GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999

SESSION LAW 1999-118
HOUSE BILL 201

AN ACT TO AMEND THE LAW RELATING TO THE APPOINTMENT OF SUCCESSOR TRUSTEES TO CONFORM TO THE RULES OF CIVIL PROCEDURE AND TO UPDATE STATUTORY LANGUAGE, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 36A-25 reads as rewritten:
"§ 36A-25. Parties; hearing; successor appointed.
Upon the filing of the petition, the clerk shall docket the cause as a special proceeding, with the trustee as plaintiff and the beneficiaries as defendants, and shall issue the summons for the defendants.  Proceedings under this section are subject to Article 33 of Chapter 1 of the General Statutes. A beneficiary, creditor, or other person interested in the trust estate has the right to answer the petition and to offer evidence why the prayer of the petition should not be granted. The clerk shall then proceed to hear and determine the matter.  If it appears to the clerk that the best interests of the creditors and the beneficiaries demand that the resignation of the trustee be accepted or if it appears to the clerk that sufficient reasons exist for allowing the resignation and that the resignation can be allowed without prejudice to the rights of creditors or the beneficiaries, the clerk may, in the exercise of the clerk's discretion, allow the applicant to resign.  The clerk shall appoint the successor of the petitioner in the manner provided in this Article."
Section 2.  G.S. 36A-33 reads as rewritten:
"§ 36A-33. Appointment of successors to deceased or incapacitated trustees.
Upon the death or incapacity of a trustee, a new trustee may be appointed on application by a beneficiary or other interested person by petition to the clerk of the superior court of the county in which the instrument under which the deceased or incapacitated trustee claimed is registered.  The petition shall make all necessary parties defendants. Proceedings under this section are special proceedings subject to Article 33 of Chapter 1 of the General Statutes.  A beneficiary, creditor, or other person interested in the trust estate has the right to answer the petition and to offer evidence why the prayer of the petition should not be granted. After hearing the matter, the clerk may appoint the person named in the petition or some other fit and suitable person or corporation to act as the successor of the deceased or incapacitated trustee.  The clerk shall require the person so appointed to give bond as required in G.S. 36A-31.  If the instrument under which the deceased or incapacitated trustee claimed, however, does not require the trustee to give bond and expresses an intent that a successor trustee serve without bond, or if the clerk upon due investigation, finds that bond is not necessary for the protection of the estate, the requirement of a bond for the successor trustee may be waived as provided in G.S. 36A-31. Any party in interest may appeal from the decision of the clerk as provided in G.S. 36A-27 and 36A-28.
Nothing in this section shall be construed to limit the authority of the clerk of superior court to appoint a successor trustee to a deceased or incapacitated trustee upon the clerk's own motion."
Section 3.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 20th day of May, 1999.

s/	Marc Basnight
President Pro Tempore of the Senate

s/	James B. Black
Speaker of the House of Representatives

s/	James B. Hunt, Jr.
Governor

Approved 3:16 p.m. this 28th day of May, 1999