Jan72026
Guardianship Q&A Series

What counts as power of attorney abuse or misuse of a parent’s money when I’m a co-agent too? – North Carolina

Short Answer

In North Carolina, power of attorney (POA) “abuse” usually means an agent uses a parent’s money for the agent’s own benefit (or someone else’s benefit) instead of for the parent, or acts outside the authority granted in the POA. Common red flags include self-dealing transfers, unexplained cash withdrawals, and “gifts” that are not clearly authorized by the POA or consistent with the parent’s past pattern. Being a co-agent does not automatically make the other co-agent’s conduct proper, and it also does not automatically make the co-agent who did nothing liable—but co-agents should act promptly once misuse is suspected.

Understanding the Problem

When two adult children are named as co-agents under a North Carolina power of attorney for an ill parent, the key question is whether one co-agent’s withdrawals, transfers, or spending counts as improper use of the parent’s money under the authority and duties created by the POA. The decision point is whether the transactions were for the parent’s benefit and within the POA’s scope, or whether they look like personal benefit, hidden gifts, or other conduct that violates an agent’s role.

Apply the Law

In North Carolina, a POA authorizes an “agent” (sometimes called an attorney-in-fact) to act for the “principal” (the parent). Even when a POA gives broad financial powers, the agent’s job is still to manage the parent’s money as a fiduciary—meaning the agent must act loyally and carefully for the parent, keep good records, and avoid conflicts of interest. When there are co-agents, the POA document often controls whether each co-agent can act alone or whether they must act together, and that detail can change what “misuse” looks like and what steps are available to stop it.

Key Requirements

  • Authority under the POA: The transaction must be something the POA actually allows (for example, paying bills, managing accounts, or selling property). If the POA requires co-agents to act jointly, one co-agent acting alone can be a major problem even if the spending seems “reasonable.”
  • Benefit to the parent (not the agent): Spending should match the parent’s needs—care, housing, medical costs, taxes, ordinary living expenses, and legitimate debts. Transfers that primarily benefit the agent (or the agent’s household) are common indicators of misuse.
  • Good records and transparency: Proper POA administration usually includes keeping receipts, bank statements, and a simple ledger showing what was paid and why. Missing documentation, vague explanations, or refusal to share records often signals a deeper issue.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, two siblings are co-agents for an ill parent, and one sibling is suspected of taking money from the parent’s accounts. The first step is confirming what the POA requires (joint action vs. independent action) and what powers it grants around gifts, transfers, and account access. Next is matching the questioned transactions to a parent-benefit purpose and verifying documentation; unexplained transfers to the sibling, cash withdrawals without receipts, or payments that look like the sibling’s personal expenses are common patterns that can support a misuse concern.

Process & Timing

  1. Who acts first: The concerned co-agent (or another interested family member). Where: Start outside court by gathering documents from financial institutions and reviewing the POA’s co-agent language. What: A POA review plus a transaction-by-transaction timeline (bank statements, canceled checks, online transfer history, and receipts). When: As soon as suspicious activity is noticed, because delay can make tracing funds harder.
  2. Escalation if concerns remain: If the parent still has capacity, the parent may revoke the POA and sign a new one, and may also demand records. If capacity is questionable or conflict is high, the matter often shifts to the Clerk of Superior Court through a guardianship-related process to protect the parent and create enforceable oversight.
  3. Protective steps if money is at risk: Depending on the facts, options can include notifying the financial institution’s fraud department, requesting account safeguards, and making a report to local law enforcement or (for a disabled adult) the county department of social services. If criminal exploitation is suspected, law enforcement involvement may be appropriate under North Carolina’s exploitation statutes.

Exceptions & Pitfalls

  • The parent may have authorized it: Some transfers that look suspicious are actually permitted if the parent had capacity and clearly approved them, or if the POA expressly authorizes gifting and the transfer fits the parent’s established pattern.
  • Joint accounts and beneficiary designations: A sibling may access funds as a joint owner or payable-on-death beneficiary rather than as POA agent. That does not automatically make the conduct proper, but it changes the legal theory and the records needed to prove misuse.
  • Co-agent confusion: Many families assume “co-agent” means both must sign everything. Some POAs allow each co-agent to act independently. Misreading that clause can lead to the wrong strategy and unnecessary conflict.
  • Record gaps: Cash withdrawals, peer-to-peer transfers, and purchases on shared cards are harder to trace. A clean, dated transaction list built early often matters more than arguments about intent.
  • Overreacting without proof: Accusing a co-agent of theft without documentation can escalate family conflict and complicate court involvement. A focused review of the POA language and bank records usually provides the clearest next step.

Conclusion

In North Carolina, POA abuse generally means an agent uses a parent’s money outside the POA’s authority or for someone other than the parent’s benefit, often shown by self-dealing transfers, unexplained withdrawals, or missing records. With co-agents, the POA’s “joint vs. independent” language is a key threshold issue. The most practical next step is to have an attorney review the POA and build a transaction timeline from bank records promptly after suspicious activity is identified.

Talk to a Guardianship Attorney

If a co-agent under a power of attorney may be misusing a parent’s money, a careful review of the POA language and the financial records can clarify what is improper and what options exist to protect the parent. Our firm has experienced attorneys who can help explain the process 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.

Category: Guardianship Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.