Short Answer

In North Carolina, a properly signed and notarized durable financial power of attorney (POA) lets an agent handle a parent’s money, accounts, and many benefits, but Social Security and certain federal benefits still require a separate representative payee or fiduciary. An agent may manage bank accounts, pay bills, and move funds if the POA grants that authority; changing beneficiary designations or ownership (like removing a sibling from a joint account) usually needs express powers and careful compliance. If your parent lacks legal capacity to sign a POA, you may need a court‑appointed guardian.

Understanding the Problem

You want to know if, in North Carolina, you can use a power of attorney to access and transfer your parent’s pension and benefits, and remove a sibling’s name from a joint account. Your parent now lives in North Carolina and has memory delays, and you were told to obtain both financial and health care powers of attorney but also heard about guardianship. This article explains what a POA can and cannot do, when guardianship becomes necessary, and how to handle government benefits and joint accounts.

Apply the Law

North Carolina’s Uniform Power of Attorney Act governs financial POAs. The parent (the principal) must have capacity to understand what the document does at the time of signing. A financial POA must be acknowledged before a notary; a health care power of attorney must be signed before two qualified adult witnesses and a notary. With a valid POA, the agent can work with banks, pension administrators, and insurers. However, Social Security and the VA generally require their own representative payee or fiduciary, regardless of any POA. If the parent cannot understand and sign a POA, you must seek a guardianship through the Clerk of Superior Court. The court can appoint a guardian of the estate to manage money and benefits, a guardian of the person for care decisions, or a general guardian to do both.

Key Requirements

• Capacity to sign: Your parent must understand the nature and effect of a POA at signing; otherwise, guardianship is the tool.
• Proper execution: Financial POA requires notarization; health care POA requires two qualified witnesses plus notarization; keep the originals accessible.
• Scope of authority: The POA must expressly authorize sensitive acts (for example, gifts or changing beneficiary designations) if those are needed.
• Government benefits: Social Security and VA typically ignore a POA and require a representative payee/VA fiduciary appointment.
• Joint accounts: An agent can manage funds for the parent, but removing another co‑owner usually requires closing and reopening an account in the parent’s name, consistent with fiduciary duties.
• Guardianship backup: If capacity is lacking or third parties refuse to honor a valid POA, file a guardianship before the Clerk of Superior Court; expect bonding and accountings for a guardian of the estate.

What the Statutes Say

• North Carolina Gen. Stat. § 32C-2-217 (Agent’s authority to make gifts) – certain “hot powers,” like gifting, require an express grant in the POA.
• North Carolina Gen. Stat. § 32A-22 (Suspending a health care agent) – a guardian of the person may ask the court to suspend a health care agent’s authority for good cause.
• North Carolina Gen. Stat. § 35A-1105 (Petition to adjudicate incompetence) – starts a guardianship case in the Clerk of Superior Court.
• North Carolina Gen. Stat. § 53C-6-6 (Joint bank accounts; survivorship) – addresses survivorship and the rights tied to joint bank accounts.

Analysis

Apply the Rule to the Facts: Because your parent has memory delays, first confirm whether they can still understand and sign a POA. If they can, use a North Carolina-compliant durable financial POA that specifically covers banking, retirement plans, and benefits, and a health care POA for medical decisions. For Social Security or VA payments, apply to be representative payee/VA fiduciary because a POA alone will not work. For the joint account, use your POA authority to safeguard the parent’s funds; if removal of a sibling is necessary, the safer approach is to open a new account in the parent’s name and transfer the parent’s funds, with clear records. If your parent cannot validly sign, petition for guardianship; a guardian of the estate can manage accounts and benefits under court oversight.

Process & Timing

1. Who files: If capacity exists, the parent executes the POAs. Where: Sign before a North Carolina notary; the health care POA also needs two qualified witnesses. What: Durable financial POA and health care POA documents; record the financial POA with the Register of Deeds only if it will be used for real estate. When: As soon as possible, while capacity is present.
2. Government benefits: Apply to Social Security for a representative payee and to the VA for a fiduciary if VA benefits are involved. Processing commonly takes weeks; provide medical and financial details the agencies request.
3. If guardianship is needed: Who files: You file a verified petition for adjudication of incompetence (AOC‑SP‑200) with the Clerk of Superior Court in the county where your parent lives. A guardian ad litem is appointed, the case is noticed for hearing, and the Clerk decides capacity and who should serve. If appointed guardian of the estate or general guardian, you post bond, receive Letters of Guardianship, and then use those letters to manage accounts, pensions, and benefits.

Exceptions & Pitfalls

• Social Security/VA will not accept a POA for managing benefits; you must be appointed as representative payee/VA fiduciary.
• Changing beneficiary designations or making gifts requires express authority in the POA and must be in the parent’s best interests; consider court approval for riskier moves.
• Removing a sibling from a joint account is not a simple “paper change.” Often the prudent step is to open a new account titled only to the parent and move the parent’s funds, documenting every transaction.
• Third‑party “form fatigue”: some banks or plans prefer their own forms. Provide an agent’s certification and, if needed, seek court relief if a valid NC‑compliant POA is unreasonably refused.
• If a guardian of the estate is later appointed, that guardian can revoke or limit a financial POA; coordinate handoffs to avoid gaps in authority.

Talk to a Guardianship Attorney

If you’re dealing with coordinating a parent’s benefits, POAs, joint accounts, or a potential guardianship, 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.