North Dakota § 59-16.1-02 Definitions

North Dakota Statutes

§ 59-16.1-02 — Definitions

North Dakota § 59-16.1-02

Title 59Trusts, Uses, and Powers

Ch. 59-16.1Trust Decanting

This text of North Dakota § 59-16.1-02 (Definitions) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 59-16.1-02 (2026).

Text

For purposes of this chapter, unless the context otherwise requires:

1."Appointed trust" means an irrevocable trust which receives principal from an invaded trust under this chapter, including a trust created by the settlor of the invaded trust, under the terms of the invaded trust or any other trust instrument, or by the trustees, acting in that capacity, of the invaded trust. For purposes of creating another trust, a requirement that a trust instrument be signed by the settlor is deemed satisfied by the signature of the trustee of the appointed trust.

2."Authorized trustee" means, as to an invaded trust, a trustee with authority to pay trust principal to or for one or more current beneficiaries other than a trustee who is the settlor, or a beneficiary to whom income or principal must b

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For purposes of this chapter, unless the context otherwise requires:
1. "Appointed trust" means an irrevocable trust which receives principal from an invaded
trust under this chapter, including a trust created by the settlor of the invaded trust,
under the terms of the invaded trust or any other trust instrument, or by the trustees,
acting in that capacity, of the invaded trust. For purposes of creating another trust, a
requirement that a trust instrument be signed by the settlor is deemed satisfied by the
signature of the trustee of the appointed trust.
2. "Authorized trustee" means, as to an invaded trust, a trustee with authority to pay trust
principal to or for one or more current beneficiaries other than a trustee who is the
settlor, or a beneficiary to whom income or principal must be paid currently or in the
future, or who is or will become eligible to receive a distribution of income or principal
in the discretion of the trustee, other than by the exercise of a power of appointment
held in a nonfiduciary capacity.
3. "Current beneficiary" or "beneficiaries" means individual, or as to a class, an individual
who is or will become members of that class, to whom the trustees may distribute
principal at the time of the exercise of the power, provided that the interest of a
beneficiary to whom income, but not principal, may be distributed at the discretion of
the trustee of the invaded trust, may be continued in the appointed trust.
4. "Invade" means the power to pay directly to the beneficiary of a trust or make
application for the benefit of the beneficiary.
5. "Invaded trust" means an existing irrevocable inter vivas or testamentary trust whose
principal is appointed under this chapter.
6. "Person or persons interested in the invaded trust" means all qualified beneficiaries as
defined in subsection 16 of section 59-09-06.
7. "Principal" includes the income of the trust at the time of the exercise of the power
which is not currently required to be distributed, including accrued and accumulated
income.
8. "Unlimited discretion" means the unlimited power to distribute principal. A power to
distribute principal which includes words, such as best interests, welfare, comfort, or
happiness may not be considered a limitation of the power to distribute principal.