The North Carolina trustee's duty to inform — and the safe-harbor report

Information at reasonable intervals

N.C. Gen. Stat. § 36C-8-813(a)(1) provides that the trustee gives reasonably complete and accurate information as to the nature and amount of the trust property, at reasonable intervals, to any qualified beneficiary who is a distributee or permissible distributee of trust income or principal. The statute names no schedule; the duty does not include informing a beneficiary in advance of transactions (N.C. Gen. Stat. § 36C-8-813(b)(1)).

What any qualified beneficiary may ask for

On a reasonable request of any qualified beneficiary, the trustee provides a copy of the trust instrument, reasonably complete and accurate information about the nature and amount of the trust property, and reasonable inspections of the subject matter of the trust and its accounts and other documents (N.C. Gen. Stat. § 36C-8-813(a)(2)). A qualified beneficiary is a living beneficiary who is, would be if the present interests ended, or would be if the trust ended that day, a distributee or permissible distributee (N.C. Gen. Stat. § 36C-1-103(15)).

The safe-harbor report

N.C. Gen. Stat. § 36C-8-813(b)(2) provides that a trustee is considered to have discharged the interval duty to a qualified beneficiary for the matters disclosed by a report sent at least annually and at the trust's termination that describes the trust property, liabilities, receipts and disbursements — including the source and amount of the trustee's compensation — and lists the trust assets with their market values, estimated where uncertain. No presumption arises that a trustee who does not send such a report failed the duty.

Accounting to the clerk of superior court is a separate track, only where the instrument directs it or another law calls for it (N.C. Gen. Stat. § 36C-2-208(a)) — as for a testamentary trustee under a will executed before January 1, 2004, unless the will provides otherwise (N.C. Gen. Stat. § 36C-2-209).

Waivers, and what the terms may change

A qualified beneficiary may waive the right to a report or other information and may withdraw the waiver as to the future (N.C. Gen. Stat. § 36C-8-813(c)). The information duty is not among the rules the terms of a trust cannot change (N.C. Gen. Stat. § 36C-1-105(b)), so a trust's own provisions on reporting are read first. No report starts a special limitation period; the outside bar is five years (N.C. Gen. Stat. § 36C-10-1005).

Les textes de loi, mot pour mot

• Definitions

  N.C. Gen. Stat. § 36C-1-103 ↗

  Explication claire et simple ; le texte intégral de la loi n'est pas encore attesté dans notre bibliothèque. Consultez la loi officielle via le lien ci-dessus.

• Limitation of action against trustee

  N.C. Gen. Stat. § 36C-10-1005 ↗

  Explication claire et simple ; le texte intégral de la loi n'est pas encore attesté dans notre bibliothèque. Consultez la loi officielle via le lien ci-dessus.

• Accounting to the clerk

  N.C. Gen. Stat. § 36C-2-208 ↗

  Explication claire et simple ; le texte intégral de la loi n'est pas encore attesté dans notre bibliothèque. Consultez la loi officielle via le lien ci-dessus.

• Duty to inform and report

  N.C. Gen. Stat. § 36C-8-813 ↗

  Explication claire et simple ; le texte intégral de la loi n'est pas encore attesté dans notre bibliothèque. Consultez la loi officielle via le lien ci-dessus.

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