Jan222026
Probate Q&A Series

Can I challenge the trustee’s actions or ask the court to replace the trustee if I think the trust is being mishandled? – North Carolina

Short Answer

Yes. Under North Carolina law, a trust beneficiary can ask the court to review a trustee’s conduct and, in the right case, remove and replace the trustee. Common reasons include a serious breach of fiduciary duty, conflicts of interest that harm the trust, or a breakdown in communication that prevents proper administration. These cases are typically handled through a trust proceeding in the North Carolina Superior Court system (often starting with the Clerk of Superior Court).

Understanding the Problem

In North Carolina probate and trust administration, the key question is whether a trust beneficiary can ask a court to step in when a trustee appears to be mishandling trust administration. The decision point is whether the trustee’s conduct (or failure to communicate and administer) is serious enough that court supervision, court instructions, or replacement of the trustee is appropriate. This issue often comes up when a trustee controls information and distributions, and the beneficiary cannot get clear answers about what is happening with trust property.

Apply the Law

North Carolina treats a trustee as a fiduciary. That means the trustee must administer the trust for the benefit of the beneficiaries and follow the trust terms. When a beneficiary has credible concerns—such as self-dealing, favoritism, unexplained delays, missing records, or refusal to provide basic information—the beneficiary can file a trust proceeding asking the court to (1) require information and an accounting, (2) review specific transactions, (3) order the trustee to take or stop certain actions, and/or (4) remove and replace the trustee when removal best protects the beneficiaries and the trust’s purpose. In many trust matters, the Clerk of Superior Court is the main forum, though some disputes can be heard in Superior Court depending on the issues and posture of the case.

Key Requirements

  • Standing as a beneficiary: The person bringing the case must have a real interest in the trust (for example, being a current or future beneficiary with rights affected by the trustee’s actions).
  • Grounds to challenge conduct: The request should identify what the trustee did (or failed to do) that violates fiduciary duties or prevents proper administration—such as conflict-driven decisions, failure to keep beneficiaries reasonably informed, or other serious mismanagement.
  • Appropriate remedy and a workable replacement plan: The court generally focuses on what fixes the problem (accounting, instructions, limits on conduct, surcharge, or removal). If removal is requested, it helps to identify a suitable successor trustee or the method the trust provides for naming one.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a North Carolina trust where the trustee is an attorney who is related to some beneficiaries and also related to the estate’s executor, and a beneficiary is having difficulty communicating with the trustee. Family relationships do not automatically disqualify a trustee, but they can raise conflict-of-interest concerns depending on what decisions are being made and whether the trustee is treating beneficiaries impartially. A persistent communication breakdown can also support court involvement because it can prevent a beneficiary from understanding trust administration and protecting their interest.

In a situation like this, a common starting point is to demand basic trust information and records in writing (for example, a copy of the trust instrument or relevant portions, an inventory/summary of trust assets, and a transaction history). If the trustee still refuses to provide meaningful information or appears to be making decisions that benefit related parties at the expense of the trust or other beneficiaries, a court petition can ask for an accounting and targeted relief. For more on evaluating whether a trustee is providing adequate information, see whether the trustee is following the trust agreement and handling the trust money correctly.

Process & Timing

  1. Who files: A trust beneficiary (often a qualified beneficiary). Where: Typically a trust proceeding in the North Carolina Superior Court system, often initiated before the Clerk of Superior Court in the county tied to the trust’s administration. What: A petition or complaint requesting relief such as an accounting, instructions to the trustee, review of specific transactions, and/or removal and appointment of a successor trustee. When: As soon as there is a documented pattern of non-response, missing information, or specific transactions raising concern; waiting can make it harder to trace funds and records.
  2. Next step: The trustee and interested parties receive notice and an opportunity to respond. The court may set a hearing, order production of records, or require a formal accounting depending on what is requested and what the trustee has (or has not) provided.
  3. Final step: The court enters an order granting or denying the requested relief. If removal is ordered, the court can appoint a successor trustee (or confirm one named under the trust’s succession provisions) and may require transfer of trust assets and records to the successor.

Exceptions & Pitfalls

  • “Bad communication” alone may not be enough: Courts usually look for a communication breakdown that actually impairs administration or prevents beneficiaries from protecting their interests, not just personality conflict.
  • Not every mistake justifies removal: Removal is more likely when the problem is serious (for example, repeated failures, refusal to provide information, or conduct that threatens the trust’s purpose), and when replacement better serves the beneficiaries’ interests.
  • Consent and waivers: Signing releases, consents, or “receipt and approval” documents without full information can limit later challenges. If records are needed before signing anything, see requiring copies of trust records and account statements before signing anything.

Conclusion

In North Carolina, a trust beneficiary can challenge a trustee’s conduct and can ask the court to replace the trustee when the trustee’s actions (or ongoing failures) undermine proper trust administration. Courts focus on whether the trustee’s conduct is serious enough that court intervention—and possibly removal—best protects the beneficiaries and the trust’s purpose. A practical next step is to file a trust proceeding with the Clerk of Superior Court requesting an accounting and, if warranted, removal and appointment of a successor trustee, paying close attention to any short deadlines stated in trustee compensation notices.

Talk to a Probate Attorney

If there are concerns that a trustee is mishandling a North Carolina trust or refusing to communicate, our firm has experienced attorneys who can help explain options, likely remedies, and timelines for court action. 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: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.