§ 37A-1-104.1. Definitions. - North Carolina Statutes

Part 2. Conversion to Unitrust.

§ 37A‑1‑104.1. Definitions.

The following definitionsapply to this Part:

(1)        Code. – The InternalRevenue Code of 1986, as amended from time to time, and any statutory enactmentsuccessor to the Code; reference to a specific section of the Code in this Partshall be considered a reference also to any successor provision dealing withthe subject matter of that section of the Code.

(2)        Repealed by SessionLaws 2007‑106, s. 45, effective October 1, 2007.

(3)        Disinterested person.– A person who is not a related or subordinate party with respect to the personthen acting as trustee of the trust and excludes the  settlor of the trust andany interested trustee.

(4)        Repealed by SessionLaws 2007‑106, s. 45, effective October 1, 2007.

(5)        Income trust. – Atrust, created by either an inter vivos or a testamentary instrument, whichdirects or permits the trustee to distribute the net income of the trust to oneor more persons, either in fixed proportions or in amounts or proportions determinedby the trustee, and regardless of whether the trust directs or permits thetrustee to distribute principal of the trust to one or more of those persons.

(6)        Interesteddistributee. – A living beneficiary who is a distributee or permissible distributeeof trust income or principal who has the power to remove the existing trusteeand designate as successor a person who may be a related or subordinate partywith respect to that distributee.

(7)        Interested trustee.– Any of the following:

a.         An individualtrustee who is a qualified beneficiary.

b.         Any trustee who maybe removed and replaced by an interested distributee.

c.         An individualtrustee whose legal obligation to support a beneficiary may be satisfied bydistributions of income and principal of the trust.

(7a)      Legal disability. – Aperson under a legal disability is a person who is a minor, an incompetent, oran unborn individual, or whose identity or location is unknown.

(7b)      Qualifiedbeneficiary. – A qualified beneficiary as defined in G.S. 36C‑1‑103(15).

(8)        Related orsubordinate party. – A related or subordinate party as defined in section672(c) of the Code.

(8a)      Representative. – Aperson who may represent and bind another as provided in Article 3 of Chapter36C of the General Statutes, the provisions of which shall apply for purposesof this Article.

(8b)      Settlor. – Anindividual, including a testator, who creates a trust.

(9)        Total returnunitrust. – An income trust that has been converted under and meets theprovisions of this Part.

(9a)      Treasury regulations.– The regulations, rulings, procedures, notices, or other administrativepronouncements issued by the Internal Revenue Service, as amended from time totime.

(10)      Trustee. – Any personacting as trustee of the trust, except as otherwise expressly provided in thisPart, whether acting in that person's discretion or on the direction of one ormore persons acting in a fiduciary capacity.

(11)      Unitrust amount. – Anamount computed as a percentage of the fair market value of the trust. (2003‑232, s. 2; 2005‑244,ss. 1, 2; 2007‑106, s. 45.)