Short Answer

In North Carolina, you stop suspected trustee fraud by getting the court involved fast: demand a formal accounting, seek interim court orders to freeze or safeguard assets, and ask to suspend or remove the trustee. If your parent’s trust is still revocable and your parent cannot act, you typically proceed through the Clerk of Superior Court to (a) oversee or replace the agent under power of attorney and/or (b) appoint a guardian so someone with legal authority can enforce the trust. Courts can compel records, order restitution, and install a temporary fiduciary to protect assets.

Understanding the Problem

You’re in North Carolina. Your sibling is both agent under a financial/healthcare power of attorney and trustee. You suspect misuse of trust and parent accounts, and caregivers are blocking your visits. You’ve sent a written demand for records and got no response. The narrow question is: how can you, as the concerned child, prove wrongdoing and stop it now?

Apply the Law

North Carolina’s trust code requires trustees to act in good faith, be loyal to beneficiaries, manage prudently, and keep qualified beneficiaries reasonably informed. Courts can compel accountings, suspend or remove a trustee, appoint a special fiduciary, and order restitution. Trust proceedings generally start with the Clerk of Superior Court; monetary damages and some injunctions may require Superior Court. If the trust is revocable and the settlor (your parent) is alive, the trustee’s core duties usually run to the settlor, so a court-appointed representative (guardian) or a court-supervised review of the agent under the power of attorney may be needed to obtain standing and act.

Key Requirements

• Standing and forum: File as a qualified beneficiary or through your parent’s court‑appointed representative if the trust is revocable; begin trust proceedings with the Clerk of Superior Court where the trust is administered or a beneficiary resides.
• Show a fiduciary duty and breach: Identify breaches such as self‑dealing, imprudent spending, failure to safeguard assets, or refusal to provide information/accountings.
• Evidence of mismanagement: Bank/ brokerage statements, large or related‑party transfers, missing records, unusual cash withdrawals, or caregiver payments outside ordinary care.
• Relief to protect assets: Seek an order to account, suspension/removal, appointment of a special fiduciary, and (if needed) a temporary restraining order to freeze assets.
• Timing thresholds: Move promptly for interim relief; North Carolina provides an outside five‑year limit for breach‑of‑trust claims running from specific end events (e.g., trustee’s removal or trust termination).

What the Statutes Say

• N.C. Gen. Stat. § 36C-8-813 (Duty to inform and report) – Trustee must keep qualified beneficiaries reasonably informed and provide information on request.
• N.C. Gen. Stat. § 36C-7-706 (Removal of trustee) – Court may remove for serious breach, failure to administer effectively, or other grounds.
• N.C. Gen. Stat. § 36C-10-1001 (Remedies for breach of trust) – Court can compel an accounting, enjoin conduct, suspend/remove trustee, appoint a special fiduciary, and order restitution.
• N.C. Gen. Stat. § 36C-2-203 (Trust proceedings; jurisdiction) – Clerk of Superior Court handles internal trust affairs; damages claims proceed in Superior Court.

Analysis

Apply the Rule to the Facts: You demanded records and got silence. That supports a request to the Clerk to compel an accounting under the trustee’s duty to inform and report. If the trust is still revocable while your parent is alive, the trustee’s primary duty runs to your parent; because your sibling is also the agent under the power of attorney, you can petition the Clerk to review the agent’s conduct and, if necessary, seek guardianship so a neutral fiduciary can act for your parent and enforce the trust. Given blocked access and suspected dissipation, ask for interim relief to safeguard assets and, if warranted, to suspend the trustee pending a full hearing.

Process & Timing

1. Who files: A beneficiary or interested party. Where: Clerk of Superior Court (trust’s principal place of administration or where a beneficiary resides in North Carolina). What: Verified petition to compel accounting and for interim protective relief (including suspension, special fiduciary, or bond); if assets are at immediate risk, seek a temporary restraining order under Rule 65. If your parent cannot act and the trust is revocable, file a petition for incompetency/guardianship and/or for court review of the agent’s conduct. When: File immediately; interim relief can be requested on an expedited basis.
2. After filing, serve all necessary parties. The Clerk can order an accounting, set deadlines for producing records, and, if needed, suspend the trustee or appoint a special fiduciary while the case proceeds. County practice and scheduling can vary.
3. If you seek damages or broader injunctive relief, file a separate civil action in Superior Court and ask to consolidate with the clerk’s trust proceeding. Final outcomes can include removal of the trustee, restitution to the trust, denial of trustee fees, and appointment of a successor trustee.

Exceptions & Pitfalls

• Revocable trust while settlor is alive: The trustee’s duty typically runs to your parent, not remainder beneficiaries. If your parent cannot act, a court‑appointed guardian or a court‑supervised review of the agent under the power of attorney may be required before you can enforce rights.
• “No accounting” clauses: Even if the trust waives formal accountings, courts can still order trustees to provide information necessary for beneficiaries to protect their interests and to enforce the duty of good faith.
• Jurisdiction split: The Clerk can handle removal, accountings, and many internal trust issues, but monetary damages for breach must be sought in Superior Court; consider filing both and seeking consolidation.
• Isolation concerns: If caregivers block access and you fear abuse or exploitation, contact county Adult Protective Services and seek interim guardianship so a neutral fiduciary can set safe visitation and oversee care decisions.
• Evidence gaps: Preserve statements, emails, caregiver invoices, and any written directions from the trustee. Ask the court to order banks to produce records if the trustee won’t.
• Exculpatory language: Clauses that shield a trustee do not protect bad‑faith or reckless conduct. Still, be prepared to prove specific breaches and harm to the trust.

Talk to a Guardianship Attorney

If you’re dealing with suspected trustee misuse and a vulnerable parent, our firm has experienced attorneys who can help you understand your options and timelines. 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.