Dec302025
Guardianship Q&A Series

What bond do I need, how is the bond amount set, and what happens if I’m accused of mishandling funds? – North Carolina

Short Answer

In North Carolina, a general guardian or guardian of the estate usually must post a bond before receiving or controlling the ward’s money or property, and the Clerk of Superior Court sets the amount based on the value of the ward’s assets and expected income. The bond amount is typically tied to a multiplier of that value, and it may have to increase if the guardian later sells real estate or receives higher-value property. If someone claims the guardian mishandled funds, the clerk can enforce accounting and compliance, and an injured person may also bring a claim against the bond.

Understanding the Problem

In a North Carolina guardianship, a key question is what bond a guardian must post to handle a ward’s money or property, how the Clerk of Superior Court decides the bond amount, and what consequences can follow if the guardian is accused of mishandling funds. This issue most often comes up when a person is appointed as a general guardian or guardian of the estate and needs authority to collect, hold, or spend funds for the ward. The timing matters because the bond requirement can control when the guardian can start receiving or managing the ward’s property.

Apply the Law

North Carolina generally requires a bond before a general guardian or guardian of the estate can receive the ward’s property. The Clerk of Superior Court sets the bond amount by determining the value of the ward’s personal property and the rents and profits of the ward’s real estate, typically by examining the applicant (and sometimes others) under oath. The bond is payable to the State and is meant to protect the ward by ensuring the guardian faithfully performs duties and follows lawful orders. If the ward’s assets increase or the guardian sells real estate (or sells personal property worth more than what was used to set the bond), the guardian may have to increase the bond before receiving sale proceeds.

Key Requirements

  • Bond required before receiving property: A guardian of the estate or general guardian generally cannot take control of the ward’s property until the clerk approves sufficient security.
  • Bond amount is value-based: The clerk sets the bond amount using the value of the ward’s personal property plus the rents and profits of the ward’s real estate, with different multipliers depending on the type of surety.
  • Bond may need to increase: If a sale or later-discovered value would exceed what the bond covers, the guardian must increase the bond before receiving proceeds or handling the higher value.

What the Statutes Say

Analysis

Apply the Rule to the Facts: When a person is appointed to manage a ward’s money or property in North Carolina, the clerk typically requires a bond before the guardian can receive or control those assets. The clerk sets the bond amount by valuing the ward’s personal property and expected income from real estate, then applying the statutory multiplier based on whether the bond uses personal sureties or a surety company. If the guardian later sells real estate or learns that personal property is worth more than the amount used to set the bond, the guardian usually must increase the bond before receiving proceeds or handling the increased value. If someone alleges mishandling, the bond exists to protect the ward and can be pursued by an injured person if the bond’s conditions were breached.

Process & Timing

  1. Who files: The proposed guardian (or counsel) typically works with the Clerk of Superior Court as part of the appointment process. Where: The Office of the Clerk of Superior Court in the county where the guardianship is filed and docketed. What: A bond approved by the clerk (often through a surety company, or other permitted security in limited situations). When: Before letters of appointment are issued for a general guardian or guardian of the estate, and before the guardian receives the ward’s property.
  2. Bond amount set: The clerk determines the value of the ward’s personal property and the rents and profits of the ward’s real estate, often by examining the applicant (and possibly others) under oath, then sets the bond penalty using the statutory multipliers.
  3. Adjustments and enforcement: If the ward’s assets increase or the guardian plans a sale that would create proceeds beyond the bond coverage, the guardian must increase the bond before receiving the proceeds. If mishandling is alleged, the clerk can require compliance with orders and accounting, and an injured person may also pursue a claim on the bond.

Exceptions & Pitfalls

  • Assuming every guardian must post a bond: North Carolina treats guardians of the person differently from guardians of the estate; a resident guardian of the person generally does not have to post a bond, while a guardian handling property usually does.
  • Using the wrong bond type or amount: The bond penalty can change depending on whether personal sureties are used or a surety company is used, and the clerk’s valuation method drives the starting point.
  • Not increasing the bond before a sale: If real estate is sold (or personal property is sold and its value exceeds what was used to set the bond), failing to increase the bond before receiving proceeds can create immediate compliance problems and increase exposure if funds go missing.
  • Thinking the bond ends oversight: The bond is a financial safeguard, not a permission slip to spend freely; the guardian must still follow the clerk’s lawful orders and use funds only for proper guardianship purposes.
  • Underestimating bond-claim risk: If a breach occurs, the bond can become the target of a lawsuit by an injured person, which can also trigger scrutiny of records, receipts, and transactions.

Conclusion

In North Carolina, a general guardian or guardian of the estate typically must post a bond approved by the Clerk of Superior Court before receiving the ward’s property, and the clerk sets the bond amount based on the value of the ward’s personal property and expected income from real estate using statutory multipliers. The bond may need to increase before receiving proceeds from a sale that would exceed the bond coverage. A practical next step is to file the proposed bond with the Office of the Clerk of Superior Court before taking control of any ward funds.

Talk to a Guardianship Attorney

If a guardianship bond is required, the amount seems too high, or there is an accusation of mishandling funds, our firm has experienced attorneys who can help explain the requirements, paperwork, and timelines in North Carolina. 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: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.