Jan72026
Guardianship Q&A Series

If I suspect the other agent is taking money, what steps can I take to protect the parent’s finances while I’m out of state? – North Carolina

Short Answer

In North Carolina, the fastest way to protect an ill parent’s finances when a co-agent under a power of attorney may be misusing funds is to (1) gather and preserve records, (2) use the power of attorney to request information and tighten controls with financial institutions, and (3) consider court involvement if there is an imminent risk to the parent’s estate. If the parent lacks capacity and money is at immediate risk, an interim guardianship through the Clerk of Superior Court can create court-supervised authority to secure and manage assets.

Understanding the Problem

In North Carolina, when two siblings are named as co-agents under a parent’s power of attorney, the practical question is what can be done if one co-agent appears to be moving money for personal benefit while the other co-agent is out of state. The decision point is whether the situation can be stabilized using the existing power of attorney and bank controls, or whether the risk to the parent’s estate is serious enough to require the Clerk of Superior Court to step in through a guardianship-related process.

Apply the Law

North Carolina uses a court-supervised guardianship system when an adult is found incompetent and needs someone legally authorized to manage finances. Guardianship matters (including urgent, temporary relief) are handled through the Clerk of Superior Court. Separately, North Carolina law also has tools aimed at suspected financial exploitation of older adults or disabled adults, including reporting pathways and court processes that can help investigators obtain financial records quickly when time is critical.

Key Requirements

  • Proof of risk to the parent’s estate: To get emergency-type court intervention, the facts generally must show an imminent or foreseeable risk of harm to the parent’s property that needs immediate action.
  • Capacity and authority alignment: If the parent still has capacity, the parent can often change agents or revoke authority. If the parent lacks capacity, guardianship (or a limited protective order) may be the cleanest way to stop ongoing losses.
  • Documentation and traceability: Banks, investigators, and the court respond best to clear timelines, account statements, and specific transactions (dates, amounts, payees, transfers) rather than general suspicions.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, two siblings are co-agents under a power of attorney for an ill parent, and one co-agent suspects the other has been taking money. The immediate protection steps should focus on (1) building a clear record of questionable transactions, (2) using whatever authority the power of attorney gives to obtain statements and communicate with financial institutions, and (3) escalating to the Clerk of Superior Court for interim guardianship if there is reasonable cause to believe the parent lacks capacity and the estate faces an imminent or foreseeable risk of harm.

Process & Timing

  1. Who acts first: The concerned co-agent (and, if possible, the parent). Where: With the financial institutions holding the accounts and, if court action is needed, the Clerk of Superior Court in the county where the parent resides. What: Request statements, transaction histories, copies of checks, online access logs if available, and written confirmation of current signers/authorized users; ask the institution about internal “suspected exploitation” reporting channels. When: Immediately after the concern arises, before more transactions occur.
  2. Stabilize access: If the power of attorney and bank policies allow, tighten controls (for example, require two signatures for large withdrawals, remove debit cards, change online banking credentials, or move recurring bills to a controlled “bill pay” process). Some banks will place internal notes or heightened verification on an account when exploitation is suspected, and financial institutions have reporting duties in certain situations.
  3. Escalate if the risk is urgent: If the parent appears unable to protect finances and money is at immediate risk, file a verified incompetency petition and a verified motion for an interim guardian with the Clerk of Superior Court. Under North Carolina law, the interim-guardian hearing must be held as soon as possible and not later than 15 days after service, and the interim authority is limited and time-bound. If the situation is narrower (for example, a single account or a one-time transaction needs court direction), a single protective arrangement may be an option instead of a full guardianship.

Exceptions & Pitfalls

  • Co-agent authority can be tricky: Some powers of attorney require co-agents to act together, while others allow each co-agent to act independently. The document’s wording often determines whether one co-agent can unilaterally change account access or demand records, so having an attorney review the power of attorney language is a key early step.
  • Joint accounts and “it looks like a gift” defenses: If the sibling is a joint owner on an account, banks may treat withdrawals as authorized even when family members disagree. That does not automatically make the conduct proper, but it can complicate quick fixes and may push the case toward court oversight or a law enforcement/DSS investigation.
  • Delay and missing documentation: Waiting too long often leads to lost paper trails (missing check images, closed accounts, or incomplete histories). A clean, dated timeline of transactions and communications is one of the most effective ways to get meaningful action from banks, investigators, and the court.
  • Guardianship is powerful but serious: Guardianship can stop misuse by shifting authority to a court-appointed fiduciary, but it also involves formal proceedings, notice, and ongoing court supervision. It should be used when the parent cannot protect finances and less intrusive steps are not enough.

Conclusion

In North Carolina, protecting an ill parent’s finances from suspected misuse by a co-agent usually starts with documenting transactions, using the power of attorney to obtain records and tighten account controls, and involving the right authorities when exploitation is suspected. If the parent likely lacks capacity and there is an imminent or foreseeable risk of harm to the parent’s estate, the next step is to file a verified incompetency petition and a motion for an interim guardian with the Clerk of Superior Court so the court can grant limited, immediate authority to secure assets.

Talk to a Guardianship Attorney

If a co-agent under a power of attorney may be taking money and the parent’s finances need protection while a family member is out of state, our firm has experienced attorneys who can help review the POA language, assess the records, and 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.