§ 37A-1-103. Fiduciary duties; general principles. - North Carolina Statutes

§ 37A‑1‑103. Fiduciary duties; general principles.

(a)        In allocatingreceipts and disbursements to or between principal and income, and with respectto any matter within the scope of Articles 2 and 3 of this Chapter, afiduciary:

(1)        Shall administer atrust or estate in accordance with the terms of the trust or the will, even ifthere is a different provision in this Chapter;

(2)        May administer atrust or estate by the exercise of a discretionary power of administrationgiven to the fiduciary by the terms of the trust or the will, even if theexercise of the power produces a result different from a result required orpermitted by this Chapter;

(3)        Shall administer atrust or estate in accordance with this Chapter if the terms of the trust orthe will do not contain a different provision or do not give the fiduciary adiscretionary power of administration; and

(4)        Shall add a receiptor charge a disbursement to principal to the extent that the terms of the trustand this Chapter do not provide a rule for allocating the receipt ordisbursement to or between principal and income.

(b)        In exercising thepower to adjust under G.S. 37A‑1‑104(a), any discretionary power inconnection with the conversion or administration of a unitrust under Part 2 ofthis Article, or a discretionary power of administration regarding a matterwithin the scope of this Chapter, whether granted by the terms of a trust, awill, or this Chapter, a fiduciary shall administer a trust or estateimpartially, based on what is fair and reasonable to all of the beneficiaries,except to the extent that the terms of the trust or the will clearly manifestan intention that the fiduciary shall or may favor one or more of thebeneficiaries. A determination in accordance with this Chapter is presumed tobe fair and reasonable to all of the beneficiaries.

(c)        The exercise ofpowers of allocation of receipts and expenditures contained or incorporated byreference to G.S. 32‑27(29) in wills dated prior to January 1, 2004,shall continue to be valid. (2003‑232, s. 2.)