Jan212026
Estate Planning Q&A Series

What powers can I give someone in a durable power of attorney, and what should I limit? – North Carolina

Short Answer

In North Carolina, a durable power of attorney can give an agent broad authority to handle financial and property matters—often including banking, paying bills, managing investments, and handling real estate. The powers that usually deserve the most caution are those that let an agent change who benefits from property (like gifting, changing beneficiary designations, or changing certain estate-planning arrangements). A well-drafted document can grant the practical powers needed for day-to-day management while limiting higher-risk powers and adding safeguards.

Understanding the Problem

Under North Carolina estate planning, the core decision is how much authority to give an agent in a durable power of attorney to act for the principal in financial and property matters if the principal cannot manage those matters. The question focuses on which categories of powers can be granted and which powers should be narrowed to reduce the risk of misuse while still allowing bills, accounts, and property to be managed without a court guardianship.

Apply the Law

In North Carolina, a durable power of attorney is commonly used to authorize an agent to act in the principal’s place for financial and property decisions. The document can be drafted to be broad or narrow, and it can include limits, conditions, and instructions. Real estate authority often requires an additional practical step: before an agent signs a deed or other real estate transfer document, the power of attorney (or a certified copy) generally must be recorded with the register of deeds in the appropriate county.

Key Requirements

  • Clear scope of authority: The document should spell out which financial and property areas the agent can handle (for example, banking, real estate, investments, insurance, and dealing with government benefits).
  • Durability and when it can be used: The document should state that it remains effective even if the principal later becomes incapacitated, and it should clearly state whether the agent’s authority starts immediately or only after a triggering event.
  • Limits for high-risk transactions: The document should specifically address (and often restrict) powers that can change who receives the principal’s property or that create conflicts of interest.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the goal is to set up a durable power of attorney that is usable in real life (paying bills, managing accounts, handling property issues) while reducing the chance that an agent could redirect assets away from the principal’s intended plan. A practical approach is to grant broad “management” powers (banking, paying expenses, dealing with insurers and benefit agencies) but limit “wealth-shifting” powers (gifts, beneficiary changes, and other actions that can change who ends up with property). If real estate authority is included, the plan should also account for recording requirements so the agent can actually complete a sale or other transfer when needed.

Process & Timing

  1. Who files: No one files a durable power of attorney just to create it. Where: It is signed and notarized as required, then kept in a safe place. What: A durable power of attorney document that clearly lists granted powers and any limits. When: Ideally, it is signed while the principal has capacity and before a crisis.
  2. Make it usable for banks and other institutions: Provide copies to the agent and, when appropriate, to financial institutions. Some institutions may ask for their own internal forms or may request a certified copy.
  3. If real estate powers are included: Where: Record the power of attorney (or a certified copy) with the register of deeds in the county required by law before the agent signs a deed or other real estate transfer document. See N.C. Gen. Stat. § 47-28.

Exceptions & Pitfalls

  • Overbroad “wealth-shifting” authority: Powers that allow gifting, changing beneficiary designations, or otherwise changing who benefits from property can undermine an estate plan and create conflict. Many plans limit these powers, require specific written instructions, or require a second person’s approval for those actions.
  • Self-dealing risk: Any authority that lets an agent transfer the principal’s property to the agent (or to the agent’s family) deserves careful limits and clear guardrails.
  • Real estate recording issues: A durable power of attorney can be valid but still cause a real estate transaction to stall if it has not been recorded as required for transfers. See N.C. Gen. Stat. § 47-28.
  • Digital access gaps: If the agent needs to manage online accounts, the document should address digital assets and align with account-level “online tool” settings where available. See N.C. Gen. Stat. § 36F-4 and N.C. Gen. Stat. § 36F-10.
  • Confusing “durable power of attorney” with health care authority: A durable power of attorney is typically for finances and property. Health care decisions are usually handled through a separate health care power of attorney.

Conclusion

In North Carolina, a durable power of attorney can grant an agent broad authority to manage finances and property, including banking and (if included) real estate—while still allowing targeted limits for higher-risk powers that can change who benefits from property. A common approach is to grant day-to-day management powers but restrict gifting and other wealth-shifting actions unless they are specifically authorized. If real estate transfers may be needed, the next step is to sign the document properly and record it with the register of deeds before any deed is signed under it.

Talk to a Estate Planning Attorney

If you’re dealing with setting up a durable power of attorney and deciding which powers to grant or limit, our firm has experienced attorneys who can help you understand your options and timelines. 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.