Dec292025
Probate Q&A Series

How can I force the trustee to release more of my trust funds for my medical and living expenses? – North Carolina

Short Answer

In North Carolina, a beneficiary generally cannot “force” a trustee to make a larger distribution unless the trust terms require it or the trustee is abusing discretion or failing to follow the trust’s purposes. When a trustee refuses reasonable requests tied to health and support needs, a qualified beneficiary can ask the court (often through the Clerk of Superior Court in trust matters) to review the trustee’s actions and order appropriate relief. Practical first steps usually include a written demand with supporting documentation, followed by a court proceeding if the trustee still refuses.

Understanding the Problem

In North Carolina probate and trust administration, the key question is whether a trustee must make distributions for a beneficiary’s medical and living expenses when the beneficiary has urgent needs and the trustee refuses to release funds. The decision point is whether the trust’s distribution standard and purpose require payments for health, maintenance, or support, or instead give the trustee discretion to say no. The issue often turns on what the trust document says, what information the trustee has been given about the beneficiary’s needs, and whether the trustee is acting in good faith and consistently with the trust’s purpose.

Apply the Law

North Carolina trust law generally requires a trustee to administer the trust in line with the trust’s terms and purposes and to use reasonable judgment when the trust gives discretion. If the trustee’s refusal to distribute funds is inconsistent with the trust’s stated distribution standard (for example, health and support) or reflects mismanagement, self-interest, or a failure to consider relevant information, a qualified beneficiary can seek judicial review and court-ordered relief. The usual forum depends on the type of relief requested and the trust’s administration, but many trust disputes and fiduciary supervision issues are handled through proceedings filed with the Clerk of Superior Court under North Carolina’s trust code procedures.

Key Requirements

  • Enforceable distribution standard in the trust: The trust must require distributions (or guide discretion) for items like health, maintenance, support, or similar needs, rather than leaving distributions purely optional without a stated purpose.
  • Proof of need and fit within the standard: The request should be documented and tied directly to the trust’s standard (for example, assisted living, hospice, caregiver services, and transportation as support-related needs).
  • Trustee misconduct or unreasonable administration (if discretion exists): If the trustee has discretion, relief usually requires showing the trustee is not exercising judgment properly—such as acting in bad faith, ignoring the trust’s purpose, refusing to consider relevant information, or otherwise mismanaging the trust.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The trust appears to hold the proceeds from the sale of a parent’s home, with a sibling serving as trustee and a disabled beneficiary requesting funds for assisted living, hospice care, a caregiver, and transportation. If the trust’s distribution language is tied to health, maintenance, or support, these requested expenses commonly match that type of standard, and a refusal without a reasonable explanation can support court review. If the trust gives broad discretion, the focus becomes whether the trustee is exercising that discretion in good faith and consistent with the trust’s purpose, using complete information about the beneficiary’s condition and needs.

Process & Timing

  1. Who files: A qualified beneficiary (or a representative for a qualified beneficiary). Where: Typically the Clerk of Superior Court in the county where the trust has its principal place of administration (venue can vary by trust and requested relief). What: A petition or complaint requesting judicial review and appropriate relief (often including an order compelling an accounting, compelling proper administration, or other court-directed action). When: As soon as the trustee refuses a documented request tied to urgent medical or support needs; waiting can increase harm and make relief harder to implement.
  2. Build the record first: Before filing (or alongside filing), send a written demand that (a) cites the trust’s distribution standard, (b) lists the specific expenses, (c) includes supporting documents (care plan, physician letter, facility estimates, caregiver proposals, transportation needs), and (d) requests a written decision by a short, reasonable deadline.
  3. Court supervision and information gathering: If the trustee still refuses, the court can require information exchange and can compel discovery needed to enforce beneficiary rights. Depending on what the evidence shows, the court may order corrective action, including orders aimed at proper administration and, in serious cases, changes to fiduciary roles.

Exceptions & Pitfalls

  • The trust may limit distributions: Some trusts cap distributions, require certain approvals, or prioritize other beneficiaries. The trust document controls, so the distribution clause must be reviewed closely.
  • Discretion is not the same as “anything goes”: Even with discretion, a trustee generally must act consistently with the trust’s purpose and consider relevant facts. But courts often give trustees significant leeway, so strong documentation matters.
  • Missing documentation: Vague requests (for example, “more money for living expenses”) are easier to deny. Itemized requests tied to medical necessity and support needs are harder to ignore.
  • Confusing trust issues with estate issues: A trust administration dispute is different from an estate administration dispute. Filing in the wrong forum or using the wrong procedure can delay relief.
  • Compensation and expense disputes can be a separate track: If the concern includes the trustee paying themselves too much or charging improper expenses, North Carolina law allows judicial review of compensation and reimbursements, but that issue should be pleaded clearly and supported with records.

Conclusion

In North Carolina, forcing a trustee to release more trust funds usually requires showing that the trust’s distribution standard covers the requested medical and living expenses, and that the trustee is refusing to follow the trust’s purpose or is exercising discretion unreasonably. The most effective next step is to make a written, documented distribution demand tied to the trust’s standard and the beneficiary’s care needs, then file a petition with the Clerk of Superior Court in the proper county if the trustee still refuses. Acting promptly matters when care decisions are time-sensitive.

Talk to a Probate Attorney

If a trustee is refusing to release trust funds needed for medical care and basic living expenses, a probate attorney can help review the trust terms, build a strong written demand, and pursue court relief when needed. 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.