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Laws of North Carolina (Last Updated: May 12, 2015) |
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Chapter36C. North Carolina Uniform Trust Code. |
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Article8A. Powers, Duties, and Liability of a Power Holder Other Than a Trustee; Duty and Liability of a Trustee With Respect to Power Holder's Actions |
§36C-8A-3. Duty and liability of power holder
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(a) A power holder is a fiduciary with respect to the powers conferred upon the power holder who, as such, is required to act in good faith and in accordance with the purposes and terms of a trust and the interests of the beneficiaries, except a power holder is not a fiduciary with respect to the following:
(1) A power to remove and appoint a trustee or power holder.
(2) A power that constitutes a power of appointment held by a beneficiary of a trust.
(3) A power the exercise or nonexercise of which may affect only the interests of the power holder and no other beneficiary.
(b) A power holder is liable for any loss that results from breach of fiduciary duty occurring as a result of the exercise or nonexercise of the power.
(c) The following provisions applicable to a trustee shall also be applicable to a power holder with respect to powers conferred upon the power holder as a fiduciary:
(1) The provisions of G.S. 36C-8-814 regarding discretionary powers and tax savings.
(2) The provisions of G.S. 36C-10-1001 through G.S. 36C-10-1012 regarding liability of trustees and rights of third persons dealing with trustees.
(3) The provisions of Article 9 of this Chapter regarding the uniform prudent investor rule.