Committee endorses S.3 to preserve tenancy-by-the-entirety protections for property placed in trusts

The Judiciary Committee on April 1 voted to report S.3 favorably to the full chamber. The motion — made to "find S.3 as passed by the senate favorable" — was moved by Angela and seconded; the roll call recorded at least eight members voting yes and the motion carried.

The measure is written to let married couples transfer real property into trusts without losing tenancy-by-the-entirety protections, a form of ownership that generally prevents a creditor of one spouse from attaching property held by the married couple. A staff member explained that under current law, placing property in a trust can remove that protection because the trust, not the spouses, holds title. "S.3 aims to allow for people to put property into trust while still maintaining the protections of the tenant by the entirety," the staff member said.

The bill's proponents told the committee that the change would let married owners use estate-planning tools such as trusts while preserving existing creditor protections tied to tenancy by the entirety. Committee discussion on S.3 was brief and largely technical; no amendments were offered during the hearing. Angela moved the committee report; the motion carried after a voice and roll-call response. Named members recorded voting yes included Roseland, Harvey Malaik, Oliver, Raul, Owen, Renell, Patricia Flynn and Christie (the transcript lists these members as voting yes; other votes were recorded but not individually transcribed in the provided excerpt).

The committee chair asked that the clerk prepare the report and forward the bill and the committee's vote to the legislative floor.

S.3 is listed in committee records as "as passed by the senate"; the committee's action sends that Senate-passed version forward without further committee amendments.