North Carolina HB 800: Renunciation Amendments.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009

SESSION LAW 2009-48
HOUSE BILL 800

*H800-v-4*
AN ACT TO AMEND THE LAW RELATING TO RENUNCIATIONS AND TO MAKE
RELATED AMENDMENTS TO THE NORTH CAROLINA UNIFORM TRUST CODE
AND THE LAW GOVERNING POWERS OF ATTORNEY AND ADMINISTRATION
OF DECEDENTS' ESTATES, AS RECOMMENDED BY THE GENERAL STATUTES
COMMISSION.

The General Assembly of North Carolina enacts:

SECTION 1. G.S. 31B-1 reads as rewritten:
"§ 31B-1. Right to renounce succession.
(a) A person who succeeds to a property interest as:
(1) Heir, or Heir;
(2) Next of kin, or kin;
(3) Devisee, or Devisee;
(4) Legatee, or Legatee;
(4a) Donee;
(5) Beneficiary of a life insurance policy who did not possess the incidents of
ownership under the policy at the time of death of the insured, or insured;
(6) Person succeeding to a renounced interest, or interest;
(7) Beneficiary under a testamentary trust or under an inter vivos trust, or trust;
(8) Appointee under a power of appointment exercised by a testamentary
instrument or a nontestamentary instrument, or instrument;
(9) Repealed by Session Laws 1989, c. 684, s. 2.
(9a) Surviving joint tenant, surviving tenant by the entireties, or surviving tenant
of a tenancy with a right of survivorship, or survivorship;
(9b) Person entitled to share in a testator's estate under the provisions of
G.S. 31-5.5, or G.S. 31-5.5;
(9c) Beneficiary under any other testamentary or nontestamentary instrument,
including a beneficiary under:
a. Any qualified or nonqualified deferred compensation, employee
benefit, retirement or death benefit, plan, fund, annuity, contract,
policy, program or instrument, either funded or unfunded, which is
established or maintained to provide retirement income or death
benefits or results in, or is intended to result in, deferral of income;
b. An individual retirement account or individual retirement annuity; or
c. Any annuity, payable on death, death account, or other right to death
benefits arising under contract; or contract;
(9d) The duly Duly authorized or appointed guardian of any of the persons listed
in subdivisions (1) through (9c) of this subsection, but only with the prior or
subsequent approval of the clerk of superior court, or if required, of the
resident judge of the superior court, of any of the above. pursuant to a
proceeding or action instituted in accordance with and subject to the
requirements of G.S. 31B-1.2; or
(9e) Subject to G.S. 31B-1.1 and G.S. 31B-1.2, fiduciary, including a trustee of a
charitable trust, an attorney-in-fact of any of the persons listed in
subdivisions (1) through (9e) of this subsection if expressly authorized by
the governing power of attorney, and a personal representative appointed
under Chapter 28A of the General Statutes of any of the persons listed in
subdivisions (1) through (9c) of this subsection;

Page 2 Session Law 2009-48 SL2009-0048
(10) The personal representative appointed under Chapter 28A of any of the
above,
or the attorney-in-fact of any of the above may renounce at anytime, in whole or in part part,
the right of succession to any property or interest therein, including a future interest, by filing a
written instrument under the provisions of this Chapter. A renunciation may be of a fractional
share or any limited interest or estate. The renunciation shall be deemed to include the entire
interest of the person whose property or interest is being renounced unless otherwise
specifically limited. A person may renounce any interest in or power over property, including a
power of appointment, even if its creator imposed a spendthrift provision or similar restriction
on transfer or a restriction or limitation on the right to renounce. Provided, however,
Notwithstanding the foregoing, there shall be no right of partial renunciation if the decedent or
donee of the power expressly so provided in the instrument creating the interest.interest
expressly so provides.
(b) This Chapter shall apply to all renunciations of present and future interests, whether
qualified or nonqualified for federal and State inheritance, estate, and gift tax purposes, unless
expressly provided otherwise in the instrument creating the interest.
(c) The instrument of renunciation shall (i) identify the transferor of the property or
interest in the property or the creator of the power or the holder of the power, (ii) describe the
property or interest renounced, (ii) (iii) declare the renunciation and extent thereof, (iii) and (iv)
be signed and acknowledged by the person authorized to renounce. renouncing.
(d) A parent of a minor for whom no general guardian or guardian of the estate has been
appointed may renounce, in whole or in part, an interest in or power over property (including a
power of appointment) that would have passed to the minor as the result of that parent's
renunciation. The parent may renounce the interest or power even if its creator imposed a
spendthrift provision or similar restriction on transfer or a restriction