Short Answer

In North Carolina, trustees must keep adequate records and give qualified beneficiaries reasonably complete information and an annual (and final) report about the trust’s assets, receipts, disbursements, and the trustee’s compensation. If a trustee refuses, a beneficiary may file a trust proceeding with the Clerk of Superior Court to compel an accounting and, if necessary, seek remedies such as suspension or removal. Claims for monetary damages require a separate Superior Court action.

Understanding the Problem

You’re a North Carolina beneficiary asking: can you make a trustee provide statements or an accounting, and what happens if the trustee refuses? Here, you were told the life insurance trust was “fully paid out,” but you never received a final accounting or statements. You want accountability and answers about what was paid, what remains, and whether the trustee followed the trust’s terms.

Apply the Law

North Carolina law requires trustees to keep records, inform beneficiaries, and provide reports that describe trust property, liabilities, receipts, disbursements, the trustee’s compensation, and current values. A “qualified beneficiary” (typically someone currently eligible to receive distributions or next in line) can request information and inspect records. If the trustee refuses, beneficiaries may start a trust proceeding before the Clerk of Superior Court to order an accounting and other relief. Damage claims (like surcharge for losses) are brought in Superior Court; cases can be coordinated to avoid duplication. A five-year outer limit applies to many breach-of-trust claims, running from the earlier of trustee resignation/removal/death, termination of your interest, or trust termination.

Key Requirements

• Beneficiary standing: You must be a qualified beneficiary or otherwise entitled to information under the trust.
• Reasonable request: Make a clear, written request for statements/accounting and allow a reasonable time to respond.
• Trustee’s reporting duty: Trustees must provide annual and final reports showing assets, liabilities, receipts, disbursements, compensation, and asset values.
• Forum: Petitions to compel an accounting and address internal trust administration are filed with the Clerk of Superior Court.
• Remedies: The court can order an accounting, require a bond, suspend or remove a trustee, appoint a successor or special fiduciary, and reduce/deny trustee compensation.
• Limitations: Monetary claims for breach of trust generally have a five-year outside limit tied to specific trust events.

What the Statutes Say

• N.C. Gen. Stat. § 36C-8-813 (Trustee’s duty to inform and report) – Requires recordkeeping and reporting to qualified beneficiaries, including annual and final reports.
• N.C. Gen. Stat. § 36C-2-203 (Trust proceedings; clerk’s jurisdiction) – Clerk of Superior Court has jurisdiction over internal trust matters, including ordering accountings and removing trustees.
• N.C. Gen. Stat. § 36C-7-706 (Removal of trustee) – Sets grounds and process to remove a trustee for serious breach, unfitness, or failure to administer effectively.
• N.C. Gen. Stat. § 36C-10-1001 (Remedies for breach of trust) – Authorizes courts to order accountings, suspend or remove trustees, appoint fiduciaries, and grant other appropriate relief.

Analysis

Apply the Rule to the Facts: You and your sibling are qualified beneficiaries of the life insurance trust, so you can demand information and an accounting. Because you were told the trust is fully paid out but never received a final report, the trustee’s duty to provide a final accounting is triggered. If the current trustee remains uncooperative—and the resigned trustee still receives trust mail—you can petition the Clerk to compel an accounting, confirm any resignation, appoint or confirm a successor if needed, and require proper transfer of records and mail.

Process & Timing

1. Who files: A qualified beneficiary. Where: Clerk of Superior Court in the county of the trust’s principal place of administration or where a beneficiary resides in North Carolina. What: Verified petition (trust proceeding) to compel an accounting and produce records; include requests for bond, suspension, removal, or successor appointment if needed. The clerk issues an ESTATE SUMMONS FOR TRUST PROCEEDING (AOC‑E‑150). When: After a written demand goes unanswered; respondents generally have 10 days to answer once served.
2. The clerk sets a hearing. Expect service under Rule 4, a 10‑day answer period, and a hearing date in several weeks (timelines vary by county). The clerk can order a full accounting by a set date, require bond, and direct the resigned trustee to deliver files and property to the current or successor trustee.
3. If the trustee complies, you receive the accounting and statements. If not, the clerk can suspend or remove the trustee and appoint a successor. If the accounting shows losses from mismanagement, file or coordinate a separate Superior Court action for money damages; the cases can be consolidated to streamline relief.

Exceptions & Pitfalls

• Trust terms may limit court accountings but cannot eliminate the trustee’s duty to act in good faith or to inform and report to qualified beneficiaries.
• Do not sign a release or consent without full information; prior consents or ratifications can limit claims.
• Service and notice matter: include all qualified beneficiaries; charitable trusts require notice to the Attorney General; use representation rules for minors or unborn beneficiaries.
• Resigned trustees retain duties to protect trust property until it’s delivered to a successor; ask the court to order delivery of records and correct mailing addresses.
• Monetary damages are not awarded by the clerk; bring those claims in Superior Court and consider consolidation with the clerk proceeding.

Talk to a Estate Planning Attorney

If you’re dealing with a trustee who won’t share statements or provide an accounting, 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.