How can we sell or divide multiple trust-owned properties when the co-trustees are in conflict? – North Carolina

Short Answer

In North Carolina, co-trustees usually must act together, so a conflict can stall a sale or division of trust-owned real estate unless the trust document allows one trustee to act alone or allows delegation. When co-trustees are deadlocked, common solutions include a written delegation for limited tasks, using a neutral third party (like a listing agent and closing attorney) under agreed terms, or asking the Superior Court for instructions or to change trustees so the trust can move forward. The right approach depends on the trust terms, the number of trustees, and whether the dispute is about process (how to sell) or substance (whether to sell at all).

Understanding the Problem

In North Carolina trust administration, the key question is: when two siblings serve as co-trustees over multiple trust-owned properties, can the properties be sold or divided if the co-trustees cannot agree or cannot work together? The decision point is whether the co-trustees have authority to act without unanimity (because the trust says so, or because a limited delegation is appropriate), or whether court involvement is needed to break a deadlock so the trust can be administered.

Apply the Law

North Carolina’s trust rules start with the trust document. If the document is silent, state default rules apply. For two co-trustees, the default rule is that co-trustees generally must act unanimously, which means a strained relationship can prevent routine steps like listing property, accepting an offer, signing a deed, or approving closing terms. North Carolina law also expects trustees to act as fiduciaries, which includes avoiding self-interested transactions and administering the trust fairly for all beneficiaries. When conflict prevents administration, a judicial proceeding in Superior Court can be used to seek directions and, in appropriate cases, to change who is serving as trustee so the trust can function.

Key Requirements

Authority to act: The trust terms (and, if needed, default co-trustee rules) must allow the specific step being taken—such as listing, signing a contract, or conveying title.
Fiduciary decision-making: Each co-trustee must act loyally and impartially for the beneficiaries, using reasonable care and good records, especially when selling or allocating real estate.
A workable mechanism to break deadlock: If unanimity is required and cooperation is not realistic, the co-trustees typically need a written delegation/consent for limited tasks or a court order (instructions, appointment of a successor/neutral trustee, or removal) to move the transaction forward.

What the Statutes Say

N.C. Gen. Stat. Chapter 36C (North Carolina Uniform Trust Code) – Sets the default rules for trust administration, including fiduciary duties and how co-trustees operate when the trust document does not provide a different rule.
N.C. Gen. Stat. § 23-22 (Court may remove trustee and appoint successor) – Authorizes court involvement to address trustee vacancies or disability and to supply a successor trustee when needed.

Analysis

Apply the Rule to the Facts: Two siblings are serving as co-trustees/co-fiduciaries for multiple trusts, and communication is strained enough that joint representation may not be possible. If each trust has two co-trustees and the trust documents do not give one trustee independent authority, the default approach can require unanimous action, which can block real estate decisions like selecting a broker, approving repairs, setting a list price, accepting an offer, and signing closing documents. In that situation, the practical legal question becomes how to create a decision-making path that still protects beneficiaries while allowing the trust(s) to administer and liquidate or allocate the properties.

Process & Timing

Who files: A co-trustee (or, in some cases, a beneficiary) seeking to move administration forward. Where: North Carolina Superior Court in a proper venue county for the trust proceeding (often tied to the trust’s principal place of administration, beneficiary residence, or where trust property is located). What: A civil trust petition/complaint asking for court instructions and/or trustee relief (for example, clarifying authority to sell, approving a proposed sale process, appointing a neutral successor trustee, or removing a trustee if statutory grounds exist). When: As soon as a deadlock prevents necessary administration steps (for example, when a listing decision or contract signature cannot be obtained).
Interim stabilization: If there is concern about waste, missed opportunities, or improper conduct, the filing can request temporary relief tailored to the problem (such as requiring cooperation on access, requiring production of records, or limiting unilateral actions) while the case is pending. Timing varies by county and the court’s calendar.
Resolution path: The matter may resolve by (a) an agreed order setting a sale protocol (broker selection, list price method, repair budget, signature mechanics), (b) appointment of a neutral trustee or successor trustee to handle the transaction, or (c) an order removing a trustee and appointing a replacement so the trust can complete sales and distributions.

Exceptions & Pitfalls

The trust may override the default rule: Some trusts allow one co-trustee to act alone, allow majority action (if more than two trustees), or name a tie-breaker. Skipping a careful read of each trust instrument can lead to an avoidable court fight.
Delegation must be handled carefully: North Carolina allows limited delegation between co-trustees for administrative functions when the settlor would not have expected joint performance, but a delegation should be written, specific, and paired with clear reporting so neither trustee later claims the other acted without authority.
Conflict-of-interest risk in property transactions: Sales to family members, related entities, or arrangements that benefit one trustee can trigger fiduciary-duty problems. A safer route is a documented market process (neutral broker, independent pricing support, clear approval steps) or court approval when the optics are difficult.
Do not confuse trust real estate with estate real estate: A “full estate administration” may be happening at the same time, but trust-owned properties are typically administered under the trust. Mixing authority (personal representative vs. trustee) can create title and closing problems.
Partition is not the usual tool for trust property: Partition statutes generally address co-owners (cotenants). Trust property is held in the trustee’s name for beneficiaries, so the more direct remedy is usually a trust proceeding for instructions or trustee changes, not a partition action.

For more on court options when a fiduciary relationship breaks down, see asking the court to replace a trustee and removing a trustee or estate administrator for mishandling assets.

Conclusion

In North Carolina, selling or dividing multiple trust-owned properties can become impossible if two co-trustees must act unanimously and cannot agree. The usual solutions are (1) follow any decision-making or delegation language in the trust, or (2) file a trust proceeding in Superior Court to get instructions or to change trustees so the trust can complete the real estate transactions. The most practical next step is to file a petition for instructions (and related trustee relief if needed) in the proper North Carolina venue as soon as the deadlock prevents listing, contracting, or closing.

Talk to a Probate Attorney

If co-trustee conflict is blocking the sale or division of trust-owned real estate, our firm has experienced attorneys who can help clarify authority under the trust, set a workable sale process, and pursue court guidance 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.