North Carolina General Statutes § 36C-1-105 Default and mandatory rules

(a)        Except as otherwise provided in the terms of the trust, this Chapter governs the duties and powers of a trustee, relations among trustees, and the rights and interests of a beneficiary.

(b)        The terms of a trust prevail over any provision of this Chapter except:

(1)        The requirements for creating a trust.

(2)        The duty of a trustee to act in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.

(3)        The requirement that a trust and its terms be for the benefit of its beneficiaries, and that the trust have a purpose that is lawful, not contrary to public policy, and possible to achieve.

(4)        The power of the court to modify or terminate a trust under G.S. 36C-4-410 through G.S. 36C-4-416.

(5)        The effect of a spendthrift provision and the rights of certain creditors and assignees to reach a trust as provided in Article 5 of this Chapter.

(6)        The effect of an exculpatory term under  G.S. 36C-10-1008.

(7)        The rights under G.S. 36C-10-1010 through G.S. 36C-10-1013 of a person other than a trustee or beneficiary.

(8)        Periods of limitation for commencing a judicial  proceeding.

(9)        The power of the court to take any action and exercise any jurisdiction as may be necessary in the interests of justice.

(10)      The subject-matter jurisdiction of the court and venue for commencing a proceeding as provided in G.S. 36C-2-203 and G.S. 36C-2-204.

(11)      The requirement that the exercise of the powers described in G.S. 36C-6-602.1(a) shall not alter the designation of beneficiaries to receive property on the settlor's death under that settlor's existing estate plan.

(12)      The power of a trustee to renounce an interest in or power over property under G.S. 36C-8-816(32).  (2005-192, s. 2; 2007-106, s. 3; 2009-48, s. 15.)

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Last modified: March 23, 2014