What can I do if I’m the only beneficiary but the trustee still won’t release funds I’m requesting? – North Carolina

Short Answer

In North Carolina, being the only beneficiary does not automatically mean the trustee must approve every requested distribution. The trustee must follow the trust’s written terms and use any discretion in good faith, while also keeping proper records and providing information needed to understand the trust administration. If a trustee refuses to release funds without a valid trust-based reason, common next steps include a written demand for information/accounting and, if needed, a court proceeding to compel compliance and potentially replace the trustee.

Understanding the Problem

In North Carolina trust administration, the key question is: can a sole beneficiary force a trustee to make an additional distribution when the trustee refuses to approve it. The decision point usually turns on whether the trust requires the distribution (mandatory language) or gives the trustee discretion to approve or deny it (discretionary language), including special provisions for property-related expenses such as maintenance, insurance, taxes, or repairs. The trustee’s role is to administer the trust according to the document, not personal preference, and the beneficiary’s role is to enforce the trust’s terms when the trustee will not follow them.

Apply the Law

Under North Carolina law, a trustee must administer the trust in line with the trust instrument and the trustee’s fiduciary duties. Even with a single beneficiary, the trustee may have to (1) confirm the trust’s distribution standard, (2) verify the request fits that standard, and (3) document the decision with appropriate records and reporting. When a trustee refuses to act, a beneficiary can seek court involvement—often through the Clerk of Superior Court in the county connected to the trust administration—to require information, review certain trustee actions, and, in appropriate cases, remove and replace the trustee.

Key Requirements

• Trust terms control the distribution: The trust document may require distributions, limit them to specific purposes (like health/education/support/maintenance), or give the trustee discretion to decide whether and when to distribute.
• Trustee must act as a fiduciary: The trustee must act in good faith, follow the trust’s instructions, and avoid self-interested decision-making or using delay as leverage.
• Transparency and records matter: A beneficiary generally has the right to enough information to understand what the trustee is doing, including the basis for approving or denying requests and the trust’s income/expenses (especially when the trust holds a home with ongoing costs).

What the Statutes Say

• N.C. Gen. Stat. § 23-22 (Court may remove trustee and appoint successor) – Allows the court to remove a trustee and fill a trustee vacancy in appropriate circumstances.
• N.C. Gen. Stat. § 32-57 (Judicial review; trustee compensation/expense reimbursement) – Permits a qualified beneficiary to initiate a proceeding to review the reasonableness of trustee compensation and expense reimbursement and allows refunds if excessive.

Analysis

Apply the Rule to the Facts: The scenario involves a relative acting as trustee (and possibly also executor) who refuses to approve an additional distribution, with the trust potentially holding a home and including maintenance-related payout provisions. If the trust language makes the requested distribution mandatory (or clearly authorizes maintenance-related payments that match the request), a refusal without a trust-based reason can support a court request to compel compliance. If the trust gives the trustee discretion, the focus shifts to whether the trustee is exercising that discretion in good faith, using the correct standard, and keeping adequate records to justify the decision.

Process & Timing

1. Who starts it: The beneficiary. Where: Often the Clerk of Superior Court in the county where the trust is being administered (county practices vary). What: A written demand to the trustee first (requesting the trust provisions being relied on, current trust financial information, and a written decision), followed by a petition/proceeding if the trustee still refuses to act.
2. What the court can do early: Order the trustee to provide information, explain the decision, and in some cases review issues like compensation/expense reimbursement when challenged under the statutes.
3. Potential end results: A court order directing the trustee to follow the trust terms (including making an authorized distribution), requiring an accounting, adjusting improper charges, and/or removing the trustee and appointing a successor when the facts support that remedy.

Exceptions & Pitfalls

• Discretionary distribution clauses: If the trust gives the trustee discretion, the beneficiary may not be able to force a specific “extra” distribution without showing the trustee is acting outside the trust standard or in bad faith.
• Home/property expenses can be restricted: Some trusts allow payments for taxes, insurance, repairs, or upkeep only under certain conditions (for example, only while a person lives in the home, only up to a cap, or only with documentation). Missing invoices or unclear requests often slow decisions.
• Mixing “executor” and “trustee” roles: If the refusal relates to estate assets that have not yet been transferred into the trust, the issue may be an estate administration delay rather than a trust distribution decision, and the correct court process can differ.
• Informal pressure and undocumented decisions: Verbal refusals and vague explanations make enforcement harder. A clear written request and a paper trail often become critical if court involvement is needed.

For more background on when court involvement may be necessary, see force a trustee to follow the trust terms. For related issues about trustee communication, see provide information about the trust administration.

Conclusion

In North Carolina, a sole beneficiary can challenge a trustee’s refusal to release requested funds, but the outcome depends on what the trust requires or allows and whether the trustee is using any discretion in good faith. When the trust includes a home, the trust’s maintenance and expense provisions often control what can be paid and when. A practical next step is to send a written demand asking the trustee to identify the specific trust terms relied on and to provide current trust financial information, then file a proceeding with the Clerk of Superior Court if the trustee still will not comply.

Talk to a Estate Planning Attorney

If you’re dealing with a trustee who will not release trust funds even though there is only one beneficiary, our firm has experienced attorneys who can help explain options, required documents, and timelines under North Carolina law. 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.