reglab/statecodes huggingface dataset:
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 4C - Judicial Establishment of Validity of a Revocable Trust. › § 36C-4C-5 - Declaration by court; bar to contesting validity of trust.

§ 36C-4C-5. Declaration by court; bar to contesting validity of trust.
(a) If the court enters a judgment declaring a revocable trust to be valid, such judgment shall be binding upon all parties to the proceeding, including any persons represented in the proceeding, pursuant to the provisions of Article 3 of Chapter 36C of the General Statutes, and no party bound by the judgment shall have any further right to, and shall be barred from filing, a challenge to the validity of the revocable trust once that trust becomes irrevocable.
(b) If the court declares a revocable trust to be valid, upon the motion of the petitioner or the court, the court may order that the trust cannot be revoked and that no subsequent revocable trust or amendment to the validated trust will be valid unless the revocation or the subsequent amendment to the validated trust is declared valid in a proceeding under this Article. If the court enters such an order, any subsequent revocation of the trust not declared valid in a proceeding under this Article shall be void, and any subsequent trust or amendment to the validated trust not declared valid in a proceeding under this Article shall be void.
(c) If a revocable trust judicially declared valid is revoked or modified by a subsequent revocable trust or amendment, nothing in this section shall bar an interested person from contesting the validity of that subsequent trust or amendment, unless that subsequent trust or amendment is also declared valid in a proceeding under this Article in which the interested person was a party. If a trust or amendment to a trust judicially declared valid is revoked by a method other than the execution of a subsequent trust, nothing in this section shall bar an interested person from contesting the validity of that revocation, unless that revocation is also declared valid in a proceeding under this Article in which the interested person was a party.
(d) Nothing in this Article shall preclude a party from seeking relief from a judgment pursuant to Rule 60 of the North Carolina Rules of Civil Procedure, including, without limitation, for fraud upon the court. (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-6 - Confidentiality.

§ 36C-4C-6. Confidentiality.
(a) Following the entry of a judgment, a party to the proceeding may move that the contents of the file be sealed and kept confidential, and upon such motion, the court shall seal the contents of the file from public inspection. The contents of the file shall not be released except by order of the court to any person other than the following:
(1) The petitioner named in the petition.
(2) The attorney for the petitioner.
(3) A court of competent jurisdiction hearing or reviewing the matter.
(b) For good cause shown, the court may order the records that are confidential under this section to be made available to a person who is not listed in this section. Following the petitioner's death, a sealed file shall be unsealed upon the request of any interested person for the purpose of other estate proceedings. (2021-53, s. 1.1.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 5 - Creditors' Claims; Spendthrift and Discretionary Trusts. › § 36C-5-501 - Rights of beneficiary's creditor or assignee.

§ 36C-5-501. Rights of beneficiary's creditor or assignee.
(a) Except as provided in subsection (b) of this section, the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary's interest by attachment of present or future distributions to or for the benefit of the beneficiary or other means. The court may limit the award to that relief as is appropriate under the circumstances.
(b) Subsection (a) of this section shall not apply, and a trustee shall have no liability to any creditor of a beneficiary for any distributions made to or for the benefit of the beneficiary, to the extent that a beneficiary's interest is protected or restricted by any of the following:
(1) A spendthrift provision.
(2) A discretionary trust interest as defined in G.S. 36C-5-504(a)(2).
(3) A protective trust interest as described in G.S. 36C-5-508. (2005-192, s. 2; 2007-106, s. 19.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 5 - Creditors' Claims; Spendthrift and Discretionary Trusts. › § 36C-5-502 - Spendthrift provision.

§ 36C-5-502. Spendthrift provision.
(a) A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest.
(b) A term of a trust providing that the interest of a beneficiary is held subject to a "spendthrift trust", or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the beneficiary's interest.
(c) A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this Article, a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before its receipt by the beneficiary. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 5 - Creditors' Claims; Spendthrift and Discretionary Trusts. › § 36C-5-503 - Exceptions to spendthrift provision.

§ 36C-5-503. Exceptions to spendthrift provision.
(a) As used in this section, the term "child" includes any person for whom an order or judgment for child support has been entered in this or another state.
(b) Even if a trust contains a spendthrift provision, or if the beneficiary's interest is a discretionary trust interest as defined in G.S. 36C-5-504(a)(2) or a protective trust interest as defined in G.S. 36C-5-508, a beneficiary's child who has a judgment or court order against the beneficiary for support or maintenance may obtain from a court an order attaching present or future distributions to or for the benefit of the beneficiary. The court may limit the award to relief that is appropriate under the circumstances. (2005-192, s. 2.)
2023 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.)
2023 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.)
2023 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.)
2023 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.)
2023 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.)
2023 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; or
b. By oral statement to the trustee if the trust was created orally; or
c. 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.)
2023 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.)
2023 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.)
2023 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.)
2023 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.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 6 - Revocable Trusts. › § 36C-6-606 - (Effective until March 1, 2024) Revocation of provisions in revocable trust by divorce or annulment; revival.

§ 36C-6-606. (Effective until March 1, 2024) 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.)
§ 36C-6-606. (Effective March 1, 2024) Revocation of provisions in revocable trust by divorce or annulment; revival.
(a) Unless a contrary intent is expressly indicated in the revocable trust, if the settlor's marriage is dissolved by absolute divorce or annulment after the execution of a revocable trust, then the settlor's former spouse shall be deemed to have predeceased the settlor for all purposes related to the construction, interpretation, or administration of that revocable trust. This section shall apply to all provisions of the settlor's revocable trust, 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 executor, trustee, conservator, guardian, or any other fiduciary or nonfiduciary position.
(b) This section shall not apply to a revocable trust if any of the following occur:
(1) The settlor executes a subsequent valid amendment to the revocable trust, such as by date of the revocable trust, and which modifies the revocable trust.
(2) The settlor remarries the former spouse prior to the settlor's death, unless the remarriage is subsequently dissolved by absolute divorce or annulment.
(c) As used in this section, the term "former spouse" includes a purported former spouse. (2007-106, s. 26; 2023-120, s. 2.2.)
2023 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.)
2023 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).)
2023 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.)
2023 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.)
2023 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.)
2023 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.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 7 - Office of Trustee. › § 36C-7-707 - Delivery of property by former trustee.

§ 36C-7-707. Delivery of property by former trustee.
(a) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.
(b) A trustee who has resigned or been removed shall proceed expeditiously to deliver the trust property within the trustee's possession to the cotrustee, successor trustee, or other person entitled to it. A former trustee shall execute those documents acknowledging the transfer of title to trust property as may be reasonably requested by the cotrustee, successor trustee, or other person entitled to it to facilitate administration of the trust, and in the event that the former trustee fails to do so, the clerk of superior court may order the former trustee to execute those documents. (2005-192, s. 2; 2012-18, s. 3.5.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 7 - Office of Trustee. › § 36C-7-708 - Compensation of trustee.

§ 36C-7-708. Compensation of trustee.
(a) If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation determined in accordance with Article 6 of Chapter 32 of the General Statutes.
(b) If the terms of a trust specify the trustee's compensation, the trustee is entitled to be compensated as specified. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 7 - Office of Trustee. › § 36C-7-709 - Reimbursement of expenses.

§ 36C-7-709. Reimbursement of expenses.
A trustee is entitled to be reimbursed out of the trust property for expenses properly incurred in the administration of the trust as provided in G.S. 32-58. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-801 - Duty to administer trust.

§ 36C-8-801. Duty to administer trust.
Upon acceptance of a trusteeship, a trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this Chapter. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-803 - Impartiality.

§ 36C-8-803. Impartiality.
If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests. (1999-215, s. 1; 2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-804 - Prudent administration.

§ 36C-8-804. Prudent administration.
A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-805 - Cost of administration.

§ 36C-8-805. Cost of administration.
In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee. (1999-215, s. 1; 2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-806 - Trustee's skills.

§ 36C-8-806. Trustee's skills.
A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise. (1999-215, s. 1; 2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-807 - Delegation by trustee.

§ 36C-8-807. Delegation by trustee.
(a) A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in:
(1) Selecting an agent;
(2) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and
(3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.
(c) A trustee who complies with subsection (a) of this section is not liable to the beneficiaries or to the trust for an action of the agent to whom the function was delegated.
(d) By accepting a delegation of powers or duties from the trustee of a trust that is subject to the law of this State, an agent submits to the jurisdiction of the courts of this State. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-808 - Powers of a settlor to take certain actions with respect to the trust.

§ 36C-8-808. Powers of a settlor to take certain actions with respect to the trust.
While a trust is revocable, the settlor of a revocable trust has, at all times, the power to direct or consent to the actions of the trustee whether or not the power is conferred upon the settlor by the terms of the trust. The duty and liability of the trustee subject to the direction and consent of the settlor is as follows:
(1) The trustee may follow a direction of the settlor that is not authorized by or is contrary to the terms of the trust, even if by doing so (i) the trustee exceeds the authority granted to the trustee under the terms of the trust, or (ii) the trustee would otherwise violate a duty the trustee owes under the trust.
(2) The trustee is not liable, individually or as a fiduciary, for any loss resulting directly or indirectly from compliance with the direction. If the settlor requires the settlor's consent to certain actions of the trustee, and the settlor does not provide consent within a reasonable time after the trustee has made a timely request for the settlor's consent, the trustee is not liable, individually or as a fiduciary, for any loss resulting directly or indirectly from the trustee's failure to take any action that required the settlor's consent. (2005-192, s. 2; 2007-106, s. 34; 2012-18, s. 3.1.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-809 - Control and protection of trust property.

§ 36C-8-809. Control and protection of trust property.
A trustee shall take reasonable steps to take control of and protect the trust property. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-810 - Record keeping and identification of trust property.

§ 36C-8-810. Record keeping and identification of trust property.
(a) A trustee shall keep adequate records of the administration of the trust.
(b) A trustee shall keep trust property separate from the trustee's own property.
(c) Except as otherwise provided in subsection (d) of this section, a trustee shall cause the trust property to be designated so that the interest of the trust, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary.
(d) If the trustee maintains records clearly indicating the respective interests, a trustee may invest and administer as a whole the property of two or more separate trusts. (2005-192, s. 2; 2007-106, s. 34.1.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-811 - Enforcement and defense of claims.

§ 36C-8-811. Enforcement and defense of claims.
A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-812 - Collecting trust property.

§ 36C-8-812. Collecting trust property.
A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee and to redress a breach of trust known to the trustee to have been committed by a former trustee. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-813 - Duty to inform and report.

§ 36C-8-813. Duty to inform and report.
(a) The trustee is under a duty to do all of the following:
(1) Provide reasonably complete and accurate information as to the nature and amount of the trust property, at reasonable intervals, to any qualified beneficiary who is a distributee or permissible distributee of trust income or principal.
(2) In response to a reasonable request of any qualified beneficiary:
a. Provide a copy of the trust instrument.
b. Provide reasonably complete and accurate information as to the nature and amount of the trust property.
c. Allow reasonable inspections of the subject matter of the trust and the accounts and other documents relating to the trust.
(b) Notwithstanding subsection (a) of this section:
(1) The duty of the trustee under subsection (a) of this section shall not include informing any beneficiary in advance of transactions relating to the trust property.
(2) A trustee is considered to have discharged the trustee's duty under subdivision (1) of subsection (a) of this section as to a qualified beneficiary for matters disclosed by a report sent at least annually and at termination of the trust to the beneficiary that describes the trust property, liabilities, receipts, and disbursements, including the source and amount of the trustee's compensation, and lists the trust assets and their respective market values, including estimated values of assets with uncertain values. No presumption shall arise that a trustee who does not comply with this subdivision failed to discharge the trustee's duty under subdivision (1) of subsection (a) of this section.
(c) A qualified beneficiary may waive the right to a trustee's report or other information otherwise required to be furnished under this section. With respect to future reports and other information, a beneficiary may withdraw a waiver previously given.
(d) Repealed by Session Laws 2007-106, s. 35, effective October 1, 2007. (2005-192, s. 2; 2007-106, s. 35.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-815 - General powers of trustee.

§ 36C-8-815. General powers of trustee.
(a) A trustee, without authorization by the court, may exercise any of the following:
(1) Powers conferred by the terms of the trust.
(2) Except as limited by the terms of the trust:
a. All powers over the trust property that an unmarried competent owner has over individually owned property;
b. Any other powers appropriate to achieve the proper investment, management, administration, or distribution of the trust property; and
c. Any other powers conferred by this Chapter.
(b) No provision of this section shall relieve a trustee of the fiduciary duties under this Article. (2005-192, s. 2; 2006-259, s. 13(k).)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-817 - Distribution upon termination.

§ 36C-8-817. Distribution upon termination.
Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to it, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes. (2005-192, s. 2.)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8 - Duties and Powers of Trustee. › § 36C-8-818 - Notice of deceased Medicaid beneficiaries.

§ 36C-8-818. Notice of deceased Medicaid beneficiaries.
If a trust was established by a person who at the time of that person's death was receiving medical assistance, as defined in G.S. 108A-70.5(b), and the trust was revocable at the time of that person's death, then any trustee of that trust that knows of the medical assistance within 90 days of the person's death shall provide notice of that person's death to the Division of Health Benefits of the Department of Health and Human Services, within 90 days of the person's death. This section does not apply to trustees of preneed funeral trusts established or created pursuant to Article 13D of Chapter 90 of the General Statutes. (2013-378, s. 5; 2019-81, s. 15(a); 2021-88, s. 9(g).)
2023 North Carolina General Statutes › Chapter 36C - North Carolina Uniform Trust Code › Article 8A - Powers, Duties, and Liability of a Power Holder Other Than a Trustee; Duty and Liability of a Trustee With Respect to Power Holder's Actions. › § 36C-8A-1 - "Power holder" defined.

§ 36C-8A-1. "Power holder" defined.
(a) For purposes of this Article:
(1) The term "power holder" means a person described in subdivision (2) of this subsection that under the terms of a trust has the power to take certain actions with respect to a trust and that is not any of the following:
a. A trustee.
b. A settlor with a power to direct or consent pursuant to G.S. 36C-8-808.
c. A person in which a donor creates a power of appointment.
d. A person that has authority to consent to the exercise of a power of appointment.
e. A beneficiary with a power over a trust to the extent the exercise or nonexercise of the power affects the beneficial interest of the beneficiary or another beneficiary represented by a beneficiary under G.S. 36C-3-301 through G.S. 36C-3-305 with respect to the exercise or nonexercise of the power.
(2) A power holder may be any of the following:
a. One or more individuals.
b. One or more other persons each of which is qualified to exercise trust powers in this State.
c. Any combination of the persons described in sub-subdivisions a. and b. of this subdivision.
(b) A person is a power holder whether or not the terms of a trust refer to the person as a power holder and, except as otherwise provided in sub-subdivisions (a)(1)b. and e. of this section, whether or not the person is a beneficiary or settlor of the trust. (2012-18, s. 3.4; 2021-85, s. 2(c).)