reglab/housing_qa huggingface dataset:
NC Gen Stat § 36C-5-504 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 5 - Creditors' Claims; Spendthrift and Discretionary Trusts.|§ 36C-5-504 - Discretionary trusts; effect of standard.

 36C-5-504. Discretionary trusts; effect of standard.(a) In this section:(1) "Child" includes any person for whom an order or judgment for child support has been entered in this or another state.(2) "Discretionary trust interest" means an interest in a trust that is subject to the trustee's discretion, whether or not the discretion is expressed in the form of a standard of distribution. A discretionary trust interest shall include an interest in any one or any combination of the following:a. A trust in which the amount to be received by the beneficiary, including whether or not the beneficiary, or a class of beneficiaries, is to receive anything at all, is within the discretion of the trustee.b. A trust in which the trustee has no duty to pay or distribute any particular amount to the beneficiary, but has only a duty to pay or distribute to the beneficiary, or apply on behalf of the beneficiary, those sums that the trustee, in the trustee's discretion, determines are appropriate for the support, education, or maintenance of the beneficiary.(b) The beneficiary may not transfer a discretionary trust interest. Except as otherwise provided in this Article, a creditor or assignee of a beneficiary may not reach a discretionary trust interest or a distribution by the trustee before its receipt by the beneficiary.(c) Except as provided in subsection (d) of this section, a creditor of a beneficiary may not compel a distribution from a trust in which the beneficiary has a discretionary trust interest even if the trustee has abused the trustee's discretion.(d) To the extent that a trustee has not complied with a standard of distribution or has abused a discretion:(1) A distribution may be ordered by the court to satisfy a judgment or court order against the beneficiary for support or maintenance of the beneficiary's child; and(2) The court shall direct the trustee to pay to the child an amount that is equitable under the circumstances but not more than the amount the trustee would have been required to distribute to or for the benefit of the beneficiary had the trustee complied with the standard or not abused the discretion.(e) This section does not limit the right of a beneficiary to maintain a judicial proceeding against a trustee for an abuse of discretion or failure to comply with a standard for distribution.(f) A creditor may not reach the interest of a beneficiary who is also a trustee or cotrustee, or otherwise compel a distribution, if the trustee's discretion to make distributions for the trustee's own benefit is limited by an ascertainable standard. (2005-192, s. 2.)
NC Gen Stat § 36C-5-506 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 5 - Creditors' Claims; Spendthrift and Discretionary Trusts.|§ 36C-5-506 - Overdue distribution.

 36C-5-506. Overdue distribution.(a) In this section, "mandatory distribution" means a distribution of income or principal that the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. The term excludes a distribution subject to the exercise of the trustee's discretion, regardless of whether the terms of the trust (i) include a support or other standard to guide the trustee in making distribution decisions; or (ii) provide that the trustee "may" or "shall" make discretionary distributions, including distributions under a support or other standard.(b) Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the designated distribution date. (2005-192, s. 2.)
NC Gen Stat § 36C-5-507 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 5 - Creditors' Claims; Spendthrift and Discretionary Trusts.|§ 36C-5-507 - Personal obligations of trustee.

 36C-5-507. Personal obligations of trustee.Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. (2005-192, s. 2.)
NC Gen Stat § 36C-5-508 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 5 - Creditors' Claims; Spendthrift and Discretionary Trusts.|§ 36C-5-508 - Protective trusts.

 36C-5-508. Protective trusts.Except with respect to an interest retained by the settlor, a "protective trust interest" means an interest in a trust in which the terms of the trust provide that the interest terminates or becomes discretionary if:(1) The beneficiary alienates or attempts to alienate that interest; or(2) Any creditor attempts to reach the beneficiary's interest by attachment, levy, or otherwise; or(3) The beneficiary becomes insolvent or bankrupt. (2005-192, s. 2.)
NC Gen Stat § 36C-6-601 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 6 - Revocable Trusts.|§ 36C-6-601 - Capacity of settlor of revocable trust.

 36C-6-601. Capacity of settlor of revocable trust.The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will. (2005-192, s. 2.)
NC Gen Stat § 36C-6-602 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 6 - Revocable Trusts.|§ 36C-6-602 - Revocation or amendment of revocable trust.

 36C-6-602. Revocation or amendment of revocable trust.(a) Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust without regard to the actual capacity of the settlor. This subsection does not apply to a trust created under an instrument executed before the effective date of this Chapter.(b) If a revocable trust is created or funded by more than one settlor:(1) To the extent the trust consists of community property, the trust may be revoked by either spouse acting alone but may be amended only by joint action of both spouses; and(2) To the extent the trust consists of property other than community property, each settlor may revoke or amend the trust with regard to the portion of the trust property attributable to that settlor's contribution.(c) The settlor may revoke or amend a revocable trust:(1) By substantial compliance with a method provided in the terms of the trust; or(2) If the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by:a. A later will or codicil that expressly refers to the trust or specifically devises property that would otherwise have passed according to the terms of the trust; orb. By oral statement to the trustee if the trust was created orally; orc. Any other written method delivered to the trustee manifesting clear and convincing evidence of the settlor's intent.(d) Upon revocation of a revocable trust, the trustee shall deliver the trust property as the settlor directs.(e) Repealed by Session Laws 2007-106, s. 21, effective October 1, 2007.(f) Repealed by Session Laws 2007-106, s. 22, effective October 1, 2007.(g) A trustee who does not know that a trust has been revoked or amended is not liable to the settlor or settlor's successors in interest for distributions made and other actions taken on the assumption that the trust had not been amended or revoked. (2005-192, s. 2; 2007-106, ss. 21, 22.)
NC Gen Stat § 36C-6-602.1 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 6 - Revocable Trusts.|§ 36C-6-602.1 - Exercise of settlor's powers with respect to revocable trust by agent or guardian.

 36C-6-602.1. Exercise of settlor's powers with respect to revocable trust by agent or guardian.(a) An agent acting under a power of attorney may exercise any of the following powers of the settlor with respect to a revocable trust only to the extent expressly authorized by the terms of the trust or the power of attorney:(1) Revocation of the trust.(2) Amendment of the trust.(3) Additions to the trust.(4) Direction to dispose of property of the trust.(5) The creation of the trust, notwithstanding G.S. 36C-4-402(a)(1) and (2).The exercise of the powers described in this subsection shall not alter the designation of beneficiaries to receive property on the settlor's death under that settlor's existing estate plan.(b) A general guardian or a guardian of the estate of the settlor may exercise the powers of the settlor with respect to a revocable trust as provided in G.S. 35A-1251(24). (2007-106, s. 23.)
NC Gen Stat § 36C-6-603 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 6 - Revocable Trusts.|§ 36C-6-603 - Settlor's control of revocable trust.

 36C-6-603. Settlor's control of revocable trust.(a) While a trust is revocable, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor. If a trustee is a settlor, the trustee's actions are presumed to be taken at the direction of the settlor.(b) If a revocable trust has more than one settlor, the duties of the trustee are owed to all of the settlors. (2005-192, s. 2; 2007-106, s. 24.)
NC Gen Stat § 36C-6-604 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 6 - Revocable Trusts.|§ 36C-6-604 - Limitation on action contesting validity of revocable trust; distribution of trust property.

 36C-6-604. Limitation on action contesting validity of revocable trust; distribution of trust property.(a) A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death within the earlier of:(1) Three years after the settlor's death; or(2) 120 days after the trustee sent the person a copy of the trust instrument and written notice pursuant to G.S. 1A-1, Rule 4 of the Rules of Civil Procedure, informing the person of the trust's existence, of the trustee's name and address, and of the time allowed for commencing a proceeding.(b) Upon the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. The trustee is not subject to liability for doing so unless:(1) The trustee knows of a pending judicial proceeding contesting the validity of the trust; or(2) A potential contestant has notified the trustee of a possible judicial proceeding to contest the trust, and a judicial proceeding is commenced within 60 days after the contestant sent the notification.(c) A beneficiary of a trust that is determined to have been invalid is liable to return any distribution received.  (2005-192, s. 2; 2011-344, s. 13; 2012-18, s. 3.11.)
NC Gen Stat § 36C-6-605 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 6 - Revocable Trusts.|§ 36C-6-605 - Failure of disposition of property of a trust by lapse or otherwise.

 36C-6-605. Failure of disposition of property of a trust by lapse or otherwise.(a) If a beneficiary under a revocable trust predeceases the execution of the trust or the settlor or is treated as having predeceased the settlor, and if the beneficiary is a grandparent of or a descendant of a grandparent of the settlor, then the issue of the predeceased beneficiary who survive the settlor shall take in place of the deceased beneficiary. The deceased beneficiary's issue shall take the deceased beneficiary's share in the same manner that the issue would take as heirs of the deceased beneficiary under the intestacy provisions in effect at the time of the settlor's death. The provisions of this section apply whether the disposition of property is to an individual, to a class, or is a part of the residue of the trust. In the case of the disposition to a class, the issue shall take whatever share the deceased beneficiary would have taken had the deceased beneficiary survived the settlor. In the event the deceased class member leaves no issue, the deceased beneficiary's share shall devolve upon the members of the class who survived the settlor and the issue of any deceased members taking by substitution.(b) If the provisions of subsection (a) of this section do not apply to the disposition of property that fails, the property shall pass to the beneficiaries in proportion to their share of the residue of the trust. If the disposition is part of the residue of the trust, it shall augment the shares of the other residuary beneficiaries, including the shares of any substitute takers under subsection (a) of this section. If there are no residuary beneficiaries, then the property shall pass by intestacy. (2007-106, s. 25.)
NC Gen Stat § 36C-6-606 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 6 - Revocable Trusts.|§ 36C-6-606 - Revocation of provisions in revocable trust by divorce or annulment; revival.

 36C-6-606. Revocation of provisions in revocable trust by divorce or annulment; revival.Dissolution of the settlor's marriage by absolute divorce or annulment after executing a revocable trust revokes all provisions in the trust in favor of the settlor's former spouse, including, but not by way of limitation, any provision conferring a general or special power of appointment on the former spouse and any appointment of the former spouse as trustee. Property prevented from passing to the former spouse because of revocation by divorce or absolute annulment passes as if the former spouse failed to survive the settlor, and other provisions conferring some power or office on the former spouse are interpreted as if the former spouse failed to survive the settlor. If provisions are revoked solely by this section, they are revived by the settlor's remarriage to the former spouse. The reference to "former spouse" in this section includes a purported former spouse. (2007-106, s. 26.)
NC Gen Stat § 36C-6-607 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 6 - Revocable Trusts.|§ 36C-6-607 - Modification or termination of a revocable trust.

 36C-6-607. Modification or termination of a revocable trust.(a) A revocable trust may be modified or terminated by the court pursuant to any of the methods for modification or termination of an irrevocable trust set forth in G.S. 36C-4-411(b) or (c), 36C-4-412, 36C-4-415, or 36C-4-416.(b) The settlor is a necessary party to any proceeding brought to modify or terminate a revocable trust. (2007-106, s. 26.1.)
NC Gen Stat § 36C-7-701 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 7 - Office of Trustee.|§ 36C-7-701 - Accepting or declining trusteeship.

 36C-7-701. Accepting or declining trusteeship.(a) Except as otherwise provided in subsection (c) of this section, a person designated as trustee accepts the trusteeship:(1) By substantially complying with a method of acceptance provided in the terms of the trust; or(2) If the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.(b) A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee who does not accept the trusteeship within 120 days after written notice to accept the trusteeship is provided is considered to have rejected the trusteeship.(c) A person designated as trustee, without accepting the trusteeship, may:(1) Act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to a qualified beneficiary; and(2) Inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose. (2005-192, s. 2; 2006-259, s. 13(j).)
NC Gen Stat § 36C-7-702 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 7 - Office of Trustee.|§ 36C-7-702 - Trustee's bond.

 36C-7-702. Trustee's bond.(a) A trustee shall provide bond to secure the performance of the trustee's duties if:(1) The trust instrument was executed before January 1, 2006, unless the terms of the trust instrument provide otherwise;(2) The trust instrument was executed on or after January 1, 2006, but only if the terms of the trust instrument require the trustee to provide bond;(3) A beneficiary requests the trustee to provide bond, and the court finds the request to be reasonable; or(4) The court finds that it is necessary for the trustee to provide bond in order to protect the interests of beneficiaries who are not able to protect themselves and whose interests otherwise are not adequately represented.However, in no event shall bond be required of a trustee if the governing instrument directs otherwise.(b) If bond is required, it shall be in a sum of double the value of the personal property to come into the trustee's hands if bond is executed by a personal surety, and in an amount not less than one and one-fourth times the value of all personal property of the trust estate if the bond is secured by a suretyship bond executed by a corporate surety company authorized by the Commissioner of Insurance to do business in this State, provided that the court, when the value of the personal property exceeds one hundred thousand dollars ($100,000), may accept bond in an amount equal to the value of the personal property plus ten percent (10%) of that value, conditioned upon the faithful performance of the trustee's duties and for the payment to the persons entitled to receive property that may come into the trustee's hands. All bonds executed under this Article shall be filed with the clerk of superior court.(c) On petition of the trustee or a qualified beneficiary, the court may excuse a requirement of bond, reduce the amount of the bond, release the surety, or permit the substitution of another bond with the same or different sureties.(d) As provided in G.S. 53-159 and G.S. 53-366(a)(10), banks and trust companies licensed to do trust business in this State need not give bond, even if required by the terms of the trust. (1911, c. 39, s. 7; C.S., s. 4031; 1951, c. 264; 1965, c. 1177, s. 1; 1977, c. 502, s. 2; 2001-413, s. 1; 2003-261, s. 5; 2005-192, s. 2.)
NC Gen Stat § 36C-7-704 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 7 - Office of Trustee.|§ 36C-7-704 - Vacancy in trusteeship; appointment of successor.

 36C-7-704. Vacancy in trusteeship; appointment of successor.(a) A vacancy in a trusteeship occurs if:(1) A person designated as trustee rejects the trusteeship;(2) A person designated as trustee cannot be identified or does not exist;(3) A trustee resigns;(4) A trustee is disqualified or removed;(5) A trustee dies; or(6) A general guardian, guardian of the estate, or guardian of the person is appointed for an individual serving as trustee.(b) If one or more cotrustees remain in office, a vacancy in a trusteeship need not be filled. A vacancy in a trusteeship must be filled if the trust has no remaining trustee.(c) A vacancy in a trusteeship of a noncharitable trust that is required to be filled must be filled in the following order of priority:(1) By a person designated in the terms of the trust or appointed under the terms of the trust to act as successor trustee;(2) By a person appointed by unanimous agreement of the qualified beneficiaries; or(3) By a person appointed by the court.(d) A vacancy in a trusteeship of a charitable trust that is required to be filled must be filled in the following order of priority:(1) By a person designated in the terms of the trust or appointed under the terms of the trust to act as successor trustee;(2) By a person selected by majority agreement of the qualified beneficiaries, if the trust is a split-interest charitable trust;(2a) By a person selected by majority agreement of the charitable organizations expressly designated to receive distributions under the terms of the trust; or(3) By a person appointed by the court.(e) Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may appoint an additional trustee or special fiduciary whenever the court considers the appointment necessary for the administration of the trust.(f) A successor trustee shall succeed to all the rights, powers, and privileges, and is subject to all the duties, liabilities, and responsibilities that were imposed upon the original trustee, unless a contrary intent appears from the governing instrument or unless the order appointing the successor trustee provides otherwise. A successor trustee shall be vested with the title to property of the former trustee.  (1911, c. 39, s. 8; C.S., s. 4032; 1977, c. 502, s. 2; 2001-413, s. 1; 2003-261, s. 6; 2005-192, s. 2; 2007-106, s. 30; 2011-339, s. 3.)
NC Gen Stat § 36C-7-705 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 7 - Office of Trustee.|§ 36C-7-705 - Resignation of trustee.

 36C-7-705. Resignation of trustee.(a) A trustee may resign:(1) Upon at least 30 days' notice in writing to the qualified beneficiaries, the settlor, if living, and all cotrustees; or(2) With the approval of the court.(b) In approving a resignation, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property.(c) Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or omissions of the trustee is not discharged or affected by the trustee's resignation. (2005-192, s. 2.)
NC Gen Stat § 36C-7-706 (2021)
2021 North Carolina General Statutes|Chapter 36C - North Carolina Uniform Trust Code|Article 7 - Office of Trustee.|§ 36C-7-706 - Removal of trustee.

 36C-7-706. Removal of trustee.(a) For the reasons set forth in subsection (b) of this section, the settlor of an irrevocable trust, a cotrustee of an irrevocable trust, or a beneficiary of an irrevocable trust may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative.(b) The court may remove a trustee if:(1) The trustee has committed a serious breach of trust;(2) Lack of cooperation among cotrustees substantially impairs the administration of the trust;(3) Because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries; or(4) There has been a substantial change of circumstances, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is consistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available.(c) Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order appropriate relief under G.S. 36C-10-1001(b) as may be necessary to protect the trust property or the interests of the beneficiaries. (2005-192, s. 2.)