Jan252026
Guardianship Q&A Series

Can a non-family caregiver legally control all finances under a durable power of attorney, and what limits apply? – North Carolina

Short Answer

Yes. In North Carolina, an elderly person can name a non-family caregiver as the agent under a durable power of attorney (DPOA), and that agent can control finances to the extent the DPOA grants that authority. The limits come from (1) the exact wording of the DPOA, (2) the agent’s fiduciary duties to act for the principal’s benefit, and (3) court oversight through guardianship if the principal is incapacitated and the agent is misusing funds or blocking needed care.

Understanding the Problem

In North Carolina, can a long-time non-relative caregiver legally take over an elder’s money and bills under a durable power of attorney while the family is out of state, and what limits apply to that control? The decision point is whether the caregiver’s authority comes from a valid financial durable power of attorney (not just access to accounts or informal “help”), and whether the caregiver is staying within the powers granted and the duties owed.

Apply the Law

In North Carolina, a durable power of attorney is a written document where a principal appoints an agent (also called an attorney-in-fact) to handle financial and property matters. A DPOA can be broad, but it is not unlimited: the agent only has the powers the document grants, and the agent must use those powers for the principal’s benefit and keep appropriate records. If a court later appoints a guardian of the estate, that guardianship can override or restrict the agent’s control.

Key Requirements

  • Valid authority exists: The caregiver must actually be named as agent in a properly executed North Carolina financial DPOA (not merely listed on a bank account or helping with bill pay).
  • Scope matches the action: The financial control must match what the DPOA authorizes (for example, paying bills may be authorized, but making gifts to the agent or changing beneficiary-type arrangements may not be).
  • Fiduciary conduct and records: The agent must act for the elder’s benefit, avoid conflicts, and keep records that can be explained if challenged in court.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The reported concern is that a non-relative caregiver currently controls an elder’s affairs while the elder is in hospice care in North Carolina and family members live out of state. If the caregiver is the named agent under a valid North Carolina financial DPOA, the caregiver can legally pay bills, manage accounts, and deal with financial institutions within the DPOA’s scope. The key limits are whether the DPOA actually authorizes the specific transactions being made and whether the caregiver is using the money for the elder’s needs (not the caregiver’s benefit) with records that can be reviewed if a dispute reaches the Clerk of Superior Court.

Process & Timing

  1. Who files: typically an interested person (often a family member) if court involvement is needed. Where: the Clerk of Superior Court in the North Carolina county where the elder resides or is present for an incompetency/guardianship case. What: a guardianship/incompetency petition and supporting information; if real estate is involved, confirm whether the DPOA has been recorded with the Register of Deeds as required for transfers. When: as soon as there is a concrete risk of loss, unpaid care needs, or suspected misuse; timing can matter because transactions can occur quickly once an agent has access.
  2. Next step: the court process typically includes notice to required parties and a hearing to determine incapacity and, if appropriate, appoint a guardian (often a guardian of the estate for finances). Local practice and scheduling vary by county.
  3. Final step: if a guardian of the estate is appointed, the guardian takes over financial authority under court supervision, including required inventories and accountings; the agent’s ability to control finances can be limited or ended depending on the court’s orders.

Exceptions & Pitfalls

  • No DPOA, or wrong document: Sometimes “control” comes from being added to accounts, having online passwords, or using a “personal agency account,” which is not the same as a broad DPOA and can end at death and carry different limits.
  • Health care vs. finances confusion: A health care power of attorney is about medical decisions and does not give general authority over property or finances under North Carolina law. See N.C. Gen. Stat. § 32A-19.
  • Self-dealing and “gifts”: Even when an agent can pay bills, transactions that benefit the agent (large “gifts,” changing ownership, or unusual transfers) are common red flags and are often the focus of court challenges.
  • Real estate formalities: If the caregiver is selling or transferring real property, recording rules can become a major issue. See N.C. Gen. Stat. § 47-28.
  • Assuming family status controls: North Carolina law generally allows the principal to choose an agent; being family does not automatically override a valid DPOA. Court action (like guardianship) is usually required to remove or limit an agent who will not cooperate.

Conclusion

In North Carolina, a non-family caregiver can legally control an elder’s finances under a durable power of attorney if the elder signed a valid financial DPOA that grants that authority. The caregiver’s control is limited by the DPOA’s wording, fiduciary duties to use funds for the elder’s benefit, and court intervention if incapacity and misuse are proven. The most practical next step is to file a guardianship/incompetency petition with the Clerk of Superior Court in the elder’s North Carolina county as soon as court oversight is needed to stop or review transactions.

Talk to a Guardianship Attorney

If a non-family caregiver is controlling an elder’s finances under a durable power of attorney and there are concerns about limits, records, or misuse, our firm has experienced attorneys who can help explain options and timelines in North Carolina courts. 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.