Can a trustee be required to pay for property maintenance or major repairs if the trust is supposed to cover those costs? – North Carolina

Short Answer

In North Carolina, a trustee generally should pay legitimate property maintenance and repair costs from trust assets when the trust terms authorize or require those expenses. A trustee is usually not required to pay those costs out of personal funds, but the trustee can be held responsible if they wrongly refuse to use available trust funds or otherwise breach fiduciary duties. If the trustee will not follow the trust terms, a beneficiary can often seek court involvement to compel proper administration and, in some cases, surcharge the trustee for losses caused by the refusal.

Understanding the Problem

Under North Carolina estate planning and trust administration, the key question is whether a trustee who controls a trust that owns (or is supposed to support) a home or other property can be made to cover maintenance or major repairs when the trust document says the trust should pay. The decision point is whether the trustee’s refusal is consistent with the trust’s instructions and the trustee’s fiduciary duties, or whether the refusal is a breach that can be corrected through an accounting demand or a court order.

Apply the Law

North Carolina trustees must administer a trust according to its terms and use trust property for proper trust purposes. When a trust owns real estate or is directed to support a beneficiary’s housing costs, routine maintenance and necessary repairs are often treated as proper trust expenses—paid from trust funds, not the trustee’s personal money. If the trustee refuses to pay expenses the trust authorizes and trust funds are available, the trustee may face court remedies that can include an order to pay, removal, or personal liability for harm caused by the refusal. Disputes are commonly handled through the Clerk of Superior Court (and sometimes the Superior Court division, depending on the issue and relief requested).

Key Requirements

Trust authority for the expense: The trust terms (and any incorporated standards like “health, education, maintenance, and support”) must allow or require paying maintenance/repairs, or allow the trustee to preserve trust property.
Proper trust purpose and documentation: The expense should be reasonable, necessary, and supported by invoices/estimates showing it relates to the trust property or the beneficiary support the trust is designed to provide.
Available trust funds and correct allocation: The trust must have funds available (cash or assets that can be prudently liquidated), and the trustee must allocate the cost correctly (often between income and principal depending on the trust terms and the nature of the repair).

What the Statutes Say

N.C. Gen. Stat. § 32-58 (Reimbursement for expenses incurred) – Allows a trustee to pay proper administration expenses from trust assets and provides for reimbursement when the trustee properly advances expenses.
N.C. Gen. Stat. § 105-383 (Fiduciaries to pay taxes) – Requires fiduciaries with control of property to pay property taxes from funds in hand and can impose personal liability if taxes go unpaid when funds were available.

Analysis

Apply the Rule to the Facts: The facts describe a relative acting as trustee/executor who is refusing to approve an additional distribution, and the trust may include a home/property with provisions for maintenance-related payouts. If the trust terms direct that maintenance or repair costs be paid (or give discretion to preserve the property and support the beneficiary), then refusing to use available trust funds for legitimate maintenance/repairs can conflict with the trustee’s duties. If the refusal causes avoidable damage (for example, deferred repairs leading to larger losses) or prevents required upkeep, that can become a basis to ask the court to compel action and potentially hold the trustee financially responsible for the harm caused by the refusal.

Process & Timing

Who files: Typically a beneficiary (or co-trustee, if any). Where: Often the Clerk of Superior Court in the county with trust venue or where the trust is being administered. What: A request/petition to compel an accounting, compel administration consistent with the trust terms, or other appropriate relief. When: As soon as a concrete refusal affects property condition, insurance, taxes, habitability, or required distributions.
Build the record: Gather the trust document and amendments, deeds showing whether the trust owns the property, repair estimates, photos, insurance notices, tax bills, and written communications showing the request and refusal. A written demand for an accounting and for a decision in writing often helps clarify whether the trustee is exercising discretion or simply refusing to act.
Court remedies: Depending on what the trust says and what the trustee has done, the court can order the trustee to follow the trust terms, require reporting/accounting, approve or direct payment of proper expenses, and address trustee misconduct (including removal or a financial surcharge if losses were caused by a breach).

Exceptions & Pitfalls

The trust may limit what can be paid: Some trusts only allow maintenance up to a cap, only for certain beneficiaries, or only if the trustee finds the expense “necessary” under a stated standard. A trustee can deny a request that falls outside the trust’s written limits.
Ownership and responsibility can be unclear: If the property is still in an estate (executor role) rather than titled to the trust (trustee role), the payment source and approval process can differ. Mixing roles can also create confusion about which account should pay.
Major repairs vs. improvements: A trustee may treat a request as an “upgrade” rather than a repair. Clear documentation (inspection reports, safety issues, code compliance, preventing further damage) helps show the expense is preservation, not a discretionary improvement.
Cash flow and liquidity issues: Even if the trust should pay, the trustee may need to liquidate assets first. The trustee still must act reasonably and cannot use “no cash on hand” as a permanent excuse if the trust can be prudently managed to meet required expenses.
Self-help can backfire: Paying out-of-pocket without a clear paper trail can lead to disputes about whether the expense was authorized, reasonable, or properly documented. If paying is unavoidable to prevent damage, keeping invoices, proof of payment, and written notice to the trustee is critical.

For more on disputes when a trustee will not approve needed payments, see getting an extra distribution when the trustee refuses and when a trust dispute needs to go to court.

Conclusion

In North Carolina, when a trust is written to cover property maintenance or necessary repairs, the trustee generally should pay those costs from trust assets—not personal funds—so long as the expense fits the trust’s terms and funds are available. If a trustee refuses to pay legitimate maintenance/repair expenses and that refusal violates the trust terms or fiduciary duties, a beneficiary can ask the Clerk of Superior Court to compel proper administration. The next step is to request the decision and supporting records in writing and, if the refusal continues, file to compel an accounting and compliance promptly.

Talk to a Estate Planning Attorney

If you’re dealing with a trustee who is refusing to approve maintenance or repair payments that the trust is supposed to cover, our firm has experienced attorneys who can help clarify the trust terms, document the issue, and pursue the right court remedy if needed. Call us today at [CONTACT NUMBER].

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.