Feb62026
Guardianship Q&A Series

Can we set up a bank account that requires two signatures so the person can’t withdraw money alone? – North Carolina

Short Answer

Sometimes, but it depends on what legal authority exists over the money. In North Carolina, a bank or credit union may allow a joint account to be set up so withdrawals require more than one signature if the account contract says so. If the goal is to stop an adult from accessing their own funds, that usually requires a court process (such as a guardianship of the estate) or a court-ordered restricted account rather than a simple “two-signature” arrangement.

Understanding the Problem

In North Carolina guardianship situations, the practical question is whether family members can create a bank account rule that prevents an adult child from withdrawing money alone, especially when there are safety concerns, escalating addiction behaviors, and rapid spending. The single decision point is whether the adult child still has legal control of the funds or whether a court-appointed fiduciary (or a court order) controls the funds. If the adult child still controls the money, a “two-signature” account may not reliably prevent withdrawals unless the financial institution’s account agreement requires it and the adult child cannot change or close the account.

Apply the Law

North Carolina law recognizes that joint accounts and other withdrawable accounts are governed by the account contract with the financial institution. For certain types of institutions, the statutes specifically say the institution can pay funds to any named account holder unless the account holders have agreed that withdrawals require more than one signature. Separately, when a guardian of the estate is appointed for an incompetent adult, the clerk of superior court retains ongoing authority over the guardianship and can require safeguards, including placing funds into a restricted account that cannot be withdrawn without court authorization.

Key Requirements

  • Legal authority over the funds: If the adult child is the sole owner and still legally competent, family members generally cannot impose binding withdrawal limits without the adult child’s agreement (or a court order).
  • Account contract that truly requires two signatures: A “two-signature” rule must be part of the financial institution’s account agreement; otherwise, many institutions may treat any named owner as able to withdraw.
  • Enforceable restriction when court involvement is needed: If the situation requires preventing access for safety or to stop dissipation, a guardianship of the estate (or another court-approved protective arrangement) may allow funds to be placed where withdrawals require court authorization.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The concern described involves escalating addiction behaviors, missed major bills, rapid depletion of investments, and statements suggesting self-harm, along with worries about household theft. If the adult child still has legal control of their accounts, a family-created “two-signature” setup only works if the adult child agrees to the account terms and the financial institution actually enforces the two-signature requirement. If the adult child is not willing or is able to close the account, move funds, or open new accounts, a two-signature account often does not solve the underlying control problem; a court-supervised option (like a guardianship of the estate with restricted deposits) may be the more reliable tool.

Process & Timing

  1. Two-signature account option (voluntary): Who sets it up: the adult child (and any co-owner) with the financial institution. Where: at the bank/credit union. What: an account agreement that explicitly requires two signatures for withdrawals. When: as soon as the institution can open the account; timing depends on the institution’s policies.
  2. Court-restricted account option (guardianship context): Who seeks it: a court-appointed guardian of the estate (or an applicant in a guardianship proceeding, depending on the stage). Where: the Office of the Clerk of Superior Court (estate/guardianship division) in the county with jurisdiction. What: an order directing funds be deposited so they cannot be withdrawn without court authorization, plus the financial institution’s written receipt/agreement filed with the court (commonly called a restricted deposit arrangement). When: after appointment and as directed by the clerk; timing varies by county and case urgency.
  3. Ongoing oversight: In a guardianship of the estate, the clerk typically requires inventories/accountings and may require the guardian to produce bank statements and investment documentation when accounts are filed, which creates continuing oversight of how funds are handled.

Exceptions & Pitfalls

  • Joint account risk: Adding a family member as a joint owner can create unintended ownership and survivorship issues, and it may expose the funds to the joint owner’s creditors depending on the facts. A “two-signature” rule does not automatically fix those risks.
  • Bank policy mismatch: Not every institution offers (or consistently enforces) true two-signature withdrawal requirements on consumer accounts. The account must be set up correctly in writing, and the institution’s procedures must match the family’s expectations.
  • Control can be bypassed: Even if one account is locked down, a person who still has legal capacity can open new accounts, move direct deposits, liquidate investments elsewhere, or use online transfers unless broader legal authority exists.
  • Guardianship is a serious step: Guardianship can restrict an adult’s rights and requires evidence and court oversight. It can be appropriate in some safety/financial exploitation situations, but it is not a simple banking workaround.
  • Safety concerns may require separate action: Statements suggesting self-harm may call for immediate safety steps outside the banking system. Financial controls do not address urgent mental health risk by themselves.

Conclusion

In North Carolina, a “two-signature” bank account can work only if the financial institution’s account agreement requires more than one signature for withdrawals and the adult child cannot unilaterally undo the arrangement. When the goal is to prevent an adult from accessing and depleting their own funds due to incapacity or safety concerns, a more enforceable approach is often a court-supervised guardianship of the estate with a restricted deposit that cannot be withdrawn without court authorization. The next step is to confirm who legally controls the funds and, if court protection is needed, file the appropriate request with the Clerk of Superior Court promptly.

Talk to a Guardianship Attorney

If a family is dealing with an adult child who is rapidly spending money and there are serious safety concerns, a guardianship plan may need to address both immediate control issues and longer-term court oversight. Our firm has experienced attorneys who can help explain options and timelines under North Carolina 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.