Cary Uniform Trust Code
Creating a Trust involves following specific portions of the law. It also creates a legal obligation for trustees and courts to administer the Trust using certain procedures.
State law codifies each of these concepts in the Uniform Trust Code. This collection of laws applies to all private and charitable Trusts that go into effect in the state, as well as those that carry some form of legal effect in Cary. As such, if you are considering creating a Trust as part of your estate plan, you should consult a knowledgeable lawyer on the Cary Uniform Trust Code.
The Role of the Uniform Trust Code in Cary
Perhaps the most important part of the Cary Uniform Trust Code is the section that defines the legal creation of a Trust. At the most basic level, North Carolina General Statutes § 36C-4-401 says that a person may create a Trust by transferring specific property to a trustee for the purpose of moving that property to a beneficiary. Furthermore, a party creating a Trust must be of sound mind and have the intent to perform this action.
Beyond this, the law gives people great latitude on forming a Trust. A Trust may encompass almost any property, name almost any person as a trustee, and benefit almost any beneficiary. The Cary Uniform Trust Code works to help Trust makers transfer property with almost no legal interference.
The Duties of a Trustee under the Uniform Trust Code
The second major function of the Cary Uniform Trust Code is to define the rights and obligations of trustees. A trustee gains their power through nomination by the Trust maker when they create the document. Under N.C. Gen. Stat. § 36C-8-801, the basic role of the trustee is to administer the Trust in good faith and in accordance with its purpose.
Importantly, the Uniform Trust Code also says that the trustee must act with the sole intent of benefiting the interest of the beneficiaries. This means that all the trustee's actions must be for the purpose of advancing the interests of the named beneficiaries in the Trust. These actions may include:
Selling trust property
Transferring that property at an appointed time
Prudently investing trust funds
Finally, the law requires a trustee to periodically report their actions to the beneficiaries. This helps the beneficiaries to keep track of their property as well as to ensure that the trustee is meeting their obligations under the law.
Discuss the Cary Uniform Trust Code with an Attorney
The creation and the maintenance of a Trust in Cary does not need to be overly complex. That being said, the law does impose certain requirements for creating and administering these testamentary instruments.
In short, any person of a sound mind and over the age of 18 may create a Trust. These Trusts do not need to take a specific form but must specifically identify the property, a trustee, and at least one beneficiary. Additionally, the trustee must be of sound ability to administer the Trust and must act in the interests of its beneficiaries.
For further questions on the Cary Uniform Trust Code and how it can impact your estate plans, speak with a seasoned lawyer today. Reach out to our firm to set up an initial meeting.
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