Serving with a co-trustee in North Carolina

How co-trustees decide

N.C. Gen. Stat. § 36C-7-703(a) provides that co-trustees who cannot reach a unanimous decision may act by majority decision if more than two are serving, and that unanimity is required when only two are serving. After a vacancy, the remaining co-trustees may act for the trust (N.C. Gen. Stat. § 36C-7-703(b)).

Participation and delegation

Each co-trustee participates in each trustee function unless unavailable through absence, illness, disqualification or other temporary incapacity, or the function was properly delegated; where prompt action is needed, the remaining co-trustee or a majority may act (N.C. Gen. Stat. § 36C-7-703(c), (d)). With consent, a trustee may delegate to a co-trustee any function the settlor did not reasonably expect to be joint — the statute lists ten that are not, among them bank accounts and checks, records and accountings, taxes, collections, payments, custody and investment (N.C. Gen. Stat. § 36C-7-703(e)).

An exclusive power

Where the terms give one co-trustee a power to the exclusion of another, the excluded co-trustee is not liable for its exercise and has no duty to monitor, advise or consult that co-trustee or to notify beneficiaries, while the co-trustee holding the power is liable for it as if the other were not in office (N.C. Gen. Stat. § 36C-7-703(g1)).

Care, and a dissent

Each co-trustee exercises reasonable care to avoid enabling a co-trustee's serious breach and to compel its redress (N.C. Gen. Stat. § 36C-7-703(g)). Where the terms or the code let some co-trustees' decision control, a dissenting co-trustee who does not join, or joins after giving notice of the dissent, is not liable absent actual knowledge that the action was a serious breach (N.C. Gen. Stat. § 36C-7-703(h)).

Закони, дослівно

• Cotrustees

  N.C. Gen. Stat. § 36C-7-703 ↗

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