§ 28A-22-10. Distribution of assets of inoperative trust. - North Carolina Statutes

§ 28A‑22‑10. Distribution of assets of inoperative trust.

When the facts at the time ofdistribution of property to a trust are such that the trust would beinoperative under the terms of the instrument creating the trust for anyreason, including the death of a beneficiary, renunciation by a beneficiary,the exercise of a right to withdraw the property by a beneficiary, or theattainment of a stipulated age by a beneficiary, the personal representative orthe trustee authorized or required to make the distribution of that property tothe trust may distribute the property directly to the person or personsentitled to it under the terms of the instrument creating the trust without theinterposition of the establishment of the trust. If only a portion of the trustwould be inoperative, the property distributable to that portion of the trustmay be distributed directly to the person or persons entitled to the propertyunder the terms of the instrument creating the trust. (2001‑413, s. 3.)