Can I be named as power of attorney for someone who is not related to me? – North Carolina

Short Answer

Yes. In North Carolina, a person (the “principal”) can name a non-relative as agent under a power of attorney, as long as the document is properly signed and acknowledged and the principal has capacity when signing. The bigger issue is not family relationship—it is whether the power of attorney is valid, whether it grants the specific powers needed (like banking), and whether third parties (like banks) will accept it. If someone is already moving money or handling benefit payments without clear written authority, that can create serious legal and practical risks.

Understanding the Problem

Under North Carolina estate planning law, can a person appoint a non-relative to act as “power of attorney” to handle finances or other matters, and what makes that appointment effective? The decision point is whether the principal can legally name a trusted friend or other non-family member as the agent, and what steps must be taken so the agent can act with clear authority when dealing with banks, mail, and benefit payments.

Apply the Law

In North Carolina, a power of attorney is a written document where the principal appoints an agent (sometimes called an “attorney-in-fact”) to act for the principal. North Carolina law does not require the agent to be related to the principal. What matters is that the principal signs a valid power of attorney, the document is properly acknowledged, and it clearly grants the powers the agent needs. If the agent will sign documents affecting real estate, North Carolina has specific recording rules with the county register of deeds.

Key Requirements

Valid appointment: The principal must sign a power of attorney that properly identifies the agent and the scope of authority.
Proper execution: The power of attorney should be signed and acknowledged (commonly done before a notary) so third parties can rely on it.
Right scope of powers: The document must actually authorize the type of acts being done (for example, banking transactions, handling benefit payments, or dealing with mail), and some actions may require very clear, specific language.

What the Statutes Say

N.C. Gen. Stat. § 47-28 (Recording powers of attorney for real property transfers) – Requires recording the power of attorney (or a certified copy) with the register of deeds before an agent completes certain real estate transfers, and explains where it must be recorded.
N.C. Gen. Stat. § 47-43.1 (Signing instruments as agent) – Allows an agent to sign recordable instruments in the principal’s name or as agent for the principal.

Analysis

Apply the Rule to the Facts: The facts describe a non-relative already cashing and transferring benefit payments, receiving the account owner’s mail, and holding banking materials while the owner lives abroad. North Carolina law generally allows a non-relative to be named as agent, but the key question is whether there is a properly executed power of attorney that clearly authorizes banking and benefit-related transactions. Without a valid power of attorney that the bank accepts, handling someone else’s funds and banking access can be treated as unauthorized activity even if the account owner verbally approved it.

Process & Timing

Who signs: The principal (the account owner). Where: A notary (and sometimes witnesses depending on the document type and how it will be used), then provide copies to the bank or other institutions that will rely on it. What: A North Carolina financial durable power of attorney that grants the needed banking powers; if real estate authority is needed, plan for recording. When: Before the agent takes action, and while the principal still has capacity to sign.
Institution acceptance: The bank and benefit payor often have their own review process and may request their own forms or additional verification, especially when the principal is abroad.
If real estate is involved: Record the power of attorney (or a certified copy) with the register of deeds in the correct county before using it to transfer real property, and ensure deeds are signed in an acceptable agent format.

Exceptions & Pitfalls

“Power of attorney” is not automatic authority: Being trusted or having access to mail and banking materials is not the same as legal authority. Banks commonly refuse to honor informal arrangements.
Scope problems: A general document may not be enough for certain transactions. If the agent needs to handle benefit payments, banking, or large transfers, the power of attorney should clearly cover those categories.
Third-party refusal and delays: Even a valid power of attorney can trigger extra scrutiny when the principal is abroad or when transactions look unusual. Planning for certified copies and clear documentation helps.
Real estate recording trap: If the agent will sign documents to transfer North Carolina real property, recording rules apply and failing to follow them can create problems and potential penalties. See N.C. Gen. Stat. § 47-28.
Risk of allegations of misuse: When a non-relative handles money, detailed records and a clear written power of attorney matter. Mixing funds, unexplained transfers, or unclear “permission” can lead to disputes or reports to financial institutions.

Conclusion

In North Carolina, a principal can name a non-relative as agent under a power of attorney. The relationship does not control the validity—the document’s proper execution and the specific powers granted do. When banking and benefit payments are involved, the safest next step is to have the principal sign a properly acknowledged North Carolina financial power of attorney that clearly authorizes the needed transactions, and provide it to the bank before any further transfers occur.

Talk to a Estate Planning Attorney

If you’re dealing with a non-relative handling banking or benefit payments under unclear authority, our firm has experienced attorneys who can help explain North Carolina power of attorney options and timelines and help reduce the risk of problems with banks or family members later. 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.