The Art Villa

Oregon Non-Judicial Settlement Agreement: What You Need to Know

A non-judicial settlement agreement, commonly referred to as an NJSA, is an alternative to probate court proceedings in the state of Oregon. If you’re a beneficiary or trustee of a trust in Oregon, and you’re looking for a faster and easier way to settle a dispute, an NJSA might be the solution.

In this article, we’ll give you an overview of non-judicial settlement agreements in Oregon, including what they are, how they work, and why they might be a good option for you.

What Is an NJSA?

A non-judicial settlement agreement is a legal document that allows beneficiaries and trustees to settle disputes outside of court. It’s a flexible and efficient way to resolve issues related to trusts, including trust administration, management, and distribution.

The Oregon Uniform Trust Code (UTC) outlines the requirements and procedures for NJSA, which must include certain information, such as the identity of the parties involved, the specific issues to be resolved, the terms of the agreement, and the signature of all parties involved.

How Does an NJSA Work?

An NJSA can be initiated by any interested party, including the trustee, beneficiary, or a court-appointed representative. The parties involved negotiate and agree on the terms of the settlement, which are then documented in the NJSA.

Once the agreement is signed, it becomes legally binding and enforceable. The NJSA supersedes any conflicting terms in the trust documents or state law.

Benefits of an NJSA

There are several benefits to using an NJSA to resolve trust-related disputes in Oregon. Here are a few:

1. Faster than Probate Court Proceedings

Probate court proceedings can be time-consuming, expensive, and stressful. An NJSA can be completed much faster than court proceedings, allowing the parties involved to move on and focus on other matters.

2. Allows for More Flexibility

An NJSA allows for more flexibility than court proceedings. The parties involved can negotiate and agree on terms that work best for their unique situation, without having to adhere to strict court procedures.

3. Private and Confidential

An NJSA is a private and confidential agreement, unlike court proceedings. This can be beneficial for parties who wish to keep their personal and financial affairs private.

4. Avoids Litigation

An NJSA can help parties avoid costly and time-consuming litigation.

When Is an NJSA Not Appropriate?

An NJSA may not be appropriate in certain situations, such as:

1. If there is a likelihood of a criminal act or a breach of fiduciary duty

2. If the beneficiaries are minors or incapacitated

3. If the parties involved cannot agree on the terms of the settlement


An NJSA can be a useful tool for beneficiaries and trustees in Oregon to resolve trust-related disputes. It’s a faster, more flexible, and private option than probate court proceedings. If you’re considering an NJSA, it’s important to consult with an experienced estate planning attorney to ensure that it’s the right option for your unique situation.