Who needs to be notified after the power of attorney is revoked so banks and healthcare providers honor the change? – North Carolina

Short Answer

In North Carolina, the principal must revoke the power of attorney in writing and give actual notice to the former agent and any third parties that might rely on it. Send the revocation to every bank, broker, insurer, and provider that has a copy or has honored the document. If the power of attorney was recorded or used for real estate, record the revocation with the Register of Deeds. For a health care power of attorney, notify the health care agent and the attending physician so providers update the medical record.

Understanding the Problem

In North Carolina estate planning, the question is narrow: after a principal revokes a power of attorney, who must be notified so financial institutions and health care providers honor the change? The key roles are the principal (who holds the power to revoke) and the current agent. The action is revocation and delivery of notice. Timing matters because third parties may rely on a prior document until they receive actual notice. After the principal’s death, authority to act shifts to a court‑appointed personal representative.

Apply the Law

North Carolina law allows a principal to revoke a financial power of attorney and a health care power of attorney. Third parties (like banks) may rely on a prior, acknowledged power of attorney until they have actual knowledge of revocation, so targeted notice is essential. If the power of attorney was recorded or used to affect real property, the revocation should be recorded in the same Register of Deeds. For health care, communicate revocation to the health care agent and the attending physician so providers update the chart. After death, any power of attorney ends, and only a personal representative appointed by the Clerk of Superior Court has authority.

Key Requirements

• Principal’s revocation: The principal signs a written revocation or executes a new document that clearly revokes prior powers.
• Actual notice to the agent: Deliver the revocation to the former agent so the agent’s authority is cut off in practice.
• Notice to third parties: Send the revocation to banks, brokerages, insurers, benefits administrators, and any institution that has or has relied on the old power.
• Record if real estate is involved: If the power of attorney was recorded or used for real estate, record the revocation with the county Register of Deeds.
• Health care providers: Inform the health care agent and attending physician; ask providers to update the medical record and replace copies.
• After death: The power ends at death; only a court‑appointed personal representative (executor/administrator) may act for the estate.

What the Statutes Say

• North Carolina Gen. Stat. § 32C-1-119 (Acceptance and reliance on a power of attorney) – Banks and others may rely on a power of attorney until they have actual knowledge of termination or revocation.
• North Carolina Gen. Stat. § 47-28 (Recording revocation of power of attorney) – Record revocations affecting real property in the Register of Deeds.
• North Carolina Gen. Stat. § 32A-24 (Health care power of attorney: revocation) – Health care powers can be revoked; notice to the physician ensures providers honor the change.
• North Carolina Gen. Stat. § 32C-1-116 (Proceedings for judicial relief) – Court relief is available if an agent continues to act or a third party refuses to honor a valid change.

Analysis

Apply the Rule to the Facts: Because the parent is living, the parent (not the agent) must sign the revocation of the existing power of attorney. To ensure banks and providers honor the change, deliver the revocation to the current agent and to each financial institution that has the document on file. For health care, notify the health care agent and the attending physician so medical records are updated. At the parent’s death, the power ends; authority passes to the personal representative once the Clerk of Superior Court issues Letters.

Process & Timing

1. Who files: Principal. Where: Not a court filing; deliver to the former agent and all institutions relying on the document; record with the Register of Deeds if the power affected real estate. What: Written Revocation of Power of Attorney (financial and/or health care). When: As soon as the principal signs; send notice immediately so third parties have actual knowledge.
2. For financial institutions: Send the revocation and a government‑issued ID copy to each bank, brokerage, insurer, and benefits administrator; ask them to update authorizations. Allow several business days for processing; practices vary by institution.
3. For health care providers: Give the revocation to the health care agent and attending physician; provide copies to primary care and any hospital system; request confirmation that the chart reflects the change. If the prior document is in a patient portal, upload or deliver the revocation there as well.
4. If real property was involved: Record the revocation with the county Register of Deeds where the original was recorded and where any affected property is located; provide stamped copies to any title company or lender that relied on the prior power.
5. After death: Who files: The nominated executor or an heir/other interested person. Where: Clerk of Superior Court (estate division) in the county of domicile. What: Application for Probate and Letters (AOC‑E‑201 if there is a will; AOC‑E‑202 if no will). When: Promptly after death to obtain Letters and authority.

Exceptions & Pitfalls

• Third‑party reliance: Banks may rely on a prior, acknowledged power until they have actual knowledge of revocation—always provide written notice and keep proof of delivery.
• Recording gap: If a recorded power of attorney was used for real estate, failing to record the revocation can leave the land records showing old authority.
• Wrong signer: An agent cannot unilaterally revoke the principal’s power. If the principal lacks capacity and a guardian of the estate is appointed, the guardian may address the power through the court process.
• Health care charts: Providers typically follow what is in the medical record; if the attending physician is not notified, staff may continue to honor the old document.
• After death: An agent’s authority ends immediately at death—notify institutions of death and work through the personal representative with Letters; do not continue using a power of attorney post‑death.

Talk to a Estate Planning Attorney

If you’re dealing with revoking a power of attorney and making sure banks and providers honor the change, 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.