Jan252026
Guardianship Q&A Series

Now that I have guardianship, what are my responsibilities for managing my relative’s money and benefits? – North Carolina

Short Answer

In North Carolina, managing an adult ward’s money and benefits usually falls on the guardian of the estate (or a general guardian). The core responsibilities are to take control of the ward’s assets, use them only for the ward’s benefit, keep careful records, and report to the Clerk of Superior Court through an initial inventory and ongoing accountings. Missing the inventory or annual accounting deadlines can lead to court action, including possible removal.

Understanding the Problem

In North Carolina guardianship cases, the key question is: once a guardian has been appointed for an adult who lives in a care facility and needs decisions made, what duties apply when handling the ward’s money and benefits? The answer depends on what type of guardian was appointed (guardian of the person versus guardian of the estate versus general guardian) and what the Clerk of Superior Court ordered at appointment. This article focuses only on the responsibilities tied to managing finances and benefits after appointment.

Apply the Law

Under North Carolina law, a guardian who manages a ward’s property must act like a careful fiduciary: gather and protect the ward’s assets, manage them prudently, pay the ward’s lawful expenses, and follow the Clerk of Superior Court’s orders. The guardian must also file an inventory soon after qualification and then file annual accountings as long as any of the ward’s estate remains under the guardian’s control. These filings are made in the estate file with the Clerk of Superior Court in the county where the guardianship is administered.

Key Requirements

  • Take control of the ward’s assets: Identify what the ward owns (bank accounts, income, refunds, personal property, etc.), take possession where appropriate, and work to collect money owed to the ward.
  • Use funds only for the ward’s benefit: Pay the ward’s needs (including care facility costs and other approved expenses) and avoid mixing the ward’s money with anyone else’s money.
  • Keep records and report to the clerk: Maintain receipts, statements, and proof of payments, then file the required inventory and annual accountings on time and under oath.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the adult ward lives in a care facility and needs decisions about living arrangements and personal needs. If the appointment includes authority over finances (as a guardian of the estate or general guardian), the guardian must identify all income sources (such as retirement income or benefits), secure access to accounts, and set up a recordkeeping system that can produce a clear inventory and yearly accounting. Because care facilities often involve recurring charges, the guardian’s recordkeeping should make it easy to show what was paid, when it was paid, and why it was for the ward’s benefit.

Process & Timing

  1. Who files: The guardian of the estate (or general guardian). Where: The Clerk of Superior Court in the county handling the guardianship estate file. What: An inventory/account listing the ward’s assets and income sources, supported by statements and other documentation. When: Generally within three months after appointment (extensions are possible for good cause, but they must be requested and approved).
  2. Ongoing management: Pay the ward’s approved expenses, keep the ward’s funds separate, and save proof of every deposit and payment (bank statements, facility invoices, receipts, and written explanations for unusual expenses). If a benefit program requires a separate payee process, the guardian may need to complete that program’s paperwork even after the court appointment.
  3. Annual reporting: File an annual account under oath showing all money received, all payments made, and the ending balance and how it is held or invested. The due date is tied to the fiscal year selected for the guardianship and is generally due within 30 days after that fiscal year ends.

Exceptions & Pitfalls

  • Type of guardian mismatch: A guardian of the person may have authority over living arrangements and care decisions but may not have authority to manage money unless also appointed guardian of the estate (or as a general guardian). The clerk’s order controls.
  • Commingling funds: Mixing the ward’s money with the guardian’s personal money is a common problem and makes accounting difficult. Separate accounts and clean documentation usually prevent disputes.
  • Missing vouchers and proof: North Carolina accountings typically require proof of payments. Paying cash, losing receipts, or failing to keep statements can create delays and court scrutiny.
  • Benefits administration is not automatic: Some benefits (especially federal benefits) may require a separate “payee” appointment process even if a guardianship exists. A court appointment may help, but it does not always replace the agency’s own paperwork.
  • Late filings: If an inventory or accounting is not filed, the clerk can issue an order to file and can consider sanctions, including removal, depending on the situation.

For a broader discussion of ongoing reporting, see ongoing reporting requirements after appointment.

Conclusion

In North Carolina, a guardian responsible for money and benefits must take control of the ward’s assets, use the funds only for the ward’s needs, keep clear records, and report to the Clerk of Superior Court through an inventory and annual accountings. The key threshold is whether the appointment includes authority over the ward’s estate (guardian of the estate or general guardian). The most important next step is to prepare and file the inventory with the Clerk of Superior Court within three months of appointment (or request an extension if needed).

Talk to a Guardianship Attorney

If managing a relative’s money and benefits after a guardianship appointment has become confusing—especially with care facility bills, benefit income, and court accountings—our firm has experienced attorneys who can help explain 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.

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.