State Codes and Statutes
Statutes > North-carolina > Chapter_36C > GS_36C-6-605§ 36C‑6‑605. Failure of disposition of property of a trust by lapse or otherwise.
(a) If a beneficiaryunder a revocable trust predeceases the execution of the trust or the settloror is treated as having predeceased the settlor, and if the beneficiary is agrandparent of or a descendant of a grandparent of the settlor, then the issueof the predeceased beneficiary who survive the settlor shall take in place ofthe deceased beneficiary. The deceased beneficiary's issue shall take thedeceased beneficiary's share in the same manner that the issue would take asheirs of the deceased beneficiary under the intestacy provisions in effect atthe time of the settlor's death. The provisions of this section apply whetherthe disposition of property is to an individual, to a class, or is a part ofthe residue of the trust. In the case of the disposition to a class, the issueshall take whatever share the deceased beneficiary would have taken had thedeceased beneficiary survived the settlor. In the event the deceased classmember leaves no issue, the deceased beneficiary's share shall devolve upon themembers of the class who survived the settlor and the issue of any deceasedmembers taking by substitution.
(b) If the provisionsof subsection (a) of this section do not apply to the disposition of propertythat fails, the property shall pass to the beneficiaries in proportion to theirshare of the residue of the trust. If the disposition is part of the residue ofthe trust, it shall augment the shares of the other residuary beneficiaries,including the shares of any substitute takers under subsection (a) of thissection. If there are no residuary beneficiaries, then the property shall passby intestacy. (2007‑106,s. 25.)
