AN ACT TO MAKE VARIOUS CHANGES TO THE GENERAL STATUTES CONCERNING ESTATES, TRUSTS, AND GUARDIANSHIPS, AS RECOMMENDED BY THE NORTH CAROLINA BAR ASSOCIATION.
Identical to S 394, filed 3/27/19.
Amends GS 28A-15-4 regarding encumbered assets of a decedent's estate to replace usage of "encumbrance" with "underlying debt." Amends GS 35A-1103 to clarify that the clerk's jurisdiction over incompetency proceedings is subject to the rules set forth in Article 2 (jurisdiction) of GS Chapter 35B (Uniform Adult Guardianship and Protective Proceedings Jurisdiction Act). Amends GS 30-15 to allow a surviving spouse to claim the spousal yearly support allowance only if, at the decedent's death, either the decedent or the surviving spouse was a resident of this state. These provisions become effective upon the date the law becomes effective and apply to decedents dying, estates filed, and pleadings filed on or after that date.
Enacts new GS 1-56.1 clarifying that there is no statute of limitation for an action to reform, terminate, or modify a trust pursuant to GS 36C-4-410 through GS 36C-4-416. Applies to all trusts created before, on, or after the effective date of this act, and to all judicial proceedings concerning trusts commenced on or after the act's effective date.
Amends GS 36C-2-203 to require any action to reform or modify a trust to include a term providing for the removal and replacement of the trustee by one or more beneficiaries or other persons. Amends GS 36C-4-411 to add new subsection (h) clarifying that aside from modification of a trust in subsection (a), the rest of the statute does not permit a modification of a trust to remove or replace a trustee, including the addition of trust terms for removal or replacement of a trustee by one or more beneficiaries or other persons. These provisions are effective when the law becomes effective and apply to trusts created before, on, or after that date and to pleadings filed on or after that date.