Short Answer

In North Carolina, include two core powers of attorney and a HIPAA release: (1) a durable financial power of attorney so a trusted person can manage money, taxes, and legal matters, and (2) a health care power of attorney for medical decisions if you cannot decide. Add a separate HIPAA authorization to let your agents (and any backups) access your medical information. Tailor the financial power to allow trust funding, limited gifting, and business actions that fit your plan.

Understanding the Problem

You are a single North Carolina resident who wants to create a revocable trust to leave assets to your daughter and reduce estate taxes. You have no prior documents and an unused LLC. The question is: what powers of attorney and HIPAA authorizations should you include so your daughter (or another chosen person) can act for finances and health care, and providers can share medical information when needed?

Apply the Law

North Carolina’s financial power of attorney law generally makes a power “durable” (it continues during incapacity) unless the document says otherwise. Certain high‑risk powers—like making gifts or changing beneficiary designations—must be granted clearly and specifically. You may ask the Clerk of Superior Court to compel an agent’s accounting or limit an agent’s powers, while lawsuits for money damages go to Superior Court. A health care power of attorney requires specific signing formalities and works alongside a separate HIPAA release for medical privacy.

Key Requirements

• Durable Financial Power of Attorney: Signed before a notary; effective immediately or upon a stated trigger; name a trusted agent and at least one backup; tailor “hot powers” (gifting, trust funding, beneficiary changes, business/LLC actions).
• Health Care Power of Attorney: Signed with the required formalities (two qualified witnesses and a notary); names a health care agent and backups; coordinates with your living will if you have one.
• HIPAA Authorization: A separate, broad release naming your decision-makers (and alternates) to access records now and if you are incapacitated; deliver copies to doctors and hospitals.
• Trust & Tax Coordination: Give your financial agent express authority to fund your revocable trust, make limited annual‑exclusion gifts, and handle tax filings and elections consistent with your plan.
• Oversight & Accountability: Keep the agent’s duty to keep records; allow a third party (e.g., your backup agent) to request accountings.

What the Statutes Say

• North Carolina Gen. Stat. § 32C-1-104 (Durability by default) – A power of attorney is durable unless it says it ends at incapacity.
• North Carolina Gen. Stat. § 32C-2-217 (Gifts) – Agent gifting authority must be expressly granted and should be carefully tailored.
• North Carolina Gen. Stat. § 32C-1-116 (Judicial relief) – Clerk of Superior Court can compel an accounting, limit/terminate an agent’s powers; damages claims go to Superior Court.
• North Carolina Gen. Stat. § 32A-22 (Guardianship and health care agents) – A court‑appointed guardian of the person may ask the court to suspend a health care agent for good cause.

Analysis

Apply the Rule to the Facts: Because you want your daughter to manage finances and health care if needed, sign a durable financial power naming her as agent now, with tailored powers to fund your revocable trust, manage (or wind up) the LLC, and make limited annual‑exclusion gifts consistent with your plan. Sign a health care power naming her as health care agent and a separate HIPAA release so providers can speak with her immediately if needed.

Process & Timing

1. Who files: You do not file these with a court. Where: Execute the financial POA before a North Carolina notary; execute the health care POA with two qualified witnesses and a notary; sign a separate HIPAA release. What: Attorney‑drafted North Carolina‑compliant forms that include any needed “hot powers” and trust/LLC authority. When: Before any loss of capacity; record the financial POA with the Register of Deeds if your agent may sign real estate documents.
2. Provide copies: Give the financial POA to your agent and advisors; provide the health care POA and HIPAA release to your doctors and preferred hospital; carry a wallet card noting your agents.
3. Oversight: Keep the originals safe; require your agent to keep records; if concerns arise, the Clerk of Superior Court can compel an accounting or limit the agent’s powers under the judicial‑relief statute.

Exceptions & Pitfalls

• Not granting needed “hot powers” (gifts, trust funding, beneficiary changes) can block tax or trust strategies; overbroad powers can invite abuse—limit amounts, state purposes, and require records.
• Springing powers (effective on incapacity) can cause delays; many banks prefer immediate powers—choose based on your risk tolerance and agent choice.
• Execution missteps invalidate documents: financial POA must be notarized; health care POA needs two qualified witnesses plus a notary; use North Carolina‑compliant forms.
• HIPAA gaps: without a separate release, providers may limit disclosures; name agents and backups and make the release effective immediately.
• Guardianship conflicts: if a court later appoints a guardian, the court can suspend a health care agent for good cause; plan backups and keep documents consistent.

Talk to a Estate Planning Attorney

If you’re setting up a trust and want powers of attorney and HIPAA releases that work when you need them, our firm can help you tailor the documents to your goals and timelines. Call us today to discuss your options.

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.