Jan142026
Guardianship Q&A Series

What legal options are there to recover money taken from an incapacitated person’s account without permission? – North Carolina

Short Answer

In North Carolina, recovering money taken from an incapacitated adult’s account usually involves (1) getting legal authority to act for the person (often through a guardianship), (2) quickly preserving and gathering bank records, and (3) pursuing repayment through the Clerk of Superior Court’s guardianship oversight and/or a separate civil or criminal process. If the taking fits North Carolina’s definition of financial exploitation of a disabled adult, law enforcement and Adult Protective Services may also be involved. The best option depends on who took the money, how it was taken (ATM, checks, online transfers), and whether the person had any legal authority such as a power of attorney.

Understanding the Problem

In North Carolina guardianship situations, the key question is: what legal steps can be taken to get money back after someone uses an incapacitated adult’s bank account without permission. The usual decision point is whether there is already a legally authorized decision-maker (such as a court-appointed guardian) who can demand records, stop further access, and pursue recovery. Timing matters because ongoing withdrawals can continue while the adult is hospitalized and unable to monitor accounts, especially when the adult has been released without a safe care plan and now needs round-the-clock care and rehabilitation services.

Apply the Law

North Carolina law provides several paths that can work together: guardianship court oversight through the Clerk of Superior Court, protective services involvement through the county department of social services when the person is a “disabled adult,” and criminal investigation when the conduct meets the definition of exploitation. In many cases, the first practical legal step is to establish who has authority to act for the incapacitated person and then use that authority to secure records, stop further losses, and demand repayment.

Key Requirements

  • Legal authority to act for the incapacitated adult: A court-appointed guardian of the estate (or general guardian) typically has clear authority to take control of accounts, collect money owed to the ward, and pursue recovery actions.
  • Proof the money belonged to the incapacitated adult and was taken improperly: Bank statements, transaction histories, checks, debit card logs, and communications usually establish what was taken, when, and by whom.
  • A recovery forum that matches the problem: Guardianship proceedings before the Clerk of Superior Court can address mismanagement by a guardian and compel accountings; separate civil claims and criminal reports may be appropriate when a non-guardian took the funds or when deception/intimidation is involved.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe an adult who is hospitalized and mentally incapacitated and now needs 24/7 care and rehabilitation, which often means the person cannot monitor accounts or meaningfully consent to transfers. If money is being taken without permission, the most direct recovery path usually starts with establishing legal authority (often a guardianship) so someone can take control of the finances, demand documentation, and act to recover funds. If the taking involved deception, intimidation, or abuse of a trust relationship, the conduct may also fit North Carolina’s criminal exploitation framework for a disabled adult, which can support a law enforcement investigation and restitution efforts.

Process & Timing

  1. Who files: Typically a family member, interested person, or proposed guardian. Where: The Clerk of Superior Court in the county where the incapacitated adult resides (guardianship jurisdiction). What: A guardianship petition and related filings to seek appointment of a guardian of the estate (or a general guardian). When: As soon as possible when ongoing losses are suspected, because legal authority is often needed to fully access records and act for the incapacitated adult.
  2. Secure records and stop further losses: Once a guardian of the estate is appointed (or another lawful authority exists), the next step is to obtain bank statements and transaction details, identify the questionable withdrawals/transfers, and notify the bank of suspected exploitation. If the situation meets the “disabled adult” exploitation framework, reports to law enforcement and the county department of social services can trigger an investigation and faster access to records through court-issued subpoenas in urgent cases.
  3. Pursue recovery: Recovery may include a demand for repayment, a civil lawsuit for return of funds, and/or cooperation with a criminal case where restitution may be ordered. If the wrongdoer is a court-appointed guardian, the Clerk of Superior Court can compel accountings and remove the guardian for mismanagement or conversion, and the guardianship process can be used to identify missing assets and push for their return.

Exceptions & Pitfalls

  • “Permission” disputes: The person who took the money may claim authority (for example, as a joint account holder or under a power of attorney). These cases often turn on documentation, the scope of any authority, and whether the transactions benefited the incapacitated adult.
  • Delay in getting authority: Without a guardian of the estate (or other lawful authority), it can be harder to obtain full records, stop access, and take action quickly. Delay can also make it harder to trace cash withdrawals or transfers.
  • Mixing care and money issues: When the adult needs round-the-clock care, families sometimes focus only on placement and overlook immediate financial controls. In practice, stabilizing finances (accounts, automatic payments, and access) often needs to happen alongside care planning.
  • Assuming the bank will “reverse” transactions: Banks may freeze access or investigate, but recovery often still requires legal action, especially when the transactions were authorized by credentials (PIN/online login) or involved cash withdrawals.
  • Guardianship compliance traps: If a guardian is appointed, strict recordkeeping matters. North Carolina requires sworn inventories and accountings with proof of payments, and the clerk can scrutinize transactions closely.

For additional background on stopping access and documenting suspected misuse in similar situations, see stop an on-and-off partner from accessing an incapacitated relative’s bank accounts and assets and steps to protect a parent’s finances when misuse is suspected.

Conclusion

In North Carolina, the main legal options to recover money taken from an incapacitated adult’s account without permission are to obtain legal authority to act (often by seeking appointment of a guardian of the estate), secure bank records, and pursue repayment through guardianship court oversight and/or civil and criminal processes. The Clerk of Superior Court supervises guardianships and can compel accountings and remove a guardian who mismanages or converts funds. A practical next step is to file a guardianship petition with the Clerk of Superior Court in the adult’s county of residence as soon as suspected unauthorized withdrawals are identified.

Talk to a Guardianship Attorney

If you’re dealing with suspected unauthorized withdrawals from an incapacitated person’s account, our firm has experienced attorneys who can help explain options for emergency financial protection, record collection, and recovery steps through the North Carolina guardianship process. 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.