Jul292025
Probate Q&A Series

How to Legally Remove a Trustee from a Family Trust for Neglecting Property Maintenance and Failing to Pay Taxes in North Carolina

When a trustee fails to maintain trust property or pay required taxes, beneficiaries can take steps to protect the trust’s assets and uphold its purpose. North Carolina law offers both nonjudicial and judicial routes to remove a trustee.

Detailed Answer

1. Review the Trust Instrument

Begin by examining the trust agreement itself. Many family trusts include a clause that allows beneficiaries or the settlor to remove and replace a trustee without court intervention. Follow any procedures the document outlines, such as a vote of beneficiaries or consent from the grantor if still living.

2. Grounds for Removal Under North Carolina Law

Under the North Carolina Uniform Trust Code, beneficiaries may petition the court for removal when a trustee proves unfit or neglects duties. Key statutory grounds (see N.C. Gen. Stat. § 36C-8-802) include:

  • Neglect of duty, such as failing to maintain real estate.
  • Failure to pay property taxes or other trust obligations.
  • Breach of trust or serious conflict of interest.

Citation: N.C. Gen. Stat. § 36C-8-802

3. Nonjudicial Removal

If the trust document authorizes beneficiaries or the settlor to remove a trustee without court approval, follow that process to:

  • Obtain written consent from the required number of beneficiaries.
  • Notify all interested parties of the proposed removal.
  • Appoint a successor trustee according to the trust’s terms.

4. Judicial Removal

If the trust does not allow nonjudicial removal or the trustee refuses to step down, beneficiaries can petition the superior court in the county where the trust is administered. The typical process:

  • File a petition stating facts showing neglect or breach.
  • Serve notice on the trustee and all beneficiaries.
  • Attend a hearing where the court evaluates whether removal serves the trust’s best interests.

After removal, the court may appoint a successor trustee or direct parties to do so under N.C. Gen. Stat. § 36C-8-803. N.C. Gen. Stat. § 36C-8-803

Key Takeaways

  • Start by reviewing the trust agreement for any removal provisions.
  • Document all trustee failures, such as missed tax payments and property neglect.
  • Use nonjudicial removal if the trust instrument permits it to save time and cost.
  • If the trust is silent or the trustee resists, petition superior court under N.C. Gen. Stat. § 36C-8-802.
  • Judicial removal requires notice to all interested parties and a court hearing.
  • Court removal can lead to appointment of a successor trustee under N.C. Gen. Stat. § 36C-8-803.
  • Work with an attorney to prepare and present your petition effectively.

Take Action

Removing a negligent trustee protects the trust’s assets and ensures proper administration. If you face trustee neglect or unpaid taxes, rely on Pierce Law Group for experienced guidance in North Carolina trust matters. Our attorneys can help you remove a trustee and appoint a responsible successor.

Contact us today at intake@piercelaw.com or call us at (919) 341-7055 to schedule a consultation and safeguard your family trust.

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.