Jan212026
Guardianship Q&A Series

Can a power of attorney be revoked or challenged if the agent is taking money for themselves? – North Carolina

Short Answer

Yes. In North Carolina, a power of attorney can often be revoked by the principal (the person who signed it) if the principal still has capacity. If the agent is taking money for personal use, that conduct can also be challenged as a breach of fiduciary duty, and a court process (often through the Clerk of Superior Court in a guardianship case) may be used to protect the older relative’s finances and stop further harm.

Understanding the Problem

Under North Carolina guardianship and elder-law disputes, the core question is: can a family member stop or unwind a power of attorney arrangement when the agent appears to be using the older relative’s money for the agent’s own benefit? The decision point usually turns on whether the older relative still has the ability to understand and revoke the power of attorney, or whether court involvement is needed to protect the older relative and the older relative’s property.

Apply the Law

In North Carolina, a power of attorney (POA) is meant to let an “agent” act for the “principal.” The agent must act like a fiduciary—meaning the agent must put the principal’s interests first, keep good records, and avoid using the principal’s money as if it were the agent’s own. If the principal still has capacity, the principal can usually revoke the POA and notify the people relying on it (like banks). If the principal does not have capacity, family members often look to the Clerk of Superior Court through a guardianship proceeding to protect the person and the estate, which can effectively override or cut off the agent’s control.

Key Requirements

  • Capacity to revoke (or need for court protection): If the principal can still understand the POA and the consequences of ending it, revocation is often the fastest route. If not, a guardianship filing may be needed to protect the principal and the principal’s assets.
  • Proof of misuse or self-dealing: The concern is not just “unfairness,” but whether the agent used the principal’s funds for the agent’s personal benefit or outside the authority granted by the POA, especially without clear documentation and a legitimate reason tied to the principal’s needs.
  • Proper notice and practical cutoff: Even after revocation or a challenge begins, third parties (like financial institutions) may keep honoring the agent until they receive actual notice. Cutting off access often requires prompt written notice and follow-through.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the concern is that a sibling (the agent) may be taking money from an older relative under a power of attorney. If the older relative still understands what the POA is and what it means to end it, revocation and immediate notice to banks and other institutions can cut off the agent’s access. If the older relative does not have that capacity, a guardianship filing with the Clerk of Superior Court can be the tool to protect the older relative’s estate and to put a court-supervised fiduciary in place.

Process & Timing

  1. Who acts first: If the principal has capacity, the principal revokes. If capacity is doubtful and money is at risk, a concerned family member (or other interested person) may file a verified petition. Where: The Clerk of Superior Court in the county where the older relative resides (or is present, depending on the circumstances). What: A petition to adjudicate incompetence and, when urgent, a verified motion for an interim guardian. When: If there is an imminent or foreseeable risk to the estate, an interim guardian hearing must be held as soon as possible and no later than 15 days after the motion is served on the respondent.
  2. Immediate protection step: If the Clerk appoints an interim guardian, the order will list limited powers aimed at stopping further harm to the estate (for example, taking control of accounts or requiring information needed to secure assets). The interim guardianship is temporary and is designed to bridge the gap until the incompetency case is decided.
  3. Longer-term outcome: If the court later appoints a guardian of the estate, that guardian typically becomes the lawful decision-maker for finances, which can effectively end the agent’s practical control under the POA. The guardian then works to secure assets, demand records, and address questionable transactions through appropriate court procedures.

Exceptions & Pitfalls

  • Capacity disputes: A revocation only works if the principal can understand and communicate the decision. If capacity is contested, relying on “revocation only” can fail and allow continued access while the dispute escalates.
  • Authority depends on the document: Some POAs give broad gifting powers; others do not. A transfer that looks like “stealing” may be defended as an authorized gift or reimbursement if the document clearly allows it and the records support it.
  • Notice problems: Even a valid revocation may not stop transactions if banks or other institutions have not received actual notice. Written notice and follow-up are critical to prevent continued withdrawals.
  • Record gaps: A common practical problem is missing bank statements, unclear “cash” withdrawals, or commingling funds. Building a clear timeline of transactions often determines whether a challenge gains traction.

For more North Carolina-specific guidance on immediate protective steps and documentation, see steps to protect a parent’s finances and what records to gather.

Conclusion

In North Carolina, a power of attorney can be revoked if the principal still has capacity, and suspected self-dealing by an agent can be challenged through court action when protection is needed. When the older relative cannot safely revoke due to capacity concerns, the usual next step is filing with the Clerk of Superior Court to seek guardianship protection, including an interim guardian in urgent cases. If immediate financial harm is likely, the key timing issue is requesting interim relief so the hearing occurs within the statutory timeframe.

Talk to a Guardianship Attorney

If there is concern that an agent under a power of attorney is taking money for personal use, quick action can matter, especially when capacity and urgent financial risk are involved. Our firm has experienced attorneys who can help explain options and timelines under North Carolina guardianship law. 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: Guardianship 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.