reglab/statecodes huggingface dataset:
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 2 - Judicial Proceedings. › § 36C-2-204 - Venue.

§ 36C-2-204. Venue.
In any trust proceeding, whether brought before the clerk of superior court or the Superior Court Division of the General Court of Justice, the following rules apply:
(1) If the trustee is required to account to the clerk of superior court, venue for proceedings under G.S. 36C-2-203 involving trusts is the place where the accountings are filed.
(2) If the trustee is not required to account to the clerk of superior court, then unless the terms of the governing instrument provide otherwise, venue for proceedings under G.S. 36C-2-203 involving trusts is either of the following:
a. In the case of an inter vivos trust, in any county of this State in which the trust has its principal place of administration or where any beneficiary resides.
b. In the case of a testamentary trust, in any county of this State in which the trust has its principal place of administration, where any beneficiary resides, or in which the testator's estate was administered.
(2a) In the case of a petition to establish the validity of a revocable trust before death pursuant to Article 4C of this Chapter, venue shall be in the county of this State in which the petitioner whose revocable trust is the subject of the petition resides.
(3) Repealed by Session Laws 2007-106, s. 8, effective October 1, 2007.
(4) If a trust has no trustee, venue for a judicial proceeding for the appointment of a trustee is in any county of this State in which a beneficiary resides, in any county in which trust property is located, in the county of this State specified in the trust instrument, if any county is so specified, or in the case of a testamentary trust, in the county in which the decedent's estate was or is being administered.
(5) An objection to improper venue in a trust proceeding shall be subject to the following:
a. For a trust proceeding before the clerk of superior court, objection must be made as part of a timely served response to the complaint or petition or, if no response is filed, within 20 days after service of the complaint or petition, including any extensions of time pursuant to G.S. 36C-2-205(d).
b. For a trust proceeding before the Superior Court Division of the General Court of Justice, objection shall be governed by the Rules of Civil Procedure.
(6) The validity of a trust proceeding shall not be affected by any error in venue. (2001-413, s. 1; 2003-261, s. 2; 2005-192, s. 2; 2007-106, s. 8; 2021-53, ss. 1.2, 3.1.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 2 - Judicial Proceedings. › § 36C-2-206 - Representation of parties.

§ 36C-2-206. Representation of parties.
(a) Notwithstanding any other applicable rule of the Rules of Civil Procedure or provision of Chapter 1 of the General Statutes, in any trust proceeding, whether brought before the clerk of superior court or in the superior court division of the General Court of Justice, the parties shall be represented as provided in Article 3 of this Chapter.
(b) In the case of any party represented by another as provided in subsection (a) of this section, service of process shall be made by serving such representative. (2005-192, s. 2; 2006-259, s. 13(a).)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 2 - Judicial Proceedings. › § 36C-2-207 - Waiver of notice.

§ 36C-2-207. Waiver of notice.
A party, or the representative of the party as provided in G.S. 36C-2-206, may waive notice by a writing signed by the party, the representative, or the attorney of the party or the representative, and filed in the proceeding. (2001-413, s. 1; 2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 2 - Judicial Proceedings. › § 36C-2-208 - Accounting to clerk.

§ 36C-2-208. Accounting to clerk.
(a) No trustee, including a trustee appointed by the clerk of superior court, is required to account to the clerk of superior court unless the trust instrument directs that the trustee is required to account to the clerk of superior court or unless the trustee is otherwise required by law to account to the clerk of superior court.
(b) If the trustee is required to account to the clerk of superior court, the trustee shall not be permitted to resign as trustee until a final account of the trust estate is filed with the clerk of superior court and until the court is satisfied that the account is true and correct, unless the terms of the trust instrument provide otherwise.
(c) Notwithstanding subsections (a) and (b) of this section, under a proceeding brought under G.S. 36C-4-405.1, the clerk of superior court may require a trustee of a charitable trust to account to the clerk of superior court. (1911, c. 39, s. 6; C.S., s. 4029; 1977, c. 502, s. 2; 2001-413, s. 1; 2003-261, s. 4; 2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 2 - Judicial Proceedings. › § 36C-2-209 - Qualification and accounting of trustee of a testamentary trust.

§ 36C-2-209. Qualification and accounting of trustee of a testamentary trust.
(a) For any testamentary trust created under a will of a decedent executed before January 1, 2004, the trustee shall first qualify under the laws applicable to executors, and shall file in the office of the clerk of superior court of the county where the will is probated inventories of the assets that come into the trustee's hands and annual and final accounts of the trust that are the same as required of executors and administrators. The power of the clerk of superior court to enforce the filing and the clerk's duties to audit and approve the trustee's inventories and accounts is the same as the clerk's powers and duties with respect to the inventories and accounts of executors and administrators. This subsection shall not apply to the extent that the will makes a different provision.
(b) For any testamentary trust created under a will of a decedent executed on or after January 1, 2004, that directs the trustee to account to the clerk of superior court, the trustee shall first qualify under the laws applicable to executors and shall file in the office of the clerk of superior court of the county where the will is probated inventories of the assets that come into the trustee's hands and annual and final accounts of the trust that are the same as are required of executors and administrators. The power of the clerk of superior court to enforce the filing and the clerk's duties to audit and approve the trustee's inventories and accounts is the same as the clerk's powers and duties with respect to the inventories and accounts of executors and administrators. No trustee, including a trustee appointed by the clerk of superior court, is required to account to the clerk of superior court unless the will directs that the trustee is required to account to the clerk of superior court or unless otherwise required by law.
(c) The Administrative Office of the Courts may adopt rules regulating the registration or indexing of testamentary trusts. (1907, c. 804; C.S., s. 51; 1961, c. 519; 1965, c. 1176, s. 1; 1973, c. 1329, s. 4; 1977, c. 502, s. 2; 1985, c. 377, s. 1, 2; 2003-261, s. 7(j); 2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 3 - Representation. › § 36C-3-301 - Representationbasic effect.

§ 36C-3-301. Representation: basic effect.
(a) Notice to a person who may represent and bind another person under this Article has the same effect as if notice were given directly to the other person.
(b) The consent of a person who may represent and bind another person under this Article is binding on the person represented unless the person represented objects to the representation before the consent would otherwise have become effective.
(c) Except as otherwise provided in G.S. 36C-4-411 and G.S. 36C-6-602, a person who under this Article may represent a settlor who lacks capacity may receive notice and give a binding consent on the settlor's behalf.
(d) A settlor may not represent and bind a beneficiary under this Article with respect to the termination or modification of trust under G.S. 36C-4-411(a). (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 3 - Representation. › § 36C-3-302 - Representation by holder of power of revocation or general power of appointment.

§ 36C-3-302. Representation by holder of power of revocation or general power of appointment.
The sole holder or all coholders of a power of revocation or a presently exercisable or testamentary general power of appointment, including one in the form of a power of amendment, shall represent and bind other persons to the extent that their interests, as takers in default, are subject to the power. (2005-192, s. 2; 2009-222, s. 2; 2010-96, s. 8.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 3 - Representation. › § 36C-3-303 - Representation by fiduciaries, parents, and other persons.

§ 36C-3-303. Representation by fiduciaries, parents, and other persons.
To the extent that there is no conflict of interest between the representative and the person represented or among those being represented with respect to a particular question or dispute involving a trust:
(1) A general guardian or a guardian of the estate may represent and bind the estate that the guardian controls.
(2) Repealed by Session Laws 2007-106, s. 11, effective October 1, 2007.
(3) An agent under a power of attorney having authority to act with respect to the particular question or dispute may represent and bind the principal.
(4) A trustee may represent and bind the beneficiaries of the trust unless the question or dispute involves the internal affairs of the trust.
(5) A personal representative of a decedent's estate may represent and bind persons interested in the estate.
(6) A parent may represent and bind the parent's minor child if a general guardian or guardian of the estate for the child has not been appointed. If a disagreement arises between parents seeking to represent the same minor child, the parent who is a beneficiary of the trust that is the subject of the representation is entitled to represent the minor child or, if no parent is a beneficiary of the trust that is the subject of the representation, a parent who is a lineal descendant of the settlor is entitled to represent the minor child, or if no parent is a lineal descendant of the settlor, a guardian ad litem shall be appointed to represent the minor child.
(7) A person may represent and bind that person's unborn issue. (2005-192, s. 2; 2007-106, s. 11.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 3 - Representation. › § 36C-3-304 - Representation by person having substantially identical interest.

§ 36C-3-304. Representation by person having substantially identical interest.
Unless otherwise represented under this Article, a minor, an incompetent or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another having a substantially identical interest with respect to the particular question or dispute, but only to the extent that there is no conflict of interest between the representative and the person represented with respect to the particular question or dispute. (2005-192, s. 2; 2007-106, s. 12.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 3 - Representation. › § 36C-3-305 - Appointment of representative; scope of representation.

§ 36C-3-305. Appointment of representative; scope of representation.
(a) If the court determines that an interest is not represented under this Article, or that the otherwise available representation might be inadequate, the court may appoint a guardian ad litem to receive notice, give consent, and otherwise represent, bind, and act on behalf of a minor, an incompetent or unborn individual, or a person whose identity or location is unknown. A guardian ad litem may be appointed to represent several persons or interests.
(b) Any representative under this Article may act on behalf of the individual represented with respect to any matter arising under this Chapter, whether or not a judicial proceeding concerning the trust is pending.
(c) In making decisions, a representative, including a guardian ad litem, may base a decision to consent to an action upon a finding that living members of the individual's family would generally benefit from that action. (2005-192, s. 2; 2007-106, s. 13.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-401 - Methods of creating trust.

§ 36C-4-401. Methods of creating trust.
A trust may be created by any of the following methods:
(1) Transfer of property by a settlor to a person as trustee during the settlor's lifetime or by will or other disposition taking effect upon the settlor's death including either of the following:
a. The devise to the trustee of the trust as provided in G.S. 31-47.
b. The designation of the trust as beneficiary of life insurance or other death benefits as provided in G.S. 36C-4-401.1.
(2) Declaration by the owner of property that the owner holds identifiable property as trustee unless the transfer of title of that property is otherwise required by law.
(3) Exercise of a power of appointment in favor of a trustee.
(4) A court by judgment, order, or decree, including the establishment of a trust pursuant to section 1396p(d)(4) of Title 42 of the United States Code. (2005-192, s. 2; 2007-106, s. 14; 2009-267, s. 2; 2011-284, s. 45.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-401.2 - Creation of trust by a court.

§ 36C-4-401.2. Creation of trust by a court.
A court may create or establish a trust by judgment or decree, including a trust pursuant to section 1396p(d)(4) of Title 42 of the United States Code, upon petition of an interested party in accordance with the provisions of this Chapter or in any other matter properly before the court. (2009-267, s. 3; 2010-97, s. 5(a).)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-402 - Requirements for creation.

§ 36C-4-402. Requirements for creation.
(a) A trust is created only if:
(1) The settlor has capacity to create a trust;
(2) The settlor indicates an intention to create the trust;
(3) The trust has a definite beneficiary or is:
a. A charitable trust;
b. A trust for the care of an animal, as provided in G.S. 36C-4-408; or
c. A trust for a noncharitable purpose, as provided in G.S. 36C-4-409;
(4) The trustee has duties to perform; and
(5) The same person is not the sole trustee and sole beneficiary.
(b) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.
(c) A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails, and the property subject to the power passes to the persons who would have taken the property had the power not been conferred. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-403 - Trusts created in other jurisdictions.

§ 36C-4-403. Trusts created in other jurisdictions.
A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation:
(1) The settlor was domiciled, had a place of abode, or was a national;
(2) A trustee was domiciled or had a place of business; or
(3) Any trust property was located. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-404 - Trust purposes.

§ 36C-4-404. Trust purposes.
A trust may be created only to the extent that its purposes are lawful, not contrary to public policy, and possible to achieve. A trust and its terms must be for the benefit of its beneficiaries. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-405 - Charitable purposes.

§ 36C-4-405. Charitable purposes.
(a) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, scientific, benevolent, literary, governmental, or municipal purposes, or other purposes the achievement of which is beneficial to the community.
(b) It is the policy of the State that a gift for charitable purposes, whether in trust or otherwise, is valid, notwithstanding the fact that the gift is made in general terms, and this section shall be construed liberally to effect this policy.
(c) No gift for charitable purposes, whether in trust or otherwise, is void or invalid because:
(1) The gift is in general terms or is uncertain as to the specific charitable purposes;
(2) When the gift is made in trust, the trustee is granted discretionary powers in the selection and designation of the beneficiaries of that charitable trust or in carrying out the purpose of that trust;
(3) The trustee or other recipient of the gift is given no specific instructions, powers, or duties as to the manner or means of carrying out those charitable purposes; or
(4) The gift contravenes any statute or rule against perpetuities.
(d) When any gift is made in general terms, the trustee or other recipient of the gift may:
(1) Select from time to time one or more specific charitable beneficiaries or purposes for which any trust or property or income is held and administered; and
(2) Determine the means to accomplish those charitable purposes, unless otherwise provided, including the creation of corporations or other legal entities for those purposes.
(e) For purposes of this section, the reference to a "gift" includes both inter vivos and testamentary gifts, grants, and other transfers. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-405.1 - Enforcement of charitable gift or trust.

§ 36C-4-405.1. Enforcement of charitable gift or trust.
(a) The settlor of a charitable trust, the Attorney General, the district attorney, a beneficiary, or any other interested party may maintain a proceeding to enforce a charitable trust, including the following:
(1) A proceeding to require a trustee to make a selection as may be necessary to establish the charitable beneficiaries or purposes for which the trust was established, as provided in subdivisions (d)(1) and (d)(2) of G.S. 36C-4-405;
(2) A proceeding for breach of fiduciary duty if there is reason to believe that the trust property has been mismanaged through negligence or fraud; and
(3) A proceeding for an accounting of the trustee's administration of the trust.
(b) The donor of a charitable gift, the Attorney General, the district attorney, or any other interested party may maintain a proceeding to enforce the gift, including a proceeding to require the recipient of the gift to make a selection as may be necessary to establish the charitable beneficiaries or purposes for which the gift was intended, as provided in subdivisions (d)(1) and (d)(2) of G.S. 36C-4-405. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-405.2 - Spending rules applicable to charitable trusts.

§ 36C-4-405.2. Spending rules applicable to charitable trusts.
Subject to the intent of a settlor specifically expressed in a trust instrument, including a document making a gift to a charitable trust after it is established, a trustee of a charitable trust may appropriate for expenditure or accumulate so much of the trust property as the trustee determines is prudent for the uses, benefits, purposes, and duration for which that charitable trust is established. In making a determination to appropriate or accumulate trust property, a trustee shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and shall consider, if relevant, the following factors:
(1) The duration and preservation of the trust;
(2) The purposes of the trust;
(3) General economic conditions;
(4) The possible effect of inflation or deflation;
(5) The expected total return from income and the appreciation of investments;
(6) Other resources of the trust; and
(7) The investment policy of the trust. (2009-8, s. 3.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-406 - Creation of trust induced by fraud, duress, or undue influence.

§ 36C-4-406. Creation of trust induced by fraud, duress, or undue influence.
A trust is voidable to the extent that its creation was induced by fraud, duress, or undue influence. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-407 - Evidence of oral trust.

§ 36C-4-407. Evidence of oral trust.
Except as required by a State statute other than this Chapter, a trust need not be evidenced by a trust instrument, but the creation of an oral trust, and its terms may be established only by clear and convincing evidence. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-408 - Trust for care of animal.

§ 36C-4-408. Trust for care of animal.
(a) Subject to this section, a trust for the care of one or more designated domestic or pet animals alive at the time of creation of the trust is valid.
(b) Except as expressly provided otherwise in the trust instrument, no portion of the principal or income may be converted to the use of the trustee or to any use other than for the benefit of the designated animal or animals.
(c) The trust terminates at the death of the animal or last surviving animal. Upon termination, the trustee shall transfer the unexpended trust property in the following order:
(1) As directed in the trust instrument.
(2) If the trust was created in a preresiduary clause in the settlor's will or in a codicil to the settlor's will, under the residuary clause in the settlor's will.
(3) If no taker is produced by the application of subdivision (1) or (2) of this subsection, to the settlor, if then living, otherwise to the settlor's heirs determined as of the date of the settlor's death under Chapter 29 of the General Statutes.
(d) The intended use of the principal or income can be enforced by a person designated for that purpose in the trust instrument or, if none, by a person appointed by the clerk of superior court having jurisdiction over the trust upon application to the clerk of superior court by a person.
(e) Except as ordered by the clerk of superior court or required by the trust instrument, no filing, report, registration, periodic accounting, separate maintenance of funds, appointment, bond, or fee is required by reason of the existence of the fiduciary relationship of the trustee.
(f) A governing instrument shall be liberally construed to bring the transfer within this section, to presume against the merely precatory or honorary nature of the disposition, and to carry out the general intent of the settlor. Extrinsic evidence is admissible in determining the settlor's intent.
(g) The clerk of superior court may reduce the amount of the property transferred, if the clerk of superior court determines that the amount substantially exceeds the amount required for the intended use. The amount of the reduction, if any, passes as unexpended trust property under subsection (c) of this section.
(h) If no trustee is designated or if no designated trustee agrees to serve or is able to serve, the clerk of superior court must name a trustee. The clerk of superior court may order the transfer of the property to another trustee, if required to assure that the intended use is carried out and if no successor trustee is designated in the trust instrument or if no designated successor trustee agrees to serve or is able to serve. The clerk of superior court may also make other orders and determinations as are advisable to carry out the intent of the settlor and the purpose of this section. (1995, c. 225, s. 1; 2005-192, s. 2; 2006-259, s. 13(b).)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-409 - Noncharitable trust without ascertainable beneficiary.

§ 36C-4-409. Noncharitable trust without ascertainable beneficiary.
Except as otherwise provided in G.S. 36C-4-408 or by another statute, the following rules apply:
(1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee. The trust may not be enforced for more than 21 years. If the trust is still in existence after 21 years, the trust shall terminate. The unexpended trust property shall be transferred in the following order:
a. As directed in the trust instrument.
b. If the trust was created in a preresiduary clause in the settlor's will or in a codicil to the settlor's will, under the residuary clause in the settlor's will.
c. If no taker is produced by the application of sub-subdivisions a. or b. of this subdivision, to the settlor, if then living, otherwise to the settlor's heirs as determined under Chapter 29 of the General Statutes as of the date of the settlor's death.
(2) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court.
(3) Property of a trust authorized by this section may be applied only to its intended use, except to the extent that the court determines that the value of the trust property exceeds the amount required for the intended use. The property not required for the intended use shall be distributed under subdivision (1) of this section.
(4) Notwithstanding subdivisions (1) through (3) of this section, a trust, contract, or other arrangement to provide for the care of a cemetery lot, grave, crypt, niche, mausoleum, columbarium, grave marker, or monument is valid without regard to remoteness of vesting, duration of the arrangement, or lack of definite beneficiaries to enforce the trust, provided that the trust, contract, or other arrangement meets the requirements of G.S. 28A-19-10, Article 4 of Chapter 65 of the General Statutes, Article 9 of Chapter 65 of the General Statutes, or other applicable law. This section does not repeal or supersede G.S. 36C-4-413. (1995, c. 225, s. 1; 2005-192, s. 2; 2007-106, s. 15.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-410 - Modification or termination of trust; proceedings for approval or disapproval.

§ 36C-4-410. Modification or termination of trust; proceedings for approval or disapproval.
(a) In addition to the methods of termination prescribed by G.S. 36C-4-411 through G.S. 36C-4-414, a trust terminates to the extent that the trust is revoked or expires under its terms, no purpose of the trust remains to be achieved, or the purposes of the trust have become unlawful, contrary to public policy, or impossible to achieve.
(b) A trustee or beneficiary may commence a proceeding to approve or disapprove a proposed modification or termination under G.S. 36C-4-411 through G.S. 36C-4-416. A settlor may commence a proceeding to approve or disapprove a proposed modification or termination under G.S. 36C-4-411. The settlor of a charitable trust may maintain a proceeding to modify the trust under G.S. 36C-4-413. A trustee is a necessary party to any proceeding under this Article.
(c) Repealed by Session Laws 2006-259, s. 13(c), effective October 1, 2006. (2005-192, s. 2; 2006-259, s. 13(c); 2007-106, s. 16.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-412 - Modification or termination because of unanticipated circumstances or inability to administer trust effectively.

§ 36C-4-412. Modification or termination because of unanticipated circumstances or inability to administer trust effectively.
(a) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the extent practicable, the modification must be made in accordance with the settlor's probable intention.
(b) The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the trust's administration.
(c) Repealed by Session Laws 2006-259, s. 13(e), effective October 1, 2006. (2005-192, s. 2; 2006-259, s. 13(e).)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-413 - Cy pres.

§ 36C-4-413. Cy pres.
(a) Except as otherwise provided in subsections (c1) and (d) of this section, if a charitable trust becomes unlawful, impracticable, impossible to achieve, or wasteful:
(1) The trust does not fail, in whole or in part;
(2) The trust property does not revert to the settlor or the settlor's successors in interest; and
(3) The court may apply cy pres to modify or terminate the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor's charitable purposes.
(b) The settlor or a trustee of a charitable trust, the Attorney General, a beneficiary, or any other interested party may maintain a cy pres proceeding under Article 2 of this Chapter.
(c) Repealed by Session Laws 2007-106, s. 17.1, effective October 1, 2007.
(c1) If a trustee of a charitable trust determines that a restriction contained in the trust instrument, including a document making a gift to a charitable trust after it is established, relating to the management, investment, or purpose of the trust or gift is unlawful, impracticable, impossible to achieve, or wasteful, the trustee may release or modify the restriction, in whole or part, if:
(1) The trust property to which the restriction applies has a total value of less than one hundred thousand dollars ($100,000);
(2) More than 10 years have elapsed since the trust property to which the restriction applies was given to the charitable trust; and
(3) The trustee uses the trust property in a manner consistent with the charitable purposes expressed in the applicable trust instrument.
The trustee must provide written notice of the proposed release or modification of the restriction to the Attorney General not less than 60 days before releasing or modifying the restriction. The Attorney General may make application to the court to contest the trustee's determination that the restriction should be released or modified within 60 days of receipt of the trustee's written notice.
(d) This section is not applicable if the settlor has provided, either directly or indirectly, for an alternative plan in the event that the charitable trust is or becomes unlawful, impracticable, impossible to achieve, or wasteful. However, if the alternative plan is also a charitable trust and that trust fails, the intention shown in the original plan shall prevail in the application of this section. (2005-192, s. 2; 2007-106, s. 17.1; 2009-8, s. 4.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-414 - Modification or termination of uneconomic trust.

§ 36C-4-414. Modification or termination of uneconomic trust.
(a) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value of less than fifty thousand dollars ($50,000) may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration. The trustee may enter into an agreement or make other provisions that the trustee deems necessary or appropriate to protect the interests of the beneficiaries and to carry out the intent and purpose of the trust. This subsection shall not apply where the instrument creating the trust, by specific reference to this section, or to former G.S. 36A-125.6, provides that it shall not apply. The trustee shall not be liable for that termination and distribution notwithstanding the existence or potential existence of other beneficiaries who are not sui juris. Any beneficiary receiving a distribution from a trust terminated under this section shall incur no liability and shall not be required to account to anyone for such distribution.
(b) The court may modify or terminate a trust or remove the trustee and appoint a different trustee if the court determines that the value of the trust property is insufficient to justify the cost of administration.
(c) This section does not apply to an easement for conservation or preservation.
(d) Repealed by Session Laws 2006-259, s. 13(f), effective October 1, 2006. (2005-192, s. 2; 2006-259, s. 13(f).)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-415 - Reformation to correct mistakes.

§ 36C-4-415. Reformation to correct mistakes.
The court may reform the terms of a trust, if the terms of the trust are ambiguous, to conform the terms to the settlor's intent if it is proved by clear and convincing evidence what the settlor's intent was and that the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement. (2005-192, s. 2; 2017-152, s. 4.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-416 - Modification to achieve settlor's tax objectives.

§ 36C-4-416. Modification to achieve settlor's tax objectives.
To achieve a settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effect. (2005-192, s. 2; 2006-259, s. 13(g).)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-417 - Combination and division of trusts.

§ 36C-4-417. Combination and division of trusts.
(a) Unless otherwise provided in the trust instrument, a trustee may do any of the following:
(1) Consolidate the assets of more than one trust and administer the assets as one trust under the terms of one of the trusts if the terms of the trusts are substantially similar and the beneficiaries of the trusts are identical.
(2) Divide one trust into two or more separate trusts if the new trusts provide in the aggregate for the same succession of interests and beneficiaries as are provided in the original trust.
(b) In dividing a trust into two or more separate trusts, a trustee shall accomplish the division by severing the trusts on a fractional basis and funding the separate trusts either (i) with a pro rata portion of each asset held by the undivided trust; or (ii) on a non-pro rata basis based on either the fair market value of the assets on the date of funding or in a manner that fairly reflects the net appreciation or depreciation in the value of the assets measured from the valuation date to the date of funding.
(c) In any case where two separate identical trusts are created under this section, one of which is fully exempt from the federal generation-skipping transfer tax and one of which is fully subject to that tax, the trustee may thereafter, to the extent possible consistent with the terms of the trust, determine the value of any mandatory or discretionary distributions to trust beneficiaries on the basis of the combined value of both trusts, but may satisfy those distributions by a method other than pro rata from the separate trusts in a manner designed to minimize the current and potential generation-skipping transfer tax. (2005-192, s. 2; 2006-259, s. 13(h).)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-418 - Distribution upon termination of trust.

§ 36C-4-418. Distribution upon termination of trust.
Upon termination of a trust under G.S. 36C-4-411(a), the trustee shall distribute the trust property as agreed by the beneficiaries. Upon termination of a trust under G.S. 36C-4-411(b) or (c), the trustee shall distribute the trust property in accordance with the order entered by the court. Upon termination of a trust under G.S. 36C-4-412(a) or G.S. 36C-4-414, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust. (1999-266, s. 2; 2005-192, s. 2; 2007-106, s. 18.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4 - Creation, Validity, Modification, and Termination of Trust. › § 36C-4-419 - Effect of inalienable interest on modification or termination.

§ 36C-4-419. Effect of inalienable interest on modification or termination.
The court, in exercising its discretion to modify or terminate an irrevocable trust under G.S. 36C-4-411, 36C-4-412, or 36C-4-414 shall consider provisions making the interest of a beneficiary inalienable, including those described in Article 5, but the court is not precluded from the exercise of that discretion solely because of such provisions. (2005-192, s. 2; 2006-259, s. 13(i).)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4A - Tax Status of Charitable Trusts. › § 36C-4A-2 - Reformation of charitable remainder trust.

§ 36C-4A-2. Reformation of charitable remainder trust.
If a federal estate tax deduction is not allowable at the time of a decedent's death because of the failure of an interest in property that passes from the decedent under a will or trust to a person, or for a use, described in section 2055(a) of the Internal Revenue Code, to meet the requirements of subsections 2055(e)(2)(A) or (B) of the Internal Revenue Code, then in order that the deduction shall nevertheless be allowable under section 2055(e)(3) of the Internal Revenue Code, the court may, on application of any trustee or interested party with either (i) the written consent of the qualified beneficiaries, or (ii) a finding that the interest of those beneficiaries is substantially preserved, order an amendment to the trust so that the remainder interest is in a trust that is a charitable remainder annuity trust, a charitable remainder unitrust (as those terms are described in section 664 of the Internal Revenue Code), or a pooled income fund (as that term is described in section 642(c)(5) of the Internal Revenue Code), or so that any other interest of a charitable beneficiary is in the form of a guaranteed annuity or is a fixed percentage distributed yearly of the fair market value of the property (to be determined yearly), in accordance with section 2055(e)(2)(B) of the Internal Revenue Code. In every proceeding under this section, the Attorney General shall be notified, and given an opportunity to be heard. (1971, c. 1136, s. 4; 1977, c. 502, s. 2; 1981 (Reg. Sess., 1982), c. 1210, ss. 1-3; 2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4B - Charitable Remainder Trust Administration Act. › § 36C-4B-1 - Short title.

§ 36C-4B-1. Short title.
This Article shall be known as the Charitable Remainder Administration Trust Act. (1981 (Reg. Sess., 1982), c. 1252, s. 1; 2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4B - Charitable Remainder Trust Administration Act. › § 36C-4B-2 - General rule.

§ 36C-4B-2. General rule.
Notwithstanding any provisions in the laws of this State or in the governing instruments to the contrary, any charitable remainder annuity trust and any charitable remainder unitrust that cannot qualify for a deduction for federal tax purposes under section 2055 or section 2522 of the Internal Revenue Code in the absence of this Article shall be administered in accordance with this Article. (1981 (Reg. Sess., 1982), c. 1252, s. 1; 2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4B - Charitable Remainder Trust Administration Act. › § 36C-4B-7 - Interpretation.

§ 36C-4B-7. Interpretation.
This Article shall be interpreted and construed to effectuate its general purpose to cause all charitable remainder annuity trusts and all charitable remainder unitrusts to be administered in accordance with section 2055 and section 2522 of the Internal Revenue Code and the regulations under those sections. (1981 (Reg. Sess., 1982), c. 1252, s. 1; 2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4C - Judicial Establishment of Validity of a Revocable Trust. › § 36C-4C-1 - Proceedings for validity of a revocable trust.

§ 36C-4C-1. Proceedings for validity of a revocable trust.
A settlor may commence a judicial proceeding to establish the validity of a revocable trust pursuant to this Article. (2021-53, s. 1.1.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4C - Judicial Establishment of Validity of a Revocable Trust. › § 36C-4C-2 - Establishing validity of a revocable trust before death.

§ 36C-4C-2. Establishing validity of a revocable trust before death.
(a) During the settlor's lifetime, any settlor of a revocable trust who is a resident of North Carolina may commence a judicial proceeding seeking a judicial declaration that the trust is valid.
(b) The petition shall be filed with the Superior Court Division of the General Court of Justice. At the hearing, the petitioner shall produce the evidence necessary to establish that the revocable trust, including any existing amendments thereto, is valid and enforceable under its terms, subject only to a subsequent amendment or revocation of the revocable trust. Civil summonses shall be issued to those interested persons identified in the settlor's petition, and such parties shall be served with a copy of the summons and petition as provided in Rule 4 of the Rules of Civil Procedure.
(c) The petition filed to determine the validity of a revocable trust may also join as an additional claim a request for a judicial declaration that the petitioner's will or codicil is valid as provided in Article 2B of Chapter 28A of the General Statutes and, notwithstanding G.S. 28A-2B-1(b), the joined action shall be heard in the Superior Court Division of the General Court of Justice as provided in this Article.
(d) Failure to use the procedure authorized by this Article shall not have any evidentiary or procedural effect on any future proceedings, including trust proceedings, civil actions, and estate proceedings.
(e) For purposes of this Article only, a "petitioner" is a person who requests a judicial declaration that confirms the validity of that person's revocable trust. (2021-53, s. 1.1.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4C - Judicial Establishment of Validity of a Revocable Trust. › § 36C-4C-3 - Venue.

§ 36C-4C-3. Venue.
The venue for a petition under this Article shall be as provided in G.S. 36C-2-204. (2021-53, s. 1.1.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4C - Judicial Establishment of Validity of a Revocable Trust. › § 36C-4C-4 - Contents of petition for revocable trust validity.

§ 36C-4C-4. Contents of petition for revocable trust validity.
(a) Petition. – A petition requesting an order declaring that a petitioner's revocable trust is valid shall be verified and shall contain the following information:
(1) A statement that the petitioner is a resident of North Carolina and specifying the county of the petitioner's residence.
(2) Allegations that the revocable trust was prepared and executed in accordance with North Carolina law and a statement that the revocable trust was created with intent to create the revocable trust.
(3) A statement that the petitioner had capacity to create a revocable trust at the time the trust was created.
(4) A statement that the petitioner was free from undue influence and duress and executed the revocable trust in the exercise of the petitioner's free will.
(5) A statement identifying the petitioner, and all persons believed by the petitioner to have an interest in the proceeding, including, for any interested parties who are minors, information regarding the minor's appropriate representative.
(b) The petitioner shall attach a copy of the revocable trust and any amendments then in effect to the petition. If an order is entered declaring the revocable trust to be valid, the petitioner shall tender the original revocable trust and any amendments then in effect at the hearing, and the court shall affix a certificate of validity to such revocable trust and amendments, if any. (2021-53, s. 1.1.)