§ 35A-1252. Guardian's powers in administering minor ward's estate. - North Carolina Statutes

§ 35A‑1252.  Guardian'spowers in administering minor ward's estate.

In the case of a minor ward, ageneral guardian or guardian of the estate has the power to perform in areasonable and prudent manner every act that a reasonable and prudent personwould perform incident to the collection, preservation, management, and use ofthe ward's estate to accomplish the desired result of administering the ward'sestate legally and in the ward's best interest, including but not limited tothe following specific powers:

(1)        To take possession,for the ward's use, of all the ward's estate, as defined in G.S. 35A‑1202(5).

(2)        To receive assetsdue the ward from any source.

(3)        To maintain anyappropriate action or proceeding to obtain support to which the ward is legallyentitled, to recover possession of any of the ward's property, to determine thetitle thereto, or to recover damages for any injury done to any of the ward'sproperty; also, to compromise, adjust, arbitrate, sue on or defend, abandon, orotherwise deal with and settle any other claims in favor of or against theward.

(4)        To abandon orrelinquish all rights in any property when, in the guardian's opinion, actingreasonably and in good faith, it is valueless, or is so encumbered or isotherwise in such condition that it is of no benefit or value to the ward orhis estate.

(4a)      To renounce anyinterest in property as provided in Chapter 31B of the General Statutes, or asotherwise allowed by law.

(5)        To vote shares ofstock or other securities in person or by general or limited proxy, and to paysums chargeable or accruing against or on account of securities owned by theward.

(6)        To insure the ward'sassets against damage or loss, at the expense of the ward's estate.

(7)        To pay taxes,assessments, and other expenses incident to the collection, care,administration, and protection of the ward's estate.

(8)        To sell or exercisestock subscription or conversion rights; consent, directly or through acommittee or other agent, to the reorganization, consolidation, merger,dissolution, or liquidation of a corporation or other business enterprise.

(9)        To expend estateincome on the ward's behalf and to petition the court for prior approval ofexpenditures from estate principal; provided, neither the existence of the estatenor the guardian's authority to make expenditures therefrom shall be construedas affecting the legal duty that a parent or other person may have to supportand provide for the ward.

(10)      To pay from theward's estate necessary expenses of administering the ward's estate.

(11)      To employ persons,including attorneys, auditors, investment advisors, appraisers, or agents toadvise or assist him in the performance of his duties as guardian.

(12)      To continue anybusiness or venture or farming operation in which the ward was engaged, wheresuch continuation is reasonably necessary or desirable to preserve the value,including goodwill, of the ward's interest in such business.

(13)      To acquire and retainevery kind of property and every kind of investment, including specifically,but without in any way limiting the generality of the foregoing bonds,debentures, and other corporate or governmental obligations; stocks, preferredor common; real estate mortgages; shares in building and loan associations orsavings and loan associations; annual premium or single premium life,endowment, or annuity contracts; and securities of any management typeinvestment company or investment trust registered under the Federal InvestmentCompany Act of 1940, as from time to time amended.

(14)     a.         Withouta court order to lease any of the ward's real estate for a term of not morethan three years, or to sell, lease or exchange any of the ward's personalproperty including securities, provided that the aggregate value of all itemsof the ward's tangible personal property sold without court order shall notexceed five thousand dollars ($5,000) per accounting period. When any item ofthe ward's tangible personal property has a value which when increased by thevalue of all other tangible personal property previously sold in the estatewithout a court order would exceed five thousand dollars ($5,000) in thecurrent accounting period, a guardian may sell the item only as provided insubdivision (14)b.

b.         A guardian who isrequired by subdivision (14)a to do so shall, and any other guardian who sodesires may, by motion in the cause, request the court to issue him an order tolease any of the ward's real estate or to sell any item or items of the ward'spersonal property. Notice of the motion and of the date, time and place of ahearing thereon shall be served, as provided in G.S. 1A‑1, Rule 5, Rulesof Civil Procedure, upon all parties of record and upon such other persons asthe clerk may direct, and the court may issue the order after hearing and uponsuch conditions as the court may require; provided that:

1.         A sale, lease, orexchange under this subdivision may not be subject to Article 29A of Chapter 1of the General Statutes unless the order so requires; and

2.         The power granted inthis subdivision shall not affect the power of the guardian to petition thecourt for prior approval of expenditures from estate principal undersubdivision (9) of this section.

(15)      To foreclose, as anincident to the collection of any bond, note or other obligation, any mortgage,deed of trust, or other lien securing such bond, note or other obligation, andto bid in the property at such foreclosure sale, or to acquire the property bydeed from the mortgagor or obligor without foreclosure; and to retain the propertyso bid in or taken over without foreclosure.

(16)      To borrow money forsuch periods of time and upon such terms and conditions as to rates,maturities, renewals, and security as the guardian shall deem advisable,including the power of a corporate guardian to borrow from its own bankingdepartment, for the purpose of paying debts, taxes, and other claims againstthe ward, and to mortgage, pledge, or otherwise encumber such portion of theward's estate as may be required to secure such loan or loans; provided, inrespect to the borrowing of money on the security of the ward's real property,Subchapter III of this Chapter is controlling.

(17)      To execute anddeliver all instruments that will accomplish or facilitate the exercise of thepowers vested in the guardian.  (1987, c. 550, s. 1; 1989, c. 473, s. 4; 1995, c.235, s. 7; 2008‑87, s. 2.)