Short Answer

In North Carolina, a trustee must keep accurate records, provide annual and final reports, and give beneficiaries reasonably complete and accurate information on request. To verify scheduled payouts, make a written demand for a copy of the trust and a detailed accounting with supporting statements. If the trustee refuses or the response is incomplete, you can file a trust proceeding with the Clerk of Superior Court to compel an accounting and, if needed, seek further relief.

Understanding the Problem

You are a North Carolina trust beneficiary asking how to confirm that all milestone distributions in an inter vivos life insurance trust were actually paid. You want to know what you can demand from the trustee, what a proper accounting looks like, and what to do if the trustee will not cooperate.

Apply the Law

Under North Carolina’s trust code, trustees have core duties to keep adequate records, inform and report to qualified beneficiaries, and account at least annually and at termination. Beneficiaries are entitled, on reasonable request, to a copy of the trust and information sufficient to understand trust property, liabilities, receipts, disbursements (including trustee compensation), and current values. Inter vivos trusts (like most life insurance trusts) usually do not file accountings with the court, so you request them directly from the trustee. If a trustee does not provide a sufficient accounting after a reasonable request, you can start a trust proceeding with the Clerk of Superior Court to compel it. The clerk has original jurisdiction over internal trust matters (like ordering an accounting), but claims for monetary damages are brought in Superior Court.

Key Requirements

• Beneficiary status: You are a current or permissible distributee, so you may request a copy of the trust and an accounting.
• Trustee’s reporting duty: The trustee must provide reasonably complete and accurate information at reasonable intervals, including annual reports and a final report when the trust (or your interest) ends.
• Record access: On request, you may inspect trust records reasonably related to verifying distributions (e.g., bank/brokerage statements, ledger, check copies, wire confirmations).
• Court forum: If the trustee does not comply, you can petition the Clerk of Superior Court in a trust proceeding to compel an interim or final accounting; for damages or surcharge, file in Superior Court.
• Venue and timing: File where the trust is administered or where a beneficiary resides; an outside five-year limit applies to breach-of-trust claims from certain triggering events.

What the Statutes Say

• N.C. Gen. Stat. § 36C-8-813 (Trustee’s duty to inform and report) – Requires providing a copy of the trust and reasonably complete and accurate information, with annual and final reports.
• N.C. Gen. Stat. § 36C-2-203 (Jurisdiction over trust proceedings) – Clerk’s original jurisdiction over internal trust matters, including ordering accountings.
• N.C. Gen. Stat. § 36C-2-204 (Venue) – Where to file a trust proceeding (administration county or any beneficiary’s county for inter vivos trusts).
• N.C. Gen. Stat. § 36C-10-1005 (Limitations for breach of trust) – Five-year outside limit from the earliest of trustee resignation/removal/death, termination of beneficiary’s interest, or termination of the trust.

Analysis

Apply the Rule to the Facts: As a beneficiary of a life insurance trust with milestone payouts, you can demand a copy of the trust and a complete accounting showing each scheduled distribution, dates, payees, and supporting statements. The trustee’s annual and final reporting duties apply, and you may inspect records to verify. If the trustee remains uncooperative—and a prior trustee resigned while still receiving mail—you can petition the Clerk of Superior Court to compel an accounting and confirm whether any payouts were missed. A resigned trustee retains limited duties until property is delivered to a successor, so the court can sort out any handoff issues.

Process & Timing

1. Who files: Beneficiary. Where: Clerk of Superior Court in the county of the trust’s principal place of administration or any county where a beneficiary resides (for inter vivos trusts). What: Verified petition commencing a trust proceeding to compel an accounting (no statewide preprinted form). When: After a written demand for a copy of the trust and an accounting goes unanswered or is incomplete; you do not have to wait a set number of days, but allowing reasonable time for response is practical.
2. The clerk issues notice and sets a hearing. If granted, the order typically requires the trustee to deliver a detailed accounting and records by a set date. Timeframes vary by county.
3. If the accounting reveals missing payouts, you may seek additional relief in the trust proceeding (e.g., instructions, review of fees, bond, or removal). For monetary recovery or surcharge, file a separate action in Superior Court; matters can be consolidated.

Exceptions & Pitfalls

• Inter vivos trusts usually do not file accountings with the Clerk. Ask the trustee directly; if refused, petition the Clerk to compel.
• Even if the trust tries to limit routine reporting, the trustee’s good-faith duty and the court’s authority allow essential information to be compelled.
• Trustee resignation requires proper notice; a resigned trustee still has limited duties until property is delivered to a successor. If mail still goes to a former trustee, ask for written proof of resignation and delivery of trust records/assets.
• If you signed a release, waiver, or consent to an accounting, your remedies may be narrowed. Have any such documents reviewed before filing.
• Venue mistakes cause delay; confirm the principal place of administration or beneficiary residence for filing.

Talk to a Estate Planning Attorney

If you’re dealing with missing or unclear trust distributions and an uncooperative trustee, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.