NC H620

Repeals G.S. 31-4.1 and G.S. 31-4.2, which previously required affidavits and drafting disclosures from attorneys regarding bequests or devises in wills, effective July 1, 2010.

Revises G.S. 37A-4-409 regarding deferred compensation and annuity payments to trusts, clarifying definitions and expanding rules for allocating payments from separate funds to marital deduction trusts under Internal Revenue Code sections 2056(b)(5) and 2056(b)(7).

Modifies G.S. 37A-5-505 to specify how income taxes on trust's share of entity taxable income shall be paid from income, principal, or proportionately based on how receipts are allocated, and to adjust for tax deductions related to beneficiary payments.

Failure by an attorney to comply with the repealed affidavit or drafting disclosure requirements does not invalidate a will or codicil.

Most provisions become effective January 1, 2011, except for the repealed sections which become effective July 1, 2010.