2011 North Carolina General Statutes
Chapter 36C North Carolina Uniform Trust Code.
Article 8A - 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.
36C‑8A‑3. Duty and liability of power holder.
(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. (2012‑18, s. 3.4.)
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