Dec32025
Guardianship Q&A Series

Can I manage my sibling’s finances as guardian even if I cannot contribute my own funds, and how is that different from being a representative payee? – North Carolina

Short Answer

Under North Carolina law, a guardian of the estate manages the ward’s money and property but is not required to spend personal funds on the ward’s care. The guardian must use only the ward’s assets and benefits, under court supervision, to pay for the ward’s needs. A representative payee, by contrast, is appointed by a benefit agency (often Social Security) only to receive and spend a specific check for the beneficiary, without the broader powers and court oversight that come with a guardianship of the estate.

Understanding the Problem

The narrow issue is whether, in North Carolina, a sibling who does not have money to contribute personally can still serve as guardian of the person and guardian of the estate for an adult with mental health challenges, and how that financial role differs from serving as a representative payee for public benefits. The question focuses on what a guardian must do with the ward’s limited resources, whether the guardian ever has to “make up the difference” from personal funds, and how the scope of responsibility and oversight compares to a representative payee arrangement for benefits like Social Security.

Apply the Law

North Carolina separates decision-making about a person’s care (guardian of the person) from decision-making about money and property (guardian of the estate or general guardian). The clerk of superior court in the ward’s county oversees these guardianships and keeps jurisdiction over the case. For an adult in a mental health facility, guardianship law works together with mental health and social services statutes to define who pays what, using whose money, and under what supervision.

Key Requirements

  • No duty to use personal funds: A guardian of the estate must manage and spend the ward’s own assets and income for the ward’s benefit; the statutes do not require the guardian to contribute personal money when the ward’s funds are insufficient.
  • Fiduciary management of the ward’s estate: A guardian of the estate (or general guardian) must gather, safeguard, and prudently manage the ward’s money and property, pay lawful bills from the ward’s funds, and account regularly to the clerk of superior court.
  • Representative payee is narrower and agency-based: A representative payee is typically appointed by a benefits agency (such as Social Security) just to receive and use a specific benefit payment for the beneficiary, without the broader court-ordered powers, bonding, or full-accounting duties of a North Carolina guardian of the estate.

What the Statutes Say

Analysis

Apply the Rule to the Facts: In the described situation, a sibling who lacks personal funds still can ask the clerk of superior court in the appropriate North Carolina county to be appointed guardian of the person and guardian of the estate (or general guardian). The guardian’s job would be to collect and manage the ward’s own income and assets, including any benefit payments, and then pay the facility and other expenses from those funds as required by the guardianship and mental health statutes. If the ward has little or no money, the guardian is not required to make up shortfalls personally, but must help pursue available public benefits or other resources. Serving as a representative payee would be a separate, more limited role created by the benefits agency, focused only on receiving and using specific checks for the ward.

Process & Timing

  1. Who files: An interested person, such as the sibling, files a verified petition for adjudication of incompetence and for appointment of a guardian with the Clerk of Superior Court in the North Carolina county that has jurisdiction (often where the ward is domiciled or receiving services). What: Use the guardianship petition and appointment forms provided by the North Carolina courts or the clerk’s office. When: As soon as ongoing financial and care decisions need formal authority, especially if a prior guardianship has lapsed or become unworkable.
  2. The clerk schedules and conducts a hearing on incompetence and the need for a guardian, may appoint a guardian ad litem to represent the ward’s interests, and considers who is best suited to serve. If a prior guardian exists in another jurisdiction, the clerk can review that history and, if appropriate, appoint a new guardian and address any transfer or successor issues.
  3. If appointed as guardian of the estate or general guardian, the sibling must post any required bond, file an initial inventory of the ward’s assets within the timeframe set by statute and the clerk, and then file periodic accountings showing all income and expenses. If a benefits agency later names a representative payee, that person must still apply those checks for the ward’s benefit, but the guardian of the estate remains responsible to the court for the overall financial picture.

Exceptions & Pitfalls

  • If the ward has no meaningful assets or income beyond public benefits, the clerk may view a full guardianship of the estate as unnecessary or may limit the guardian’s financial powers; in some cases, public agencies or a representative payee arrangement may handle the limited funds.
  • Failing to separate the guardian’s own money from the ward’s money, or paying the ward’s expenses from personal funds without clear records, can complicate accountings and create disputes about reimbursement.
  • Not coordinating with any existing representative payee or benefits agency can lead to interruptions in the ward’s income or misuse concerns; the guardian of the estate should ensure that benefit payments are properly directed and documented.
  • If a prior guardian or attorney-in-fact mishandled money, a successor guardian may need to work with the clerk on an accounting or recovery process rather than simply taking over current funds.

Conclusion

In North Carolina, a sibling who cannot afford to contribute personal money still may serve as guardian of the estate or general guardian, because the legal duty is to manage and spend the ward’s own funds prudently under court supervision, not to pay the ward’s bills out of pocket. This role is broader and more closely supervised than that of a representative payee, which is limited to handling specific benefit payments under agency rules. The key next step is to file a guardianship petition with the clerk of superior court in the proper county and be prepared to manage and report on the ward’s assets and income within the required deadlines.

Talk to a Guardianship Attorney

If a family member is in a North Carolina facility and there are questions about managing finances versus serving as a representative payee, our firm has experienced attorneys who can help explain the options, court process, 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: Guardianship Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.