How to Verify and Stop an Agent’s Mismanagement Under a North Carolina Durable Power of Attorney
1. Detailed Answer
When you grant someone durable power of attorney in North Carolina, you authorize that person (the agent) to manage your financial affairs if you become unable to do so. North Carolina law imposes on your agent a strict duty to act in your best interest. If you believe your agent mismanages assets, you have legal tools to verify their conduct and stop any improper actions.
Review the Agent’s Accounting Duties
Under North Carolina General Statutes § 32C-5-502, an agent must keep accurate records of all receipts, disbursements and transactions made on your behalf. You or your guardian can:
- Request a written accounting directly from the agent.
- Obtain bank statements, canceled checks and invoices showing how funds moved.
- Compare the records to known income or expenses to spot discrepancies.
Seek Court-Ordered Accounting
If the agent refuses to provide documents, North Carolina law lets you petition the clerk of court or the superior court for an order compelling an accounting. Under G.S. § 32C-5-503 (ncleg.gov/GS_32C-5-503), the court can:
- Require the agent to file a full accounting of all transactions.
- Set deadlines and procedures for document production.
Petition for Removal or Suspension
If the accounting confirms mismanagement, you may ask the court to suspend or remove the agent. Under G.S. § 32C-5-504 (ncleg.gov/GS_32C-5-504), the court can:
- Suspend the agent’s authority immediately to prevent further loss.
- Remove the agent and appoint a successor.
- Order restitution or reimbursement for losses you suffered.
Obtain Emergency Relief
If you face urgent financial harm, you can request a preliminary injunction. The court may act quickly, block the agent from spending more funds and preserve your assets until a full hearing.
Work with an Attorney
Handling a dispute over durable power of attorney involves complex court procedures and strict deadlines. A dedicated probate attorney can help you:
- Gather evidence of the agent’s conduct.
- Draft and file petitions under Chapter 32C of the North Carolina General Statutes.
- Advocate for your rights at hearings.
2. Key Steps to Verify and Stop Agent Mismanagement
- Document concerns: Note missing funds, unexplained expenses or late bill payments.
- Request records: Ask the agent for a formal accounting under G.S. 32C-5-502.
- Collect third-party statements: Bank, brokerage and credit card records.
- File a court petition: Use G.S. 32C-5-503 for accounting and G.S. 32C-5-504 for suspension or removal.
- Pursue emergency relief: Seek an injunction if assets face immediate danger.
- Consider successor agents: Identify and name backups in your power of attorney form.
- Review regularly: Monitor your agent’s actions and update documents as needed.
Protecting your assets under a durable power of attorney requires prompt action and knowledge of North Carolina law. If you suspect an agent’s mismanagement, you have powerful remedies to stop abuse and hold the agent accountable.
Get Help Today
Pierce Law Group’s attorneys handle durable power of attorney disputes every day. We guide you through gathering evidence, filing petitions and presenting your case in court. Reach out now to safeguard your interests. Email us at intake@piercelaw.com or call (919) 341-7055.
