If someone used a power of attorney to move money or change a retirement beneficiary, how do we investigate and challenge that? – North Carolina

Short Answer

In North Carolina, suspected power of attorney (POA) abuse is usually investigated by getting the estate opened in the right county and then using the estate’s authority to demand records, trace transactions, and force the agent to explain what happened. If the agent used the POA to benefit themselves (for example, moving money into joint/survivorship accounts or changing beneficiary designations), the estate can often challenge the transaction through a contested estate proceeding and related civil claims. The best starting point is confirming what (if anything) has already been filed with the Clerk of Superior Court and then securing bank, brokerage, and plan records before they disappear.

Understanding the Problem

In North Carolina, when a person dies without a will, the adult children often need to open an estate with the Clerk of Superior Court in the proper county and get an administrator appointed. The key question is what happens when someone acting as an “agent” under a power of attorney used that authority before death to move money, retitle accounts, or change a retirement beneficiary, and the family now needs a way to find the paper trail and challenge improper actions. The decision point is whether the transactions were authorized and done for the principal’s benefit, or whether they were self-dealing or the product of incapacity or undue influence.

Apply the Law

North Carolina treats a POA agent as a fiduciary. That means the agent must act in good faith for the principal’s benefit and must keep records of what was done. After the principal dies, the estate’s personal representative (the administrator in an intestate estate) generally has standing to request information and, when appropriate, ask the Clerk of Superior Court to order an accounting and other relief in an estate proceeding. Many disputes are handled in the Clerk’s estate jurisdiction, and orders can be appealed on a short deadline.

Key Requirements

  • Authority: The agent must have had the specific authority in the POA (and it must have been in effect at the time) to take the action—moving funds, changing account titling, or changing beneficiaries.
  • Fiduciary conduct and records: The agent must act for the principal’s benefit and keep accurate records of receipts, disbursements, and transactions. Even if a POA tries to waive routine accountings, a court can still order disclosure in the right situation.
  • Proper forum and standing: After death, the estate’s administrator typically becomes the person with legal authority to investigate, demand information, and bring challenges on behalf of the estate and heirs.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the adult children want to open and administer an intestate estate in North Carolina, but there is confusion about whether an estate was opened in the correct county and what has been filed. That matters because the administrator is usually the person with clear legal authority to request records, demand explanations from a former POA agent, and bring a contested estate proceeding if money was moved or beneficiary designations were changed improperly. If the estate is not opened (or is opened in the wrong place), financial institutions and third parties often refuse to provide meaningful information, and deadlines to challenge clerk orders can be missed.

Process & Timing

  1. Who files: an heir (often an adult child) petitions to be appointed administrator. Where: the Clerk of Superior Court in the proper North Carolina county for the estate. What: an application for letters of administration and related estate opening documents. When: as soon as practical after death, especially if assets are moving or beneficiaries are changing.
  2. Confirm what is already on file: check the estate file (and any competing file in another county) to confirm whether letters were issued, to whom, and what inventories/accountings (if any) have been filed. If a clerk enters an order affecting administration, the appeal window can be short; for many estate matters it is 10 days after service under N.C. Gen. Stat. § 1-301.3.
  3. Investigation and challenge steps: once appointed, the administrator typically (a) sends written demands for records to the former agent and to financial institutions, (b) requests signature cards, beneficiary change forms, and transaction histories to pinpoint when changes occurred, and (c) files a contested estate proceeding or related civil action to compel an accounting, unwind improper transfers, or recover funds for the estate when the evidence supports it.

Exceptions & Pitfalls

  • “Non-probate” does not mean “unchallengeable”: retirement accounts, POD accounts, and TOD registrations often pass outside the estate by contract, but the paperwork behind a late beneficiary change (who requested it, when, and under what authority) can still be investigated and, in the right case, challenged.
  • Joint/survivorship account red flags: a common pattern is adding the agent as a joint owner with right of survivorship and then withdrawing funds. The investigation usually turns on (1) when the joint owner was added, (2) the principal’s capacity at that time, and (3) whether the principal intended a gift versus convenience for bill-paying.
  • Standing problems before appointment: adult children may suspect wrongdoing but lack authority to force disclosures until an administrator is appointed (or another proper fiduciary is in place). Getting the estate opened in the correct county is often the first practical step.
  • Missing the “paper trail”: signature cards, change-of-beneficiary forms, and plan administrator logs are often more important than verbal explanations. Delays can make it harder to obtain complete records.
  • County-to-county variation: clerks’ offices and local practice can differ on how contested estate proceedings are calendared and what documentation is required up front.

Conclusion

In North Carolina, investigating suspected POA abuse usually starts by confirming the estate is opened in the proper county and getting an administrator appointed through the Clerk of Superior Court. The administrator can then demand records, trace transfers, and seek court orders to compel an accounting and challenge transactions that were unauthorized or improper, including suspicious joint/survivorship changes and beneficiary changes. The most important next step is to open (or correct) the estate file with the Clerk of Superior Court promptly so records can be gathered and any clerk orders can be addressed within applicable deadlines.

Talk to a Probate Attorney

If there are concerns that a power of attorney was used to move money or change beneficiary designations before death, our firm has experienced attorneys who can help explain options for opening the estate in the right county, gathering records, and bringing the right type of proceeding. 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: Probate 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.