Jan272026
Guardianship Q&A Series

How do I handle my disabled adult sibling’s inheritance if I’m only guardian of the person and not guardian of the estate? – North Carolina

Short Answer

In North Carolina, a guardian of the person generally cannot receive, hold, or manage an adult ward’s inheritance. The inheritance usually must be paid to a properly appointed guardian of the estate (or a general guardian), or handled through another court-approved option such as a restricted account or a trust arrangement that fits the situation. The estate administration often cannot close until the Clerk of Superior Court is satisfied the disabled adult heir’s share will be received and protected by the legally authorized fiduciary.

Understanding the Problem

In North Carolina estate administration, can a guardian of the person accept and control a disabled adult sibling’s inheritance, or must the inheritance be routed through a guardian of the estate (or another court-approved method) before the personal representative can finish the estate? The decision point is whether the current guardianship appointment includes legal authority over money and property, because inheritance is an asset-management issue, not a personal-care issue.

Apply the Law

North Carolina separates guardianship authority into different roles. A guardian of the person focuses on care, custody, and day-to-day decisions. A guardian of the estate (or a general guardian, which includes both roles) is the fiduciary who can collect, receive, and manage property that belongs to the ward, including an inheritance. In practice, the Clerk of Superior Court (the court that oversees guardianships in North Carolina) expects the inheritance to be paid to the person or entity with legal authority over the ward’s property, and the clerk may require safeguards like a bond or restricted accounts depending on the amount and risk.

Key Requirements

  • Proper authority to receive the inheritance: The person signing receipts, opening accounts, and taking possession of inherited funds must be the guardian of the estate (or general guardian) or another legally authorized recipient.
  • Clerk of Superior Court oversight: Guardianship financial decisions often require clerk involvement, and the clerk can impose protections (like restricted accounts) to reduce risk and ensure the money is used for the ward’s benefit.
  • Plan for benefits and long-term needs: If the sibling receives needs-based public benefits, an outright inheritance may create eligibility problems, so the “how” of receiving the inheritance matters as much as the “who.”

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the estate administration is being delayed because the disabled adult sibling’s share cannot simply be handed to a family member who is only guardian of the person. Under North Carolina’s role split, receiving and managing inherited money is an “estate” function, so the personal representative typically needs letters showing a guardian of the estate (or general guardian) is in place, or a clerk-approved alternative (such as a restricted arrangement) that legally protects the sibling’s share.

Process & Timing

  1. Who files: Usually the current guardian of the person or another interested family member. Where: The Clerk of Superior Court in the county where the guardianship is pending (the incompetency/guardianship file). What: A petition or motion asking to (a) appoint a guardian of the estate (or convert to a general guardian), and/or (b) approve a restricted deposit arrangement for inherited funds if appropriate. When: As soon as the personal representative indicates distribution cannot occur without a legally authorized recipient.
  2. Clerk review and safeguards: The clerk may require a bond for the guardian of the estate, may require funds to be placed in a restricted account that cannot be accessed without court authorization, and will expect a clear plan for how the funds will be held and used for the ward’s benefit.
  3. Distribution and ongoing administration: Once a guardian of the estate/general guardian is appointed (or another approved method is in place), the personal representative can distribute the inheritance to that fiduciary. After receipt, the guardian of the estate must follow guardianship accounting and approval requirements for spending and management.

Exceptions & Pitfalls

  • Do not accept the inheritance “informally”: Taking possession of the sibling’s inheritance without being guardian of the estate (or otherwise authorized) can create fiduciary and reporting problems and may not satisfy the personal representative or the clerk.
  • Restricted account rules: If the clerk requires a restricted account, withdrawals may require court authorization. Planning for routine expenses and timing matters so the ward’s needs are met without repeated delays.
  • Public benefits risk: An outright inheritance can disrupt needs-based benefits. In some cases, the better approach is to coordinate with the clerk and benefits planning counsel before the inheritance is distributed. For related guidance, see set up a special needs trust before a sibling receives an inheritance.
  • Wrong forum confusion: Guardianship authority typically runs through the Clerk of Superior Court, while the deceased relative’s estate runs through the estate file. The personal representative may need documentation from the guardianship file (letters, orders, restricted account receipts) before distributing.
  • Spending without approvals: Even after appointment, a guardian of the estate may need prior court approval for certain transactions or principal expenditures depending on the situation and the clerk’s orders. Missteps can trigger repayment demands or court sanctions.

Conclusion

In North Carolina, a guardian of the person generally does not have authority to receive or manage a disabled adult sibling’s inheritance, because that is an estate-management function reserved to a guardian of the estate or a general guardian. The usual fix is to petition the Clerk of Superior Court to appoint a guardian of the estate (or expand the guardianship) and follow any safeguards the clerk requires, such as a restricted account. The next step is to file the appropriate petition or motion in the guardianship proceeding so the personal representative can distribute the inheritance properly.

Talk to a Guardianship Attorney

If a disabled adult sibling’s inheritance is holding up an estate administration, our firm has experienced attorneys who can help explain the guardianship roles, the clerk’s requirements, and the steps to receive and protect the inheritance properly. 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.