NORTH CAROLINA GENERAL ASSEMBLY

1963 SESSION

 

 

CHAPTER 111

SENATE BILL 43

 

 

AN ACT TO ENABLE THE GUARDIAN OR TRUSTEE OF AN INCOMPETENT, WITH JUDICIAL APPROVAL, TO MAKE GIFTS FROM THE INCOMPETENT'S INCOME FOR PUBLIC, RELIGIOUS, CHARITABLE, LITERARY, SCIENTIFIC, HISTORICAL, MEDICAL OR EDUCATIONAL PURPOSES.

 

The General Assembly of North Carolina do enact:

 

Section 1.  With the approval of the Resident Judge of the Superior Court of the district in which he was appointed, upon a duly verified petition the guardian or trustee of a person judicially declared to be incompetent may, from the income of the incompetent, make gifts to the State of North Carolina, its agencies, counties or municipalities, or to the United States or its agencies or instrumentalities, or for religious, charitable, literary, scientific, historical, medical or educational purposes.

Sec. 2.  The Judge shall not approve such gifts unless it appears to his satisfaction that:

(a)        after the making of such gifts and the payment of Federal and State income taxes, the remaining income of the incompetent will be reasonable and adequate to provide for the support, maintenance, comfort and welfare of the incompetent and those legally entitled to support from the incompetent in order to maintain the incompetent and such dependents in the manner to which the incompetent and such dependents are accustomed and in keeping with their station in life (and in no event less than twice the average, for the five (5) calendar years preceding the calendar year of such gifts, of expenditures for the incompetent's support, maintenance, comfort and welfare);

(b)        each donee is a donee to which a competent donor could make a gift, without limit as to amount, without incurring Federal or State gift tax liability;

(c)        each donee is a donee qualified to receive tax deductible gifts under Federal and State income tax laws;

(d)        the aggregate of such gifts does not exceed the percentage of income fixed by Federal law as the maximum deduction allowable for such gifts in computing Federal income tax liability.

Sec. 3.  The Judge shall not withhold his approval merely because the incompetent, prior to becoming incompetent, had not made gifts to the same donees or other gifts similar in amount or type.

Sec. 4.  A gift made with the approval of the Judge under the provisions of this Act shall be deemed a gift by the incompetent and shall be as valid in all respects as if made by a competent person.

Sec. 5.  All laws and clauses of laws in conflict herewith are hereby repealed.

Sec. 6.  This Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 29th day of March, 1963.