Short Answer

Yes. Under North Carolina law, courts can void an agent’s improper transfer, impose a constructive trust, trace assets into the agent’s trust, order return of the property, eject occupants, or award money equal to the loss. The personal representative of the parent’s estate typically brings these claims, and some steps start before the Clerk of Superior Court while damages and deed challenges are filed in Superior Court.

Understanding the Problem

In North Carolina probate, the core question is whether you can undo an agent’s self-dealing transfer and recover the home or its value. You’re asking if you can unwind a deed into the agent’s trust and reclaim the property for the estate. Here, the key fact is that the agent-sibling used a power of attorney to deed your parent’s real property to themselves.

Apply the Law

North Carolina treats agents under a power of attorney as fiduciaries. If an agent exceeds their authority or acts in their own interest, a court can void the act, trace the property into a trust, impose a constructive trust, and order return of the asset or its value. After death, the personal representative (PR) of the parent’s estate is the usual party to sue to recover wrongfully transferred property, seek possession, and eject occupants. The Clerk of Superior Court can hear certain power of attorney and estate proceedings, but claims for damages and to set aside deeds are filed in Superior Court. Deadlines apply; many fiduciary claims run from discovery, but timing can vary by claim.

Key Requirements

• Fiduciary breach or lack of authority: Show the agent self-dealt, exceeded gifting/transfer authority, or acted against the principal’s best interests.
• Traceability: Connect the property (or proceeds) from the agent’s transfer into the agent’s trust or successor’s hands.
• Proper party and forum: The personal representative typically files; accounting and estate control issues may start before the Clerk, while deed challenges, ejectment, and damages go to Superior Court.
• Available remedies: Void the deed, impose a constructive trust, order return of the property or its value, enter possession orders, and eject occupants if the estate is entitled to the property.
• Timing: Act promptly to avoid transfer to an innocent purchaser and to meet statutes of limitation, which often run from discovery but vary by claim.

What the Statutes Say

• North Carolina Gen. Stat. § 32C-1-117 (Agent’s liability and remedies) – Court may void an agent’s act, impose a constructive trust, trace property, order restoration, and award other appropriate relief.
• North Carolina Gen. Stat. § 32C-1-116 (Judicial relief re: POAs) – Allows proceedings to compel an accounting or determine an agent’s authority; monetary-damages claims are in Superior Court.
• North Carolina Gen. Stat. § 28A-13-3 (Powers of personal representative) – PR may bring actions to recover property, take possession of real property, and eject occupants if in the estate’s best interests.
• North Carolina Gen. Stat. § 28A-15-12 (Actions to recover property of decedent) – Authorizes actions to recover estate property and examination of persons holding it.

Analysis

Apply the Rule to the Facts: An agent who deeds a parent’s home to themselves using a POA likely violates their duty of loyalty unless the POA clearly authorizes such self-dealing and the act served the principal’s interests. North Carolina courts can void that deed, impose a constructive trust over the home or its proceeds inside the agent’s trust, and order return. After death, the PR files to recover the property for the estate and can seek possession and eject the occupant if the home belongs back in the estate.

Process & Timing

1. Who files: The personal representative of the parent’s estate. Where: Open/qualify the estate with the Clerk of Superior Court in the North Carolina county of the parent’s domicile. What: Seek Letters (testamentary or administration). If needed, commence an estate proceeding to examine and demand return of estate property under § 28A-15-12 and to take possession of real property under § 28A-13-3. When: As soon as practicable after qualification.
2. File a civil action in Superior Court to challenge the deed, seek a constructive trust over the agent’s trust assets, trace and recover the property or proceeds, and request damages for breach of fiduciary duty/constructive fraud. Record a notice of lis pendens to protect title during the case. Timelines vary by county and case complexity.
3. If the court voids the transfer or imposes a constructive trust, the PR proceeds to take possession. If occupants refuse to leave, the PR may use authority under § 28A-13-3 to seek an order for possession and ejectment. The expected outcome is a court order restoring title to the estate or awarding the estate the value of the property if return is not possible.

Exceptions & Pitfalls

• POA gifting/self-dealing clauses: If the POA expressly authorized self-dealing or gifts, you must still show the agent acted in the principal’s best interests; otherwise the transfer can be voidable.
• Good-faith purchaser risk: If the property was later sold to a bona fide purchaser without notice, courts may award money damages rather than return of the property.
• Wrong forum: The Clerk can handle accountings and possession requests, but damages, deed challenges, and trust remedies belong in Superior Court.
• Standing: After death, the PR generally must bring recovery claims; heirs can petition the Clerk to open the estate and seek appointment if none exists.
• Proof and tracing: Keep deeds, bank records, and trust documents to trace the property into the agent’s trust and prove self-dealing.

Talk to a Probate Attorney

If you’re dealing with an agent’s self-dealing transfer into a trust and need to recover estate property, 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.