25:2-1. Conveyances of personal property in trust for use of persons making them void as to creditors. a. Except as provided in subsection b. of this section, every deed of gift and every conveyance, transfer and assignment of goods, chattels or things in action, made in trust for the use of the person making the same, shall be void as against creditors.
b. Notwithstanding the provisions of any other law to the contrary, any property held in a qualifying trust and any distributions from a qualifying trust, regardless of the distribution plan elected for the qualifying trust, shall be exempt from all claims of creditors and shall be excluded from an estate in bankruptcy, except that:
(1) no exemption shall be allowed for any preferences or fraudulent conveyances made in violation of the "Uniform Voidable Transactions Act," R.S.25:2-20 et seq., or any other State or federal law;
(2) no qualifying trust shall be exempt from the claims under any order for child support or spousal support or of an alternate payee under a qualified domestic relations order. However, the interest of any alternate payee under a qualified domestic relations order is exempt from all claims of any creditor of the alternate payee. As used in this paragraph, the terms "alternate payee" and "qualified domestic relations order" have the meanings ascribed to them in section 414(p) of the federal Internal Revenue Code of 1986 (26 U.S.C. s.414(p)); and
(3) no qualifying trust shall be exempt from any punitive damages awarded in a civil action arising from manslaughter or murder.
For purposes of this section, a "qualifying trust" means a trust created or qualified and maintained pursuant to federal law, including, but not limited to, section 401, 403, 408, 408A, 409, 529 or 530 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.401, 403, 408, 408A, 409, 529 or 530).
Notes of Decisions
Cited in
39
cases (
4 in the last 5 years), 1982–2024 · leading case:
In Re Lamb, 179 B.R. 419 (Bankr. D.N.J. 1994).
In Re Lamb, 179 B.R. 419 (Bankr. D.N.J. 1994).
· cites it 34× “00; 2) IRA # 84-33-001105 Statewide Savings Bank, Jersey City, NJ pursuant to N.J.Stat.Ann. § 25:2-1, $30,000.00; 3) 1993 Dodge Caravan pursuant to 11 U.”
In Re Van Nostrand, 183 B.R. 82 (Bankr. D.N.J. 1995).
· cites it 7× “Debtor argues that the remainder of the section, which states “and shall be excluded from an estate in bankruptcy,” defines N.”
In Re Neto, 215 B.R. 939 (Bankr. D.N.J. 1997).
· cites it 8× “17B:24-7 and N.J.S.A. 25:2-1 of the New Jersey Statutes Annotated and under the rules established by the Lottery Commission, she is restricted in the transfer of her right to the payments.”
In Re Ronald J. Yuhas, Debtor. Thomas J. Orr v. Ronald J. Yuhas, 104 F.3d 612 (3d Cir. 1997).
· cites it 3× “Nor does the trustee dispute the' fact that N.J.S.A. § 25:2-1 would constitute “applicable nonbankruptcy law” if it restricted transfer of the debtor’s interest in the way that the trustee believes is required by 11 U.”
Pineo v. Fulton (In Re Fulton), 240 B.R. 854 (Bankr. W.D. Pa. 1999).
· cites it 4× “N.J.S.A. § 25:2-1(b) provides, in pertinent part, that: Notwithstanding the provisions of any other law to the contrary, any property held in a qualifying trust and any distributions from a qualifying trust, regardless of the distribution plan elected for the qualifying trust,…”
Wolf v. Tzanides (In re Tzanides), 574 B.R. 489 (Bankr. D.N.J. 2017).
· cites it 2× “Count 3 alleged that if the transfer occurred within the four years prior to the petition, such transfer date is legally or equitably tolled, and may be avoided by the Trustee pursuant to N.J.S.A. 25:2-1 et seq. as applied by 11 U.”
Gibbons v. First Fid. Bank, N.A. (In Re Princeton-New York Investors, Inc.), 255 B.R. 376 (Bankr. D.N.J. 2000).
· cites it 5× “§ 544 and the New Jersey Fraudulent Transfer Act (“NJFTA”), encoded at N.J.S.A. § 25:2-1, et seq. Accordingly, Plaintiff requests that the Court: (1) nullify and set aside First Fidelity’s application of the $4,000,000 from the sale of Princeton’s golf course to the debts of…”
Gibbons v. First Fid. Bank, N.A. (In Re Princeton-New York Investors, Inc.), 199 B.R. 285 (Bankr. D.N.J. 1996).
· cites it 2× “§§ 544 and 548 and N.J.S.A. 25:2-1 et seq., of the asserted transaction whereby First Fidelity applied $4,000,000 of the proceeds of the sale of the golf course, which allegedly belonged to PNY, to satisfy Mulvihill’s other obligations to First Fidelity.”
Jimenez v. Jimenez, 185 A.3d 954 (N.J. Super. Ct. App. Div. 2018).
“We note that Gwyn Jimenez, the co-owner of the parcel, was not named as a party to this action.”
N.J. Stat. § 25:2-1(b): 14 cases
Pineo v. Fulton (In Re Fulton), 240 B.R. 854 (Bankr. W.D. Pa. 1999).
“N.J.S.A. § 25:2-1(b) provides, in pertinent part, that: Notwithstanding the provisions of any other law to the contrary, any property held in a qualifying trust and any distributions from a qualifying trust, regardless of the distribution plan elected for the qualifying trust,…”
In Re Van Nostrand, 183 B.R. 82 (Bankr. D.N.J. 1995).
“Debtor argues that the remainder of the section, which states “and shall be excluded from an estate in bankruptcy,” defines N.”
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