GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999
SESSION LAW 1999-118
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,
and the procedure shall be the same as in other special proceedings. defendants.
Proceedings under this section are subject to Article 33 of Chapter 1 of the
General Statutes. If any of the defendants be nonresidents, summons may
be served by publication; and if any be infants, a guardian ad litem must be
appointed by the court to represent their interests in the manner now provided
by law. The beneficiaries, creditors, or any other person interested in the
trust estate, have 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, and if matter.
If it appears to the court clerk that the best interests of
the creditors and the beneficiaries demand that the resignation of the trustee
be accepted, accepted or if it appears to the court clerk
that sufficient reasons exist for allowing the resignation, 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 his the
clerk's discretion, allow the applicant to resign; and in such case the
clerk shall proceed 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 any beneficiary, a beneficiary or
other interested persons, 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, making registered.
The petition shall make all necessary parties defendants. The clerk
shall docket the cause as a special proceeding and issue summons for the
defendants, and the procedure shall be the same as in other special
proceedings. Proceedings under this section are special proceedings
subject to Article 33 of Chapter 1 of the General Statutes. If any
of the defendants be nonresidents, summons may be served by publication; and if
any be infants, a guardian ad litem must be appointed. The beneficiaries,
creditors, or any other persons interested in the trust estate shall have
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 so named in the petition, or he may appoint petition
or some other fit and suitable person or corporation to act as the
successor of the deceased or incapacitated trustee; and the trustee.
The clerk shall require the person so appointed to give bond as required in
G.S. 36A-31; provided, that where by the terms of the instrument upon G.S.
36A-31. If the instrument under which the deceased or incapacitated
trustee claimed, said trustee was not required however, does not
require the trustee to give bond and did not give bond and an intent is
expressed in the creating instrument expresses an intent that a
successor trustee shall serve without bond, or where 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 his 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