Jan72026
Guardianship Q&A Series

What kind of records should I gather to show that money was taken improperly from the parent’s accounts? – North Carolina

Short Answer

In North Carolina, the most helpful records are the ones that (1) show what the parent owned, (2) show every withdrawal/transfer, and (3) show what the money was used for. Start with complete bank and investment statements, then collect the “backup” for each suspicious transaction (checks, receipts, transfer confirmations, and invoices). Also gather the power of attorney document and any written instructions from the parent, because whether a transaction was improper often depends on what authority the agent had and whether the spending benefited the parent.

Understanding the Problem

Under North Carolina law, what records help show that a co-agent under a power of attorney took money improperly from a parent’s accounts? The decision point is whether the available paperwork can clearly trace money out of the parent’s accounts and show that the withdrawals were not for the parent’s benefit or were outside the authority granted in the power of attorney. This question often comes up when siblings share authority, one sibling controls access to accounts, and the other sibling needs a clean way to document what happened before involving the Clerk of Superior Court in a guardianship or other proceeding.

Apply the Law

In North Carolina, an agent acting under a power of attorney is a fiduciary and should be able to explain and support transactions made on the principal’s behalf. In a guardianship of the estate, the Clerk of Superior Court requires inventories and ongoing accountings supported by proof of payments, and the clerk can examine the accounting party under oath about receipts and disbursements. Practically, the same “accounting-ready” approach helps evaluate whether a co-agent’s conduct appears proper and, if needed, helps present a clear record to the clerk.

Key Requirements

  • Authority: The power of attorney language (and any limits) must be identified so each questioned transaction can be compared to what the agent was allowed to do.
  • Tracing: Records should show where money came from, where it went, and when it moved (statements plus transaction-level detail).
  • Support: Each withdrawal or payment should have backup proof showing it benefited the parent (invoices, receipts, care contracts, facility bills, tax/insurance bills, etc.).

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, two siblings are co-agents under a power of attorney, and one sibling suspects the other has been taking money from an ill parent’s accounts. The most useful record set will (1) show the power of attorney’s grant of authority and any limits, (2) trace each questioned withdrawal/transfer from the parent’s accounts, and (3) attach backup documents showing whether the spending benefited the parent. If the paperwork cannot connect the dots (for example, cash withdrawals with no receipts or transfers into an agent’s personal account with no written explanation), that gap itself becomes a key issue for an attorney to evaluate.

Process & Timing

  1. Who gathers: The concerned co-agent (and counsel, if retained). Where: From each bank/credit union, brokerage, retirement plan administrator, and any payment apps used. What: Full monthly statements plus transaction detail for the relevant time period (often 12–24 months, longer if concerns go further back). When: As soon as concerns arise, before records age out or online access changes.
  2. Organize and trace: Create a simple transaction log (date, amount, payee, memo, account, and “supporting document” column). Match every questionable line item to a check image, receipt, invoice, or transfer confirmation. Flag items that lack backup or appear to benefit someone other than the parent.
  3. Prepare for the forum if escalation is needed: If the matter moves toward a guardianship of the estate, the Clerk of Superior Court will expect inventory/accounting-style documentation supported by proof of payments and bank/investment statements. Keeping records in that format reduces cost and confusion later.

Exceptions & Pitfalls

  • Missing “backup” for cash and transfers: ATM withdrawals, cash back at stores, and person-to-person transfers often have the weakest paper trail. The best practice is to gather bank transaction detail, then look for corresponding receipts, invoices, or written explanations showing a parent-related purpose.
  • Confusing joint ownership with agency authority: A person can be an authorized signer or agent without owning the funds. Records should clearly show account title/ownership, authorized signers, and any payable-on-death or joint features, because those details can change the analysis.
  • Not collecting the full POA “packet”: The key language may be in attachments, riders, or later amendments. Gather the signed POA, any amendments, and any acceptance/acknowledgment pages used by financial institutions.
  • Failing to capture check images and deposit items: Statements alone may not show who endorsed a check or where a deposit came from. Request front-and-back images of checks, deposit slips, and wire/ACH details.
  • Overlooking recurring charges and new payees: Subscription services, new “bill pay” payees, and recurring transfers can quietly drain an account. A payee list and recurring-payment report (if the bank provides it) can be very helpful.
  • Not preserving communications: Save texts/emails about spending decisions, reimbursements, caregiving arrangements, and any objections raised. Communications can help explain intent and whether the spending was for the parent.

Conclusion

In North Carolina, the strongest way to show money was taken improperly is to gather records that prove authority, tracing, and support: the full power of attorney document, complete bank/investment statements, and transaction-level backup (check images, transfer confirmations, invoices, and receipts). If the issue escalates into a guardianship of the estate, the Clerk of Superior Court typically expects inventory and accounting-style documentation supported by proof of payments. The next step is to assemble 12–24 months of statements and backup documents and have counsel compare the transactions to the POA’s authority.

Talk to a Guardianship Attorney

If a co-agent under a power of attorney may have been taking money from a parent’s accounts, our firm has experienced attorneys who can help review the POA language, organize the financial records, and explain options and timelines under North Carolina law. 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.