Short Answer

Yes. In North Carolina guardianships, the Clerk of Superior Court will not issue Letters until you file the bond and take the oath, but you can often lower the bond (and the premium) by asking the clerk to place liquid funds in a court-restricted account that cannot be withdrawn without a court order. Bond premiums are typically annual and may be paid from the ward’s assets after you are appointed. Many attorneys will structure retainers so that some fees are paid later from the ward’s funds with the clerk’s approval.

Understanding the Problem

You’re in North Carolina, you were appointed guardian at the hearing, but the clerk has not issued Letters of Guardianship yet. You must post a surety bond and take the oath based on your parent’s assets. You need those Letters to manage bills and apply for Medicaid. The question is: can you reduce or spread out the bond premium and limit the upfront lawyer retainer so you can qualify and get Letters promptly?

Apply the Law

Under North Carolina law, a guardian who will manage money or property must post a bond and take the oath before the clerk issues Letters. The clerk sets the bond to protect the ward’s assets the guardian will control. Clerks routinely allow “blocked” or court-restricted accounts for cash and similar assets; money placed under a written bank agreement that prohibits withdrawals without a court order is excluded from, or used to reduce, the bond amount. Premiums for a corporate surety bond are an allowable expense of the ward’s estate and generally renew annually. The main forum is the Clerk of Superior Court in the county where the case is pending.

Key Requirements

• Bond before Letters: You must file the bond and take the oath before the clerk will issue Letters of Guardianship.
• Amount tied to assets you control: The clerk sizes the bond to cover personal property and liquid assets the guardian will handle; real estate usually affects the bond only if sales or proceeds will be received.
• Use restricted accounts to lower bond: Cash placed in a court-restricted bank account (no withdrawals without a court order) can be excluded from, or used to reduce, the bond requirement.
• Premium paid from the ward’s assets: After appointment, the annual bond premium may be paid from the ward’s funds, subject to clerk oversight.
• Financing is private, not court-ordered: Monthly or installment premium options come from the surety or a premium finance company, not the court.
• Attorney’s fees may be reimbursed: Reasonable guardian legal fees are typically payable from the ward’s estate with clerk approval, allowing a smaller upfront retainer.

What the Statutes Say

• North Carolina Gen. Stat. Chapter 35A (Guardianship) – Governs guardianship appointments, bonds, and clerk supervision.
• North Carolina Gen. Stat. § 7A-111 (Clerk’s administration of small funds) – Allows the clerk to hold and manage certain small sums for incapacitated adults without a full guardianship bond.
• North Carolina Gen. Stat. § 7A-112 (Investment of funds by the clerk) – Addresses how funds held by the clerk are invested.

Analysis

Apply the Rule to the Facts: Because you will manage your parent’s assets, the clerk requires a bond and oath before issuing Letters. If a substantial portion of your parent’s assets is cash or similar, ask the clerk to order a court-restricted account; that reduces the bond and lowers the premium you must pay now. Once appointed, you can pay the annual bond premium and approved attorney’s fees from your parent’s funds, which can reduce your upfront retainer burden.

Process & Timing

1. Who files: The newly appointed guardian or counsel. Where: Clerk of Superior Court in the North Carolina county where the guardianship case is pending. What: File the guardian’s bond, take the oath, and request issuance of Letters of Guardianship; if seeking a reduced bond, file a motion for a court-restricted account and present a bank “no withdrawal without court order” receipt/agreement. When: Immediately after the appointment order so Letters can issue without delay.
2. If pursuing a restricted account, coordinate with a bank to prepare the written agreement; present it to the clerk for approval. This step can often be completed within days, but timing varies by county and bank responsiveness.
3. After the clerk approves the bond and you take the oath, the clerk issues Letters of Guardianship. Then arrange payment of the bond premium and apply to pay initial attorney’s fees from the ward’s funds, as appropriate.

Exceptions & Pitfalls

• Restricted accounts require precise bank paperwork; without a signed “no withdrawal without court order” agreement, the clerk cannot exclude those funds from the bond.
• Some clerks seldom accept personal sureties or real estate as bond security; plan on a corporate surety unless directed otherwise.
• Do not pay attorney’s fees directly from the ward’s funds without clerk approval; seek authorization or reimbursement through the guardianship file.
• Surety premium financing is a private arrangement; the court cannot order a bonding company to accept installments.

Talk to a Guardianship Attorney

If you’re dealing with guardianship bond costs and need Letters to act, 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.