What happens if the court requires a bond but I can’t find out my parent’s account balances to set the bond amount? – North Carolina

Short Answer

In North Carolina, the Clerk of Superior Court sets the bond amount for a guardian of the estate (or a general guardian) based on the value the clerk can determine for the ward’s property. If exact account balances are not available yet, the clerk can still set an initial bond using sworn information from the applicant and other available sources, and then require an increased bond later if more assets are discovered or received. Without an approved bond, the clerk generally will not issue the letters that allow the guardian to take control of the parent’s property.

Understanding the Problem

Under North Carolina guardianship law, a common problem arises when a family member seeks authority to manage a parent’s finances, but the Clerk of Superior Court requires a bond before issuing the letters of appointment needed to act. The single decision point is how the bond amount gets set when the parent’s bank and investment balances are not accessible yet, even though the court is requiring a bond as a condition of appointment.

Apply the Law

In North Carolina, a bond is a financial security requirement designed to protect the ward’s money and property. For a guardian of the estate (and typically for a general guardian), the clerk requires a bond before issuing letters of appointment and before the guardian is permitted to receive or control the ward’s property. The clerk sets the bond amount by determining the value of the ward’s property through sworn examination of the applicant and, if needed, other people with knowledge of the assets. If later events increase the amount of property the guardian will control (for example, sale proceeds or newly identified accounts), the clerk can require the bond to be increased before the guardian receives those funds.

Key Requirements

Bond is required before authority issues: A guardian of the estate generally cannot receive or control the ward’s property until an approved bond is on file and letters are issued.
The clerk sets the amount using sworn information: The clerk determines value by examining the applicant (and potentially others) under oath, even when perfect information is not available at the start.
The bond can be increased later: If additional assets are found or received, or if a transaction will bring in proceeds beyond what the bond covered, the clerk can require an increased bond before the guardian receives the additional property.

What the Statutes Say

N.C. Gen. Stat. § 35A-1230 (Bond required before receiving property) – A guardian of the estate generally cannot receive the ward’s property until sufficient surety is approved by the clerk.
N.C. Gen. Stat. § 35A-1231 (Terms and conditions of bond; clerk determines value under oath) – The clerk sets the bond amount based on value determined by sworn examination, and the bond may need to increase if the guardian will receive additional proceeds or higher-value property.

Analysis

Apply the Rule to the Facts: Here, the court is requiring a bond before issuing the documents needed to manage the parent’s finances. North Carolina law anticipates that the clerk may need to set the bond based on a value the clerk can determine from sworn testimony and available information, even if exact balances are not yet known. If later information shows the parent has more assets than initially estimated, the clerk can require a bond increase before the guardian receives or controls those additional funds.

Process & Timing

Who files: The proposed guardian (the applicant). Where: The Office of the Clerk of Superior Court (Estates/Guardianship) in the county where the guardianship is filed in North Carolina. What: The guardianship appointment paperwork and the bond through a surety company (or other approved security). When: The bond must be approved before the clerk issues letters of appointment for a guardian of the estate/general guardian.
Bond amount is set: The clerk determines an initial value by examining the applicant (and possibly others) under oath. If account statements are unavailable, the clerk typically relies on the best available information (for example, known income sources, known banks, last-known statements, benefit award letters, or other records) and may set a bond that can be adjusted later.
Bond changes if assets change: If additional accounts are found, or if a transaction will generate proceeds beyond what the bond covered, the guardian generally must return to the clerk to increase the bond before receiving those additional funds, and then continue with required reporting to the clerk.

Exceptions & Pitfalls

Assuming the bank must disclose balances before letters: Many institutions will not release detailed balances without legal authority. The clerk can still set an initial bond using sworn estimates and available documentation, then require an increase once balances are confirmed.
Underestimating assets: If the initial bond is set too low and additional assets are later discovered, the guardian may be unable to receive or move funds until the bond is increased and approved.
Forgetting that proceeds can trigger a bond increase: If real property is sold or other transactions create proceeds beyond the bond basis, North Carolina law can require an increased bond before the guardian receives those proceeds.

Conclusion

In North Carolina, when a bond is required for a guardian of the estate (or general guardian), the Clerk of Superior Court sets the bond amount based on the value the clerk can determine under oath, even if exact account balances are not available yet. The clerk can require the bond to be increased later if additional assets are discovered or received. The practical next step is to request that the clerk set an initial bond based on sworn, best-available information so letters of appointment can issue once the bond is approved.

Talk to a Guardianship Attorney

If you’re dealing with a court-required guardianship bond but cannot access a parent’s account balances to set the amount, our firm has experienced attorneys who can help you understand your options 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.