§ 36C-4-414. Modification or termination of uneconomic trust. - North Carolina Statutes

§ 36C‑4‑414. Modification or termination of uneconomic trust.

(a)        After notice to thequalified beneficiaries, the trustee of a trust consisting of trust propertyhaving a total value of less than fifty thousand dollars ($50,000) mayterminate the trust if the trustee concludes that the value of the trustproperty is insufficient to justify the cost of administration. The trustee mayenter into an agreement or make other provisions that the trustee deemsnecessary or appropriate to protect the interests of the beneficiaries and tocarry out the intent and purpose of the trust. This subsection shall not applywhere the instrument creating the trust, by specific reference to this section,or to former G.S. 36A‑125.6, provides that it shall not apply. The trusteeshall not be liable for that termination and distribution notwithstanding theexistence or potential existence of other beneficiaries who are not sui juris.Any beneficiary receiving a distribution from a trust terminated under thissection shall incur no liability and shall not be required to account to anyonefor such distribution.

(b)        The court maymodify or terminate a trust or remove the trustee and appoint a differenttrustee if the court determines that the value of the trust property isinsufficient to justify the cost of administration.

(c)        This section doesnot apply to an easement for conservation or preservation.

(d)        Repealed by SessionLaws 2006‑259, s. 13(f), effective October 1, 2006. (2005‑192, s. 2; 2006‑259,s. 13(f).)