Bill Summary for S 110 (2023-2024)

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Summary date: 

Feb 15 2023

Bill Information:

View NCGA Bill Details2023-2024 Session
Senate Bill 110 (Public) Filed Wednesday, February 15, 2023
AN ACT TO ENACT THE UNIFORM COMMUNITY PROPERTY DISPOSITION AT DEATH ACT, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION.
Intro. by Galey, Sawrey.

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Bill summary

Repeals GS Chapter 31C, Uniform Disposition of Community Property Rights at Death Act, and enacts new Article 5, Uniform Community Property Disposition at Death Act (Act), to GS Chapter 30. Titles the Article and sets forth 11 defined terms. Provides the following.

Describes the property of a community-property spouse subject to the Article, with separate criteria for property based on whether the decedent was domiciled in the State at the time of death. Defines community-property spouse as an individual in a marriage or other relationship under which community property could be acquired and which relationship remains in existence at the time of death of either party to the relationship. Details application to community property acquired by community-property spouses through transfer of property to a trust. Excludes from the Article's scope (1) property that community-property spouses have partitioned or reclassified and (2) property that is the subject of a waiver of rights granted by the Article.

Permits community-property spouses to partition or reclassify property to which the Article would otherwise apply by a record signed by both spouses, which is presumed to result in each owning a one-half separate property interest in each item in the record. Allows a community-property spouse domiciled in the State to waive a right granted by the Article pursuant to State laws applicable to waiver of a spousal property right.

Establishes a rebuttable presumption that the Article applies to all property acquired by a community-property spouse when domiciled in a jurisdiction where property acquired by the spouse was presumed to be community property under the law of that jurisdiction.

Details the disposition of community property at death, with one-half of the applicable property belonging to the surviving community-property spouse and not subject to disposition by the decedent at death. Deems the other one-half of the applicable property to belong to the decedent and subject to disposition by the decedent at death, but not subject to the surviving community-property spouse's rights to an elective share or elective life estate under state law. Excludes property transferred by right of survivorship or under a revocable trust or other nonprobate transfer. Specifies that these provisions do not limit a surviving community-property spouse to the year's allowance under Article 4, GS Chapter 30, or the property exemptions under Article X of the Constitution and Article 16, GS Chapter 1C. Allows a court to require a community-property spouse to elect between retaining other property transferred to the surviving community-property spouse or asserting rights to property that, under the Article, belongs to the surviving community-property spouse that at death the decedent purports to transfer to a third party.

Describes acts of the surviving community-spouse or decedent that are grounds for the surviving community-spouse or personal representative, heir, or nonprobate transferee can assert a right at the death of a community-property spouse. Details a court's authority to consider community property law and requires applying equitable principles in determining rights and remedies.

Sets forth the procedure for a surviving community-property spouse to assert a claim for relief under the Article, ranging from commencing a civil action to filing a petition with the clerk of superior court within specified time frames. Specifies that incapacity of the surviving spouse does not toll the time for commencing an action or filing a petition. Authorizes distribution of a decedent's estate without personal liability to the personal representative if no timely demand is made.

Sets forth the procedure for an heir, devisee, or nonprobate transferee of a deceased community-property spouse to assert a claim for relief under the Article, ranging from commencing a civil action to filing a petition with the clerk of court within specified time frames. Similarly, specifies that incapacity of the heir, devisee, or nonprobate transferee does not toll the time for commencing an action or filing a petition.

Grants limited immunity for third persons who transact in good faith and for value with either the surviving community-property spouse, personal representative, heir, devisee, or nonprobate transferee so long as the person does not know or have reason to know that the party is exceeding or improperly exercising their authority. Provides for liability of lien creditors and purchasers for value of the property, and priority of a community-property spouses' registered instrument of their intent that the Article apply to the property.

Provides for the principles of law and equity to supplement the Article. Requires uniform application of the Article.

Makes conforming changes to GS 28A-2-4 to include claims for relief regarding the disposition of community property at death within the jurisdiction of estate proceedings. Makes technical changes.

Includes a severability clause and directives for the Revisor of Statutes. Includes a savings clause for property rights acquired, extinguished, or barred on the expiration of a limitation period that began to run under another statute before the effective date of the act.

Effective January 1, 2024.