Sep122025
Guardianship Q&A Series

Can I still manage their finances and healthcare with my existing POAs? – North Carolina

Short Answer

In North Carolina, a valid financial power of attorney usually remains effective even if a court later appoints a guardian—but a guardian can revoke or limit the agent’s powers. A health care power of attorney also remains in place unless a court suspends the health care agent for good cause. If third parties (like the VA or a bank) won’t accept your POAs or your parents can’t sign required forms, you may need a limited or full guardianship to move forward.

Understanding the Problem

You’re in North Carolina, acting as financial agent and health care agent for your parents in memory care. You can’t finish required VA paperwork because your parents can’t sign and agencies are not honoring your current POAs. You want to know if you can keep using the POAs or if you must seek court-appointed guardianship through the Clerk of Superior Court.

Apply the Law

North Carolina law treats guardianship as a last resort; the court looks first to less restrictive options like powers of attorney. A court-appointed guardian does not automatically cancel a financial POA; instead, the guardian can revoke or amend it and the agent becomes answerable to the guardian. For health decisions, the health care agent keeps authority unless the court suspends that authority for good cause and directs how the guardian should act. Guardianships are handled by the Clerk of Superior Court, who can tailor a limited guardianship if only certain decisions require court authority.

Key Requirements

  • Capacity and need: The court must find your parent lacks capacity to manage affairs or make important decisions before appointing a guardian.
  • Less restrictive alternatives: The court considers whether existing POAs or other tools are sufficient before imposing guardianship.
  • Financial POA after guardianship: An appointed guardian of the estate or general guardian may revoke, amend, or oversee the agent’s authority; the agent is accountable to the guardian.
  • Health care POA after guardianship: A health care agent continues unless a court suspends the agent’s authority for good cause and specifies how the guardian may deviate.
  • Forum and oversight: Proceedings run before the Clerk of Superior Court; if a guardian of the estate is appointed, bond and ongoing accountings are required.

What the Statutes Say

Analysis

Apply the Rule to the Facts: You hold both financial and health care POAs, but agencies (like the VA) are not accepting them and your parents cannot sign new forms. Even though your financial POA likely remains valid, a guardian of the estate can step in to sign, manage assets, and satisfy agencies that insist on “Letters of Guardianship.” Your health care POA remains effective unless a court suspends it; if health decisions are working under the HCPOA, the court may leave that in place while granting a limited guardianship for financial matters.

Process & Timing

  1. Who files: You (as interested child). Where: Clerk of Superior Court in the county where your parent resides in North Carolina. What: A verified Petition for Adjudication of Incompetence and Application for Appointment of Guardian (AOC-SP-200). After appointment, apply for Letters of Guardianship (AOC-E-206). When: As soon as third parties refuse to honor the POAs or urgent financial/benefits tasks require court authority.
  2. The clerk serves the respondent, appoints a guardian ad litem, may order evaluations, and schedules a hearing. Many counties reach hearings within a few weeks; urgent cases can seek an interim or emergency guardian.
  3. After the hearing, if a guardian is appointed, you’ll receive an order and Letters of Guardianship. For an estate guardianship, expect to post bond and file ongoing accountings. Present Letters to banks, insurers, and the VA to complete transactions and paperwork.

Exceptions & Pitfalls

  • If your POAs are comprehensive and institutions accept them, a guardianship may be unnecessary; courts prefer the least restrictive solution.
  • A financial guardian may revoke or limit a POA; coordinate to avoid conflicting instructions and to protect against liability.
  • A health care agent keeps authority unless a court suspends it for good cause—don’t assume appointment of a guardian automatically cancels the HCPOA.
  • VA benefits often require a separate VA fiduciary process; a North Carolina guardianship helps but does not automatically make you the VA fiduciary.
  • Guardians of the estate must post bond and file inventories and annual accounts; missing these can cause delays or removal.

Conclusion

In North Carolina, financial POAs usually continue even if a guardian is appointed, but a guardian can revoke or control the agent’s powers; health care POAs remain unless a court suspends the agent for good cause. When agencies refuse your POAs or signatures are needed that your parents cannot provide, seek a tailored guardianship. Next step: file a petition for incompetency and guardianship with the Clerk of Superior Court in your parents’ county and request limited powers targeted to the tasks you cannot complete with the POAs.

Talk to a Guardianship Attorney

If you’re dealing with agencies refusing to honor your POAs or you need authority to manage finances and care decisions, 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: 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.