North Carolina General Statutes 41-18. Exclusions from statutory rule against perpetuities
N.C. Gen. Stat. § 41-15 does not apply to any of the following:
(1) A nonvested property interest or a power of appointment arising out of a nondonative transfer, except a nonvested property interest or a power of appointment arising out of any of the following:
a. A premarital or postmarital agreement.
b. A separation or divorce settlement.
c. A spouse’s election.
d. A similar arrangement arising out of a prospective, existing, or previous marital relationship between the parties.
e. A contract to make or not to revoke a will or trust.
f. A contract to exercise or not to exercise a power of appointment.
g. A transfer in satisfaction of a duty of support.
h. A reciprocal transfer.
(2) A fiduciary‘s power relating to the administration or management of assets, including the power of a fiduciary to sell, lease, or mortgage property, and the power of a fiduciary to determine principal and income.
(3) A power to appoint a fiduciary.
(4) A discretionary power of a trustee to distribute principal before termination of a trust to a beneficiary having an indefeasibly vested interest in the income and principal.
(5) A nonvested property interest held by a charity, government, or governmental agency or subdivision, if the nonvested property interest is preceded by an interest held by another charity, government, or governmental agency or subdivision.
(6) A nonvested property interest in or a power of appointment with respect to a trust or other property arrangement forming part of a pension, profit-sharing, stock bonus, health, disability, death benefit, income deferral, or other current or deferred benefit plan for one or more employees, independent contractors, or their beneficiaries or spouses, to which contributions are made for the purpose of distributing to or for the benefit of the participants or their beneficiaries or spouses the property, income, or principal in the trust or other property arrangement, except a nonvested property interest or a power of appointment that is created by an election of a participant or a beneficiary or spouse.
(7) A property interest, power of appointment, or arrangement that was not subject to the common-law rule against perpetuities or is excluded by another statute of this State.
(8) A property interest or arrangement subjected to a time limit under N.C. Gen. Stat. § 36C-4-408 or N.C. Gen. Stat. § 36C-4-409.
(9) A property interest or arrangement subjected to a time limit under Article 3 of this Chapter, “Time Limits on Options in Gross and Certain Other Interests in Land.”
(10) A nonvested property interest in or a power of appointment over property or property interests of a trust to which N.C. Gen. Stat. § 41-23 applies. ?(1995, c. 190, ss. 1-3; 2021-85, s. 3(b).)
Terms Used In North Carolina General Statutes 41-18
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Charity: An agency, institution, or organization in existence and operating for the benefit of an indefinite number of persons and conducted for educational, religious, scientific, medical, or other beneficent purposes.
- Contract: A legal written agreement that becomes binding when signed.
- Fiduciary: A trustee, executor, or administrator.
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- property: shall include all property, both real and personal. See North Carolina General Statutes 12-3
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
- Statute: A law passed by a legislature.
- Trustee: A person or institution holding and administering property in trust.