Jan272026
Guardianship Q&A Series

If a relative accuses me of fraud in a guardianship case, what should I do to protect myself and respond appropriately? – North Carolina

Short Answer

In North Carolina, a fraud accusation in a guardianship case should be treated as both a court problem and a documentation problem. The safest response is to stop informal money handling, gather records that show every dollar in and out, and address the accusation through the Clerk of Superior Court (the official who supervises guardianships). If there is a deadline to file inventory/accounting paperwork, meeting it on time and with proof (receipts, statements, and facility invoices) is often the most effective way to protect the ward and reduce personal risk.

Understanding the Problem

In a North Carolina adult guardianship, can a family caregiver who started the guardianship process respond to a relative’s “fraud” claim in a way that protects the incapacitated parent and reduces personal exposure? The decision point is whether the accusation involves money or benefits that are (or will be) under court supervision, such as income, Social Security, facility payments, or reimbursements for care-related expenses. The practical goal is to respond in the correct forum (the Clerk of Superior Court) and to match the response to the court’s paperwork requirements and the guardian’s fiduciary duties.

Apply the Law

North Carolina guardianships are supervised by the Clerk of Superior Court. When money is involved, the guardian (or a person seeking to serve as guardian) is expected to handle the ward’s funds transparently, keep the ward’s money separate, and be able to prove what was received and what was spent. If a guardian fails to file required inventories or accountings, or if the clerk receives a complaint about mismanagement, the clerk can order an accounting, investigate, and (in serious cases) remove the guardian and appoint a successor.

Key Requirements

  • Documented money trail: Every receipt, deposit, transfer, and payment should be traceable to a bank statement, invoice, or receipt, with a clear purpose tied to the ward’s needs.
  • Timely court filings: Guardians must file required inventories and accountings in the clerk’s office, and the clerk can compel compliance if filings are missing or incomplete.
  • Fiduciary conduct: A guardian must act for the ward’s benefit, avoid conflicts, and follow clerk orders; allegations of waste, conversion, or mismanagement can trigger removal proceedings.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a caregiver who moved a parent with progressing dementia into assisted living and then skilled care, and who started a guardianship process that is approved but still needs final paperwork. A fraud accusation in this setting usually focuses on whether the caregiver handled the parent’s money or benefits without clear documentation or without proper authority while the guardianship paperwork was still being finalized. Because the facility is set to act as payee for income/benefits, the cleanest risk-reduction step is to align benefit handling with the payee arrangement and ensure the clerk’s file is current with any required inventory/accounting paperwork and supporting proof.

Process & Timing

  1. Who files: The guardian (or proposed guardian) responds and files required guardianship paperwork. Where: The Special Proceedings division in the office of the Clerk of Superior Court in the county where the guardianship is pending. What: Any missing qualification paperwork, inventory/accounting documents required by the clerk, and a written response (through counsel when appropriate) to any motion/complaint seeking investigation or removal. When: If an annual account is due, it is generally due within 30 days after the close of the fiscal year selected by the guardian under N.C. Gen. Stat. § 35A-1264; if the clerk issues an order to account, the order will set the response deadline.
  2. Build the proof package: Gather bank statements, benefit award letters, facility contracts and invoices, proof of payments, and receipts for any reimbursements. Organize them by month and by category (facility costs, medical, personal needs). The goal is to make the clerk’s audit straightforward and to show that spending matched the parent’s needs.
  3. Attend any clerk hearing and follow orders: If the accusing relative files something with the clerk (or the clerk acts on a complaint), the clerk may set a hearing or require an accounting. A clear, document-backed explanation and prompt compliance with any follow-up orders reduces the chance of sanctions, removal, or referral for further investigation.

Exceptions & Pitfalls

  • Mixing funds: Combining the parent’s money with a caregiver’s personal account (even for convenience) is one of the fastest ways a “fraud” allegation gains traction. Keeping separate accounts and clear memos for every transaction matters.
  • Cash withdrawals and undocumented reimbursements: Cash is hard to prove. If reimbursements occurred (mileage, supplies, co-pays), the safest approach is receipts, a simple ledger, and a clear explanation tied to the parent’s care.
  • Ignoring clerk paperwork because the case is “almost done”: When final paperwork is still pending, the risk is higher because authority can be unclear to outsiders. Missing inventories/accountings can trigger the clerk’s power to compel filings and consider removal. See N.C. Gen. Stat. § 35A-1265 and N.C. Gen. Stat. § 35A-1290.
  • Talking too much in the wrong setting: A family dispute can lead to reports to the facility, a bank, Adult Protective Services, or law enforcement. Written communications should stay factual and document-based, and any request for an interview should be handled carefully and, when appropriate, through counsel.

Conclusion

In North Carolina, a fraud accusation in a guardianship case is handled through the Clerk of Superior Court’s supervision of the guardian and the ward’s estate. The best protection is a complete, organized paper trail and strict compliance with inventory and accounting requirements, including producing receipts or verified proof for payments. The practical next step is to file any missing guardianship paperwork and be ready to provide a full accounting package to the clerk’s office by the deadline set by the clerk (or, for annual accounts, within 30 days after the fiscal year-end selected under state law).

Talk to a Guardianship Attorney

If a relative is alleging fraud in a North Carolina guardianship, our firm has experienced attorneys who can help clarify authority, prepare an accounting that matches the clerk’s requirements, and respond appropriately to motions, complaints, or investigations. 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.