Jan82026
Guardianship Q&A Series

What can I do if my co-agent under a power of attorney is transferring money to themself and I think it’s not for the person’s benefit? – North Carolina

Short Answer

In North Carolina, a co-agent under a power of attorney can take steps to stop suspected self-dealing and force transparency. Practical options usually start with demanding records and notifying the financial institution, and can escalate to asking the Clerk of Superior Court to intervene through a guardianship case if the person cannot protect themself. If there is immediate risk of loss, faster court action may be needed to prevent further transfers while the dispute is investigated.

Understanding the Problem

Under North Carolina guardianship and power of attorney practice, the key question is: when two people are named as agents, what can be done if one agent appears to be moving the principal’s money to themself and the transfers do not appear tied to the principal’s needs? The decision point is whether the situation can be addressed through co-agent oversight and documentation, or whether court involvement is needed to protect the principal’s assets and require a formal accounting.

Apply the Law

In North Carolina, an agent under a power of attorney is a fiduciary. That means the agent must act for the principal’s benefit, keep appropriate records, and avoid conflicts of interest unless the power of attorney clearly authorizes the conduct. When there are co-agents, the document often controls whether each agent can act alone or must act together, but suspected misuse still triggers the same core fiduciary duties. If the principal cannot protect themself and money is at risk, a guardianship proceeding in front of the Clerk of Superior Court is often the forum used to protect assets and require formal reporting.

Key Requirements

  • Fiduciary conduct (benefit of the principal): Transfers should have a clear connection to the principal’s needs (care, housing, bills, approved support) rather than the agent’s personal benefit.
  • Documentation and recordkeeping: A responsible agent should be able to show bank statements, receipts, and a simple ledger explaining why each transfer was made.
  • Proper forum for enforcement: If informal steps fail and the principal is vulnerable, the Clerk of Superior Court can oversee protection of assets through a guardianship case, including requiring accountings and changing who controls funds.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, two parents are named as agents under a child’s power of attorney, and one parent suspects the other is transferring money to themself and withdrawing funds without a clear explanation. That fact pattern raises a fiduciary red flag because transfers to an agent personally usually require a clear, documented reason tied to the child’s benefit (or clear authority in the document). It also raises a documentation issue: if the transfers are legitimate, the acting agent should be able to quickly produce statements, receipts, and a written explanation showing how the money was used for the child.

Process & Timing

  1. Who acts first: The concerned co-agent. Where: With the financial institutions holding the accounts and, if needed, the Clerk of Superior Court in the county where a guardianship would be filed. What: Gather the power of attorney, recent statements, and a timeline of transfers; make a written request for records and an explanation from the co-agent (dates, amounts, purpose, supporting receipts). When: As soon as suspicious activity is identified, especially if withdrawals are ongoing.
  2. Escalate if the risk continues: If the co-agent refuses to provide records or the activity continues, consider court involvement to protect the child’s funds. In many cases, that means a guardianship filing so the clerk can place the assets under supervised control and require formal reporting.
  3. Outcome document: If a guardianship is established, the clerk can appoint a guardian of the estate and require inventories and accountings, creating a structured way to track money and address questionable transactions.

Exceptions & Pitfalls

  • The power of attorney may allow independent action: Some documents let each co-agent act alone, which can make “stopping” a co-agent difficult without court involvement or cooperation from the institution.
  • Transfers are not always misuse: Reimbursements for the child’s expenses can be proper, but they should be documented (what was paid, why it was necessary, and proof of payment).
  • Bank access and “who is the customer” issues: Even a co-agent may face practical limits getting full records without the right paperwork on file; keeping certified copies of the power of attorney and confirming the institution’s acceptance procedures can matter.
  • Real estate is different: If the suspected misuse involves selling or mortgaging real property, recording rules can apply and the paper trail becomes especially important.

For additional context on related situations, see what counts as power of attorney abuse and a court order to temporarily stop the agent.

Conclusion

In North Carolina, suspected self-dealing by a co-agent under a power of attorney is usually addressed by demanding records, documenting the transfers, and escalating to court protection if the principal cannot protect themself. The core issue is whether the transfers were for the principal’s benefit and properly documented. The most practical next step is to make a written demand for a full accounting (statements, receipts, and explanations) and, if the risk continues, file a guardianship petition with the Clerk of Superior Court promptly to protect the funds.

Talk to a Guardianship Attorney

If a co-agent is transferring money to themself and the transfers do not appear tied to the principal’s needs, our firm has experienced attorneys who can help explain options for records demands, protective court filings, and timelines. 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.