Jan282026
Guardianship Q&A Series

Can I use the protected person’s money to pay for personal needs and moving-related costs like groceries, clothing, storage, and transporting vehicles, and what records should I keep for the annual accounting? – North Carolina

Short Answer

In North Carolina, a guardian of the estate can generally use the ward’s money to pay the ward’s reasonable expenses for care, maintenance, and support, including many move-related costs if they are for the ward’s benefit and fit the ward’s financial circumstances. The guardian should avoid paying the guardian’s own personal expenses from the ward’s funds unless the expense is clearly a ward expense or a properly documented reimbursement for a ward-related cost advanced by the guardian. For the annual accounting, the clerk typically expects a clear ledger of all receipts and disbursements plus “vouchers” (receipts/invoices) or other verified proof for each payment.

Understanding the Problem

In a North Carolina guardianship, can a guardian use the protected person’s money to cover day-to-day needs and the costs of relocating the protected person into a memory care facility, such as groceries, clothing, storage fees, and transporting vehicles? What records must be kept so the guardian can file the required annual accounting with the Clerk of Superior Court and show that each payment was proper?

Apply the Law

North Carolina treats a guardian of the estate as a fiduciary. That means the guardian must manage the ward’s money for the ward’s benefit, use prudent judgment, follow court orders, and be able to prove where the money went. The main forum is the Estates/Guardianship division of the Clerk of Superior Court, where the guardian files inventories and annual accounts. Annual accounts are generally due within 30 days after the close of the fiscal year the guardian selects (subject to clerk-approved extensions), and the accounting must show all receipts and disbursements in a debit/credit format with proof of payments.

Key Requirements

  • Ward benefit (not the guardian’s personal benefit): Each expense should be for the ward’s support, care, maintenance, or protection of the ward’s property, not for the guardian’s personal needs.
  • Reasonableness and fit with the ward’s circumstances: Disbursements should be reasonable and suitable to the ward’s estate and situation, especially if expenses exceed the ward’s income in a given year.
  • Documented and traceable transactions: The guardian must be able to show receipts/invoices (or other verified proof) and keep records that match bank statements and the annual accounting categories.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts involve relocating an incapacitated parent into a memory care facility and transferring an existing guardianship/conservatorship. Under North Carolina’s fiduciary and accounting rules, many relocation expenses can be paid from the parent’s funds if they are truly for the parent’s benefit (for example, clothing needed for the new setting, storage of the parent’s belongings, or transportation costs tied to the parent’s property). The key is separating ward expenses from the relocating family member’s personal living expenses and keeping proof for each payment so the annual account can be supported with vouchers or verified proof.

What typically counts as a proper “ward expense” for moving and personal needs

  • Groceries and meals: Often proper if they are for the ward (for example, groceries purchased for the ward while transitioning between residences or while setting up the new placement). A common pitfall is mixing the ward’s groceries with the household’s groceries on one receipt without a clear breakdown.
  • Clothing and personal items: Often proper if the items are for the ward’s daily needs (clothing, shoes, toiletries, adaptive items). Keep itemized receipts and note why the purchase was needed (for example, facility requirements or seasonal needs).
  • Storage: Often proper if storage is used to protect the ward’s belongings during the transition or while deciding what property will be kept, sold, or distributed. The file should show what is being stored and why storage is necessary for the ward.
  • Transporting vehicles: Sometimes proper if the vehicle is the ward’s property and transport is needed to preserve the asset, sell it, or relocate it for safekeeping. If the vehicle is being transported primarily for someone else’s use, that can raise questions in the accounting.

Reimbursements vs. paying “personal” expenses

North Carolina law allows a guardian to be credited for reasonable expenses, but the safest practice is to treat reimbursements as a documented repayment of a specific ward expense that the guardian advanced personally. In other words, the record should show (1) the ward-related bill, (2) proof the guardian paid it, and (3) a reimbursement check or transfer that matches that exact amount and purpose. Paying the guardian’s own personal living expenses from the ward’s account without a clear ward purpose can create audit problems and may trigger clerk questions or objections.

For a related discussion of reimbursements in a guardianship context, see reimbursed from a parent’s funds for care-facility payments.

Process & Timing

  1. Who files: The guardian (typically the guardian of the estate or general guardian). Where: The Estates/Guardianship division of the Clerk of Superior Court in the county where the guardianship is pending. What: An annual account showing all receipts and disbursements in debit/credit format, supported by vouchers (receipts/invoices) or verified proof of payment. When: Under North Carolina law, annual accounts are generally due within 30 days after the close of the fiscal year selected by the guardian.
  2. Build the accounting file as transactions happen: Keep a running ledger (spreadsheet or bookkeeping report) that mirrors the categories used in the annual account. Match every line item to a receipt/invoice and to a bank statement entry.
  3. Be prepared for clerk review: The clerk can audit the account and require the guardian to produce vouchers or other verified proof. If the clerk finds the account insufficient, the clerk can order a corrected account and set deadlines to comply.

What records to keep for the annual accounting (practical checklist)

  • Itemized receipts and invoices (“vouchers”): Keep the full, itemized receipt (not just the credit card slip). For online purchases, keep the order confirmation and the invoice showing what was purchased.
  • Proof of payment: Bank statements, canceled checks/images, card statements, and payment confirmations that match each receipt/invoice.
  • A transaction log with purpose notes: For each expense, record the date, payee, amount, category, and a short note tying it to the ward (for example, “ward clothing for facility,” “storage for ward furniture during placement transition,” “vehicle transport to secure ward asset”).
  • Contracts and move documentation: Storage agreements, moving company contracts, mileage logs (if reimbursing mileage), towing/transport invoices, and any facility admission paperwork that explains the timing of the move.
  • Segregation records: Use a dedicated guardianship account for ward funds and avoid commingling. If a mixed receipt happens (for example, groceries purchased for multiple people), keep a written allocation and supporting notes showing which items were for the ward.
  • Inventory support: Keep a list of the ward’s major personal property being stored, moved, sold, or disposed of, with photos if helpful, so the accounting and inventory tell the same story.

Exceptions & Pitfalls

  • Commingling and “cash” problems: Cash withdrawals and mixed personal/ward spending are hard to prove later. If cash must be used, keep a contemporaneous log and receipts showing exactly how the cash was spent for the ward.
  • Expenses that look personal: Groceries, clothing, fuel, hotel stays, and meals can be questioned unless the records clearly show they were for the ward or necessary to protect the ward’s property during the move.
  • Over-spending relative to the estate: Even if an expense is for the ward, it still must be reasonable and suitable to the ward’s financial circumstances. Large one-time moving costs should be documented carefully with invoices and an explanation of why the expense was necessary.
  • Missing vouchers: North Carolina requires vouchers or verified proof for payments. Missing receipts often lead to clerk questions and can delay approval of the annual account.

Conclusion

In North Carolina, a guardian of the estate can generally use the protected person’s money to pay reasonable costs for the protected person’s care, maintenance, and support, including many relocation-related expenses, as long as the spending benefits the protected person and fits the protected person’s financial circumstances. The annual accounting must list all receipts and disbursements and be supported by vouchers or other verified proof. The next step is to keep an itemized receipt and matching proof of payment for every move-related expense so the annual account can be filed with the Clerk of Superior Court within 30 days after the fiscal year-end.

Talk to a Guardianship Attorney

If you’re dealing with paying relocation and care costs from a protected person’s funds while preparing for the annual accounting, our firm has experienced attorneys who can help explain options and timelines. Call us today at [CONTACT NUMBER].

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.