§ 36C-1-103. Definitions.
§ 36C‑1‑103. Definitions.
The following definitionsapply in this Chapter:
(1) Action. Whenapplicable to an act of a trustee, includes a failure to act.
(2) Ascertainablestandard. A standard relating to an individual's health, education, support,or maintenance within the meaning of section 2041(b)(1)(A) or 2514(c)(1) of theInternal Revenue Code.
(3) Beneficiary. Aperson who:
a. Has a present orfuture beneficial interest in a trust, vested or contingent, including theowner of an interest by assignment or transfer, but excluding a permissibleappointee of a power of appointment; or
b. In a capacity otherthan that of trustee, holds a power of appointment over trust property.
(4) Charitable trust. Atrust, including a split‑interest trust as described in section 4947 ofthe Internal Revenue Code, created for a charitable purpose described in G.S.36C‑4‑405(a).
(5) Environmental law. A federal, state, or local law, rule, regulation, or ordinance relating toprotection of the environment.
(6) General guardian. Asdefined in G.S. 35A‑1202(7).
(7) Guardian of theestate. As defined in G.S. 35A‑1202(9).
(8) Guardian of theperson. As defined in G.S. 35A‑1202(10).
(9) Interests of thebeneficiaries. The beneficial interests provided in the terms of the trust.
(10) Internal RevenueCode. The Internal Revenue Code of 1986, as amended from time to time. Eachreference to a provision of the Internal Revenue Code shall include anysuccessor to that provision.
(11) Jurisdiction. Whenapplicable to a geographic area, includes a state or country.
(12) Person. Anindividual, corporation, business trust, estate, trust, partnership, limitedliability company, association, joint venture, government; governmentalsubdivision, agency, or instrumentality; public corporation, or any other legalor commercial entity.
(13) Power of withdrawal. A presently exercisable general power of appointment other than a power:
a. Exercisable by atrustee and limited by an ascertainable standard; or
b. Exercisable by anotherperson only upon consent of the trustee or a person holding an adverseinterest.
(13a) Principal place ofadministration. The trustee's usual place of business where the recordspertaining to the trust are kept or the trustee's residence if the trustee hasno usual place of business. In the case of cotrustees, the principal place ofadministration is one of the following:
a. The usual place ofbusiness of the corporate trustee if there is a corporate cotrustee.
b. The usual place ofbusiness or residence of any of the cotrustees if there is no corporatecotrustee.
(14) Property. Anythingthat may be the subject of ownership, whether real or personal, legal orequitable, or any interest therein.
(15) Qualifiedbeneficiary. A living beneficiary to whom, on the date the beneficiary'squalification is determined, any of the following apply:
a. Is a distributee orpermissible distributee of trust income or principal.
b. Would be adistributee or permissible distributee of trust income or principal if theinterests of the distributees described in sub‑subdivision a. of thissubdivision terminated on that date without causing the trust to terminate.
c. Would be adistributee or permissible distributee of trust income or principal if thetrust terminated on that date.
(16) Revocable. Whenapplicable to a trust, means revocable by the settlor without the consent ofthe trustee or a person holding an adverse interest.
(17) Settlor. A person,including a testator, who creates, or contributes property to, a trust. If morethan one person creates or contributes property to a trust, each person is asettlor of the portion of the trust property attributable to that person'scontribution except to the extent another person has the power to revoke orwithdraw that portion.
(18) Spendthriftprovision. A term of a trust that restrains both voluntary and involuntarytransfer of a beneficiary's interest.
(19) State. A state ofthe United States, the District of Columbia, Puerto Rico, the United StatesVirgin Islands, or any territory or insular possession subject to thejurisdiction of the United States. The term includes an Indian tribe or bandrecognized by federal law or formally acknowledged by a state.
(20) Terms of a trust. Themanifestation of the settlor's intent regarding a trust's provisions asexpressed in the trust instrument or established in a judicial proceeding.
(21) Trust instrument. Aninstrument executed by the settlor that contains terms of the trust, includingany amendments to the instrument, and any modifications permitted by courtorder.
(22) Trustee. Includesan original, additional, and successor trustee, and a cotrustee, whether or notappointed or confirmed by a court. The term does not include trustees inmortgages and deeds of trusts. (2001‑413, s. 1; 2005‑192, s. 2; 2007‑106,s. 2; 2009‑222, s. 1.)