Legal Question in Wills and Trusts in North Carolina

Is it a mandatory NC requirement that a beneficairy of a trust must sign a "Trustee Release of Liability" Agreement before he/she can receive their disbursement from a trust? I thought Probate went over the trustee's final accounting and clears it with them. It is then the trustee must distribute from the trust if there are no objections. The trustee's lawyer is saying I must sign this "release" to get my distribution or appear in court to object. Isn't that some form of blackmail? Why would I HAVE to sign my legal rights away if I want to receive my distribution, if I agree on the final accounting? Does Probate go over every check, invoice, receipt or just look at account balances? Thanks from Wake County


Asked on 9/16/11, 10:37 am

2 Answers from Attorneys

Jeff Rosner Rosner Law Firm P.A.

The attorney is protecting himself from being sued down the road. The Clerk may or may not go over things in some detail but you are the one that should go over the accounting and if you are satisfied, then sign the release and get the final distribution. If you have questions on the disbursements, then ask for an explanation.

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Answered on 9/16/11, 10:42 am

I don't understand your post. A probate estate and a trust are two different things.

An executor of an estate must get a release - he/she has to have a receipt of the disbursements made because the clerk does go over this to make sure that all is in order.

Why a trustee has to do this is different. I would need to see the trust language. A trust is private - there is no court oversight and nothing gets filed. In such case, the attorney for the trustee naturally would want to protect his/her client (the trustee). Personal liability can be imposed on trustees of trusts just as they can on executors of probate estates if the trustee or executor makes an improper distribution.

And this is not blackmail. Whatever are you thinking of? What rights are you allegedly signing away? As long as the disbursement is made in good faith (no screw ups) I can't see what harm will be done by signing if all looks like it is in order. I would go over any final accounting before signing. Unless you have some inkling that there was more assets in the estate that somehow disappeared into the trustee's pocket, then there is no basis to object.

However, since you are obviously concerned, then you should hire your own estate and trust attorney. Such attorney will represent you, not the trust Have him or her review the final accounting in detail as well as the release and advise you as to whether you should sign.

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Answered on 9/19/11, 1:30 pm


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