37A-1-104.3. Conversion with court approval.
(a) If any trustee desires to (i) convert an income trust to a total return unitrust, (ii) reconvert a total return unitrust to an income trust, or (iii) change the percentage used to calculate the unitrust amount or the method used to determine the fair market value of the trust but does not have the ability to or elects not to do it under G.S. 37A-1-104.2, the trustee may petition the court for an order as the trustee considers appropriate. In the event, however, there is only one trustee of the trust and the trustee is an interested trustee or in the event there are two or more trustees of the trust and a majority of them are interested trustees, the court, in its own discretion or on the petition of the trustee or trustees or any person interested in the trust, may appoint a disinterested person who, acting in a fiduciary capacity, shall present information to the court as shall be necessary to enable the court to make its determinations under this Part.
(b) A qualified beneficiary or a representative of a qualified beneficiary may request the trustee to (i) convert an income trust to a total return unitrust, (ii) reconvert a total return unitrust to an income trust, or (iii) change the percentage used to calculate the unitrust amount or the method used to determine the fair market value of the trust. If the trustee does not take the action requested, the qualified beneficiary or a representative of the qualified beneficiary may petition the court to order the trustee to take the action.
(c) All proceedings under this section shall be conducted as provided in Article 2 of Chapter 36C of the General Statutes. (2003-232, s. 2; 2007-106, s. 47.)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 37A - Uniform Principal and Income Act
§ 37A-1-103 - Fiduciary duties; general principles.
§ 37A-1-104 - Trustee's power to adjust.
§ 37A-1-104.2 - Conversion in trustee's discretion without court approval.
§ 37A-1-104.3 - Conversion with court approval.
§ 37A-1-104.4 - Determination of unitrust amount.
§ 37A-1-104.5 - Matters in trustee's discretion.
§ 37A-1-104.6 - No effect on principal distributions.
§ 37A-1-104.8 - No liability on part of trustee or disinterested person acting in good faith.
§ 37A-1-104.9 - Applicability.
§ 37A-1-104.22 - Determination of unitrust amount.
§ 37A-1-104.23 - Effect of distribution of unitrust amount.
§ 37A-1-104.24 - Change or conversion of unitrust amount.
§ 37A-1-104.25 - Determination of character of unitrust amount.
§ 37A-1-104.26 - Unitrust amount in excess of a five percent payout.