Do we also need adult guardianship, supported decision-making, or powers of attorney when our child reaches 18, and how do those interact with the trust? – North Carolina

Short Answer

Often, yes. In North Carolina, when a child turns 18, parents generally no longer have automatic legal authority to access medical information, make health care decisions, or handle finances—unless the now-adult child has signed valid powers of attorney or a court has appointed a guardian.

A special needs trust mainly controls who manages trust assets and how they get spent. It does not, by itself, give parents decision-making authority over an 18-year-old’s health care or non-trust finances, so families often pair the trust with either supported decision-making tools, powers of attorney (if capacity allows), or adult guardianship (if needed).

Understanding the Problem

In North Carolina estate planning for a minor child with disabilities, a common question is what changes at age 18 and whether parents can still help with medical decisions, school or program paperwork, benefit renewals, and money matters. The decision point is whether the 18-year-old can legally authorize someone else to help (through less restrictive documents) or whether a court process is needed to appoint a guardian.

Apply the Law

Under North Carolina law, turning 18 generally means the child becomes a legal adult. That shift affects (1) who has legal authority to make decisions and access records and (2) who can sign documents affecting benefits and finances. A special needs trust addresses asset management by a trustee, but it does not automatically authorize parents to act for an adult beneficiary in other areas. If the adult cannot manage certain decisions, North Carolina guardianship is handled through the Clerk of Superior Court in the county where the adult resides.

Key Requirements

Decision-making authority must exist: After 18, authority typically comes from the adult’s signed delegation (powers of attorney/authorizations) or a court order (guardianship).
The trust and the person are separate issues: A trustee can manage and spend trust funds under the trust terms, but that does not automatically allow someone to make medical decisions, sign benefit applications, or manage the adult’s non-trust accounts.
Use the least restrictive option that works: If the adult can understand and sign, powers of attorney and release forms may avoid guardianship. If the adult cannot manage critical decisions and cannot validly sign, guardianship may be necessary.

What the Statutes Say

N.C. Gen. Stat. Chapter 35A (Incompetency and Guardianship) – sets the court process and standards for adult guardianship in North Carolina through the Clerk of Superior Court.
N.C. Gen. Stat. Chapter 32A (Powers of Attorney and Health Care Powers of Attorney) – addresses documents used to authorize another person to act for an adult, including health care decision-making tools.
N.C. Gen. Stat. § 35A-1208 (Authority for health care decisions) – explains how a guardian’s authority can interact with an existing health care agent arrangement.

Analysis

Apply the Rule to the Facts: The family’s special needs trust planning covers how money set aside for the child will be managed, including who serves as trustee and how distributions get made. But when the child reaches 18, parents usually lose default authority to sign health care paperwork, access medical information, and manage the new adult’s separate finances, unless the adult signs appropriate authorizations or a court appoints a guardian. Because the family moved, the documents should match North Carolina requirements and the likely county process for any court filing.

How these options interact with a special needs trust

Trustee vs. guardian: The trustee manages trust assets and decides whether a requested distribution fits the trust’s purpose and terms. A guardian (if appointed) makes decisions for the person and/or manages the person’s non-trust property, depending on the type of guardianship ordered.
Using trust funds to support the adult: Many special needs trust plans anticipate that the adult beneficiary (or someone helping them) may request payments for services or items. Even if a parent serves as guardian, the trustee still must follow the trust rules and benefit-protection goals when making distributions.
Signing benefit paperwork: A trustee can sign trust-related documents and handle trust accounts, but benefit renewals or applications often require the adult’s signature or an authorized representative (such as an agent under power of attorney or a court-appointed guardian) for non-trust matters.

Process & Timing

Who files: If guardianship is needed, a parent or other interested person typically files. Where: Office of the Clerk of Superior Court in the county where the child (now adult) resides in North Carolina. What: Guardianship petitions and related forms used by the Clerk’s office (forms can vary by county). When: Planning usually starts well before the 18th birthday; court timing varies, so families often begin several months in advance if guardianship may be needed.
Capacity-based planning meeting: If the young adult can understand and sign, the family can often use a health care power of attorney and other authorizations, and a financial power of attorney if appropriate, rather than guardianship.
Trust alignment: The attorney typically coordinates the special needs trust terms (trustee choice, successor trustees, distribution standards, and reporting expectations) with the selected decision-making tools, so the trustee and the person helping the beneficiary do not work at cross-purposes.

Exceptions & Pitfalls

Guardianship is not “one size fits all”: North Carolina can appoint different types of guardians depending on what the adult can and cannot do, which can reduce unnecessary loss of independence.
POA only works if the adult can validly sign: If the young adult lacks capacity to understand the document at signing, a power of attorney may be challenged or rejected by providers and institutions.
Mismatch between “helper” and “trustee” roles: If one person manages decisions and another controls trust spending, unclear communication can delay payments for care, housing-related costs, or services. Clear trust instructions and a plan for requests and documentation helps prevent this.
Health care decision conflicts: Existing health care authorization documents and later guardianship orders can interact in specific ways under North Carolina law, so the plan should be drafted as a coordinated set rather than piecemeal.
Moving states can break the plan: Out-of-state forms and assumptions about parental authority may not work cleanly after a move. Updating documents to North Carolina requirements reduces problems with banks, doctors, and agencies.

Conclusion

In North Carolina, turning 18 usually ends a parent’s automatic legal authority to make medical decisions, access records, or manage finances for a child, even when the child has disabilities. A special needs trust controls trust assets through a trustee, but it does not replace adult decision-making authority. The common next step is to evaluate capacity and then either sign the right powers of attorney/authorizations or file an adult guardianship petition with the Clerk of Superior Court before the 18th birthday to avoid a gap.

Talk to a Estate Planning Attorney

If a family is setting up a North Carolina special needs trust and also needs a plan for what changes at age 18 (guardianship vs. supported decision-making tools vs. powers of attorney), our firm has experienced attorneys who can help map out the documents, the timeline, and who should attend the meeting. 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.