North Carolina § 36C-6-602 - 1. Exercise of settlor's powers with respect to revocable trust by agent or guardian.

§ 36C-6-602. 1. Exercise of settlor's powers with respect to revocable trust by agent or guardian.

An agent acting under a power of attorney may exercise any of the following powers of the settlor with respect to a revocable trust only to the extent expressly authorized by the terms of the trust or the power of attorney: Revocation of the trust. Amendment of the trust. Additions to the trust. Direction to dispose of property of the trust. The creation of the trust, notwithstanding G.S. 36C-4-402(a)(1) and (2). A general guardian or a guardian of the estate of the settlor may exercise the powers of the settlor with respect to a revocable trust as provided in G.S. 35A-1251(24). The exercise of the powers described in this subsection shall not alter the designation of beneficiaries to receive property on the settlor's death under that settlor's existing estate plan. History (2007-106, s. 23.) NORTH CAROLINA COMMENT (2007) Effective October 1, 2007, subsection (a) brings forward in substance the provisions of former G.S. 36C-6-602(e) authorizing the settlor's agent under a power of attorney to revoke or amend a revocable trust and distribute trust property. It adds provisions, not a part of the Uniform Trust Code, authorizing an agent to make additions to a revocable trust and to create a revocable trust. Subsection (a) retains, and makes applicable to the power to make additions to a revocable trust and to create a revocable trust, the provisions in former G.S. 36C-6-602(e) prohibiting the agent from exercising the powers described in that section in a manner that alters the designation of beneficiaries to receive property on the settlor's death under the settlor's existing estate plan. The terms of the trust or power of attorney cannot override this restriction on the agent's powers. See G.S. 36C-1-105(b)(11) (trust) and G.S. 32A-3(c) (power of attorney). Subsection (b), also effective October 1, 2007, acknowledges that a general guardian or guardian of the estate may exercise the settlor's powers with respect to a revocable trust as provided in G.S. 35A-1251(24) . That section was amended effective October 1, 2007 to bring forward the provisions of former G.S. 36C-6-602(f) and authorize a general guardian or guardian of the estate to exercise upon approval by the court the same powers of the settlor with respect to a revocable trust that an agent may exercise pursuant to G.S. 36C-6-602 .1(a), subject to provisions of statutes governing gifts by guardians. Editor's Note. - Session Laws 2007-106, s. 55, provides: "The Revisor of Statutes shall cause to be printed all explanatory comments of the drafters of this act, or revisions to existing explanatory comments of the drafters of this act, as the Revisor may deem appropriate." Session Laws 2007-106, s. 56, provides: "This act becomes effective October 1, 2007, and applies to (i) all trusts created, and to all conveyances, devises, beneficiary designations, or other transfers occurring before, on, or after that date; (ii) all judicial proceedings concerning trusts or transfers to or by trusts commenced on or after that date; and (iii) all judicial proceedings concerning trusts or transfers to or by trusts commenced before that date unless the court finds that application of a particular provision of this act would substantially interfere with the effective conduct of the judicial proceedings or prejudice the rights of the parties, in which case the law as it existed on September 30, 2007, shall apply."