What steps can I take to stop my co-agent from spending my parent’s money on personal expenses? – North Carolina

Short Answer

In North Carolina, you can file a petition with the Clerk of Superior Court to compel an accounting from the agent, require proof of every expenditure, and ask to limit, suspend, or remove the agent’s authority. If money is missing, you may also file a separate Superior Court action for monetary relief and recovery of assets. If health and safety are at risk, you can seek guardianship—and in urgent cases, an interim (emergency) guardianship—to stop further harm. Banks and providers generally must not unreasonably refuse to honor a valid power of attorney.

Understanding the Problem

You want to stop another decision-maker from using your parent’s funds for themselves and make sure your parent receives proper care. The key decision is whether to pursue court relief under the power of attorney or move to guardianship. Here, your parent has Alzheimer’s, you hold the financial power of attorney from another state, and a relative in North Carolina is the health care agent who lives with your parent and has been charging personal expenses to your parent’s accounts while reducing care.

Apply the Law

North Carolina law provides two main tracks: (1) judicial relief under the power of attorney before the Clerk of Superior Court to compel an accounting, define or limit an agent’s authority, and address misuse; and (2) guardianship, which is a last resort when less restrictive options are not enough to protect the adult. Claims for money damages against an agent (like breach of fiduciary duty) are filed in Superior Court. The Clerk can act quickly in emergencies by appointing an interim guardian to protect the person or estate.

Key Requirements

• Standing: The principal, a current agent, or another interested person may petition the Clerk to compel an agent’s accounting and seek limits or suspension of authority.
• Evidence of misuse: Show questionable withdrawals, personal charges, missing records, or failure to arrange needed care; the agent must keep accurate records and substantiate spending.
• Correct forum: File power-of-attorney proceedings with the Clerk of Superior Court; file monetary damages claims (e.g., breach of fiduciary duty) in Superior Court.
• Guardianship threshold: Guardianship requires proof of incompetence and that less restrictive alternatives (like powers of attorney) do not adequately protect the adult.
• Emergency relief: If there is imminent risk to health or assets, request an interim (emergency) guardian; the court moves these matters on an expedited basis.
• Cross-state issues: Valid out-of-state powers of attorney are generally honored in North Carolina, and third parties may be compelled not to unreasonably refuse acceptance.

What the Statutes Say

• North Carolina Gen. Stat. § 32C-1-116 (Judicial relief re: powers of attorney) – Clerk may order an accounting, define authority, and address disputes under a power of attorney.
• North Carolina Gen. Stat. § 32C-1-117 (Agent’s liability; remedies) – Courts can enjoin breaches, require restoration of property, suspend/remove agents, and award other relief.
• North Carolina Gen. Stat. § 32C-1-120 (Acceptance of power of attorney) – Third parties generally may not unreasonably refuse a valid power of attorney.
• North Carolina Gen. Stat. § 35A-1114 (Interim guardian) – Allows expedited, temporary protection of the person or estate when immediate risk exists.

Analysis

Apply the Rule to the Facts: Because you hold the financial power of attorney, you have standing to demand records and petition the Clerk to compel the relative to account for every charge and to limit or suspend their authority over your parent’s funds. If the relative continues to block care or misuse funds, guardianship becomes appropriate—especially if the powers of attorney are not protecting your parent. If your parent’s immediate safety or assets are at risk, ask for an interim guardian. If a bank or provider refuses to honor your valid power of attorney, you can seek an order to compel acceptance.

Process & Timing

1. Who files: You (as agent or interested person). Where: Clerk of Superior Court in the North Carolina county where your parent resides. What: Petition under Chapter 32C to compel an accounting, require production of receipts, and limit/suspend the agent’s authority; if protection is still inadequate, file for incompetency and guardianship using AOC-SP-200 (Petition for Adjudication of Incompetence and Application for Appointment of Guardian) and consider AOC-SP-208 (Guardianship Capacity Questionnaire). For urgent risk, file for an interim guardian (emergency relief).
2. The Clerk will set a hearing. In emergencies, interim guardianship is heard on an expedited basis (the court aims to act quickly; timing varies by county). The Clerk can order an accounting, require proof of every expenditure, limit or suspend an agent, and in a guardianship can appoint a guardian of the estate/person.
3. If money is missing, file a separate civil action in Superior Court seeking remedies like restoration of assets, constructive trust, and injunctions. After orders issue, you receive written orders and, in guardianship, Letters of Guardianship for the appointed guardian.

Exceptions & Pitfalls

• The Clerk handles power-of-attorney proceedings like accountings and authority questions, but claims for monetary damages must be filed in Superior Court.
• Guardianship is a last resort; be prepared to show why less restrictive alternatives (like enforcing the POA) are not enough.
• A health care agent’s authority does not automatically end; a court order is required to suspend it if a guardian is appointed.
• Keep detailed evidence: bank statements, receipts, texts/emails about caregiving, and notes on removed services (like a canceled home aide).
• If a bank or provider refuses your valid out-of-state POA, you can seek an order to compel acceptance; refusal without a valid reason can be unlawful.
• Consider reporting suspected exploitation to county Adult Protective Services to prompt an investigation and additional safeguards.

Talk to a Guardianship Attorney

If you’re dealing with suspected misuse of a parent’s funds or blocked care decisions, 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.