Jan282026
Guardianship Q&A Series

What happens to my inheritance if my relative’s care costs increase or the estate requires ongoing payments for my relative? – North Carolina

Short Answer

In North Carolina, an expected inheritance is not protected just because a family member hopes to receive it later. If an adult relative has been found incompetent and a guardian of the estate is paying for that relative’s care, the ward’s money generally must be used for the ward’s support, maintenance, and approved expenses while the ward is alive. If care costs rise or the ward’s estate has ongoing obligations, that can reduce what is left at death for heirs under a will or under intestacy.

Understanding the Problem

In North Carolina guardianship, what happens to a family member’s expected inheritance when an adult relative’s care costs increase or when the ward’s estate must keep making ongoing payments? The key decision point is whether the ward’s assets must be used during the ward’s lifetime to pay for care and other lawful expenses, even if that reduces what remains for heirs later. This question usually comes up when a guardian is making decisions about living arrangements and personal needs while a separate set of decisions must be made about paying the facility and other bills.

Apply the Law

Under North Carolina law, a guardian of the estate (or a general guardian) manages the ward’s property for the ward’s benefit. That includes collecting assets, paying taxes and debts, and using estate funds for the ward’s support and maintenance in a reasonable and prudent way, subject to the clerk of superior court’s oversight and accounting rules. When a ward is in a facility and the guardian has custody of the ward’s estate, North Carolina law also places a duty on the guardian to supply funds for the ward’s support in the facility as long as the estate has sufficient funds (after considering legally dependent persons, if any). As a practical result, rising care costs and ongoing obligations can reduce the amount that remains in the ward’s estate for heirs.

Key Requirements

  • Ward-first spending: Estate funds are managed and used primarily for the ward’s needs and lawful obligations during the ward’s lifetime, not to preserve an inheritance for future heirs.
  • Reasonable, prudent management: The guardian must act like a careful fiduciary—tracking income and expenses, paying required bills, and making decisions that fit the ward’s circumstances and resources.
  • Court oversight and accounting: The clerk of superior court can require approvals for certain actions (especially spending principal and selling higher-value property), and the guardian must account for receipts and disbursements.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, a guardian has been appointed for an adult relative who lives in a care facility and needs decisions about living arrangements and personal needs. If the guardianship includes a guardian of the estate (or a general guardian), the ward’s assets generally must be used to pay for the ward’s care and other lawful expenses as they come due, even if that reduces what remains to pass at death. If care costs increase, the estate may need to increase monthly payments to the facility or cover additional services, which can reduce the estate balance over time.

Process & Timing

  1. Who files: The guardian of the estate (or general guardian). Where: The Clerk of Superior Court in the county where the guardianship is pending. What: A motion/petition in the guardianship file requesting authority for actions that need advance approval (commonly, spending principal, selling significant assets, or other major transactions). When: Before the transaction or before using principal when prior approval is required by statute or by the clerk’s order.
  2. Ongoing payments: The guardian pays approved and necessary expenses (like facility charges) from the ward’s funds and keeps detailed records for the required accountings. Timeframes vary by county and by the clerk’s scheduling, and some requests require notice and a hearing.
  3. Accounting and review: The guardian files required inventories and accountings and may need to justify that expenses were reasonable, for the ward’s benefit, and suitable to the ward’s resources.

Exceptions & Pitfalls

  • Confusing “guardian of the person” with “guardian of the estate”: A guardian of the person may handle care decisions, but paying facility bills from the ward’s accounts is typically an estate function and may require separate authority.
  • Spending principal without the right approval: North Carolina law allows using income for the ward and contemplates court involvement for spending principal in many situations. Skipping required approval can create problems in the accounting and can trigger objections by interested persons.
  • Trying to “preserve the inheritance” at the ward’s expense: The guardian’s duty runs to the ward. Holding back on needed care or delaying payment to protect a future inheritance can violate fiduciary duties and create facility, benefits, or court issues.
  • Not planning for rising costs: Care needs often change. A budget that worked last year may not work next year, and the guardian may need to adjust payments, apply for benefits, or seek authority to liquidate assets.
  • Overlooking ongoing obligations: Even when the ward lives in a facility, the estate may still have recurring bills (insurance, taxes, maintenance, debt payments). Those obligations can reduce what remains for heirs.

For related guidance on managing funds and oversight issues in a North Carolina guardianship, see responsibilities for managing a relative’s money and benefits and how an inheritance affects guardianship of the estate and bond.

Conclusion

In North Carolina, an inheritance expectation can shrink if an incompetent adult relative’s care costs rise or the ward’s estate must keep paying ongoing obligations. A guardian of the estate generally must use the ward’s assets for the ward’s support, maintenance, and lawful expenses during the ward’s lifetime, under the clerk of superior court’s oversight. The practical next step is to file a motion in the guardianship case with the Clerk of Superior Court to request approval before spending estate principal or taking other major actions to cover increased care costs.

Talk to a Guardianship Attorney

If dealing with rising care costs and questions about what will be left for heirs, our firm has experienced attorneys who can help explain options, required approvals, and timelines in North Carolina guardianship. 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.