Jan242026
Guardianship Q&A Series

How do I make sure my relative’s inheritance is used for their care and not for someone else’s benefit? – North Carolina

Short Answer

In North Carolina, the most reliable way to ensure an incapacitated adult’s inheritance is used for their care is to have the money controlled by a fiduciary who must answer to the Clerk of Superior Court—typically a guardian of the estate (or a general guardian). That structure requires an inventory, ongoing accountings, and court oversight of how funds are handled. If the inheritance is still being planned (before it is received), a properly drafted trust can also limit access and require that spending be for the beneficiary’s needs.

Understanding the Problem

In North Carolina guardianship, the key question is: when an adult relative in a care facility receives (or is about to receive) an inheritance, what legal setup makes sure the money is controlled and spent for that person’s care rather than being diverted by a family member, caregiver, or other third party? The decision point usually turns on who has legal authority over the inheritance—such as a guardian of the estate, a trustee, or someone informally listed on an account—and what reporting and oversight exists through the Clerk of Superior Court.

Apply the Law

Under North Carolina law, a guardian of the estate (or a general guardian) has a duty to take possession of the ward’s property for the ward’s use, manage it prudently, and comply with court orders and required accountings. The Clerk of Superior Court supervises this process through required filings like an early inventory and ongoing annual accounts. That court-supervised paper trail is one of the main tools that helps keep inherited funds focused on the ward’s needs.

Key Requirements

  • Proper fiduciary control of the inheritance: The inheritance should be titled and controlled in a way that matches the legal authority (for example, in the name of the ward with the guardian of the estate acting in that role, or in a trust with a trustee), rather than being placed into a joint account or controlled informally by someone else.
  • Timely inventory and ongoing accounting: The guardian must document what came in, where it is held, and how it is spent, using the court-required inventory and annual account process.
  • Spending tied to the ward’s benefit and needs: Disbursements should be supportable as expenses for the ward’s care, living arrangements, and other legitimate needs, with records kept to back up each payment.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts indicate a guardian has been appointed for an adult relative living in a care facility and needing decisions about living arrangements and personal needs. If the guardianship includes a guardian of the estate (or a general guardian), North Carolina’s inventory and annual accounting rules create a structured way to receive an inheritance, place it under fiduciary control, and document that spending is for the ward’s care. If the current appointment is only a guardian of the person, then inheritance protection is weaker unless a guardian of the estate is appointed (or another court-supervised arrangement is used), because the authority to control and account for money generally sits with the estate guardian.

Process & Timing

  1. Who files: The appointed guardian (or an interested person seeking changes). Where: The Estates/Guardianship division in the office of the Clerk of Superior Court in the county where the guardianship is administered. What: Filings that reflect the inheritance as a ward asset (inventory/updated inventory and supporting documentation) and requests for court direction if needed. When: The guardian must file an inventory within three months of appointment unless the clerk extends the deadline (up to six months for good cause). See N.C. Gen. Stat. § 35A-1261.
  2. Ongoing oversight: The guardian must file annual accounts while any estate assets remain under the guardian’s control, showing receipts (like an inheritance distribution) and disbursements (like facility bills), with proof of payments. See N.C. Gen. Stat. § 35A-1264.
  3. Enforcement if something goes wrong: If a guardian fails to account or the accounting is unsatisfactory, the clerk can order a proper accounting and can remove the guardian or use contempt powers in appropriate cases. See N.C. Gen. Stat. § 35A-1265.

Exceptions & Pitfalls

  • Having guardianship of the person only: A guardian of the person can make care and placement decisions, but that role does not automatically create clean authority to receive, hold, and account for inherited funds. When money is involved, the safer structure is a guardian of the estate (or general guardian) with clerk-supervised accounting.
  • Informal control (joint accounts or “helper” access): Placing inherited funds into a joint account, adding a caregiver as a signer, or letting a third party “hold it for safekeeping” often defeats the goal. It can blur ownership, create disputes, and make it harder to prove what was spent for the ward.
  • Poor documentation: Even well-intended spending can become a problem if receipts, invoices, and bank records are not kept. North Carolina’s annual account rules require proof for payments, and the clerk can demand more detail. See G.S. 35A-1264.
  • Not asking the clerk for direction when needed: If there is a dispute about who should receive the inheritance distribution, how it should be titled, or whether a proposed expenditure is appropriate, getting written court direction can prevent later accusations and reduce risk.
  • Trust planning issues: If the inheritance is still being planned (for example, a family member wants to leave money to the ward), a trust can be a strong tool to restrict access and require that funds be used for the beneficiary. For certain disability-related planning, North Carolina also has statutes addressing specific trust structures and “sole benefit” concepts in that context. See, for example, N.C. Gen. Stat. § 36D-7 and N.C. Gen. Stat. § 36D-9. Trust planning can affect public benefits, so it should be handled carefully.

For a related discussion of how an inheritance interacts with estate guardianship administration, see how an inheritance coming into a relative’s name can affect guardianship of the estate and bond.

Conclusion

In North Carolina, the most dependable way to ensure an incapacitated adult’s inheritance is used for their care is to place the funds under a court-supervised fiduciary—typically a guardian of the estate (or a general guardian)—who must take possession of the ward’s property for the ward’s use and file required inventories and annual accounts with the Clerk of Superior Court. The key next step is to confirm the guardianship includes estate authority and, if it does, file the required inventory within three months of appointment (unless extended) and keep inherited funds clearly titled and documented.

Talk to a Guardianship Attorney

If a relative in a care facility is receiving an inheritance and there is concern the money could be diverted, our firm has experienced attorneys who can help explain options for court-supervised control, proper titling, and the accounting timelines required by the Clerk of Superior Court. Call us today at [CONTACT NUMBER].

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.