Probate Q&A Series

How can I challenge a co-agent’s actions if I suspect misuse of the power of attorney? – North Carolina

Short Answer

In North Carolina, a co-agent can file a petition with the Clerk of Superior Court to demand an accounting, clarify or limit a co-agent’s authority, and ask for immediate protective orders. Co-agents usually may act independently unless the power of attorney requires joint action. If a proposed move-in or property deal undermines the principal’s best interests, you can seek injunctions, suspension or removal of the agent, and other remedies. Whether a sale or partition is allowed depends on the specific powers granted in the document.

Understanding the Problem

In North Carolina, can a co-agent under a financial power of attorney stop another co-agent from moving a family member into the parent’s home, and can the co-agent push back on any sale or partition of that property? Here, the parent has dementia and retains lifetime rights to live in the property.

Apply the Law

North Carolina’s power of attorney law lets an “interested person,” including a co-agent, ask the Clerk of Superior Court for relief when an agent may be misusing authority. The court can require a detailed accounting, interpret the document, and enter orders to protect the principal. Co-agents can act independently unless the power of attorney requires joint action. Real estate moves (leasing, selling, or similar) generally require that the document grant real-property authority, and any deed work typically requires proper recording to be effective.

Key Requirements

  • Standing: A co-agent qualifies as an “interested person” and may petition the Clerk for relief.
  • Forum: File before the Clerk of Superior Court; certain issues can be transferred to Superior Court.
  • Co-agent powers: Unless the document says otherwise, co-agents may act independently; joint consent is only required if the instrument demands it.
  • Agent duties: An agent must act in good faith, within granted authority, and in the principal’s best interests, with records to substantiate transactions.
  • Real property authority: The power of attorney must grant real-property authority for leasing or selling; deeds typically require proper recording to be effective.
  • Remedies: The court can order an accounting, injunctions, suspension/removal, appointment of a special fiduciary, or void/self-dealing relief.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because you are a co-agent, you can petition the Clerk to compel your co-agent to account for decisions about the property and money. If the power of attorney allows co-agents to act independently (common), you cannot automatically veto the move-in, but you can ask the court to clarify authority and stop self-dealing or actions that harm your parent’s interests. Since your parent retains lifetime rights to live in the home, any plan that interferes with that right or benefits a family member unfairly can justify injunctive relief and closer court supervision. A sale or partition depends on whether the POA actually grants real-property authority, and any transaction must honor your parent’s lifetime occupancy.

Process & Timing

  1. Who files: You (as co-agent). Where: Clerk of Superior Court in the county where your parent lives, where an agent lives, or where the property sits. What: A verified petition under the power-of-attorney statutes asking for an accounting, to construe the document, and for interim protection (e.g., injunction). When: File as soon as you learn of the planned move-in or any disputed real-estate action.
  2. Request immediate relief (temporary orders) if a move-in or transfer is imminent. Courts often set initial hearings within weeks; emergency requests may be heard faster. Timelines vary by county.
  3. After hearing, expect an order requiring an accounting, clarifying authority, and, if warranted, suspending or limiting the co-agent or appointing a special fiduciary. For damages claims, file a separate Superior Court action.

Exceptions & Pitfalls

  • If the POA requires joint action, you can block unauthorized steps; if it allows independent action, you need a court order to stop them.
  • Claims for money damages (like breach of fiduciary duty) belong in Superior Court, not before the Clerk; you can still get non-monetary relief from the Clerk.
  • Real estate actions require actual authority in the POA; deeds also typically require proper recording. Lack of authority or recording can void transactions.
  • Honor the parent’s lifetime occupancy; an agent cannot use the POA to displace that right without proper authority or court approval.
  • Serve all necessary parties (the other co-agent and, if appropriate, the principal’s guardian) and be aware a party can transfer certain interpretive issues to Superior Court.

Conclusion

Under North Carolina law, a co-agent may petition the Clerk of Superior Court to compel an accounting, interpret the power of attorney, and obtain protective orders if a co-agent’s actions conflict with the principal’s best interests or exceed granted authority. Co-agents typically act independently unless the document requires joint action. Real-estate moves require specific POA authority and must respect a lifetime right to occupy. Next step: file a petition with the Clerk to compel an accounting and seek interim relief to pause any move-in or transfer.

Talk to an Estate Planning Attorney

If you’re dealing with a co-agent dispute over a parent’s home or suspected misuse of a power of attorney, 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.