Dec312025
Probate Q&A Series

What can I do if someone who previously handled the trust’s finances won’t respond or won’t transfer the money they’re supposed to turn over? – North Carolina

Short Answer

In North Carolina, a trustee can often force cooperation by making a written demand for trust records and property, then filing a trust proceeding with the Clerk of Superior Court to compel production, an accounting, and turnover of trust assets. If the person who controlled the finances acted under a power of attorney, the Clerk can also compel an accounting in that separate fiduciary role. When voluntary cooperation fails, court orders can be enforced through contempt, and the case can be moved to Superior Court if it becomes a broader dispute.

Understanding the Problem

In North Carolina trust administration, can a trustee require a person who previously handled the trust’s finances to provide records and transfer money that belongs in the trust, and what happens if that person ignores requests or delays turnover? This issue usually comes up when a trustee needs bank and credit card records to confirm what was paid, identify trust assets, and complete transfers and distributions. The decision point is whether the non-responsive person is holding trust property or key financial records that the trustee needs to administer the trust.

Apply the Law

North Carolina law gives the Clerk of Superior Court primary authority over many “internal affairs” trust disputes, including disputes about trust administration and a trustee’s ability to get information needed to do the job. Even when a trust is not required to file routine accountings with the Clerk, trustees still have ongoing duties to keep beneficiaries reasonably informed and to provide trust information and reports. When someone outside the trustee role is blocking access to trust property or records, a trustee can ask the Clerk to enter orders that compel production and turnover; those orders can be enforced through contempt. If the person previously handled finances under a power of attorney, the Clerk can also compel an accounting in that power-of-attorney capacity, which can be an efficient way to obtain transaction-level proof of what happened to the funds.

Key Requirements

  • Trustee authority and purpose: The trustee must be acting to administer the trust (collect assets, confirm liabilities, and complete transfers/distributions) and must be able to show why the requested records or funds matter to that task.
  • Reason to believe the person has trust property or records: The request and any court filing should identify what is being withheld (for example, specific accounts, statements, check images, online access, or a defined sum) and why that person likely controls it.
  • Proper forum and enforceable relief: A trust proceeding is typically filed with the Clerk of Superior Court, who can issue orders to produce documents, provide information, and turn over property; noncompliance can lead to contempt remedies.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the trustee is trying to obtain financial records (including credit card statements) and complete transfers/distributions, but a person who previously handled finances is not responding or timely transferring funds. That fits a common trust-administration problem: the trustee cannot prudently administer the trust without basic records and control of trust money. If informal requests fail, a trust proceeding before the Clerk of Superior Court can seek an order compelling production of records and turnover of trust assets, and the order can be enforced if the person continues to refuse.

Process & Timing

  1. Who files: The current trustee (or another interested party in some situations). Where: Clerk of Superior Court in the county tied to the trust administration or where the proceeding is properly filed in North Carolina. What: A verified petition in a trust proceeding requesting an order to produce records, provide information, and deliver trust property; if the person acted under a power of attorney, a petition to compel an accounting in that fiduciary role may also be appropriate. When: As soon as non-response or delay threatens administration; timing can matter if distributions are pending or records may be lost.
  2. Next step: The Clerk can issue notice and set a hearing. The trustee should be prepared to identify the specific items sought (accounts, date ranges, institutions, online credentials, statements, receipts) and explain why they are needed to administer the trust. If the Clerk enters an order, the order typically sets a deadline to comply.
  3. Final step: If the person still refuses, the trustee can ask the Clerk to enforce the order through contempt proceedings. If the dispute expands into broader claims (for example, allegations of misuse of funds), the matter may be transferred to Superior Court for full civil litigation tools and remedies.

Exceptions & Pitfalls

  • Role confusion (trustee vs. agent vs. custodian): The best remedy depends on the person’s legal role. A former helper may have no authority to keep records or money, while an agent under a power of attorney or a custodian under a custodial transfer statute may require a different type of accounting and turnover order.
  • Vague requests: Broad demands like “all records” often slow things down. Clear lists (institution, account type, last four digits if known, date ranges, and specific documents like statements and check images) make it easier to get a precise court order.
  • Missing the chance to preserve evidence: Delays can lead to lost online access, closed accounts, or missing statements. Early written demands and prompt filing can help preserve records and reduce disputes about what existed.
  • Assuming the Clerk automatically gets bank records: The Clerk can order a person to produce what they control, but banks and credit card issuers often require proper authority documents and tailored requests. A court order may be needed if the person refuses to sign releases or provide access.
  • Not planning for escalation: Some cases start as “turn over the statements” but turn into “where did the money go.” When that happens, a Superior Court case may be necessary to pursue broader remedies beyond simple turnover.

Conclusion

In North Carolina, when a person who previously handled trust finances will not respond or will not transfer money or records that belong to the trust, the trustee can seek a court order through a trust proceeding before the Clerk of Superior Court to compel production, an accounting where appropriate, and turnover of trust property, with enforcement through contempt if needed. The practical next step is to file a verified petition with the Clerk of Superior Court requesting an order that sets a clear deadline for delivery of the specified funds and records.

Talk to a Probate Attorney

If someone is blocking trust administration by withholding records or refusing to transfer trust funds, our firm has experienced attorneys who can help explain the options, choose the right court process, and move quickly to protect the trust administration timeline. 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: Probate 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.