§ 36C-8B-21 – Need to distribute not required.
36C-8B-21. Need to distribute not required. An authorized fiduciary may exercise the decanting power whether or not under the first trust’s discretionary distribution standard the fiduciary would have made or could have been compelled to make a discretionary distribution of principal at the time of exercise. (2017-121, s. 1.)
§ 36C-8B-9 – Court involvement.
36C-8B-9. Court involvement. (a) An authorized fiduciary, a beneficiary, or a person entitled to notice under G.S. 36C-8B-7(b) may commence a proceeding for any of the following purposes: (1) To approve or disapprove a proposed exercise of the authorized fiduciary’s decanting power. (2) To appoint a special fiduciary to exercise the decanting power. (b) Nothing […]
§ 36C-8B-10 – Formalities.
36C-8B-10. Formalities. An exercise of the decanting power shall be made in a written instrument signed by an authorized fiduciary. The signed written instrument shall identify, directly or by reference to the notice required by G.S. 36C-8B-7, the first trust and the second trust or trusts and state the property of the first trust being […]
§ 36C-8B-11 – Decanting power.
36C-8B-11. Decanting power. (a) The following definitions apply to this section: (1) Noncontingent right. – A right that is not subject to the exercise of discretion or the occurrence of a specified event that is not certain to occur. The term does not include a right held by a beneficiary if any person has discretion […]
§ 36C-8B-13 – Trust for beneficiary with disability.
36C-8B-13. Trust for beneficiary with disability. (a) The following definitions apply in this section: (1) Beneficiary with a disability. – A beneficiary of a first trust who the special-needs fiduciary believes may qualify, now or in the future, for governmental benefits based on disability, whether or not the beneficiary currently receives those benefits, or is […]
§ 36C-8B-15 – Trust limitation on decanting.
36C-8B-15. Trust limitation on decanting. (a) An authorized fiduciary shall not exercise the decanting power to the extent the terms of the first trust expressly prohibit exercise of the decanting power or a power granted by State law to the fiduciary to distribute part or all of the principal of the trust to another trust […]
§ 36C-8B-16 – Change in compensation.
36C-8B-16. Change in compensation. (a) If a first trust specifies an authorized fiduciary’s compensation, the fiduciary shall not exercise the decanting power to increase the fiduciary’s compensation above the specified compensation unless either of the following conditions is satisfied: (1) All qualified beneficiaries of the second trust consent to the increase in a signed written […]
§ 36C-8B-17 – Relief from liability and indemnification.
36C-8B-17. Relief from liability and indemnification. (a) Except as otherwise provided in this section, a second trust shall not relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first trust. (b) A second trust may provide for indemnification of an authorized fiduciary of the first trust or another […]
§ 36C-8B-18 – Removal or replacement of authorized fiduciary.
36C-8B-18. Removal or replacement of authorized fiduciary. An authorized fiduciary may not exercise the decanting power to modify a provision in a first trust granting another person power to remove or replace the fiduciary unless one or more of the following occur: (1) The person holding the power consents to the modification in a signed […]
§ 36C-8B-19 – Tax-related limitations.
36C-8B-19. Tax-related limitations. (a) The following definitions apply in this section: (1) Grantor trust. – A trust as to which a settlor of a first trust is considered the owner under sections 671 through 677 or section 679 of the Internal Revenue Code. (2) Nongrantor trust. – A trust that is not a grantor trust. […]