New Jersey Estate & Trust Litigation 2023

by Michael R. Griffinger, F. Paul Cullum III, Cathleen T. Butler, Rita M. Danylchuk

Overview

New Jersey Estate & Trust Litigation is designed as a guide to assist practitioners who are venturing into the world of trust and estate litigation, as well as to keep seasoned trust and estate litigators informed regarding updates and changes in the law. This volume is available online and in eBook formats with hyperlinks to the full text of cases, statutes and other authoritative content. Also included is an appendix with relevant forms, which are also available online for you to use in drafting your documents. Key topics covered include litigation involving intestacy; litigation involving wills; litigation involving non-probate assets: gifts; guardianships; divorce annulment and death; fiduciary duties, obligations and liabilities; accounting; unique trust litigation issues: pre-trial and trial issues; settlement; appeals.

Product Details

ISBN-13:	9781588526588
Publisher:	ALM Media Properties, LLC
Publication date:	10/28/2022
Sold by:	Barnes & Noble
Format:	eBook
Pages:	694
File size:	3 MB

About the Author

Michael R. Griffinger
Michael R. Griffinger is a Director in the Business & Commercial Litigation Department of Gibbons P.C. in Newark, New Jersey, and a Fellow of the American College of Trial Lawyers, the International Academy of Trial Lawyers, and the American Bar Foundation. Mr. Griffinger has been an active litigator for nearly 50 years. His practice is focused primarily on sophisticated corporate and commercial disputes, securities litigation, antitrust matters, as well as estate litigation. He frequently defends both fiduciaries and beneficiaries in estate disputes. He has conducted trials and hearings in federal and state courts throughout the United States.

Paul F. Cullum III
The idea and the greater part of the original edition of this book were the work product of Paul F. Cullum III. He received much help from his mentor, Michael R. Griffinger, and from his then colleagues at Gibbons LLC, Cathleen T. Butler and Rita M. Danylchuk, but he conceived the structure and crafted the details.

At the time of his death on November 3, 2012, Cullum was a partner in LeClairRyan’s Litigation Group, where his complex litigation practice focused on estate litigation and general commercial business litigation. He represented clients in numerous estate and intestate litigation matters concerning many of the areas cited in this book. In addition, he represented trustees and clients in guardianship and conservatorship proceedings.

Cathleen T. Butler
Cathleen T. Butler is a partner at the law firm of Butler & Butler in Westfield, New Jersey. She has substantial experience with counseling clients on all aspects of estate planning, estate administration, business succession planning, charitable giving and probate litigation. Ms. Butler has written numerous published articles on estate planning, estate administration and probate litigation. Upon graduating from law school, Ms. Butler served as a judicial law clerk for a Presiding Judge of the Chancery Division, General Equity and Probate Part of the New Jersey Superior Court. She was formerly associated with Gibbons P.C., where she specialized in trust and estate law for more than 11 years. Ms. Butler is a member of the New Jersey State Bar Association real property, probate and trust law sections.
 

About the Contributor

Rita M. Danylchuk is counsel to Gibbons, P.C., and a member of the Corporate Department and Chair of the Trusts and Estate Practice Group. She represents numerous clients in all areas of trust and estate planning, charitable giving and estate administration. Danylchuk is a Certified Public Accountant in New Jersey (currently inactive) and a member of the Bars of the States of New York and New Jersey. She has lectured frequently on estate planning and estate administration and published numerous trusts and estates articles.

Table of Contents

Chapter 1: General Concepts in Estate Litigation
1-1    JURISDICTION
1-1:1    Probate Jurisdiction
1-1:2    Surrogate’s Court Jurisdiction
1-1:3    Superior Court Jurisdiction
1-1:4    Federal Jurisdiction and Probate
1-2    THE CONCEPT OF PROBATE
1-3    INITIATING ACTION IN SUPERIOR COURT, CHANCERY DIVISION, PROBATE PART
1-4    THE ROLE OF THE SUPERIOR COURT, CHANCERY DIVISION, FAMILY PART
1-5    STANDING TO INSTITUTE OR PARTICIPATE IN PROBATE LITIGATION ACTION
1-6    STATUTE OF LIMITATIONS WITH RESPECT TO PROBATE ACTIONS
1-6:1    To Contest a Probated Will
1-6:2    Elective Share Actions
1-6:3    Creditors’ Claims
1-6:4    Legal Malpractice
1-6:5    Breach of Fiduciary Duty, Fraud, Misappropriation, Conversion
1-6:6    Wrongful Death Actions
1-6:7    Action Against Personal Representative of Estate
1-6:8    Action Against a Trustee
1-6:9    Waiver of Statute of Limitations
1-7    ADJUDICATION OF LEGAL CLAIMS IN CHANCERY DIVISION, PROBATE PART/RIGHT TO JURY TRIAL
1-8    PROPER VENUE
1-9    DOMICILE
1-10    REPRESENTATION OF MINOR OR MENTALLY INCAPACITATED PERSON IN PROBATE LITIGATION
1-11    APPLICATION OF ENTIRE CONTROVERSY DOCTRINE TO PROBATE AND TRUST LITIGATION
1-12    APPLICATION OF RES JUDICATA TO PROBATE LITIGATION
1-13    APPLICATION OF COLLATERAL ESTOPPEL TO PROBATE LITIGATION

Chapter 2: Gifts (Inter Vivos Transfers)
2-1    REQUIREMENTS FOR A VALID GIFT (INTER VIVOS TRANSFER)
2-2    GIFT CAUSA MORTIS
2-3    CHALLENGES TO GIFTS (INTER VIVOS TRANSFERS)
2-3:1    Burden of Proof and Rebuttable Presumption for Gifts
2-3:2    Undue Influence and Gifts
2-3:3    Lack of Donative Intent
2-3:4    Conditional Gifts
2-4    POWER OF ATTORNEY
2-5    ADVANCE MEDICAL DIRECTIVES

Chapter 3: Guardianships
3-1    INCAPACITATED PERSONS
3-1:1    Jurisdiction
3-1:1.1    Domicile
3-1:1.2    Standing
3-1:1.3    Role and Duties of Surrogate in Guardianship Matters
3-1:2    Procedure
3-1:2.1    Court Rules and Statutes
3-1:2.2    Filing of Affidavits or Certifications
3-1:2.2a    Affidavit or Certification of Assets
3-1:2.2b    Physicians’ Affidavits or Certifications
3-1:2.2c    Certification of Criminal and Civil Judgment History
3-1:2.3     Case Information Statement
3-1:2.4    Order for Hearing
3-1:2.5    Service of Pleadings; Appearance of Alleged Incapacitated Person; Answer
3-1:2.6    New Background Screening Policy for Proposed Guardians of Incapacitated Adults 
3-1:3    Substantive Aspects
3-1:3.1    Role of Court-Appointed Attorney and Guardian Ad Litem
3-1:3.2    Determination of Incapacity and Hearing
3-1:3.3    Determination of Guardian
3-1:3.4    Final Appointment of Guardian; Model Judgments
3-1:3.4a    Qualification of Guardian
3-1:3.4b    Guardian of the Person
3-1:3.4c    Guardian of the Estate
3-1:3.4d    Appointment of Testamentary Guardian for Mentally Incapacitated Adult
3-1:3.4e    Limited Guardian and Temporary Guardian
3-1:3.5    Rights of an Incapacitated Person
3-1:3.6    Return to Full or Partial Capacity
3-1:3.7    Revocation of Guardianship
3-1:3.8    Inventory, Well-Being Report, and Accounting
3-2    MINORS
3-2:1    Jurisdiction—Domicile
3-2:2    Procedure—Court Rules/Statute
3-2:3    Substantive
3-2:3.1    Testamentary
3-2:3.2    Special and Limited Guardian of Minor
3-2:3.3    Priority of Appointment of Living Parents or Others as Guardian
3-2:3.4    Appointment of Guardian
3-2:3.5    Duties and Powers of Guardian
3-2:4    Kinship Legal Guardianship
3-2:5    Standby Guardian
3-3    VETERANS
3-3:1    Generally
3-3:2    Appointment of Public Guardian
3-4    CONSERVATORS
3-5    PROTECTIVE ARRANGEMENTS
3-6    SPECIAL MEDICAL GUARDIAN
3-7    GUARDIAN FOR PERSONS ­RECEIVING ­SERVICES FROM DIVISION OF ­DEVELOPMENTAL DISABILITIES

Chapter 4: Litigation Involving Intestacy
4-1    JURISDICTION
4-2    DOMICILE
4-3    GENERAL ADMINISTRATOR
4-4    OTHER TYPES OF ADMINISTRATORS
4-4:1    Administrator, C.T.A.
4-4:2    Administrator Pendente Lite
4-4:3    Substituted Administrator
4-4:4    Administrator Ad Prosequendum
4-5    PROCEDURE FOR APPOINTMENT OF ADMINISTRATOR
4-6    CONTESTING ADMINISTRATION
4-7    INTESTATE SUCCESSION
4-7:1    Parent’s Intestate Share
4-7:2    Adopted Heirs
4-7:3    Illegitimate Heirs
4-7:4    After-Born Heirs
4-7:5    Missing Heirs
4-7:6    Stepchildren
4-8    DISTRIBUTION OF INTESTATE ESTATE TO MINOR

Chapter 5: Litigation Involving Wills
5-1    JURISDICTION
5-1:1    Probate Jurisdiction
5-1:2    Surrogate’s Court Jurisdiction
5-1:3    Superior Court Jurisdiction
5-1:4    Domicile
5-2    PROBATE
5-2:1    Lost Will
5-2:2    After-Discovered Will
5-2:3    Codicil
5-3    WILL CONTESTS—PROCEDURAL ISSUES
5-3:1    Prior to Probate of Will—Caveat Against Will
5-3:1.1    Standing
5-3:1.2    Service/Timing
5-3:2    After Probate of Will—Verified Complaint and Order to Show Cause
5-3:2.1    Standing
5-3:2.2    Time in Which to Challenge
5-3:2.3    Verified Complaint and Order to Show Cause
5-3:2.4    Management of Estate During Will Contest
5-4    WILL CONTESTS—SUBSTANTIVE ISSUES/GROUNDS TO CONTEST A WILL
5-4:1    Non-Compliance With Formalities of Execution
5-4:1.1    Written Form
5-4:1.2    Testator’s Signature
5-4:1.3    Witnesses
5-4:1.4    Self-Proving Affidavit
5-4:1.5    Testamentary Intent
5-4:2    Exceptions to Statutory Formalities of Execution of Wills
5-4:2.1    Doctrine of Substantial Compliance
5-4:2.2    Writing Intended as a Will
5-4:2.3    Traditional Holographic Will
5-4:2.3a    Intent
5-4:2.3b    Material Provisions
5-4:2.3c    Signature
5-4:2.3d    Holographic Codicil
5-4:3    Testamentary Capacity
5-4:3.1    Burden of Proof
5-4:3.2    Standard for Capacity
5-4:3.3    Insane Delusion
5-4:3.4    Adjudication of Incapacity
5-4:3.5    Evidence Regarding Testamentary Capacity
5-4:4    Undue Influence (Coercion/Duress)
5-4:4.1    Definition
5-4:4.2    Initial Burden of Proof and Presumption of Undue Influence
5-4:4.2a    Confidential Relationship
5-4:4.2b    Suspicious Circumstances
5-4:4.3    Rebutting the Presumption of Undue Influence
5-4:5    Fraud
5-4:6    Mistake
5-4:7    Forgery
5-4:8    Will Republication
5-4:9    Will Alteration
5-4:10    Will Revocation
5-4:10.1    Dependent Relative Revocation
5-4:10.2    Revival of Revoked Will
5-4:11    Pre-Death Will Contests
5-5    WILL CONSTRUCTION
5-5:1    Overview of Will Construction
5-5:2    Conflicts of Law
5-5:3    General Principles of Will Construction
5-5:3.1    Doctrine of Probable Intent
5-5:3.2    Reformation
5-5:3.3    Conflicting Provisions
5-5:3.4    Codicil
5-5:3.5    Lapse
5-5:3.6    Abatement
5-5:3.7    Ademption
5-5:3.8    Classification of Testamentary Gifts
5-5:3.8a    Bequest
5-5:3.8b    Specific
5-5:3.8c    General
5-5:3.8d    Demonstrative
5-5:3.8e    Residuary
5-5:3.8f    Fractional and Pecuniary Bequests
5-5:3.9    In Terrorem Clause
5-5:3.9a    Purpose
5-5:3.9b    History of In Terrorem Clause in New Jersey
5-5:3.9c    Enforcement of In Terrorem Clause
5-5:3.9d    What Constitutes Contest
5-5:3.9e    Other Jurisdictions
5-5:3.9f    Importance
5-5:3.10    Power of Appointment
5-5:3.11    Tax Allocation
5-5:4    Action to Construe Will
5-5:4.1    Jurisdiction
5-5:4.2    Authority
5-5:4.3    Practice
5-6    ACTIONS AGAINST WILL
5-6:1    Elective Share
5-6:1.1    General: Spouse’s Elective Share
5-6:1.2    The Augmented Estate
5-6:1.3    Calculation of Elective Share
5-6:1.4    Valuation for Elective Share
5-6:1.4a    Valuation of Decedent’s Probate Estate and Transfers Made by Decedent
5-6:1.4b    Valuation of Surviving Spouse’s Independent Property and Transfers
5-6:1.5    Reduction for Death Taxes
5-6:1.6    Entitlement to Income
5-6:1.7    Value of Life Estate
5-6:1.8    Proceeding to Recover an Elective Share
5-6:1.9    Waiver of Elective Share
5-6:2    Spouse Omitted in Will
5-6:3    Children Omitted in Will

Chapter 6: Litigation Involving Non-Probate Assets
6-1    NON-PROBATE ASSETS
6-2    JOINT ACCOUNTS: MULTIPLE-PARTY DEPOSIT ACCOUNT ACT
6-3    UNIFORM T.O.D. SECURITY REGISTRATION ACT
6-4    LIFE INSURANCE
6-5    RETIREMENT PLANS

Chapter 7: Divorce, Annulment, and Death
7-1    DEATH DURING DIVORCE PROCEEDING
7-1:1    Spouse Dies During Divorce Proceeding With a Will
7-1:2    Spouse Dies Intestate During Divorce Proceeding
7-1:3    Claims Surviving Divorce Proceedings Despite Death
7-2    DEATH AFTER DIVORCE
7-2:1    Divorce and Non-Probate Assets
7-2:1.1    Life Insurance
7-2:1.2    Life Insurance and Federal Law
7-2:1.3    Retirement Benefits
7-3    ALIMONY AND TRUSTS
7-4    CHILD SUPPORT
7-4:1    Trusts
7-4:2    Child Support and Death of Parent

Chapter 8: Miscellaneous Probate Actions
8-1    CONTRACTS TO MAKE A WILL OR BEQUEST
8-2    CREDITOR’S CLAIMS
8-2:1    Types of Creditor’s Claims
8-2:1.1    Claims Against Estate for Services Rendered
8-2:1.2    Recovery Under Quantum Meruit
8-2:1.3    Palimony
8-2:2    Presentation and Recovery of Claims
8-2:3    Priority of Claims
8-2:4    Trusts, LLC Interests and Divorce
8-3    INSOLVENT ESTATES
8-4    MALICIOUS OR INTENTIONAL INTERFERENCE WITH EXPECTED INHERITANCE
8-5    INTERMENT AND DISINTERMENT ACTIONS
8-6    AID IN DYING FOR THE TERMINALLY ILL

Chapter 9: Issues Unique to Trust Litigation
9-1    TRUSTS
9-1:1    New Jersey Uniform Trust Code
9-1:2    Creation and Validity of Trusts
9-1:3    Venue for Trust Actions
9-1:4    Beneficiaries
9-1:5    Representation of Minors, Mentally Incapacitated Persons, or Unborn Children in Trust Proceedings or Transactions
9-1:6    Modification of Trusts
9-1:7    Termination of Trusts
9-1:8    Reformation of Trusts
9-1:9    Decanting of Trusts
9-1:10    Resignation of Trustee
9-2    CHARITABLE TRUSTS VS. PRIVATE TRUSTS
9-3    CY PRES DOCTRINE
9-4    DOCTRINE OF DEVIATION
9-5    RESULTING TRUST
9-6    CONSTRUCTIVE TRUST

Chapter 10: Fiduciary Duties, Obligations, and Liabilities
10-1    FIDUCIARY DUTY
10-2    STANDARD OF CARE
10-2:1    General
10-2:2    Investments
10-3    EXCULPATORY CLAUSES
10-4    COURT’S POWER TO OVERRIDE GOVERNING INSTRUMENT
10-5    REMOVAL OF FIDUCIARY
10-5:1    Hostility
10-5:2    Conflict of Interest
10-5:3    Failure to Discharge Duties
10-5:4    Standard of Proof Required for Removal of Fiduciary
10-6    DELEGATION OF FIDUCIARY DUTY
10-7    FIDUCIARY AND BOND
10-8    LIABILITY OF TRUSTEES
10-9    SURCHARGE OF FIDUCIARY
10-10    FORFEITURE OF COMMISSIONS BY FIDUCIARY
10-11    PUNITIVE DAMAGES AGAINST FIDUCIARY
10-12    ATTORNEY’S FIDUCIARY DUTY IN ESTATE PLANNING AND ESTATE ADMINISTRATION
10-13    LEGAL MALPRACTICE
10-13:1    Attorney-Client Relationship
10-13:1.1    Client in Estate Planning
10-13:1.1a    Estate Administration
10-13:1.2    Evidentiary Standard
10-13:1.3    Procedural Requirements for Legal Malpractice Action
10-13:1.3a    Statute of Limitations
10-13:1.3b    Affidavit of Merit
10-13:2    Attorney-Client Privilege
10-13:3    Joint Representation
10-14    FINANCIAL INSTITUTIONS

Chapter 11: Accounting
11-1    PURPOSE
11-2    REQUIREMENT TO FORMALLY ACCOUNT
11-3    RELEASE FROM REQUIREMENT TO FORMALLY ACCOUNT
11-4    COMPELLING AN ACCOUNT
11-5    FAILURE TO RENDER AN ACCOUNT
11-6    INFORMAL ACCOUNT
11-7    PROCEDURE TO JUDICIALLY SETTLE AN ACCOUNT
11-7:1    Verified Complaint
11-7:2    Service
11-7:3    Conflicts of Interest
11-7:4    Surrogate’s Audit and Report
11-8    FORM OF ACCOUNT
11-8:1    Account Schedules
11-8:2    Principal and Income Recognition and Allocation
11-8:2.1    Principal Charges
11-8:2.1a    Receipts From Entities
11-8:2.1b    Receipts Allocated to Principal
11-8:2.1c    Principal Allowances
11-8:2.2    Income Charges
11-8:2.3    Income Allowances
11-8:2.3a    Beneficiary’s Right to Receive Income
11-8:2.3b    Disbursements From Income
11-8:3    Transfers Between Principal and Income
11-8:3.1    Trustee’s Power to Adjust
11-8:3.2    Trustee’s Liability to Beneficiary
11-9    DECEASED FIDUCIARY’S DUTY TO ACCOUNT
11-10    REMOVED OR DISCHARGED FIDUCIARY’S DUTY TO ACCOUNT
11-11    EXCEPTIONS TO ACCOUNT
11-12    EFFECT OF A JUDGMENT SETTLING AN ACCOUNT
11-13    FIDUCIARY COMMISSIONS
11-13:1    Executor and Administrator Commissions
11-13:2    Trustee and Guardian Commissions
11-13:3    Fiduciary’s Affidavit of Service
11-14    COUNSEL FEES

Chapter 12: Pre-Trial Issues
12-1    OVERVIEW OF DISCOVERY
12-2    METHODS OF DISCOVERY
12-2:1    Oral Depositions of Party
12-2:2    Oral Depositions of Non-Party/Expert Witnesses and Treating Physicians
12-2:3    Written or Videotaped Depositions
12-2:4    Depositions in Estate Litigation
12-2:5    Interrogatories
12-2:6    Documents and Records
12-2:7    Request for Admissions
12-3    FAILURE TO COMPLY WITH DISCOVERY REQUESTS
12-4    PRIVILEGES
12-4:1    Attorney-Client Privilege
12-4:2    Physician-Patient Privilege

Chapter 13: Trial
13-1    PRETRIAL CONFERENCE AND MEMORANDUM
13-2    EXCHANGE OF INFORMATION BETWEEN PARTIES AND COURT
13-3    MOTIONS
13-3:1    In Limine Motions
13-4    BURDEN OF PROOF
13-5    HEARSAY
13-6    WITNESSES: LAY AND EXPERT
13-7    AWARD OF COUNSEL FEES AND COSTS IN ESTATE LITIGATION
13-7:1    American Rule
13-7:2    Probate Actions
13-7:3    Fund in Court
13-7:4    Accountings
13-7:5    Guardianship Actions
13-7:6    Counsel Fees as Damages
13-7:7    Counsel Fee Assessed Against Adversary
13-7:8    Procedure for Award of Counsel Fees and Costs
13-7:8.1    General Probate Litigation
13-7:8.2    Accountings
13-8    FRIVOLOUS LITIGATION AND COURT’S POWER TO RESTRICT THE FILING OF PLEADINGS

Chapter 14: Settlement
14-1    ARBITRATION AND MEDIATION
14-2    SETTLEMENT AGREEMENTS AND ARBITRATION AWARDS
14-3    AGREEMENT TO ALTER INTERESTS AMONG BENEFICIARIES OR INTESTATE HEIRS
14-4    NON-JUDICIAL SETTLEMENT AGREEMENTS RELATING TO TRUSTS
14-5    ACCELERATION AND TERMINATION OF TRUSTS
14-6    TAX CONSEQUENCES OF SETTLEMENT
14-6:1    Federal Income Tax Consequences
14-6:2    Federal Estate and Gift Tax Consequences
14-6:3    New Jersey Inheritance Tax Consequences
14-6:4    Deductibility of Counsel Fees
14-6:5    Protective Claim for Refund

Chapter 15: Appeals
15-1    INTERLOCUTORY APPEALS TO APPELLATE DIVISION
15-2    APPEALS TO APPELLATE DIVISION FROM JUDGMENT OR ORDER
15-2:1    Standard of Review in General
15-2:1.1    Standard of Review for Undue Influence
15-2:1.2    Standard of Review of Trial Court’s Decision in Removal of Fiduciary
15-2:1.3    Standard of Review for Denial of Counsel Fees
15-3    ISSUES RAISED ON APPEAL
15-4    APPEAL TO NEW JERSEY SUPREME COURT