Dec32025
Estate Planning Q&A Series

Can we be added as co‑trustees only for non‑financial decisions, while the current trustee keeps control over distributions? – North Carolina

Short Answer

Under North Carolina law, a revocable trust can usually be amended to split trustee duties so that one trustee handles distributions and another trustee (or co‑trustees) handles certain non‑financial decisions—if the trust document and the settlor allow it. The details have to be written clearly into a valid trust amendment, and the current trustee’s powers, the settlor’s intent, and any beneficiary protections must remain consistent with North Carolina’s trust code. If the settlor is no longer able or willing to amend, court involvement or other planning tools may be required.

Understanding the Problem

The question is whether, under North Carolina estate planning law, family members can be added as co‑trustees of an existing revocable grantor trust only for non‑financial decisions, while leaving the current trustee in control of distributions for a child’s expenses. The issue centers on whether and how a North Carolina revocable trust can be amended to divide or limit trustee powers so that different trustees are responsible for different categories of decisions. The core decision point is: can co‑trustee roles be customized this way for a North Carolina trust created and funded for a child’s expenses, and what mechanisms are available if the original trust terms do not already provide for such a structure?

Apply the Law

Under North Carolina’s version of the Uniform Trust Code, the starting point is that the trust document controls the trustee’s powers, duties, and how co‑trustees act. For a revocable trust, the settlor (the person who created and funded it) generally retains the power to amend while living and competent. North Carolina law also allows courts to modify trusts in certain circumstances, and there is no general limitation period for bringing an action to modify or reform a trust, but the court will look closely at the settlor’s intent and beneficiary protections.

Key Requirements

  • Revocability and settlor authority: The trust must still be revocable and the settlor must have legal capacity (and sometimes express authority in the document) to amend the trust to change trustee structure and powers.
  • Clear allocation of trustee powers: Any amendment adding co‑trustees only for non‑financial decisions must clearly spell out which trustee controls distributions, which trustee(s) handle non‑financial matters, and how conflicts are resolved.
  • Compliance with North Carolina trust law: The amended structure must still meet North Carolina fiduciary standards and not undermine required duties owed to the child beneficiary; otherwise, a court‑approved modification or other vehicle may be necessary.

What the Statutes Say

Analysis

Apply the Rule to the Facts: In the scenario described, a relative created a revocable grantor trust in North Carolina for a child’s expenses. If that relative is still living and has capacity, North Carolina law generally allows an amendment that adds the parents as co‑trustees with defined non‑financial roles (for example, decisions about schooling or medical consent), while leaving the existing trustee with final say over distributions. The amendment must clearly describe which trustee decides what, and how the trustees work together, so fiduciary duties to the child remain intact. If the settlor has lost capacity or has died, any significant change to trustee roles or powers would likely require either a court‑approved modification or a transition to a different planning structure rather than a simple private amendment.

Process & Timing

  1. Who files: Typically, the settlor (creator of the trust) initiates an amendment; if court modification is needed, an interested person such as the current trustee or a beneficiary files. Where: In most cases, changes are handled privately by written amendment; court actions are filed in the Superior Court in the North Carolina county where the trust is administered or the trustee resides. What: A written trust amendment (or, if necessary, a petition to modify trust) that clearly adds co‑trustees and allocates powers. When: For a revocable trust, while the settlor is alive and competent; court petitions under the trust code can be brought at any time, subject to practical issues like evidence and cost.
  2. If handled by private amendment, the trustee and settlor review the current trust, draft a detailed amendment that defines non‑financial trustee powers versus distribution powers, and execute it with the formalities the trust requires (often notarization). This can usually be completed within weeks, depending on how quickly information and signatures can be gathered.
  3. If court modification is required, the petitioner files the petition, provides notice to interested parties, and the court schedules a hearing. The court then decides whether the proposed division of trustee roles is consistent with the settlor’s intent and North Carolina law and, if approved, issues an order modifying the trust.

Exceptions & Pitfalls

  • If the trust instrument itself restricts amendment of trustee powers or requires a specific procedure (for example, a signed and notarized writing delivered to the trustee), failing to follow those requirements can make the change invalid.
  • Dividing powers too vaguely—such as saying one trustee handles “non‑financial decisions” without listing what that means—can create conflicts, confusion, and potential breaches of fiduciary duty.
  • If the settlor is incapacitated, guardianship or court involvement may be needed, and the court may not approve a structure that appears to reduce protections for the child beneficiary.
  • Splitting responsibilities between trustees without clarifying who keeps records, who communicates with third parties, and how disagreements are resolved can lead to administration problems and increased risk of disputes.

Conclusion

North Carolina law generally allows a revocable trust to be amended so that co‑trustees share duties, including an arrangement where one trustee keeps control over distributions and other trustees handle specified non‑financial decisions. This requires that the settlor still has authority to amend and that the amendment clearly defines and allocates trustee powers while honoring fiduciary duties to the child. The most important next step is to review the existing trust and, if permitted, prepare a carefully drafted amendment for proper execution.

Talk to a Estate Planning Attorney

If someone is dealing with a North Carolina revocable trust for a child and wants to adjust trustee roles between financial and non‑financial decisions, our firm has experienced attorneys who can help explain options and procedures. 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 any specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If there is 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.