Probate Q&A Series

Can I recover funds that were moved out of my account by my sibling serving as power of attorney? – North Carolina

Short Answer

Yes. In North Carolina, a court can order a power of attorney (the “agent”) to account for every transaction, freeze further transfers, remove the agent, and make the principal whole, including restoring money and imposing a constructive trust on misused assets. If the transfers harmed you directly (for example, money left your account), you can also pursue a civil action for recovery and related claims. Act quickly to preserve records and stop further dissipation.

Understanding the Problem

In North Carolina, can you, as a disabled adult, recover money a sibling moved from your dedicated account while serving as another parent’s power of attorney? The single decision is whether to use the power-of-attorney remedies and civil claims to (1) force an accounting, (2) stop ongoing transfers, and (3) recover what was taken from your account.

Apply the Law

North Carolina’s power-of-attorney law requires agents to act in the principal’s best interest, keep accurate records, and answer to the court. The Clerk of Superior Court can compel an accounting, determine or limit the agent’s authority, and order emergency protections. Claims for monetary damages (like breach of fiduciary duty or conversion) are filed in Superior Court. If the principal later dies, the personal representative of the estate can pursue recovery of estate assets. Time limits can be short and may run from discovery or the end of the agency, depending on the claim.

Key Requirements

  • Standing to act: The principal, a guardian, the estate’s personal representative, or another interested person may petition the Clerk to review the agent’s conduct and compel an accounting.
  • Forum choice: Use the Clerk of Superior Court for an accounting, to limit/suspend/remove the agent, or to seek injunctive relief; use Superior Court for money damages and constructive remedies.
  • Proof of breach: Show the agent acted for personal benefit or outside the power of attorney, failed to keep records, or otherwise violated fiduciary duties.
  • Tracing and recovery: Identify the path of funds; courts can void acts, freeze accounts, impose constructive trusts, and order restoration.
  • If funds were yours: You may sue directly (e.g., conversion/constructive fraud) and also seek court orders to stop the agent’s further misuse tied to the parent’s power of attorney.
  • Estate path after death: A personal representative can examine those holding estate property and sue to recover assets for the estate.

What the Statutes Say

Analysis

Apply the Rule to the Facts: You likely qualify as an “interested person” to request an accounting of your sibling’s actions as agent and to seek limits or removal if they self-dealt. If the transfers came from your account, you may also bring a separate civil action to recover those funds and ask for a constructive trust on anything bought with them. If your living parent is being pressured to change a will, you can seek court safeguards now; if a new will is later probated, a will challenge must be filed within the applicable window after probate.

Process & Timing

  1. Who files: You (as an interested person) or a guardian/personal representative. Where: Clerk of Superior Court in the county where the principal (your living parent) resides, or where the agent resides, or where property is located. What: Verified petition under § 32C-1-116 with an Estate Proceeding Summons; request an accounting, suspension/limits, and an injunction; include requests to preserve records and freeze transfers. If a respondent has not appeared, include a Servicemembers Civil Relief Act declaration (AOC-G-250). When: File promptly; respondents generally have 20 days after Rule 4 service to respond.
  2. For money recovery, file a civil action in Superior Court (e.g., breach of fiduciary duty, conversion, constructive fraud, unjust enrichment). Consider early relief (temporary restraining order, preliminary injunction, or attachment) to prevent dissipation. Timing varies by county.
  3. If the principal dies, the personal representative can (a) open an estate, (b) file an estate proceeding to examine the agent and order delivery of estate property, and (c) sue in Superior Court under § 28A-15-12 to recover assets. If a new will appears, a will caveat must be filed within the statutory period after probate.

Exceptions & Pitfalls

  • If the agent’s power of attorney also expressly authorized gifts or self-dealing, the court will still scrutinize whether actions were in the principal’s best interest and properly documented.
  • If the money came from your account (not the parent’s), POA statutes may not apply to ownership; pursue direct civil claims and seek equitable remedies to trace and recover the funds.
  • Use the right forum: the Clerk for accountings and authority questions; Superior Court for damages. Mixing them can delay relief.
  • Serve respondents properly under Rule 4 and file required declarations; defective service can stall your case.
  • Do not wait: claims may be time-barred; some periods can be tolled while the agent still serves, but do not rely on tolling.
  • Joint accounts and beneficiary changes raise separate issues; gather signature cards, change forms, and statements early.

Conclusion

In North Carolina, you can force a power of attorney to account, stop further transfers, remove the agent, and recover misused money, including by tracing and imposing a constructive trust. File a verified petition under § 32C-1-116 with the Clerk of Superior Court to obtain an accounting and protective orders, and bring a separate Superior Court action for monetary recovery as needed. Take action now to preserve records and prevent further dissipation.

Talk to a Probate Attorney

If you’re dealing with a sibling using a power of attorney to move money and you need to recover funds or stop further transfers, 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.