Feb182026
Guardianship Q&A Series

How can I get legal authority to sign settlement paperwork for my spouse who is in hospice and can’t physically sign? – North Carolina

Short Answer

In North Carolina, the cleanest way to get legal authority to sign settlement paperwork for a spouse who cannot physically sign is usually (1) using an existing, valid durable power of attorney that gives authority over claims/settlements, or (2) asking the Clerk of Superior Court to appoint a guardian (sometimes an interim guardian on an expedited basis) with authority over the spouse’s estate.

If the spouse still has decision-making capacity but cannot sign, a notary may be able to complete the document using a legally recognized signing method (such as a directed signature) depending on what the settlement documents require. The right option depends on whether the spouse can still communicate a clear decision and whether a power of attorney already exists.

Understanding the Problem

In North Carolina, a spouse in hospice may still understand a settlement and want it finalized, but be unable to speak or physically sign a release, settlement agreement, or other closing paperwork. The decision point is whether legal authority can be created quickly and correctly so another person can sign on the spouse’s behalf without the settlement being rejected later. The most common paths are acting under a power of attorney, getting a guardianship order through the Clerk of Superior Court, or using a signing method that still counts as the spouse’s own signature when physical signing is not possible.

Apply the Law

North Carolina generally requires a valid legal authority before one person can bind another person to a settlement. That authority most often comes from (a) an attorney-in-fact acting under a properly executed power of attorney, or (b) a court-appointed guardian with powers over the person’s “estate” (meaning money, property, and legal claims). When time is short and there is a risk of financial harm if a settlement cannot be signed, North Carolina law also allows an interim (temporary) guardian to be appointed with limited powers for a short period.

Key Requirements

  • Capacity vs. incompetency: If the spouse can still understand the settlement and communicate a choice, the goal is often to complete a valid signing process (or use a power of attorney if already in place). If the spouse cannot make or communicate decisions reliably, guardianship may be required.
  • Proper legal authority to sign: A spouse does not automatically have authority to sign settlement paperwork for the other spouse. Authority usually must come from a power of attorney or a guardianship order that covers financial/legal matters.
  • Document acceptance and proof: Even when authority exists, the settlement payer (insurer/defendant) and any involved court may require proof (recorded power of attorney, letters of guardianship, and/or a notary certificate) before accepting the signature.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The spouse is in hospice, appears to understand what is happening, but cannot speak or physically sign. That fact pattern often means there may still be capacity, but there is a practical barrier to signing. If a durable power of attorney already exists and includes authority to handle claims/settlements, the attorney-in-fact can usually sign the settlement paperwork in a way North Carolina recognizes. If there is no power of attorney (or it does not cover the needed authority), and the spouse cannot reliably communicate decisions, a guardianship—sometimes an interim guardianship—may be the fastest lawful way to obtain authority to sign on the spouse’s behalf.

Process & Timing

  1. Who files: typically the spouse (or another interested person) files. Where: the Clerk of Superior Court in the county where the spouse resides or is present for the guardianship proceeding. What: a petition to adjudicate incompetence and appoint a guardian; if time-sensitive, a verified motion for an interim guardian may be filed at the same time. When: as soon as it becomes clear the settlement cannot be signed and there is a risk the opportunity will be lost or delayed.
  2. Interim (emergency-style) authority if needed: if the facts show an imminent or foreseeable risk of harm to the spouse’s estate that requires immediate intervention, the clerk must set a hearing promptly, and the hearing must be held as soon as possible and no later than 15 days after the motion is served on the respondent. If granted, the order should list the specific powers (for example, authority to sign a particular settlement release).
  3. After appointment: once appointed, the guardian (or interim guardian) receives letters/authority documents from the clerk and can present them to the settling parties. If the authority involves the spouse’s estate, the clerk may require a bond and may require reporting/accounting.

Exceptions & Pitfalls

  • “Spouse” status alone is not enough: marriage does not automatically give authority to sign a settlement release for the other spouse. Settlement payers commonly reject “next-of-kin” signatures without a power of attorney or guardianship paperwork.
  • Power of attorney gaps: some powers of attorney are limited, expired, or do not clearly authorize handling claims, signing releases, or settling litigation. Even with a valid power of attorney, the other side may ask for proof that it is effective and, in some contexts, recorded.
  • Capacity and undue influence concerns: when a person is seriously ill, the other side may scrutinize whether the spouse understood the settlement and acted voluntarily. Clear documentation, proper notarization, and a careful process reduce later challenges.
  • Health care power of attorney is usually not enough for money/legal claims: a health care power of attorney generally covers medical decisions, not signing a financial settlement release. A separate durable (financial) power of attorney or guardianship of the estate is usually needed for settlement authority.
  • Interim guardianship is limited and short: an interim guardian’s powers must be narrowly tailored, and the appointment ends quickly (often before a full incompetency hearing is completed). The order should match the settlement task that needs to be done.

For additional background on how North Carolina courts approach temporary authority and when guardianship may still be needed even with older documents, see emergency or temporary guardianship and whether older powers of attorney can avoid guardianship.

Conclusion

In North Carolina, legal authority to sign settlement paperwork for a spouse who cannot physically sign usually comes from a valid durable power of attorney that covers the settlement task or from a guardianship order issued by the Clerk of Superior Court (often a guardian of the estate, or an interim guardian if immediate action is needed). If time is critical and there is a risk of financial harm, the next step is to file a guardianship petition and, if appropriate, a verified motion for an interim guardian with the Clerk of Superior Court, then present the resulting letters/order to the settling parties.

Talk to a Guardianship Attorney

If a spouse in hospice cannot physically sign settlement paperwork, a fast, correct plan can prevent delays and reduce the risk of the settlement being rejected. Our firm has experienced attorneys who can help evaluate whether a power of attorney can be used, or whether an interim or full guardianship through the Clerk of Superior Court is the right path. 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.