 1, 1982.

N.J. Stat. § 3B:15-5 Conditions of bond on grant of intestate administration

The bond of an administrator of the estate of a person dying intestate shall be conditioned substantially as follows: a. If required by the court or if an exemption is to be set off as required in chapter 16 of this title, to make a true and perfect inventory of the real and personal property of the decedent which has or shall come to his hands, possession or knowledge or into the hands of any other person for him, and to cause an appraisal to be made of the real and personal property and to file the inventory and appraisal in the office of the clerk of the Superior Court or of the surrogate of the proper county, as the case may be, within the time so required; b. To faithfully discharge all of the duties imposed upon him according to law; c. To make a just and true account of his administration of the estate and, if required by court, to settle his account therein within the time so required; d. To deliver and pay to the distributees entitled thereto by law the surplus property of the decedent as may remain pursuant to the account; and e. To deliver his letters of administration to the proper court, when required so to do, if a will of the decedent is found and exhibited to it and by it admitted to probate. L.1981, c. 405, s. 3B:15-5, eff. May 1, 1982.

N.J. Stat. § 3B:15-6 Conditions of bonds on certain grants of administration

In the case of the grant of letters of administration durante minori aetate, durante absentia, pendente lite, cum testamento annexo and other grants of administration, the conditions of the fiduciary's bond shall be substantially as provided in N.J.S. 3B:15-5 with changes as shall be appropriate in view of the nature of the respective grants. L.1981, c. 405, s. 3B:15-6, eff. May 1, 1982.

N.J. Stat. § 3B:15-7 Bond required of guardian of minor or person who is incapacitated.

3B:15-7. The bond required of a guardian of a minor or a person who is incapacitated shall be conditioned substantially as follows: a. To administer the ward's estate to the best of the guardian's ability, and to take proper care of the ward if the guardian is the guardian of the ward's person; b. To make a just and true account of the administration of the guardianship, and, if required by the court, to settle the accounts therein within the time so required. amended 2013, c.103, s.47.

N.J. Stat. § 3B:15-8 Allowance of expense of procuring surety bond of fiduciary, receiver or assignee

A fiduciary, receiver or assignee for the benefit of creditors required by law or order of court to give a bond, may include as a part of the lawful expense of executing his trust a reasonable sum, not exceeding, however, 1% per annum on the amount of the bond, paid a company authorized under the laws of this State so to do, for becoming his surety on the bond, as may be allowed by the court. L.1981, c. 405, s. 3B:15-8, eff. May 1, 1982.

N.J. Stat. § 3B:15-9 Additional surety when original sureties and bond insufficient

If it appears that the security given by a fiduciary at the time of his appointment was insufficient or has become insufficient or the sureties appear to be in failing circumstances or insufficient for the security of the estate, the court may order the fiduciary to give other or further security to the Superior Court, by bond in the usual form, and other sureties as the court, after hearing persons interested, including creditors, shall approve. L.1981, c. 405, s. 3B:15-9, eff. May 1, 1982.

N.J. Stat. § 3B:15-10 When fiduciary required to account and give separate security to surety

When the surety on the bond of a fiduciary discovers that the fiduciary is wasting or mismanaging the estate, so that the surety may become liable to loss or damage, the court may, in an action by the surety, and upon sufficient reason therefor, require the fiduciary to render an account of the performance of his office to the surety. If it shall appear that the fiduciary has embezzled, wasted, misapplied, mismanaged or insufficiently secured the estate, the court shall direct the fiduciary to give separate security to the surety for the true payment of the balance in his hands to be paid according to the trust. L.1981, c. 405, s. 3B:15-10, eff. May 1, 1982.

N.J. Stat. § 3B:15-11 When deposit permitted

If the value of an estate or fund is so great that the court in which the fiduciary received his letters or appointment deems it inexpedient to require security in the full amount prescribed by law, or if the estate or fund is in cash or is invested in securities in which a fiduciary may by law invest money intrusted to him in his fiduciary capacity without special order of any court, the court may direct that any securities for the payment of money belonging to the estate or fund be deposited in a savings bank, savings institution or trust company incorporated under the laws of this State, or in a national bank, having safe deposit boxes for the use of private individuals, and that any money belonging to the estate or fund be deposited in a savings bank, savings institution or trust company incorporated under the laws of this State or in a national bank, which depository shall be approved by the court when it directs the making of the deposit. L.1981, c. 405, s. 3B:15-11, eff. May 1, 1982.

N.J. Stat. § 3B:15-12 Bond after deposit

After deposit has been made pursuant to N.J.S. 3B:15-11, the court may fix the amount of the bond with respect to the value of the remainder only of the estate or fund, or in case all of the estate or fund is so deposited, then in an amount as the court shall determine to be sufficient under the circumstances. L.1981, c. 405, s. 3B:15-12, eff. May 1, 1982.

N.J. Stat. § 3B:15-13 How deposits made and withdrawn

Deposits authorized under N.J.S. 3B:15-11 shall be made in the name of the fiduciary and shall be withdrawn from the custody of the depository only upon the direction of the court which authorized the deposit and no part of the principal of securities so deposited shall be received or collected by the fiduciary without a like direction. L.1981, c. 405, s. 3B:15-13, eff. May 1, 1982.

N.J. Stat. § 3B:15-14 Additional bond upon withdrawals

A fiduciary shall not be permitted by the court to collect or receive the principal of securities on deposit or to withdraw a deposit pursuant to N.J.S. 3B:15-13 unless an additional bond has been given by him, or unless there is proof that the estate or fund has been so reduced by payments or otherwise, that the amount of the bond originally given will be sufficient in amount to secure the estate or fund. L.1981, c. 405, s. 3B:15-14, eff. May 1, 1982.

N.J. Stat. § 3B:15-15 Depository to issue duplicate deposit certificates

A depository receiving a deposit pursuant to N.J.S. 3B:15-11 shall issue a certificate in duplicate and deliver one certificate to the clerk of the court authorizing the deposit and the other to the fiduciary. The certificates shall set forth the amount and nature of the securities, or amount of money, deposited. L.1981, c. 405, s. 3B:15-15, eff. May 1, 1982.

N.J. Stat. § 3B:15-16 Deposit and investment.

3B:15-16. Deposit and investment. Where the estate of a minor for whom a guardian has been or is to be appointed by a surrogate, consists of or is likely to consist of the proceeds of a judgment recovered in favor of the minor in any court of this State, the court, on application of the guardian or a person entitled to be appointed as guardian, by its order may dispense with the giving of a bond by the guardian where the order directs that the moneys be paid into the Superior Court for the benefit of the minor and that the moneys, or any part thereof, shall be deposited to the credit of the court in an interest-bearing account in, or in interest-bearing certificates of deposit of, a responsible bank, savings bank or trust company, or in an account in, or in interest-bearing certificates of deposit of, any savings and loan association of this State or any other state, or any federal savings and loan association within the United States, the accounts of which are insured by the Federal Deposit Insurance Corporation, designated by the court. Amended 2001, c.287.

N.J. Stat. § 3B:15-17 Investment by surrogate

The court may direct that the moneys, or any part thereof, shall be invested by the surrogate of the county, where the guardian has been or shall be appointed, in United States Savings Bonds in the name of the minor, and in the event of the maturity of the bonds during the period of minority, the court may order the surrogate to reinvest the proceeds in other United States Savings Bonds having later maturity dates. The custody of the bonds shall be retained by the surrogate, and the moneys or bonds shall be subject to any order in respect thereto as may be made by the court. The moneys shall be paid out or the bonds surrendered by the surrogate only by order of the court. L.1981, c. 405, s. 3B:15-17, eff. May 1, 1982.

N.J. Stat. § 3B:15-17.1 Payment at age 18.

1. Where the estate of a minor consists of the proceeds of a judgment recovered in favor of the minor in any court of this State and the funds recovered are placed under the control of the county surrogate, the funds shall be paid over to the person when the person reaches the age of 18 years, unless the court finds the person to be incapacitated. L.1987, c.28, s.1; amended 2013, c.103, s.48.

N.J. Stat. § 3B:15-18 Discharge of surety from liability for future acts of fiduciary, receiver or assignee

The court shall discharge a surety on the bond of a fiduciary, receiver or assignee for the benefit of creditors from liability for all his acts and omissions occurring after the granting of the discharge, if he accounts and files a new bond duly approved or, in default of an accounting and the filing of the bond, if the trust property shall be found or made good and paid over or properly secured. L.1981, c. 405, s. 3B:15-18, eff. May 1, 1982.

N.J. Stat. § 3B:15-19 Discharge of surety for fiduciary or assignee after final account

At any time 3 months after the entry of a final judgment of distribution made after the allowance of the final account of a fiduciary or assignee for the benefit of creditors, the court shall, in an action by any person interested, and upon proof to the satisfaction of the court that the entire estate has been distributed according to law, and that no appeal from the judgment of distribution is pending, discharge the sureties of the principal from any and every liability by reason of having become sureties. L.1981, c. 405, s. 3B:15-19, eff. May 1, 1982.

N.J. Stat. § 3B:15-20 Effect of discharge of surety

After discharge of a surety pursuant to this article, all his liability by virtue of his undertaking shall cease, but the personal liability of the principal in the bond shall remain. L.1981, c. 405, s. 3B:15-20, eff. May 1, 1982.

N.J. Stat. § 3B:15-21 Reduction of fiduciary's bond; discharge of original sureties

When it shall appear upon the allowance of a fiduciary's intermediate account that the fiduciary's bond is in a greater sum than is necessary for the proper protection of property and assets of the estate remaining in his hands, the court may, in an action for that purpose, allow the fiduciary to give a new bond in a lesser sum as the court may deem sufficient. When the new bond, with conditions and sureties duly approved, is filed, the court by its order may discharge the sureties upon the original bond from all liability thereunder after the date of the order. L.1981, c. 405, s. 3B:15-21, eff. May 1, 1982.

N.J. Stat. § 3B:15-22 Discharge of fiduciary from liability on bond without surety

Whenever a fiduciary which is a bank, trust company, savings bank or national bank, has heretofore given or hereafter gives a bond without surety and it shall appear to the satisfaction of the court, that the person entitled to take the assets of the estate or trust administered by the fiduciary has received the estate or trust, and has by release or other instrument released the fiduciary from liability, the court, with notice or without notice if it be so directed, may cancel the bond given by the fiduciary and discharge it from all liability on the bond. L.1981, c. 405, s. 3B:15-22, eff. May 1, 1982.

N.J. Stat. § 3B:15-23 Proof of order to limit creditors required in certain cases.

3B:15-23. Proof of order to limit creditors required in certain cases. An order of discharge shall not be made in cases in which the fiduciary is an executor, administrator with the will annexed, substituted administrator with the will annexed, administrator or substituted administrator except upon proof that nine months have elapsed after the entry of an order to limit creditors pursuant to N.J.S. 3B:22-4, and that there are not any unpaid or pending claims of creditors of the decedent presented to the fiduciary pursuant to chapter 22 of this title. Amended 2005, c.160, s.15.

N.J. Stat. § 3B:15-24 Prosecution of fiduciaries' bonds

Except as otherwise provided by law, when the bond of a fiduciary given to a court or to a judicial officer or clerk of a court, for the faithful performance, by him, of the duties of his office as fiduciary, is forfeited, the bond may, without leave of court, be prosecuted in any court of record by, and at the expense of, an aggrieved party and in the name of the State at the relation of the aggrieved party. L.1981, c. 405, s. 3B:15-24, eff. May 1, 1982.

N.J. Stat. § 3B:15-25 Court in which to bring proceedings to assess damages, to satisfy judgment or to discontinue action

The moneys found due on the fiduciary's bond shall be applied toward making good the damage sustained by reason of the nonperformance of the conditions of the bond. Proceedings for that purpose, proceedings under N.J.S. 3B:15-26 to N.J.S. 3B:15-29 for the satisfaction of the judgment on the bond, and proceedings under N.J.S. 3B:15-30 and N.J.S. 3B:15-31 for the discontinuance of the action on the bond shall be taken in the Superior Court. L.1981, c. 405, s. 3B:15-25, eff. May 1, 1982.

N.J. Stat. § 3B:15-26 Proceedings to satisfy judgment on bond; notice to claimants

If any bond given by a fiduciary is forfeited and prosecuted to judgment in any court of record, and it is made to appear to the Superior Court, by a complaint filed by any surety against whom judgment has been rendered upon the bond, that the damages sustained by the nonperformance of the condition of the bond, together with costs of action and execution fees thereon, have been fully satisfied so far as the surety shall have been able to ascertain the damages, the court may make an order directing the surety to give public notice to all persons aggrieved by the forfeiture of the bond, to bring in their debts, demands and claims against the estate in charge of the fiduciary, under oath within 3 months from the date of the order. The notice shall be advertised, commencing within 20 days of the date of the order, for 6 weeks successively, once in each week, in one or more of the newspapers of this State, as may be directed in the order. Further notice shall also be given if the court deems it necessary. L.1981, c. 405, s. 3B:15-26, eff. May 1, 1982.

N.J. Stat. § 3B:15-27 Presentation of claims

Debts, claims and demands ordered to be brought in, pursuant to this article, shall be presented by the respective claimants in writing, verified by oath, setting forth the amount and particulars thereof, or they shall be of no effect. L.1981, c. 405, s. 3B:15-27, eff. May 1, 1982.

N.J. Stat. § 3B:15-28 Exceptions; trial

The surety may except to any claim, debt or demand, and thereupon the same shall be tried as the court may direct, and the court may disallow and reject it if it is not established. L.1981, c. 405, s. 3B:15-28, eff. May 1, 1982.

N.J. Stat. § 3B:15-29 Satisfaction of judgment

After expiration of the time limited in the order the court may order satisfaction of the judgment to be entered pursuant to law upon proof to its satisfaction that notice has been advertised as directed and that no claims, debts or demands have been presented or that all claims, debts or demands presented and allowed have been fully paid and satisfied by the surety. L.1981, c. 405, s. 3B:15-29, eff. May 1, 1982.

N.J. Stat. § 3B:15-30 Application to have action on bond discontinued

In any action on the bond of a fiduciary, the surety before judgment may apply to have the action discontinued. The application shall be made to the Superior Court as provided in N.J.S. 3B:15-25. The court shall thereupon appoint a time and place to hear the application and direct what notice, if any, of the application be given to the persons aggrieved by the forfeiture of the bond. L.1981, c. 405, s. 3B:15-30, eff. May 1, 1982.

N.J. Stat. § 3B:15-31 Discontinuance of action on bond

If it shall appear on the hearing that all damages sustained by reason of the forfeiture of the bond have been paid so far as the surety shall have been able to ascertain, the court may direct that the action be discontinued upon payment of taxed costs of the suit. L.1981, c. 405, s. 3B:15-31, eff. May 1, 1982.

N.J. Stat. § 3B:15-32 Unsatisfied claims

If the claim of any person aggrieved by the forfeiture of the bond shall remain unsatisfied after the discontinuance of the action, the person may reprosecute the bond, in the same manner as if the action had not been instituted on the bond. L.1981, c. 405, s. 3B:15-32, eff. May 1, 1982.

N.J. Stat. § 3B:15-33 Bonds not invalidated because of abolition of certain offices or courts

No bond heretofore given by any fiduciary for the faithful performance, by him, of the duties of his office as a fiduciary, to any court or to any judicial officer, or clerk of any court abolished by the Constitution of 1947, as amended, shall be invalidated by reason of the abolition of any court, judicial or clerical office, but the bond shall remain in full force and effect, and if forfeited, may be prosecuted in accordance with the provisions of this article. L.1981, c. 405, s. 3B:15-33, eff. May 1, 1982.

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