Short Answer

Yes. In North Carolina, you can challenge enhanced life estate (Lady Bird) deeds that were signed when a parent lacked capacity or were the product of undue influence. If a sibling used a power of attorney to engineer or sign those deeds, the clerk of superior court can order an accounting and limit or suspend the agent, and the superior court can set aside the deeds and award remedies for breach of fiduciary duty. Acting before death—through a guardianship and a targeted power‑of‑attorney proceeding—can protect assets and preserve your claims.

Understanding the Problem

In North Carolina, can you undo Lady Bird deeds your sibling recorded while acting under a power of attorney if your parent—now in their 90s—has advanced dementia? This question sits at the intersection of guardianship (to protect an incapacitated adult) and fiduciary oversight (to police an agent under a power of attorney). You want to know whether to file for guardianship now or wait until death, and whether a civil breach of fiduciary duty claim is viable.

Apply the Law

North Carolina law allows two parallel tracks when a power of attorney is misused: (1) a proceeding before the Clerk of Superior Court to compel an accounting, limit or remove the agent, and obtain immediate protective orders; and (2) a civil action in Superior Court to set aside deeds, recover property, and pursue monetary remedies for breach of fiduciary duty. A valid Lady Bird deed still requires the grantor to have capacity and to act free of undue influence; when an agent is involved, the agent must have express authority to make gifts or create remainder interests, and must act in the principal’s best interests.

Key Requirements

• Capacity/voluntariness: The parent must have understood the nature of the deed and acted free from undue influence.
• Agent’s authority: If an agent arranged or signed the deeds, the power of attorney must expressly permit gifting or self‑dealing that creates remainder interests.
• Fiduciary duty: An agent must act loyally and in the principal’s best interests; misuse can lead to court-ordered accounting, suspension, and restitution.
• Proper forum: Protective/accounting relief is initiated before the Clerk; damages and deed‑cancellation claims are filed in Superior Court.
• Timing: Clerk proceedings run on short response timelines; civil claims have statutes of limitation that can run from recording or discovery.

What the Statutes Say

• N.C. Gen. Stat. § 32C-1-116 (Judicial relief re: powers of attorney) – Clerk can compel an accounting, limit/suspend an agent, and address agent authority.
• N.C. Gen. Stat. § 32C-1-117 (Agent liability; remedies) – Court may void acts, impose constructive trusts, order restoration, and award other relief.
• N.C. Gen. Stat. § 32C-2-217 (Gifts) – Gifts by an agent require specific authority and must meet statutory limits or court approval.
• N.C. Gen. Stat. § 31-32 (Caveat to a will) – Will contests must be filed within three years after probate.

Analysis

Apply the Rule to the Facts: Your parent’s advanced dementia raises serious capacity and undue influence concerns about recently recorded Lady Bird deeds. If your sibling used a power of attorney to arrange or sign them, the agent needed clear gift/self‑dealing authority and had to act in your parent’s best interests; otherwise, those deeds can be targeted for cancellation and restitution, and the agent can be suspended. Waiting until death preserves a will caveat option, but Lady Bird deeds pass outside probate, so post‑death remedies often still require deed‑focused civil claims.

Process & Timing

1. Who files: Any interested person (often a child). Where: Clerk of Superior Court in the county where your parent resides. What: Petition for adjudication of incompetence and appointment of a guardian (AOC-SP-200) and a separate petition under the power‑of‑attorney statutes to compel an accounting and limit/suspend the agent. When: File promptly; the agent typically has about 20 days after service to respond in clerk proceedings before a hearing is noticed.
2. After protective orders/accounting are in place, file a civil action in Superior Court to set aside the Lady Bird deeds, assert breach of fiduciary duty, seek constructive trust, and recover wrongfully transferred property. Timeframes vary by county; initial scheduling may take weeks to a few months.
3. Final step: In the guardianship, expect an order on incompetence/guardian appointment. In the clerk POA case, expect an order on accounting and agent authority. In Superior Court, seek a judgment cancelling the deeds and awarding appropriate equitable and monetary relief.

Exceptions & Pitfalls

• If the parent had capacity and personally executed the deeds voluntarily, a challenge is harder.
• Some powers of attorney include explicit self‑gifting or estate‑plan‑mimicking authority; that can weaken a challenge if used in the principal’s best interests.
• Delay increases the risk of transfers to third parties and statute‑of‑limitations defenses.
• Use the Clerk’s process correctly: proper service, joining necessary parties, and required affidavits are critical; missing these can slow or derail relief.

Talk to a Guardianship Attorney

If you’re dealing with suspected misuse of a power of attorney and questionable Lady Bird deeds, 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.