Beneficiary Rights to a Full Trust Accounting in North Carolina

Quick Answer

In North Carolina, every current trust beneficiary has a statutory right to receive information reasonably related to the administration of the trust—including a complete accounting of all trust assets, their values, income, and expenses. N.C. Gen. Stat. § 36C-8-813 requires the trustee to provide annual written reports and to furnish additional information on reasonable request. If a trustee fails to comply, the beneficiary may compel an accounting through the clerk of superior court.

Detailed Answer

1. Statutory Duty to Inform and Report

Who qualifies? A “qualified beneficiary” is anyone entitled to current or future distributions or who would take if the trust terminated now (G.S. 36C-1-103(15)).

Core duties under G.S. 36C-8-813:

• Provide the trust instrument within 60 days of the beneficiary’s request.
• Annual accounting—a written report of trust property, market values, liabilities, income, disbursements, trustee compensation, and trust transactions.
• Reasonable additional information on written demand—e.g., copies of bank statements, appraisals, or tax returns.
• Notification within 60 days when a revocable trust becomes irrevocable or when the beneficiary first qualifies.

2. Contents of an Adequate Accounting

An accounting should look much like a business balance sheet:

• Inventory of each asset (real estate, brokerage accounts, tangible items).
• Fair-market value as of the start and end of the reporting period.
• Income received (rent, dividends, interest).
• Itemized expenses (taxes, maintenance, professional fees).
• Gains, losses, and changes in principal.
• Trustee commissions and professional fees.
• Ending cash balance and asset values.

3. When the Trustee Refuses

If informal requests fail, beneficiaries may:

1. Send a certified demand letter citing G.S. 36C-8-813 and giving 30 days to respond.
2. File a petition with the clerk of superior court under G.S. 36C-2-201 to compel the trustee to account and, if necessary, remove or surcharge the trustee.
3. Seek attorney’s fees if the court finds the trustee acted in bad faith (G.S. 1-539.34).

4. Hypothetical Example

Mary and John are equal beneficiaries of their late father’s revocable trust, now irrevocable. The trustee—Father’s business partner—emails short quarterly updates but never discloses asset values. After six months, Mary sends a written request for a full accounting. The trustee ignores the request. Mary and John file a petition with the Wake County clerk. The clerk orders the trustee to file a complete inventory within 30 days. When the accounting shows unexplained withdrawals, the clerk schedules a hearing on possible surcharge. Under North Carolina law, Mary and John exercised their right to transparency, and the court enforced their statutory protections.

Helpful Hints for North Carolina Beneficiaries

• Ask in writing—email and certified mail create a paper trail.
• Set clear deadlines (30–60 days) and reference G.S. 36C-8-813.
• Request supporting documents, not just summaries.
• Review accountings with a probate lawyer and an accountant.
• File court petitions in the county where the trust is administered.
• Do not wait; North Carolina’s three-year statute of limitation can bar breach claims.

Take Action Today

A transparent accounting protects both the trustee and the beneficiary. If you are being kept in the dark, North Carolina law gives you powerful tools to shine a light. Our firm has seasoned attorneys who routinely compel and review trust accountings. Call us now at (919) 341-7055 for a confidential consultation.