Jan92026
Guardianship Q&A Series

If we are both power of attorney agents, can I move the person’s bank accounts to a different financial institution for better oversight? – North Carolina

Short Answer

Sometimes, but not automatically. In North Carolina, whether one co-agent can move a principal’s bank accounts to a different financial institution depends on how the power of attorney (POA) is written (for example, whether co-agents may act independently or must act together) and what the bank will accept. If there are credible concerns about misuse, moving accounts without clear authority can create conflict and may not stop another co-agent from accessing funds unless access is restricted or the POA is changed or suspended through proper steps.

Understanding the Problem

In North Carolina guardianship and POA disputes, a common question is: when two parents are both named as agents under a child’s financial power of attorney, can one agent change banks or move accounts to improve oversight when the other agent appears to be making questionable transfers? The decision point is whether the POA gives one co-agent the authority to act alone to change where the child’s money is held, or whether both agents must agree and act together for that kind of change.

Apply the Law

North Carolina generally allows an agent under a valid financial POA to manage the principal’s finances within the scope of authority granted in the document. When there are co-agents, the POA’s co-agent language matters because it controls whether one agent can act independently or whether joint action is required. Separately, banks and credit unions have their own procedures for recognizing an agent’s authority, and they may continue to honor transactions by an agent until they receive notice of revocation, death, or an adjudication of incompetency, depending on the institution type and situation.

Key Requirements

  • Authority in the POA document: The POA must grant authority broad enough to handle banking and to open/close accounts or move funds, and it must address how co-agents act (together or separately).
  • Acting for the principal’s benefit: An agent’s actions should be aimed at protecting and managing the principal’s money, not benefiting an agent personally. Suspicious self-transfers raise red flags and often require fast documentation and a plan to prevent further losses.
  • Bank acceptance and account titling rules: Even with a POA, a financial institution may require specific paperwork, may limit what can be done online, and may treat “agency” authority differently depending on how the account is set up.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, both parents are named as agents under a child’s POA, and one parent suspects the other has been transferring money to themself and making withdrawals without clear justification. If the POA allows each co-agent to act independently, one agent may be able to open a new account and move funds for oversight, but that does not automatically prevent the other co-agent from continuing to access existing accounts or opening new ones unless the institution changes access or the POA authority is limited. If the POA requires co-agents to act jointly, a unilateral bank move can be rejected by the institution and can also create a dispute about whether the move was authorized.

Process & Timing

  1. Who files: No court filing is required just to change banks, but the agent acting must have clear POA authority. Where: At the current financial institution and the new financial institution. What: The signed POA (and any bank-specific POA/agent certification forms), identification, and written instructions consistent with the POA. When: As soon as suspicious activity is identified, because delays can make it harder to trace transactions and stop ongoing withdrawals.
  2. Next step: Ask the institution what controls are available (for example, dual signature requirements, transaction alerts, online access limits, or requiring in-person withdrawals). Some institutions will not implement all requested controls without both co-agents’ consent or without a court order.
  3. Final step: If the other agent’s conduct appears improper and cannot be stopped through bank controls, the practical next step is often a legal intervention to protect the child’s assets (for example, seeking court involvement through a guardianship or other protective proceeding, depending on the child’s situation and the POA terms).

Exceptions & Pitfalls

  • Co-agent authority may be joint: Some POAs require co-agents to act together. In that case, one agent may not be able to move accounts alone, and a bank may refuse the transaction.
  • Moving accounts may not stop access: Even if funds are moved, the other agent may still have authority under the POA to access other accounts, reopen accounts, or transact elsewhere unless the authority is changed or suspended.
  • Recordkeeping problems: A bank move done in the middle of suspected misuse can create confusion unless statements, transaction histories, and a clean paper trail are preserved first. Missing records can make it harder to prove what happened and when.
  • Self-help can escalate conflict: A unilateral move can trigger accusations between co-agents. When misuse is suspected, a documented plan (records request, written notice to the institution, and legal advice about protective options) usually reduces risk.

Conclusion

In North Carolina, one co-agent can sometimes move a principal’s bank accounts to a different financial institution, but only if the power of attorney authorizes that agent to act alone and the institution will accept the POA for that change. When suspected self-transfers are involved, moving accounts may not prevent further access unless controls are put in place or the agent’s authority is formally limited. The most important next step is to gather account records and promptly present the POA to the financial institution to request protective account controls consistent with the POA.

Talk to a Guardianship Attorney

If a co-agent under a power of attorney appears to be withdrawing funds or transferring money without a clear benefit to the child, our firm has experienced attorneys who can help explain options for oversight, documentation, and protective court steps when needed. 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.