How can I remove a trustee and get the court to freeze trust assets while an investigation is pending? – North Carolina

Short Answer

In North Carolina, removing a trustee and “freezing” trust assets usually requires filing a trust proceeding in Superior Court and asking for emergency relief (a temporary restraining order and/or preliminary injunction) to stop transfers while the case is investigated. The court focuses on whether there is a real risk of harm to the trust if the trustee stays in control and whether the requested freeze is narrowly tailored. In the same case, it is common to request an accounting, temporary limits on trustee powers, and appointment of a neutral successor or co-trustee to protect the trust during the dispute.

Understanding the Problem

In North Carolina trust disputes, the central question is often: can a beneficiary or other interested person ask the Superior Court to remove a trustee and temporarily stop the trustee from moving or spending trust property while alleged misconduct is investigated? This issue typically comes up when an irrevocable family trust is being administered during a parent’s cognitive decline, there are concerns about undue influence or lack of capacity at signing, and there are allegations that the trustee is misusing trust assets or blocking access to information. The relief sought is usually twofold: (1) a change in who controls the trust and (2) a court order that prevents transfers until the court can sort out what happened.

Apply the Law

North Carolina trust administration is governed largely by the North Carolina Uniform Trust Code (NCUTC) in Chapter 36C. When a trustee is accused of self-dealing, wasting trust property, refusing to provide information, or otherwise failing to act in good faith for the beneficiaries, the court can order remedies that protect the trust. In urgent situations, a party may also seek emergency injunctive relief (a temporary restraining order and/or preliminary injunction) to prevent dissipation of assets while the case proceeds. Venue and procedure can depend on where the trust is administered and whether related claims are already pending.

Key Requirements

• Standing and a proper trust proceeding: The party seeking removal/freezing relief generally must be a beneficiary or other person with a legally recognized interest in the trust and must file the request in the correct North Carolina court and county.
• Grounds showing the trustee should not remain in control: Common grounds include conflict of interest/self-dealing, misuse or waste of trust property, hostility that prevents fair administration, failure to follow the trust terms, and failure to act in good faith for the beneficiaries.
• Proof of immediate risk and a narrowly tailored “freeze” request: Emergency relief is more likely when evidence shows a real risk of transfers, liquidation, or concealment of assets before the court can hold a full hearing, and when the requested restrictions are limited to what is needed to protect the trust.

What the Statutes Say

• N.C. Gen. Stat. § 23-22 (Court may remove trustee and appoint successor) – Authorizes the court to remove a trustee and supply a vacancy with a successor trustee.

Analysis

Apply the Rule to the Facts: The facts described involve concerns about a parent’s cognitive decline, possible undue influence or lack of capacity around an irrevocable trust, and alleged financial misconduct involving trust/estate assets. Those allegations commonly line up with removal theories such as lack of good faith administration, conflict of interest, and waste or mismanagement of trust property. If there is also evidence that assets are actively being moved (for example, unusual withdrawals, rapid sales, or transfers to the trustee or close associates), that supports asking the court for immediate restrictions while the case is pending.

Process & Timing

1. Who files: Typically a beneficiary or other interested person. Where: North Carolina Superior Court (often involving the Clerk of Superior Court for certain trust matters, and a Superior Court judge for contested or injunctive relief). What: A trust petition/complaint requesting removal of trustee, an accounting, and emergency injunctive relief (TRO/preliminary injunction) to prevent transfers. When: As soon as there is credible evidence of ongoing or imminent dissipation of trust assets; emergency relief is time-sensitive.
2. Emergency hearing stage: The court may set a quick hearing (sometimes on very short notice) to decide whether to enter a temporary restraining order and then whether to continue restrictions through a preliminary injunction while the case proceeds. The court often expects specific evidence (bank records, suspicious transactions, refusal to provide information, or proof of self-dealing) rather than general concerns.
3. Case management and longer-term protection: If the court sees a need to protect assets but wants a workable administration, it may order an accounting, restrict certain transactions without court approval, require records production, and/or appoint a neutral successor or co-trustee to manage the trust during the dispute.

Exceptions & Pitfalls

• “Freeze everything” requests can backfire: Courts often want a targeted order that still allows necessary expenses (for example, routine bills, property insurance, or required trust distributions) while blocking unusual transfers or self-dealing.
• Removal is not automatic even with problems: North Carolina courts can deny removal if the trustee’s conduct does not justify it or if the trust has still been administered effectively overall. Evidence and credibility matter.
• Information and accounting issues: A common early fight is access to trust documents, beneficiary status, and transaction history. Building the case usually requires prompt, organized requests for records and a clear explanation of what is missing and why it matters.

Related reading: In some situations, similar emergency tools are used in probate cases; see request an injunction or court order to freeze or release estate funds. For trustee-specific disputes, see ask the court to replace the trustee.

Conclusion

In North Carolina, removing a trustee and freezing trust assets generally requires filing a trust proceeding in Superior Court and showing both valid grounds for removal and a real risk that trust property will be harmed if transfers continue during the case. Courts often prefer targeted restrictions, an accounting, and sometimes a neutral fiduciary to protect the trust while claims are investigated. The most important next step is to file the removal petition and request emergency injunctive relief immediately when there is evidence of imminent transfers.

Talk to a Probate Attorney

If there are concerns about trustee misconduct, undue influence, or rapid movement of trust assets, our firm has experienced attorneys who can help explain options for removal, emergency court relief, and the timelines involved. 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.