Jan182026
Estate Planning Q&A Series

What can I do if I think a power of attorney agent is taking money or not using it to care for my relative? – North Carolina

Short Answer

In North Carolina, a power of attorney (POA) agent must use the older adult’s money for the older adult’s benefit and avoid self-dealing. If there are signs of financial exploitation or neglect, common steps include gathering records, reporting suspected exploitation to the proper agencies, and—if the older adult cannot safely revoke the POA—asking the court to appoint a guardian so the clerk of superior court can protect the person and their assets. In urgent situations, a report to law enforcement and Adult Protective Services can help start an investigation while longer-term legal options are pursued.

Understanding the Problem

In North Carolina estate planning, the decision point is whether a power of attorney agent is misusing authority by taking money, failing to pay for basic care, or letting an older relative’s living conditions deteriorate. The key question is what legal steps exist to obtain information, stop misuse, and replace the decision-maker when the older adult cannot or will not revoke the power of attorney. The practical trigger is usually a pattern of unexplained withdrawals, unpaid bills, missed care, or unsafe home conditions while the agent controls access to accounts and vendors.

Apply the Law

In North Carolina, a power of attorney is governed by Chapter 32C (the Uniform Power of Attorney Act). A POA agent is a fiduciary, meaning the agent must act for the principal (the older adult who signed the POA), not for the agent’s personal benefit. When misuse is suspected, the most effective legal “replacement” tool is often a guardianship case, because a court-appointed guardian can override a POA agent’s control and require accountability. Reports to Adult Protective Services and law enforcement can also be appropriate when the concern is exploitation or neglect.

Key Requirements

  • Proof of a real problem (not just family conflict): The concern should be tied to specific transactions or care failures—such as missing funds, unpaid necessities, or unsafe living conditions—rather than disagreement about spending choices.
  • Authority to intervene: If the older adult still has capacity, the older adult can usually revoke the POA and sign a new one. If capacity is impaired, a court process (often guardianship) may be needed to remove control from the agent.
  • The right forum: Reports of exploitation/neglect typically go to local law enforcement and (for a disabled adult) the county department of social services. If a guardian is needed, the matter is handled through the clerk of superior court in the county where the person resides.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the concern is that the POA agent may be financially exploiting an older relative and also neglecting basic needs and home upkeep. Those facts point to two parallel problems: (1) possible misuse of money and (2) possible neglect or unsafe living conditions. If the older relative still has capacity, the cleanest “replacement” is often revoking the existing POA and signing a new one; if capacity is impaired or the agent blocks access, a guardianship case may be the most direct way to remove control and protect the older adult.

For example, if the only change is timing—sudden large withdrawals begin right after the agent starts using the POA—records and a report to law enforcement may be appropriate while counsel evaluates court options. If the only change is role—the older adult cannot understand finances well enough to revoke the POA—then a guardianship filing may be needed to put a neutral, court-supervised decision-maker in place.

Process & Timing

  1. Who acts first: A concerned family member or other interested person. Where: Start with local law enforcement for suspected theft/exploitation; for a disabled adult, contact the county department of social services (Adult Protective Services). What: Provide a concise timeline, the agent’s name, the POA’s existence, and specific examples (unpaid bills, missing funds, unsafe conditions). When: As soon as there is reasonable cause to suspect exploitation or neglect.
  2. Stabilize control and information: If the older adult has capacity, the older adult can revoke the POA and sign a new POA naming a different agent, then notify banks and other institutions. If the older adult does not have capacity or the situation is escalating, counsel may recommend a guardianship filing with the clerk of superior court so a guardian can take control of accounts and decisions under court supervision.
  3. Longer-term replacement and protection: After a guardian is appointed, the guardian can typically redirect income, pay for care and home needs, and address improper transfers through appropriate legal steps. If real estate is involved, recording issues can matter because a POA must be recorded before an agent can convey real property in many situations.

Exceptions & Pitfalls

  • Capacity changes the options: If the older adult has capacity, revocation and a new POA may solve the problem quickly. If capacity is impaired, trying to “take over” informally can backfire; guardianship may be needed.
  • Joint accounts and “it was a gift” claims: Agents and family members often defend transfers as gifts or reimbursements. Clear documentation (bank statements, receipts, caregiver invoices, home repair estimates) helps separate legitimate spending from self-dealing.
  • Delay and missing records: Waiting can make it harder to trace transactions and protect remaining assets. A written timeline and early record requests often matter as much as the legal filing.
  • Confusing POA authority with ownership: A POA does not give the agent ownership of the older adult’s money. Treating the money as personal funds is a common misuse pattern.
  • Real estate risk: If the agent is trying to sell or mortgage the home, recording and closing steps can move quickly. Early legal intervention can be critical when a transfer is imminent.

For more context on challenging misuse and reporting suspected abuse, see challenging power-of-attorney actions and reporting suspected financial abuse.

Conclusion

In North Carolina, when a power of attorney agent appears to be taking money or failing to use funds for an older relative’s care, the main goals are to document the problem, stop further harm, and replace the decision-maker if needed. If the older adult has capacity, revoking the POA and signing a new one is often the most direct fix. If capacity is impaired or exploitation/neglect is suspected, the next step is to file a guardianship petition with the clerk of superior court in the county of residence so a court-supervised guardian can take control and protect the older adult.

Talk to a Estate Planning Attorney

If a power of attorney agent may be taking money or not using it for an older relative’s care, our firm has experienced attorneys who can help explain options, including reporting concerns and pursuing guardianship when needed. 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: Estate Planning 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.