Jan132026
Guardianship Q&A Series

What happens if my relative’s partner claims they have permission to use the money, but the family disagrees? – North Carolina

Short Answer

In North Carolina, a partner’s claim of “permission” does not automatically make the spending proper—what matters is the legal authority (such as a valid financial power of attorney, joint account rights, or a court-appointed guardianship) and whether the money is being used for the hospitalized relative’s benefit. When the relative cannot reason clearly and the family believes funds are being misused, the dispute is typically handled through the Clerk of Superior Court in a guardianship case, including possible emergency court action to protect the estate. If the facts suggest deception or intimidation, the situation may also fit North Carolina’s financial exploitation laws.

Understanding the Problem

In a North Carolina guardianship situation, the core question is whether a hospitalized relative who currently cannot reason clearly gave the partner lawful permission to use the relative’s money, and what happens when the family disputes that claim. The decision point is usually whether the partner has a recognized legal role (for example, a court-appointed fiduciary or a valid authority over the account) that allows spending, or whether the only “permission” is informal and now disputed. When the relative lacks capacity, the Clerk of Superior Court is often the forum that decides who can manage money and what spending is allowed.

Apply the Law

Under North Carolina law, the Clerk of Superior Court has original jurisdiction over adult guardianship cases and related disputes about managing an incompetent adult’s person and/or estate. If there is a real risk that the relative’s funds will be used in a way that does not benefit the relative, the court can step in quickly through an interim guardianship or other protective orders. Separately, if someone obtains or uses an older or disabled adult’s funds through deception or intimidation to benefit someone other than the adult, that conduct may fall under North Carolina’s criminal financial exploitation statute.

Key Requirements

  • Legal authority: The partner must have a valid legal basis to access and spend funds (for example, account ownership/authorization, a valid power of attorney, or court authority). A verbal “they told me I could” is often not enough when capacity is impaired and the family disputes it.
  • Benefit to the relative: Even when someone has authority, spending should generally be tied to the relative’s care, safety, and needs—not primarily to benefit the partner or others.
  • Court oversight when capacity is impaired: If the relative is (or may be) incompetent and there is a risk to the estate, the Clerk of Superior Court can appoint an interim guardian with limited powers to protect funds while the full case proceeds.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the relative is hospitalized and reportedly unable to reason clearly, and the family wants the relative’s funds used for the relative’s care and benefit. If the partner cannot show clear legal authority (such as being the authorized agent under a valid financial power of attorney or having lawful account rights), the family’s disagreement is a warning sign that court involvement may be needed to prevent further disputed spending. If there is a foreseeable risk of harm to the relative’s estate, North Carolina law allows a fast-track request for an interim guardian so a neutral, court-supervised fiduciary can step in while the full incompetency/guardianship case is decided.

Process & Timing

  1. Who files: A family member or other interested person. Where: The Clerk of Superior Court in the county where the relative resides or is present for the guardianship proceeding. What: A petition to adjudicate incompetence and appoint a guardian, and (if urgent) a verified motion asking for an interim guardian with limited authority over finances. When: If there is an imminent or foreseeable risk to the estate, the interim-guardian motion is typically filed immediately with the petition; the statute requires the interim hearing to be held as soon as possible and no later than 15 days after the motion is served on the respondent.
  2. Temporary protection: If the clerk finds reasonable cause to believe incompetency and a risk of harm to the estate, the clerk can appoint an interim guardian and define specific, limited powers (for example, securing accounts, paying care expenses, stopping nonessential withdrawals). The interim authority is time-limited and ends when the case reaches the next stage or the clerk’s order expires.
  3. Longer-term resolution: The case proceeds to the incompetency adjudication and, if appropriate, appointment of a guardian of the estate (or general guardian). Once appointed, the guardian acts under court supervision and can be required to account for funds and follow court rules for major transactions.

Exceptions & Pitfalls

  • “Permission” may be real, but still disputed: If the partner has legal authority (for example, documented authority over finances), the dispute often shifts to whether the spending was consistent with the relative’s best interests and the scope of that authority.
  • Health care authority is not financial authority: A health care power of attorney generally covers medical decisions, not control over money. Families sometimes assume a medical decision-maker can access funds; that is not automatically true.
  • Delay can increase losses: Waiting to “sort it out within the family” can allow continued withdrawals. When there is a foreseeable risk to the estate, an interim guardianship motion is often the tool used to stabilize the situation quickly.
  • Overreaching can backfire: Trying to freeze accounts or remove someone without a court order can create practical problems and conflict. A court-supervised process through the Clerk of Superior Court is usually the cleanest way to establish who has authority.
  • Potential exploitation issues: If facts suggest deception, intimidation, or spending that benefits someone other than the relative, law enforcement and Adult Protective Services may become involved depending on the circumstances and the relative’s status as an older or disabled adult.

For more on urgent options in a hospital setting, see what can be done quickly to stop someone from taking more money and getting a court order to temporarily stop financial decisions during an investigation.

Conclusion

In North Carolina, a partner’s claim of “permission” to use a hospitalized relative’s money does not control the outcome if the relative cannot reason clearly and the family disputes the spending. The key issues are whether the partner has lawful authority and whether the money is being used for the relative’s benefit. When there is a foreseeable risk to the relative’s estate, the next step is to file a guardianship petition and, if urgent, a verified motion for an interim guardian with the Clerk of Superior Court, so the court can protect the funds while the case is pending.

Talk to a Guardianship Attorney

If a hospitalized relative cannot make clear decisions and a partner is using money based on claimed “permission,” a guardianship case may be the fastest way to clarify authority and protect funds for the relative’s care. Our firm has experienced attorneys who can help explain options, likely timelines, and what to file with the Clerk of Superior Court. 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.