§ 28A-22-5. Distribution of assets in kind in satisfaction of bequests and transfers in trust. - North Carolina Statutes

§28A‑22‑5.  Distribution of assets in kind in satisfaction ofbequests and transfers in trust.

(a)        Subject to theprovisions of subsection (b) of this section, whenever under any will or trustindenture the executor, trustee or other fiduciary is required to, or has anoption to, satisfy a bequest or transfer in trust by a transfer of assets ofthe estate or trust in kind at the values as finally determined for federalestate tax purposes, the executor, trustee or other fiduciary shall, in theabsence of contrary provisions in such will or trust indenture, be required tosatisfy such bequest or transfer by the distribution of assets fairlyrepresentative of the appreciation or depreciation in the value of all propertyavailable for distribution in satisfaction of such bequest or transfer.

(b)        The provisions ofsubsection (a) of this section shall not apply unless either:

(1)        The decedent'ssurviving spouse is the beneficiary of the bequest or trust transfer describedin subsection (a) of this section or of the residue of the estate or trust; or

(2)        Any "skipperson", as that term is defined in Chapter 13 of the Internal RevenueCode of 1986, as amended, is or may be a current or future beneficiary of thebequest or trust transfer described in subsection (a) of this section or of theresidue of the estate or trust, and the value of the decedent's gross estatefor federal tax purposes exceeds the value of the decedent's unused generation‑skippingtax exemption available under Chapter 13 of the Internal Revenue Code of 1986,as amended. (1965, c. 764, s. 1; 1973, c. 1329, s. 3; 1995, c.235, s. 5.)