New NC Trusts and Estates Laws
In the 2011-2012 Session, the North Carolina General Assembly passed several laws affecting estate planning, trusts and probate:
- S.L. 2011-5 and S.L. 330– The reference to the Internal Revenue Code in G.S. 105-228.90(b)(1b) is changed from May 1, 2010 to January 1, 2011. This puts NC in sync with the federal government with regard to the estate tax ($5 million exemption). For 2010 NC had no estate tax.
- S.L. 2011-339 – 1) Contains minor changes to the notice provision for trustee compensation under G.S. 32-55; 2) Clarification that certain marital trusts are exempt from the claims of creditors of the surviving spouse under G.S. 36C-5-505; 3) An addition to G.S. 36C-7-704 expressly states that a successor trustee is vested with the title to property of a former trustee; 4)Clarifies powers of a trustee to wind up administration of a trust under G.S. 36C-8-816; 5) Establishes a new category of corporate fiduciary, a “trust institution”, with less restrictions than a bank. Effective October 1, 2011, and applies to all trusts created before, on or after that date.
- S.L. 2011-344 – Numerous but mostly minor changes or clarifications to right to appeal a Clerk’s order, jurisdiction, probate in solemn form, venue, renunciation of right to serve as executor or administrator, revocation of letters, resignation of personal representative, collectors, small estates, summary administration, intestate succession, allowances, will requirements, caveats, will construction, and much more. The changes are effective January 1, 2012, and apply to estates of decedents dying on or after that date.