§ 36C-7-704. Vacancy in trusteeship; appointment of successor. - North Carolina Statutes

§ 36C‑7‑704. Vacancy in trusteeship; appointment of successor.

(a)        A vacancy in atrusteeship occurs if:

(1)        A person designatedas trustee rejects the trusteeship;

(2)        A person designatedas trustee cannot be identified or does not exist;

(3)        A trustee resigns;

(4)        A trustee isdisqualified or removed;

(5)        A trustee dies; or

(6)        A general guardian,guardian of the estate, or guardian of the person is appointed for anindividual serving as trustee.

(b)        If one or morecotrustees remain in office, a vacancy in a trusteeship need not be filled. Avacancy in a trusteeship must be filled if the trust has no remaining trustee.

(c)        A vacancy in atrusteeship of a noncharitable trust that is required to be filled must befilled in the following order of priority:

(1)        By a persondesignated in the terms of the trust or appointed under the terms of the trustto act as successor trustee;

(2)        By a personappointed by unanimous agreement of the qualified beneficiaries; or

(3)        By a personappointed by the court.

(d)        A vacancy in atrusteeship of a charitable trust that is required to be filled must be filledin the following order of priority:

(1)        By a persondesignated in the terms of the trust or appointed under the terms of the trustto act as successor trustee;

(2)        By a person selectedby majority agreement of the qualified beneficiaries, if the trust is a split‑interestcharitable trust;

(2a)      By a person selectedby majority agreement of the charitable organizations expressly designated toreceive distributions under the terms of the trust; or

(3)        By a personappointed by the court.

(e)        Whether or not avacancy in a trusteeship exists or is required to be filled, the court mayappoint an additional trustee or special fiduciary whenever the court considersthe appointment necessary for the administration of the trust.

(f)         A successortrustee shall succeed to all the rights, powers, and privileges, and is subjectto all the duties, liabilities, and responsibilities that were imposed upon theoriginal trustee, unless a contrary intent appears from the governinginstrument or unless the order appointing the successor trustee providesotherwise. (1911,c. 39, s. 8; C.S., s. 4032; 1977, c. 502, s. 2; 2001‑413, s. 1; 2003‑261,s. 6; 2005‑192, s. 2; 2007‑106, s. 30.)