§ 37A-1-104.3. Conversion with court approval. - North Carolina Statutes

§ 37A‑1‑104.3. Conversion with court approval.

(a)        If any trusteedesires to (i) convert an income trust to a total return unitrust, (ii)reconvert a total return unitrust to an income trust, or (iii) change thepercentage used to calculate the unitrust amount or the method used todetermine the fair market value of the trust but does not have the ability toor elects not to do it under G.S. 37A‑1‑104.2, the trustee maypetition the court for an order as the trustee considers appropriate. In theevent, however, there is only one trustee of the trust and the trustee is aninterested trustee or in the event there are two or more trustees of the trustand a majority of them are interested trustees, the court, in its owndiscretion or on the petition of the trustee or trustees or any personinterested in the trust, may appoint a disinterested person who, acting in afiduciary capacity, shall present information to the court as shall benecessary to enable the court to make its determinations under this Part.

(b)        A qualifiedbeneficiary or a representative of a qualified beneficiary may request thetrustee to (i) convert an income trust to a total return unitrust, (ii)reconvert a total return unitrust to an income trust, or (iii) change thepercentage used to calculate the unitrust amount or the method used todetermine the fair market value of the trust. If the trustee does not take theaction requested, the qualified beneficiary or a representative of thequalified beneficiary may petition the court to order the trustee to take theaction.

(c)        All proceedingsunder this section shall be conducted as provided in Article 2 of Chapter 36Cof the General Statutes. (2003‑232, s. 2; 2007‑106, s. 47.)