Jan102026
Probate Q&A Series

How can I challenge a sibling’s power‑of‑attorney actions over a paid care contract and use of our parent’s money, or report suspected financial abuse? – North Carolina

Short Answer

In North Carolina, a power-of-attorney agent (attorney-in-fact) must act as a fiduciary for the parent (the principal) and keep records of what was done with the parent’s money. When there are red flags—like questionable “paid caregiver” arrangements, unusual transfers, or spending that does not appear to benefit the parent—family members often challenge the agent by seeking court-ordered information and protections, and by making a report to the proper investigating authorities. Reporting suspected exploitation can also trigger law enforcement or adult protective services involvement, which may help preserve records and stop further loss.

Understanding the Problem

In North Carolina probate and elder-law disputes, the central question is whether a sibling acting under a parent’s power of attorney can be challenged for decisions about a paid care contract and use of the parent’s money, and what steps exist to report suspected financial abuse. The key decision point is whether the concern is about the parent’s finances while the parent is alive (power-of-attorney oversight and protective reporting) versus a claim that must be handled through the estate after death (estate administration and creditor-type claims). Timing matters because the available court forum and who has authority to act can change once a parent dies.

Apply the Law

North Carolina treats a power-of-attorney agent as a fiduciary. That means the agent must use the parent’s money for the parent’s benefit, follow the power-of-attorney document, avoid self-dealing unless clearly authorized, and keep good records. North Carolina law also has specific reporting and investigation tools for suspected financial exploitation of older adults and disabled adults, including reports to law enforcement and (in certain situations) the county department of social services. If the parent later dies, challenges about what happened to the parent’s assets may shift into the estate administration process, where the personal representative (executor) typically controls claims and litigation on behalf of the estate.

Key Requirements

  • Fiduciary duty and proper purpose: The agent’s spending and contracts should be for the parent’s needs and consistent with the power of attorney, not primarily for the agent’s benefit.
  • Recordkeeping and transparency: The agent should be able to show bank records, invoices, contracts, and explanations tying transactions to the parent’s care and expenses.
  • Correct forum and authority: While the parent is alive, disputes often involve court oversight of the agent’s conduct and protective interventions; after death, the executor/personal representative usually has authority to pursue recovery for the estate.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a family situation where a parent survived the decedent and appears to control most assets, with questions about a home that may sit outside a trust and concerns about money management after a property sale. If a sibling is acting under the parent’s power of attorney and using the parent’s money for a paid care contract or other spending that appears questionable, the legal focus is whether those transactions were for the parent’s benefit and whether the agent can produce clear records supporting them. The fact that money was moved into an account under another family member’s name to prevent spending can also create risk, because it may look like an unauthorized transfer even if the intent was protective; documenting authority and purpose becomes critical.

Process & Timing

  1. Who acts first: Typically an interested family member gathers documents and makes a written timeline of suspicious transactions and the care arrangement. Where: Reports go to the appropriate local law enforcement agency and, if the parent is a “disabled adult” under North Carolina law, the county department of social services (Adult Protective Services). What: A report should identify the parent, the suspected exploitation, the approximate dates, accounts involved, and the names/roles of people involved.
  2. Investigation and records: If the situation fits suspected exploitation of an older adult or disabled adult, investigators may seek bank records and other financial records. North Carolina law provides a mechanism for an investigating entity to petition district court for a subpoena of financial records on an expedited schedule when time is of the essence.
  3. Court protection and estate coordination: If the goal is to stop ongoing transactions while the parent is alive, the next step is usually a court strategy aimed at oversight and protection (for example, seeking orders that require documentation and prevent further dissipation). If the parent later dies, the personal representative (executor) generally controls estate claims, so coordination with the estate administration becomes important—especially if there is also a question about whether probate needs to be opened to address assets outside a trust. For related reading, see a court order to temporarily stop the agent.

Exceptions & Pitfalls

  • Authority may exist in the document: Some powers of attorney authorize gifts, compensation, or broad management powers. A paid care contract is not automatically improper; the key is whether it is reasonable, documented, and for the parent’s benefit.
  • Standing and “who can sue” issues: While the parent is alive, not every family member automatically has the right to force an accounting or sue the agent in every situation. After death, the personal representative often becomes the proper party to pursue recovery for the estate.
  • Self-help transfers can backfire: Moving a parent’s money into an account titled in another person’s name—even with good intentions—can be characterized as an improper transfer without clear authority. A safer approach is usually to preserve funds through lawful controls (documented authority, court orders when needed, and clear segregation of funds).
  • Real estate transfers have extra steps: If the dispute involves a home being sold or transferred by an agent, North Carolina requires recording the power of attorney for real property transfers, and title issues can become complicated quickly.
  • Reporting channel depends on the parent’s status: For a “disabled adult,” North Carolina law requires reports to DSS/APS; for an “older adult,” financial institutions have specific reporting duties to law enforcement. When in doubt, reporting to local law enforcement is commonly part of the process, and APS may still be appropriate depending on the facts.

Conclusion

In North Carolina, a sibling acting under a power of attorney must use the parent’s money for the parent’s benefit and keep records that explain paid care contracts and other spending. When transactions look improper or undocumented, the usual path is to (1) report suspected exploitation to the proper investigating authorities and (2) pursue court involvement to obtain information and prevent further loss, with the approach changing if the parent later dies and the estate becomes the proper vehicle for claims. The most important next step is to make a prompt report to local law enforcement (and DSS/APS if the parent is a disabled adult) and preserve all available bank and contract records.

Talk to a Probate Attorney

If there are concerns about a sibling’s power-of-attorney decisions, a paid caregiver contract, or suspected misuse of a parent’s money, probate and fiduciary disputes can move quickly and the right forum matters. Our firm has experienced attorneys who can help explain options and timelines and coordinate the probate, trust, and protective-reporting pieces. 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: Probate 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.