How can I get access to trust financial records if another beneficiary or trustee is controlling all the files and information? – North Carolina

Short Answer

In North Carolina, a trustee generally must keep good records and provide qualified beneficiaries with reasonably complete and accurate information about trust assets and administration, including allowing reasonable inspection of trust accounts and related documents. If informal requests do not work, a beneficiary can often ask the Clerk of Superior Court to order the trustee to produce information or an accounting, and in some cases a Superior Court case may be needed to use full discovery tools. The right approach depends on whether the person controlling the information is actually the trustee (or acting under the trustee’s authority) and whether the requesting person is a “qualified beneficiary.”

Understanding the Problem

In a North Carolina trust administration, can a beneficiary require access to trust financial records when another beneficiary or the trustee is controlling the checkbook, online banking access, and paperwork? When a trust owns property and someone is paying bills from a trust checking account, the key issue is whether the trustee is meeting the duty to share trust information and records with the beneficiaries who are entitled to receive it. The practical question is how to move from “no information” to a clear set of bank statements, invoices, and a running accounting that shows what came in, what went out, and why.

Apply the Law

North Carolina trust law generally expects accountability. Trustees must keep adequate trust records, keep trust property separate, and provide certain information to qualified beneficiaries at reasonable times. If the trustee (or someone acting for the trustee) refuses, a beneficiary may seek a court order to compel production of information and, when appropriate, an accounting through a trust proceeding (often handled through the Clerk of Superior Court for “internal affairs” of a trust). If the dispute includes claims for money damages for misconduct, that portion may need to be filed in Superior Court.

Key Requirements

Qualified beneficiary status: The strongest statutory rights to information typically apply to a “qualified beneficiary” (often someone currently entitled to distributions, or who would be entitled if the trust ended or a current beneficiary’s interest ended).
Reasonable request for trust information: A trustee must generally provide reasonably complete and accurate information about trust property and administration at reasonable times, and respond to reasonable requests.
Access to records and inspection: A trustee must generally allow reasonable inspection of trust accounts and other documents relating to the trust, and must maintain adequate records so those documents exist and can be reviewed.

What the Statutes Say

N.C. Gen. Stat. § 33B-7 (Custodial trustee records; availability to beneficiary) – In custodial trusts, the trustee must keep transaction records and make records and information available at reasonable times to the beneficiary or the beneficiary’s legal representative.
N.C. Gen. Stat. § 33B-15 (Custodial trustee reporting and accounting; court petition) – In custodial trusts, the trustee must provide written statements at least annually and upon reasonable request, and interested persons may petition the court for an accounting.

Analysis

Apply the Rule to the Facts: The facts describe a trust property being occupied by a co-beneficiary and bills being paid from a trust checking account using online access. That combination usually makes trust record access especially important because it raises basic administration questions (what expenses are being paid, whether they are proper trust expenses, and whether occupancy is authorized by the trust terms). If the person controlling the information is the trustee (or effectively acting as the trustee’s agent), North Carolina law generally expects that person to be able to produce bank statements, invoices, and a clear explanation of transactions upon reasonable request by a qualified beneficiary.

Process & Timing

Who asks first: The requesting beneficiary (or the beneficiary’s attorney). Where: Directly to the trustee in writing. What: A dated written request for (a) a copy of the trust instrument (if not already provided), (b) recent bank statements and check images, (c) a transaction ledger, (d) invoices/receipts for bills paid, and (e) an explanation of any ongoing arrangements (like occupancy of trust real estate). When: As soon as the issue arises; the request should set a reasonable deadline (often 10–14 days) for production.
If the trustee refuses or stalls: File a trust proceeding seeking an order compelling information/inspection and, when appropriate, an accounting. Where: Typically with the Clerk of Superior Court in the county with proper venue for the trust matter (venue can depend on the trust terms and where the trust is administered). Timeframes vary by county and calendar.
If the dispute involves misconduct and money damages: Consider a separate or additional Superior Court action for claims like breach of fiduciary duty, where broader civil discovery tools may be available. The court can also issue orders designed to ensure trust accountability (for example, requiring production of records and clarifying administration duties).

Exceptions & Pitfalls

Not every beneficiary has the same rights: The right to information is strongest for “qualified beneficiaries.” If the interest is remote or contingent, the trustee may limit what is provided, at least until the interest becomes current.
“Another beneficiary” may not be the trustee: If a co-beneficiary is controlling online banking but is not the trustee, the legal leverage usually runs through the trustee (who has the duty to control trust assets, keep records, and supervise access). A demand aimed only at the co-beneficiary may not be enough.
Trust terms may try to limit accountings: Some trusts attempt to waive formal accountings. Even then, courts can require enough information to allow beneficiaries to enforce their rights and evaluate whether the trust is being administered in good faith.
Mixing trust and personal expenses: When someone lives in trust property and pays bills from the trust account, disputes often arise over whether expenses are proper trust expenses, whether there should be reimbursement, and whether occupancy is authorized. Clear documentation (leases, written occupancy agreements, utility bills, repair invoices) matters.
Bank access is not the same as record access: A beneficiary usually cannot force a bank to hand over trust statements without proper authority or a court order. The cleaner path is to compel the trustee to produce records, and then seek a court order if the trustee will not comply.

Conclusion

In North Carolina, a trustee generally must keep adequate trust records and provide qualified beneficiaries with reasonably complete and accurate information, including reasonable access to trust account documents. When another person is controlling the files or online banking, the focus is usually on compelling the trustee to produce bank statements, invoices, and an accounting that explains trust transactions. The practical next step is to send a written request to the trustee for specific records and, if cooperation does not follow promptly, file a trust proceeding with the Clerk of Superior Court to compel production and an accounting.

Talk to a Probate Attorney

If you’re dealing with a trust where someone else controls the bank access and paperwork and refuses to share records, our firm has experienced attorneys who can help clarify what information must be provided and what court options are available to compel it. 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.