§ 31B-2.1. Delivery to other persons of instrument of renunciation by the person renouncing.

§ 31B‑2.1.  Delivery toother persons of instrument of renunciation by the person renouncing.

(a)        In this section:

(1)        "Beneficiarydesignation" means an instrument, other than an instrument creating atrust, naming the beneficiary of:

a.         An annuity or insurancepolicy;

b.         An account with adesignation for payment on death;

c.         A securityregistered in beneficiary form;

d.         A pension,profitsharing, retirement, or other employment‑related benefit plan;

e.         An individualretirement account or retirement annuity; or

f.          Any othernonprobate transfer at death.

(2)        "Deliver"means to deliver in person or to send, properly addressed, by first‑classmail, telephonic facsimile transmission equipment, electronic mail, or third‑partycommercial carrier, or by any method permitted by G.S. 1A‑1, Rule 4.

(b)        The failure todeliver a copy of an instrument of renunciation by a method permitted by G.S.1A‑1, Rule 4, or by a method that results in actual receipt tolls anystatute of limitations with regard to any right of action for breach offiduciary duty.

(c)        If a fiduciaryrenounces an interest in property pursuant to G.S. 31B‑1(a)(9e), a  copyof the instrument of renunciation shall be delivered to each living personwhose beneficial interest is affected by the renunciation and to any co‑fiduciarywho did not join in the renunciation.

(d)        In the case of aninterest created under the law of intestate succession or an interest createdby will, other than an interest in a testamentary trust, a copy of theinstrument of renunciation must:

(1)        Be delivered to thepersonal representative of the decedent's estate; or

(2)        If no personalrepresentative is then serving, be filed as an estate matter with a courthaving jurisdiction to appoint the personal representative.

(e)        In the case of abeneficiary renouncing an interest in a testamentary trust, a copy of theinstrument of renunciation must:

(1)        Be delivered to thetrustee then serving;

(2)        If no trustee isthen serving, be delivered to the personal representative of the decedent's estate;or

(3)        If no personalrepresentative or trustee is then serving, be filed as an estate matter with acourt having jurisdiction to enforce the trust.

(f)         In the case of abeneficiary renouncing an interest in an inter vivos trust, a copy of the instrumentof renunciation must:

(1)        Be delivered to thetrustee then serving;

(2)        Except as providedin subdivision (3) of this subsection, if no trustee is then serving, be filedas an estate matter with a court having jurisdiction to enforce the trust; or

(3)        If the renunciationis made before the time the instrument creating the trust becomes irrevocable,be delivered to the settlor of the trust or the transferor of the interest.

(g)        In the case of abeneficiary renouncing an interest created by a beneficiary designation madebefore the time the designation becomes irrevocable, a copy of the instrumentof renunciation must be delivered to the person making the beneficiarydesignation.

(h)        In the case of abeneficiary renouncing an interest created by a beneficiary designation madeafter the time the designation becomes irrevocable, a copy of the instrument ofrenunciation must be delivered to the person obligated to distribute theinterest.

(i)         In the case of arenunciation by a surviving holder of an interest in property subject to aright of survivorship, a copy of the instrument of renunciation must bedelivered to the persons to whom the person renouncing reasonably believes therenounced interest passes, at their last addresses known to the person renouncing,and to the personal representative of the deceased joint holder, if any.

(j)         In the case of arenunciation by a permissible appointee, or taker in default of exercise, of apower of appointment at anytime after the power was created, a copy of the instrumentof renunciation must be delivered:

(1)        To the holder of thepower;

(2)        To the fiduciaryacting under the instrument that created the power or, if no fiduciary is thenserving under the instrument that created the power, filed as an estate matterwith a court having authority to appoint the fiduciary; and

(3)        To any holder oflegal title to the property subject to the power of appointment other than thefiduciary.

(k)        In the case of arenunciation by an appointee of an exercised power of appointment, a copy ofthe instrument of renunciation must be delivered:

(1)        To the holder of thepower or the personal representative of the holder's estate;

(2)        To the fiduciaryunder the instrument that created the power or, if no fiduciary is then servingunder the instrument that created the power, filed as an estate matter with acourt having authority to appoint the fiduciary; and

(3)        To any holder oflegal title to the property subject to the power of appointment other than thefiduciary.

(l)         In the case of arenunciation of a power of appointment by the holder of the power, a copy ofthe instrument of renunciation must be delivered:

(1)        To the fiduciaryacting under the instrument that created the power or, if no fiduciary is thenserving under the instrument that created the power, filed as an estate matterwith a court having authority to appoint the fiduciary; and

(2)        To any holder oflegal title to the property subject to the power of appointment other than thefiduciary.

(m)       In the case of arenunciation by a fiduciary of a right, privilege, power, or immunity relatingto a trust or estate, a copy of the instrument of renunciation must bedelivered as provided in subsection (c), (d), (e), or (f) of this section, asif the power renounced were an interest in property.

(n)        In the case of arenunciation of a power by an agent, including an attorney‑in‑fact,a copy of the instrument of renunciation must be delivered to the principal orthe principal's legal representative other than the agent.

(o)        In the case of arenunciation by a trustee of a charitable trust, a copy of the instrument ofrenunciation must be delivered to the North Carolina Attorney General inaddition to any other delivery required by this section.

(p)        In the case of arenunciation by a donee, a copy of the instrument of renunciation must bedelivered to the persons to whom the person renouncing reasonably believes therenounced interest passes, at their last addresses known to the personrenouncing, and to the donor or the donor's legal representative other than thedonee.

(q)        The failure todeliver a copy of the instrument of renunciation as required in this sectiondoes not affect the validity of the renunciation for purposes of G.S. 31B‑3even though the renunciation may not be recognized as a disclaimer for federalestate tax purposes.  (2009‑48, s. 5.)