Guardianship Q&A Series

What kind of lawyer handles disputes over power of attorney abuse? – North Carolina

Short Answer

In North Carolina, disputes about power of attorney (POA) abuse are usually handled by an attorney who practices guardianship and related clerk-of-court proceedings, often alongside estate litigation. These cases commonly involve asking the Clerk of Superior Court to step in to protect an older adult’s finances, including appointing a guardian of the estate when needed. If the situation involves fraud, theft, or exploitation, the matter may also overlap with civil claims and law enforcement reports.

Understanding the Problem

Under North Carolina law, the core question is: what kind of attorney can take action when an agent under a power of attorney is suspected of using an older adult’s money for the agent’s benefit instead of the older adult’s needs? In practice, the dispute often turns on whether the older adult can still manage financial decisions and whether court involvement is needed to stop or limit the agent’s authority. The most common goal is to halt questionable transactions while still allowing bills and necessary care expenses to be paid.

Apply the Law

In North Carolina, many POA-abuse disputes end up in a guardianship-related forum because guardianship is the court-supervised tool designed to protect an adult who cannot manage personal or financial affairs. The Clerk of Superior Court (in the county where the adult resides) has original jurisdiction over adult guardianship appointments and related proceedings. If a guardian is appointed, the clerk retains ongoing authority to supervise compliance, address disputes, and remove a guardian for cause. When a guardianship case is filed, the allegedly incompetent adult (the “respondent”) has a right to counsel, and the clerk typically appoints an attorney as guardian ad litem unless the respondent hires counsel.

Key Requirements

  • A legal pathway to restrict the agent’s control: The case usually needs a court-supervised mechanism (often guardianship) to stop or limit financial access when the principal cannot effectively protect themself.
  • The right forum and decision-maker: Many protective actions run through the Clerk of Superior Court in the county with jurisdiction over the adult and the guardianship proceeding.
  • Proper representation for the older adult: In an incompetency/guardianship proceeding, the respondent is entitled to counsel or an appointed guardian ad litem who must investigate and communicate the respondent’s wishes to the clerk.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, a relative is suspected of improperly obtaining a power of attorney over an older adult and then using that authority to access bank accounts and credit cards. A North Carolina guardianship attorney is commonly the right fit because the Clerk of Superior Court can oversee a protective case designed to safeguard the older adult and their finances when the older adult cannot reliably manage financial decisions. The need to “halt financial activity except for the elder’s needs” often points toward a court-supervised structure that can restrict access and require accountability.

Process & Timing

  1. Who files: A concerned family member or other interested person (depending on the situation). Where: The Office of the Clerk of Superior Court in the North Carolina county with jurisdiction (often where the older adult resides). What: Typically an incompetency/guardianship petition and related filings required by the clerk. When: As soon as there is a credible risk of ongoing financial harm or unpaid care needs; timing can matter because transactions can happen quickly.
  2. Representation and investigation: After the petition is filed, the respondent is entitled to counsel, and the clerk generally appoints an attorney as guardian ad litem unless the respondent retains counsel. The guardian ad litem must promptly visit the respondent, try to determine the respondent’s wishes, and report those wishes to the clerk.
  3. Hearing and court-supervised outcome: The clerk holds hearings and, if the legal standards are met, can appoint a guardian (such as a guardian of the estate). After appointment, the clerk retains authority to supervise compliance and address disputes, which can be used to protect assets and ensure money is used for the older adult’s needs.

Exceptions & Pitfalls

  • Capacity and consent disputes: A POA-abuse case can turn on whether the older adult had capacity and acted voluntarily when signing the POA. If the older adult still has capacity, different tools may be more appropriate than guardianship.
  • Mixing up the forum: Many families assume POA disputes always go to “regular court,” but in North Carolina, guardianship and many related protective issues are handled through the Clerk of Superior Court, with specific procedures.
  • Not centering the older adult’s wishes: In a guardianship case, the respondent’s rights matter. The guardian ad litem must investigate and present the respondent’s wishes, and the clerk may consider limited guardianship depending on the circumstances.
  • Incomplete financial picture: Requests to restrict access work better when supported by organized account information (banks, credit cards, recurring bills, care costs) and a clear explanation of what spending appears inconsistent with the older adult’s needs.

Conclusion

In North Carolina, a guardianship attorney is often the right type of lawyer for suspected power of attorney abuse because the Clerk of Superior Court can oversee proceedings that protect an older adult and their finances when the adult cannot manage financial decisions. The key issues are the need for a court-supervised safeguard, the correct clerk-of-court forum, and the respondent’s right to counsel or a guardian ad litem. The most practical next step is to file a guardianship-related petition with the Clerk of Superior Court promptly when ongoing financial access creates a risk of harm.

Talk to a Guardianship Attorney

If a family dispute involves suspected power of attorney abuse and a need to stop questionable spending while still paying for an older adult’s care, our firm has experienced attorneys who can help explain options and timelines under North Carolina guardianship procedures. 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.