Feb172026
Guardianship Q&A Series

What can I do if I believe a family member is withholding or misusing my parent’s annuity or other funds while my parent is under guardianship? – North Carolina

Short Answer

In North Carolina, concerns about a guardian (or someone acting through the guardian) withholding or misusing a ward’s annuity or other funds are handled through the Clerk of Superior Court in the guardianship case. Common steps include asking the clerk to compel an inventory/accounting, requesting a court order to protect or recover assets, and, if needed, asking the clerk to remove and replace the guardian. Key deadlines exist for required filings, and the clerk can enforce them with orders, contempt, and removal.

Understanding the Problem

In a North Carolina adult guardianship, the main question is: what can be done when a family member appears to be controlling, withholding, or spending a parent’s annuity or other money in a way that does not match the guardianship’s purpose. The decision-maker is typically the Clerk of Superior Court assigned to the guardianship file, and the focus is whether the person with legal authority over finances is following the court’s rules and acting for the ward’s benefit. This issue often comes up when a parent is living in a facility and a family member believes funds should be used for safer care, but spending decisions are restricted until the next court date.

Apply the Law

North Carolina guardianship usually separates responsibilities: a guardian of the person makes care and placement decisions, and a guardian of the estate manages money and property (a general guardian does both). When money is involved—like an annuity, bank accounts, or benefits—the guardian of the estate must follow court-supervised financial reporting rules and can be required to prove where money went. If the guardian is wasting funds, mismanaging the estate, or violating fiduciary duties, the clerk has authority to step in, order compliance, and remove the guardian when needed.

Key Requirements

  • Right person has legal control: Only the court-appointed guardian of the estate (or general guardian) should control and spend the ward’s funds, and only for the ward’s benefit and approved purposes.
  • Required financial reporting: The guardian must file an initial inventory/account and then ongoing annual accounts showing receipts, disbursements, and how assets are held or invested, with documentation.
  • Clerk oversight and enforcement: The Clerk of Superior Court can order a full accounting, review records, and remove the guardian if there is waste, mismanagement, conflicts, or failure to file required accountings.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the parent is under a court guardianship and living in a state facility, and there is concern that a family member is controlling or misusing an annuity or other funds while decisions about safer placement and spending are restricted until an upcoming court date. Under North Carolina’s guardianship structure, the key question is who is appointed as guardian of the estate (or general guardian) and whether that person is properly accounting for the annuity and other money and using it for the ward’s needs, including appropriate care. If the guardian is not producing records, is delaying needed spending for care without a valid reason, or is diverting funds, the clerk can order an accounting and can remove the guardian if statutory grounds are met.

Process & Timing

  1. Who files: An “interested person” (often a close family member) or a successor guardian candidate. Where: The Clerk of Superior Court in the county where the guardianship is filed. What: A written request/motion in the guardianship file asking the clerk to (a) compel an inventory/accounting, (b) require production of supporting records (statements, annuity payment history, receipts), and/or (c) set the matter for hearing; in more serious cases, a request to remove the guardian and appoint a successor. When: As soon as there is a concrete concern; do not wait for the next scheduled court date if funds are at risk.
  2. Clerk issues an order and sets deadlines: If an accounting is missing or inadequate, the clerk can order a full and satisfactory accounting and set a short compliance deadline (the statute commonly uses 20 days after service for a compelled accounting order). The clerk can also require supporting proof for payments and can question the accounting party under oath.
  3. Hearing and remedies: At the hearing, the clerk can approve or reject the accounting, order corrections, require turnover of assets to the proper fiduciary, and—if the evidence supports it—remove the guardian and appoint a successor to protect the ward’s finances and care needs.

Exceptions & Pitfalls

  • Mixing up roles: Concerns about money usually point to the guardian of the estate; concerns about placement and care usually point to the guardian of the person. A plan to move a parent to private memory care may require coordination between both roles (or a general guardian).
  • Informal control of funds: Sometimes the problem is not the guardian, but a third party who has access to accounts, mail, or annuity payments. The clerk can still address this through orders aimed at protecting and recovering ward assets, but the filing should clearly identify what is believed to be happening and what records exist.
  • Not bringing documents: The strongest filings attach concrete details: annuity company name (if known), last known payment dates, bank account last four digits (if available), suspicious transfers, facility billing needs, and any written communications showing refusal to share information.
  • Waiting for the next court date: If funds are being depleted or care is unsafe, waiting can make recovery harder. A targeted motion to compel an accounting or to remove a guardian can be filed before a previously scheduled hearing date.
  • Overreaching requests: The clerk is more likely to act quickly when the request is narrow and tied to statutory duties—such as compelling a missing accounting, requiring documentation, freezing or securing assets, or replacing a guardian for specific misconduct.

Conclusion

In North Carolina, suspected withholding or misuse of a ward’s annuity or other funds is addressed in the guardianship case through the Clerk of Superior Court. The guardian of the estate must file a timely inventory/account and ongoing annual accountings with proof of receipts and payments, and the clerk can compel a full accounting and remove a guardian for waste, mismanagement, conflicts, or failure to file required reports. The next step is to file a motion in the guardianship file to compel an accounting (and, if warranted, seek removal) and request a prompt hearing.

Talk to a Guardianship Attorney

If a family member is controlling or spending a parent’s annuity or other funds during a North Carolina guardianship, our firm has experienced attorneys who can help explain options, prepare the right filings, and focus on the timelines that matter in front of the Clerk of Superior Court. 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.