How does trustee resignation in New Jersey work? Can a trustee simply sign a resignation letter and walk away?
Sometimes.
The rules governing trustee resignation in New Jersey depend not only on the New Jersey Uniform Trust Code, but also on the terms of the trust itself.
The New Jersey Appellate Division addressed that issue in In re Gloria T. Mann Revocable Trust, a published 2021 decision involving a trustee who signed a written resignation and later argued that he had never actually resigned.
The court disagreed.
The case provides an important lesson for trustees, beneficiaries, and attorneys: read the trust before assuming that the statutory resignation procedure controls.
What Happened in the Gloria Mann Trust?
Gloria T. Mann died in August 2017.
Her two children, David Mann and Doree Gottlieb, became the primary beneficiaries and successor co-trustees of her revocable trust.
A few months later, the trustees retained an attorney to assist with the administration. When trust accounts were opened, bank searches disclosed several old judgments against David.
Concern arose about whether those judgments could interfere with administration of the trust.
David ultimately signed a document titled “Resignation of Trustee.”
The document stated that he resigned as trustee effective immediately. Doree signed an acknowledgment of the resignation.
David and Doree then presented the resignation to banks holding trust assets. The banks removed David as co-trustee, and Doree continued as sole trustee.
Several months later, David sued.
Among other things, he asked the court to declare that he remained a trustee.
The Trustee Said He Never Intended to Resign
David argued that the document did not accomplish what its title suggested.
He maintained that he had intended only to delegate his authority temporarily to his sister so that the banks would work with her.
The trial court rejected that argument.
So did the Appellate Division.
The court found the resignation document unambiguous. David expressly stated that he was resigning as trustee.
His conduct after signing it supported the same conclusion.
He presented the resignation to the banks. He was removed from the trust accounts. He stopped participating in administration of the trust for several months.
The court therefore upheld the finding that he had resigned, rather than merely delegated his authority.
What Does New Jersey Law Normally Require for a Trustee to Resign?
New Jersey’s Uniform Trust Code provides a default procedure for trustee resignation.
Under N.J.S.A. 3B:31-50, a trustee may generally resign in one of two ways:
- by giving at least 30 days’ notice to the required beneficiaries and other specified persons; or
- with court approval.
Standing alone, that statute might suggest that David’s immediate resignation was ineffective because the statutory notice procedure had not been followed.
But that was not the end of the analysis.
The Trust Document Can Change the Default Rule
This is the most important part of the case.
The New Jersey Uniform Trust Code contains both mandatory rules and default rules.
Under N.J.S.A. 3B:31-5, the terms of a trust generally prevail over the statutory defaults unless the particular rule is one that the Legislature made mandatory.
Trustee resignation is not listed among the mandatory rules that cannot be changed by the trust.
That mattered in the Mann case.
Gloria Mann’s trust specifically addressed what should happen if one of the co-trustees became unable or unwilling to continue serving. In that event, the other trustee would continue as sole trustee.
The trust also provided that a trustee did not need a court order to exercise powers or discretion granted under the trust.
The Appellate Division concluded that those provisions demonstrated that Gloria had contemplated the possibility that one trustee might stop serving and had provided a mechanism for the trust to continue.
The trust terms therefore controlled over the default resignation requirements in N.J.S.A. 3B:31-50.
Why the Decision Matters
The case illustrates a recurring issue in trust administration.
Lawyers and fiduciaries sometimes begin with the statute.
That is necessary, but it is not always enough.
The better sequence is:
Read the trust first. Then determine which statutory rules apply.
New Jersey’s Uniform Trust Code supplies many rules governing trustees, beneficiaries, administration, resignation, investment, notices, and other issues.
But many of those provisions are defaults.
The person creating the trust—the settlor—can often provide a different rule in the trust document.
That flexibility is one of the important features of trust law.
A Resignation Letter Should Still Be Clear
The Mann case should not be read as saying that an informal statement is always enough to resign as trustee.
The document in this case was unusually clear.
It was titled “Resignation of Trustee.”
It expressly stated that the trustee resigned.
The remaining trustee acknowledged the resignation.
The parties delivered the document to the financial institutions holding trust assets.
And the former trustee stopped participating in the administration.
Those facts gave the court substantial evidence of what had happened.
A trustee who wants to resign should avoid ambiguity.
The resignation should clearly identify:
- the trust;
- the resigning trustee;
- the effective date;
- the authority for the resignation;
- the successor or remaining trustee, if applicable; and
- any steps required to transfer records, accounts, or trust property.
The trustee should also determine whether the trust requires notice, consent, court approval, or another procedure.
Resignation Does Not Erase Prior Liability
There is another important point in New Jersey’s resignation statute.
A trustee cannot resign simply to escape responsibility for earlier conduct.
N.J.S.A. 3B:31-50 provides that resignation does not discharge or affect a trustee’s liability for acts or omissions that occurred while the trustee served.
That makes sense.
Suppose a trustee mishandles trust assets for several years and resigns immediately before beneficiaries discover the problem.
The resignation may end the trustee’s authority going forward.
It does not erase what happened before the resignation.
A departing trustee should therefore make sure the transition is documented and that trust records and property are properly transferred.
What if the Trust Says Nothing About Resignation?
The Mann decision also helps explain what happens when the trust document is silent.
If the settlor did not establish another procedure, the default provisions of the New Jersey Uniform Trust Code become much more important.
A trustee should not assume that sending an email saying “I quit” ends the fiduciary relationship.
Depending on the trust and circumstances, the trustee may need to provide the statutory 30-day notice or obtain court approval.
The objective is to avoid leaving the trust without someone legally responsible for its administration and property.
Trustee Resignation Should Be Part of the Drafting Process
The case also offers a useful lesson for estate planning attorneys.
A well-drafted trust should anticipate what happens when a trustee no longer wants—or is no longer able—to serve.
The document can address:
- voluntary resignation;
- incapacity;
- death;
- removal;
- appointment of successor trustees;
- whether a court proceeding is required;
- whether a resigning trustee can appoint a successor;
- how co-trustees operate after one stops serving; and
- how trust property and records are transferred.
Those provisions can make the difference between a routine fiduciary transition and litigation.
The Lesson From the Gloria Mann Case
The Gloria Mann case involved much more than a resignation letter. The parties also litigated trust investments, distributions, fiduciary conduct, damages, accountings, and attorney’s fees.
But the trustee-resignation holding provides a particularly useful rule.
New Jersey’s statutory resignation procedure is a default rule. If the trust validly establishes a different procedure, the terms of the trust can control.
That means neither a trustee nor a beneficiary should evaluate a resignation by looking at N.J.S.A. 3B:31-50 alone.
Start with the trust.
Determine what the settlor provided.
Then determine how the New Jersey Uniform Trust Code applies.
A trustee considering resignation should also document the transition carefully. A trustee who has already resigned should remember that resignation ends future authority—it does not automatically eliminate responsibility for prior acts.
This article provides general information about New Jersey trust law and trustee resignation. It is not legal advice. The validity and effect of a trustee’s resignation depend on the trust document, applicable law, and the circumstances of the particular administration.
Updated: August 2026
