Short Answer

In North Carolina guardianships, the Clerk of Superior Court sets the bond based on the value of the ward’s personal property and the yearly income the guardian will control. Real estate value is not counted. With a corporate surety, the bond is typically at least 125% of those assets (or 110% if the personal property exceeds $100,000); with personal sureties, it is generally double. The clerk may lower the bond if funds are placed in a court-restricted account.

Understanding the Problem

You were appointed guardian in North Carolina, but the clerk has not issued Letters of Guardianship yet. You must post a surety bond and take your oath before the clerk will issue letters so you can manage your father’s finances and pursue Medicaid. The key question is how the clerk calculates the bond from your father’s assets and income you will manage.

Apply the Law

Under North Carolina law, the clerk sets a guardianship bond to protect the ward’s property under the guardian’s control. The amount is tied to: (1) the value of personal property the guardian will hold or manage, plus (2) the ward’s anticipated annual income the guardian will receive and disburse. The value of real estate itself is not included. The type of surety matters: corporate-surety bonds use a lower percentage than bonds backed by personal sureties. The clerk can later increase or reduce the bond if circumstances change, and will not issue letters until the bond and oath are filed.

Key Requirements

• Assets counted: Personal property the guardian will control and the ward’s expected annual income; exclude the value of real estate.
• Corporate surety amount: Typically at least 125% of the covered assets; if covered personal property exceeds $100,000, the clerk may accept 110%.
• Personal sureties amount: Generally double the covered assets (a higher threshold than corporate surety).
• Restricted accounts option: If funds are placed in an account that cannot be accessed without a court order, the clerk may exclude or reduce those funds in the bond calculation.
• Clerk oversight and adjustment: The clerk of superior court sets the initial bond and may later require increases or allow reductions when assets or income change.
• Timing for letters: The clerk issues Letters of Guardianship only after the bond is approved and the oath is taken.

What the Statutes Say

• N.C. Gen. Stat. § 35A-1231 (Guardian’s bond) – Describes when a bond is required, acceptable sureties, and how the clerk determines and adjusts the bond amount.

Analysis

Apply the Rule to the Facts: Because Letters of Guardianship have not issued, you must post a bond first. The clerk will total your father’s personal property you will control (for example, bank and investment accounts) and add the annual income you will receive for him. The clerk will not count the value of his home. If you use a corporate surety, expect a bond near 125% of that total (or 110% if the personal property component exceeds $100,000); with personal sureties, expect double. Placing liquid funds in a court-restricted account can reduce the bond.

Process & Timing

1. Who files: The newly appointed guardian or general guardian. Where: Clerk of Superior Court in the North Carolina county where the guardianship was granted. What: Guardianship bond (corporate surety or personal sureties) and the guardian’s oath of office; request issuance of Letters of Guardianship. When: Promptly after appointment; letters issue only after bond approval and oath.
2. The clerk reviews asset and income figures, confirms the surety, and may adjust the amount or request restricted accounts. This review often occurs the same day or within a few business days, but timing varies by county.
3. After approval, take the oath (if not already) and obtain certified Letters of Guardianship for banks, Medicaid planning, and third parties.

Exceptions & Pitfalls

• Counting the house: The clerk typically excludes real estate value; only include personal property and income you will control.
• Overstating covered funds: Income or benefits you will not actually receive or disburse may not require bonding—clarify who controls each stream.
• Missing the restricted account option: Ask whether placing funds in a court-restricted account could reduce the bond.
• Choosing personal sureties: Bonds with personal sureties generally require double the asset amount; corporate surety is often more practical.
• Changes over time: If new assets are discovered or proceeds are received later, the clerk may require a bond increase; plan for possible adjustments.

Talk to a Guardianship Attorney

If you’re dealing with a new guardianship and need to post a bond so you can obtain Letters of Guardianship and manage benefits, 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.