Dec262025
Estate Planning Q&A Series

What does it mean to be someone’s durable power of attorney, and what decisions am I allowed to make? – North Carolina

Short Answer

In North Carolina, being someone’s “durable power of attorney” usually means serving as an agent under a durable financial power of attorney (a document that stays effective even if the person later becomes incapacitated). The decisions allowed depend on what the written power of attorney grants, but they typically cover financial and property matters—paying bills, managing accounts, and handling real estate—while medical decisions are usually handled under a separate health care power of attorney. An agent must follow the principal’s instructions, act in good faith, and stay within the authority the document gives.

Understanding the Problem

In North Carolina, what does it mean to serve as an “agent” under a durable power of attorney, and what decisions can be made on the principal’s behalf? The issue usually comes up when a family member or trusted person is asked to step in and handle money, property, or paperwork for someone else, either immediately or after a capacity change. The key decision point is the scope of authority in the signed power of attorney and whether it is intended to continue during incapacity.

Apply the Law

North Carolina generally recognizes two common types of powers of attorney that get confused: (1) a durable financial power of attorney that authorizes an agent to handle financial and property matters, and (2) a health care power of attorney that authorizes a health care agent to make medical decisions when the principal lacks capacity. A durable financial power of attorney is designed to remain effective even if the principal later becomes incapacitated, but the agent’s decision-making power still comes from the document’s specific grants of authority and any limits written into it.

Key Requirements

  • Document controls the scope: The agent may only make the kinds of decisions the written power of attorney authorizes (and must follow any written limits or instructions).
  • Role-based duty to act properly: An agent must act in good faith for the principal’s benefit and avoid using the role as a blank check for personal benefit.
  • Separate track for health care decisions: Medical decisions (including end-of-life and mental health treatment decisions) typically require a health care power of attorney, not just a general/durable financial power of attorney.

What the Statutes Say

Analysis

Apply the Rule to the Facts: No specific facts are provided, so two common, neutral examples help show how the scope works. If the durable power of attorney grants broad financial authority, the agent may be able to manage bank accounts, pay bills, and handle contracts, but only to the extent the document authorizes those acts. If the goal is to make medical decisions (consent to treatment, choose facilities, or end-of-life choices), that authority generally comes from a health care power of attorney and usually turns on an incapacity determination under that statute.

Process & Timing

  1. Who acts: The agent named in the durable power of attorney. Where: Typically with the relevant third party (bank, retirement plan administrator, closing attorney, title company) and sometimes the Register of Deeds for real estate. What: A copy of the signed power of attorney (and, for real estate transfers, proof of recording information when required). When: For real estate transfers, the power of attorney (or certified copy) should be recorded before the deed or other transfer instrument is executed by the agent.
  2. Confirm authority before acting: Review the document for limits, effective date language (immediate vs. springing), and any special authorizations (for example, authority to make gifts or change beneficiary designations, if included).
  3. Keep clean records: Maintain a simple paper trail of decisions and transactions (what was done, why it was done, and where the funds went). Clear records reduce disputes and help when banks, family members, or other fiduciaries ask questions.

Exceptions & Pitfalls

  • Assuming “durable POA” includes medical authority: In North Carolina, health care decisions are typically governed by a separate health care power of attorney, and that statute limits the health care agent’s authority to health care matters (not general finances).
  • Going beyond what the document says: Even well-intended actions can create problems if the document does not authorize them (common examples include gifting, changing beneficiary designations, or moving title to property).
  • Real estate recording mistakes: Real property transfers often fail or get delayed when the power of attorney is not recorded, recorded in the wrong county, or missing recording references in the deed package.
  • Mixing money: Using the principal’s funds for the agent’s personal expenses without clear authorization can trigger disputes and potential liability, even if repayment was intended.

Conclusion

In North Carolina, serving as someone’s durable power of attorney means acting as an agent under a written power of attorney that is intended to remain effective during the principal’s incapacity, with authority limited to what the document grants. Financial and property decisions commonly fall under a durable financial power of attorney, while medical decisions usually require a health care power of attorney and may depend on a written incapacity determination. A practical next step is to review the signed document and, if real estate will be transferred, record it with the county Register of Deeds before signing transfer documents.

Talk to a Estate Planning Attorney

If you’re dealing with questions about what a durable power of attorney allows and how to use it correctly, our firm has experienced attorneys who can help clarify the document’s scope and key 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.

Category: Estate Planning Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.