§ 36C-1-108. Principal place of administration. - North Carolina Statutes

§ 36C‑1‑108. Principal place of administration.

(a)        Without precludingother means for establishing a sufficient connection with the designatedjurisdiction, terms of a trust designating the principal place ofadministration are valid and controlling if:

(1)        A trustee'sprincipal place of business is located in, or a trustee is a resident of, thedesignated jurisdiction; or

(2)        All or part of theadministration occurs in the designated jurisdiction.

(b)        Without precludingthe right of the court to order, approve, or disapprove a transfer, the trusteemay transfer the trust's principal place of administration to anotherjurisdiction in accordance with this subsection:

(1)        If the trustee istransferring the trust's principal place of administration to another state,the trustee must provide written notice of the proposed transfer to thequalified beneficiaries of the trust not less than 60 days before initiatingthe transfer. If no qualified beneficiary notifies the trustee of an objectionto the proposed transfer on or before the date specified in the notice, thetrustee may make the transfer. If a qualified beneficiary notifies the trusteeof an objection to the proposed transfer on or before the date specified in thenotice, the authority of the trustee to transfer the trust's principal place ofadministration in accordance with this section terminates.

(2)        If the trustee istransferring the trust's principal place of administration to a jurisdictionoutside of the United States, the trustee must provide written notice of theproposed transfer to the qualified beneficiaries of the trust, and the transfercannot be made until the written consent of all the qualified beneficiaries isobtained.

(c)        Anytime a trusteeis required to provide a qualified beneficiary with written notice of aproposed transfer of a trust's principal place of administration, the notice ofproposed transfer must include:

(1)        The name of thejurisdiction to which the principal place of administration is to betransferred;

(2)        The address andtelephone number at the new location at which the trustee can be contacted;

(3)        An explanation ofthe reasons for the proposed transfer;

(4)        The date on whichthe proposed transfer is anticipated to occur; and

(5)        If the proposedtransfer is to another state, the date, not less than 60 days after the givingof the notice, by which the qualified beneficiary must notify the trustee of anobjection to the proposed transfer.

(d)        In connection witha transfer of the trust's principal place of administration, the trustee maytransfer some or all of the trust property to a successor trustee designated inthe terms of the trust or appointed under G.S. 36C‑7‑704. (2005‑192, s. 2.)