Session Law 2011-339 (Senate Bill 407)

• Modifies trustee compensation notice requirements by moving the 20-day challenge period notice from individual compensation proposals to a general notice provision applicable to all compensation disclosures.

• Amends trust law to treat property in certain irrevocable marital trusts as contributed by the settlor's spouse (rather than the settlor) after the spouse's death, affecting creditor claims under North Carolina law.

• Expands successor trustee powers during trust termination to include all investment powers and sales authority in addition to wind-up duties, and provides that successor trustees are automatically vested with title to former trustee property.

• Revises trust company and fiduciary institution regulations by replacing outdated "bank or trust company" terminology with "trust institution" throughout Chapter 53, and allows private trust companies greater flexibility in governance structure with Commissioner approval.

• Becomes effective October 1, 2011, and applies to all trusts created before, on, or after the effective date.