§ 36C-2-203. Subject matter jurisdiction. - North Carolina Statutes

§ 36C‑2‑203. Subject matter jurisdiction.

(a)        The clerks ofsuperior court of this State have original jurisdiction over all proceedingsconcerning the internal affairs of trusts. Except as provided in subdivision(9) of this subsection, the clerk of superior court's jurisdiction isexclusive. Proceedings concerning the internal affairs of the trust are thoseconcerning the administration and distribution of trusts, the declaration ofrights, and the determination of other matters involving trustees and trustbeneficiaries, to the extent that those matters are not otherwise provided forin the governing instrument. These include proceedings:

(1)        To appoint or removea trustee, including the appointment and removal of a trustee pursuant to G.S.36C‑4‑414(b).

(2)        To approve theresignation of a trustee.

(3)        To review trustees'fees under Article 6 of Chapter 32 of the General Statutes and review andsettle interim or final accounts.

(4)        To (i) convert anincome trust to a total return unitrust, (ii) reconvert a total return unitrustto an income trust, or (iii) change the percentage used to calculate theunitrust amount or the method used to determine the fair market value of thetrust as provided in G.S. 37A‑1‑104.3.

(5)        To transfer atrust's principal place of administration.

(6)        To require a trusteeto provide bond and determine the amount of the bond, excuse a requirement ofbond, reduce the amount of bond, release the surety, or permit the substitutionof another bond with the same or different sureties.

(7)        To make orders withrespect to a trust for the care of animals as provided in G.S. 36C‑4‑408.

(8)        To make orders withrespect to a noncharitable trust without an ascertainable beneficiary asprovided in G.S. 36C‑4‑409.

(9)        To ascertainbeneficiaries, to determine any question arising in the administration ordistribution of any trust, including questions of construction of trustinstruments, to create a trust, and to determine the existence or nonexistenceof trusts created other than by will and the existence or nonexistence of anyimmunity, power, privilege, duty, or right. Any party may file a notice oftransfer of a proceeding pursuant to this subdivision to the superior courtdivision of the General Court of Justice as provided in G.S. 36C‑2‑205(g1).In the absence of a transfer to Superior Court, Article 26 of Chapter 1 of theGeneral Statutes shall apply to a trust proceeding pending before the clerk ofsuperior court to the extent consistent with this Article.

(b)        Nothing in thissection shall be construed (i) to confer upon the clerk of superior court anyauthority to regulate or supervise the actions of a trustee except to theextent that the trustee's actions are inconsistent with the governinginstrument or of State law; or (ii) to confer upon any party any additionalright, remedy, or cause of action not otherwise conferred by law.

(c)        Nothing in thissection affects the right of a person to file an action in the superior courtdivision of the General Court of Justice for declaratory relief under Article26 of Chapter 1 of the General Statutes.

(d)        The clerk ofsuperior court shall not, over the objection of a party, entertain proceedingsunder this section involving a trust having its principal place ofadministration in another state, except:

(1)        When all appropriateparties could not be bound by litigation in the courts of the state in whichthe trust had its principal place of administration; or

(2)        When the interestsof justice otherwise would be seriously impaired.

The clerk of superior courtmay condition a stay or dismissal of a proceeding under this section on theconsent of any party to jurisdiction of the state in which the trust has itsprincipal place of administration, or the clerk of superior court may grant acontinuance or enter any other appropriate order.

(e)        Any party to aproceeding before the clerk of superior court may appeal from the decision ofthe clerk to a superior court judge as provided for estate matters in G.S. 1‑301.3.

(f)         Without otherwiselimiting the jurisdiction of the superior court division of the General Courtof Justice, proceedings concerning the internal affairs of trusts shall notinclude, and, therefore, the clerk of superior court shall not havejurisdiction under subsection (a) of this section of the following:

(1)        Actions to reform,terminate, or modify a trust as provided by G.S. 36C‑4‑410 throughG.S. 36C‑4‑416;

(2)        Actions by oragainst creditors or debtors of a trust;

(3)        Actions involvingclaims for monetary damages, including claims for breach of fiduciary duty,fraud, and negligence;

(4)        Actions to enforce acharitable trust under G.S. 36C‑4‑405.1;

(5)        Actions to amend orreform a charitable trust under G.S. 36C‑4A‑1; and

(6)        Actions involvingthe exercise of the trustee's special power to appoint to a second trustpursuant to G.S. 36C‑8‑816.1.  (1911, c. 39, s. 4; C.S. s. 4027; 1977, c. 502, s. 2;1999‑216, s. 8; 2001‑413, s. 1; 2005‑192, s. 2; 2007‑106,ss. 6, 7; 2009‑267, s. 1; 2009‑318, s. 2.)