Oct32025
Estate Planning Q&A Series

How can I recover land and property misappropriated by my trustee? – North Carolina

Short Answer

In North Carolina, a beneficiary can sue a trustee for breach of trust to restore wrongfully taken assets, including land, and ask the court to impose a constructive trust, freeze transfers, and order an accounting. You typically file for damages and property recovery in Superior Court and may also petition the Clerk of Superior Court to remove the trustee and compel immediate protections. Act promptly—deadlines and title-transfer risks can affect your rights.

Understanding the Problem

You are a North Carolina trust beneficiary asking: can I recover trust land and other property my trustee allegedly took? Here, the beneficiary claims the trustee stole all trust assets, including a large parcel of land. The goal is to get the property back (or its value), protect what remains, and address the trustee’s conduct within the trust system.

Apply the Law

North Carolina’s Uniform Trust Code governs trustee duties and beneficiary remedies. If a trustee breaches duties like loyalty or prudent administration, courts can order the trustee to restore property, disgorge gains, account, and face removal. Property-focused relief (for example, a constructive trust over a specific parcel) is available, and courts can issue injunctions to stop further transfers. Proceedings about removing a trustee or compelling certain trust actions start with the Clerk of Superior Court, while claims for monetary damages and broader civil relief go to the Superior Court. Venue generally follows the trust’s principal place of administration or a beneficiary’s county.

Key Requirements

  • Show the trust and duties: Identify the valid trust, trustee, and the trustee’s duties (loyalty, prudence, segregation of assets, and reporting).
  • Prove a breach: Tie specific acts (e.g., self-dealing, diversion of assets, failure to safeguard or account) to violations of those duties.
  • Connect the remedy to the breach: For land, demonstrate traceability so the court can impose a constructive trust, void or unwind transfers when permitted, or award proceeds if the land went to a protected purchaser.
  • Use the proper forum: File removal/accounting with the Clerk of Superior Court; file damages, title remedies, and injunctions in Superior Court, and consolidate if needed.
  • Meet timing rules: Observe the statute of limitations for breach of trust and act quickly to preserve title with notice filings.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The claim that the trustee took all trust assets, including a large parcel, alleges breach of core duties (loyalty, safeguarding and segregation, and reporting). That supports remedies to trace and recover the parcel through a constructive trust or, if a protected buyer now holds it, recovery of proceeds. Because you also want the trustee out and a full accounting, you would bring removal and accounting before the Clerk of Superior Court and pursue damages, injunctions, and land title remedies in Superior Court, coordinating or consolidating as needed. With a summary judgment hearing approaching, your filings and evidence should squarely address traceability, validity of any competing documents, and the statutory remedies sought.

Process & Timing

  1. Who files: Beneficiary. Where: Superior Court (civil action) for breach of trust and property recovery; Clerk of Superior Court for trustee removal/accounting. What: Civil action (use AOC-CV-100 Civil Summons) seeking constructive trust, injunction, accounting, and damages; separate Clerk petition for removal/accounting (service via AOC-E-150 Estate Summons for Trust Proceeding). When: File promptly; the breach-of-trust outside limit is five years after specific triggers; seek emergency relief immediately if transfers are threatened.
  2. Protect the land: Record a notice of lis pendens with the Register of Deeds in the county where the parcel sits to put the world on notice; move for a temporary restraining order and preliminary injunction to stop any sale. Courts often hear injunction requests on an expedited basis; schedules vary by county.
  3. Discovery and adjudication: Pursue tracing records, deeds, bank statements, and a trustee accounting. Depending on the record, seek summary judgment or proceed to trial. Expected outcomes include an order imposing a constructive trust, voiding unauthorized acts when permitted by law, removal of the trustee, and a judgment directing conveyance back to the trust or recovery of proceeds.

Exceptions & Pitfalls

  • Bona fide purchaser risk: If the land went to a good-faith buyer for value, you may be limited to recovering proceeds rather than the parcel.
  • Wrong forum: The Clerk cannot award tort-style damages; bring damages and title remedies in Superior Court and coordinate with Clerk proceedings.
  • Traceability gaps: You need a clear paper trail to impose a constructive trust; gather deeds, wire records, and accounting details early.
  • Notice and parties: Serve all necessary parties and use Article 3 representation rules for minors or unascertained beneficiaries to avoid delays.
  • Unverified writings: A memorandum purporting to change trust rights must meet legal formalities; challenge authenticity and authority if it conflicts with the governing instrument.
  • Delay: Missing the five-year limit or failing to file a lis pendens can jeopardize recovery of the land.

Conclusion

Under North Carolina law, you can recover misappropriated trust land by proving a trustee’s breach and seeking property-focused remedies—constructive trust, restoration of assets, and injunctions—while pursuing removal and an accounting. File your civil action in Superior Court and, if needed, a parallel petition with the Clerk to remove the trustee. To preserve title, act quickly and file before the five-year limitation runs. Next step: file a Superior Court action seeking return of the land and an immediate injunction.

Talk to a Estate Planning Attorney

If you’re dealing with a trustee who diverted trust land or other assets, 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.

Category: Estate Planning Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.