Feb182026
Probate Q&A Series

How do I challenge a power of attorney that was signed when my parent had dementia and may not have understood what they were signing? – North Carolina

Short Answer

In North Carolina, challenging a power of attorney (POA) signed during dementia usually means asking the Superior Court to declare the POA invalid because the parent lacked capacity when it was signed, or because it was procured through undue influence, fraud, or duress. Because the parent is now deceased, the practical focus is often on unwinding transactions the agent made and forcing an accounting, rather than “revoking” the POA. A common path is a civil lawsuit (often including a declaratory judgment claim) plus targeted requests for records to prove what happened and when.

Understanding the Problem

In North Carolina probate disputes, the key question is often: can a family member challenge a power of attorney after a parent’s death when the document was signed during dementia and the parent may not have understood what was being signed? The actor is usually an heir or beneficiary raising concerns about a sibling who acted as agent (attorney-in-fact) under the POA. The relief typically sought is a court ruling that the POA was not valid at signing and, if money or property was moved, court-ordered repayment or other remedies tied to those transactions.

Apply the Law

North Carolina treats a power of attorney as a written authority for an agent to act for the principal. A POA can be attacked on the same core grounds used to challenge many legal documents: lack of capacity at signing and improper procurement (such as undue influence, fraud, or duress). Even when the document itself is hard to attack, the agent’s conduct can still be challenged because an agent is a fiduciary and must act in the principal’s best interests and within the authority the POA actually grants. After death, the personal representative (executor/administrator) commonly becomes the person with standing to demand records and pursue claims on behalf of the estate.

Key Requirements

  • Capacity at the time of signing: The challenge must focus on the parent’s mental ability on the date the POA was executed (not just a general dementia diagnosis). Evidence often includes medical records, witness testimony about functioning that day, and the circumstances of signing.
  • Improper procurement (undue influence, fraud, or duress): If a sibling arranged the signing, isolated the parent, controlled information, or pressured the parent, those facts can support an attack even if capacity evidence is mixed.
  • Agent’s fiduciary duties and recordkeeping: Regardless of whether the POA is ultimately upheld, the agent generally must keep accurate records of transactions and can be required to disclose them in court—especially after the principal’s death when the estate needs to be administered.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the parent is deceased and a sibling previously acted under a POA that is suspected to have been signed during dementia. The capacity element turns on what the parent understood at the moment of signing, so the most important early evidence is often medical documentation near the signing date and witnesses who observed the signing circumstances. If the sibling arranged the signing and then used the POA to move assets, the case often combines (1) an attack on the POA’s validity and (2) claims focused on whether the sibling exceeded the POA’s authority or breached fiduciary duties, supported by bank and property records.

Process & Timing

  1. Who files: Often the estate’s personal representative (executor/administrator), sometimes joined by an heir with a direct interest depending on the claims. Where: Typically North Carolina Superior Court in the county where the defendant lives and/or where key transactions occurred; some estate-related disputes may also involve the Clerk of Superior Court depending on the relief requested. What: A civil complaint commonly requesting (a) declaratory judgment that the POA is invalid, plus (b) claims tied to wrongful transfers and a request for an accounting/production of records. When: Filing deadlines depend on the specific claims; many claims are subject to a three-year limitations period, and fraud-based claims can be tied to when the facts were discovered under N.C. Gen. Stat. § 1-52.
  2. Early evidence steps: The case usually starts with collecting the POA document, notarization/witness information, and a timeline of transactions. Formal discovery (subpoenas, document requests, depositions) is often used to obtain medical records, bank statements, and communications about the signing and subsequent transfers.
  3. Resolution: If the court finds the POA invalid (or finds the agent exceeded authority/breached duties), the court can enter orders that support unwinding transfers, imposing equitable remedies, and/or awarding money judgments depending on the claims and proof.

Exceptions & Pitfalls

  • Dementia diagnosis is not the whole test: A diagnosis alone does not automatically prove lack of capacity on the signing date. The case usually rises or falls on specific, date-focused evidence.
  • Focusing only on “invalid POA” and ignoring transactions: Even if a court never squarely invalidates the POA, an agent can still face liability for acting outside the document’s authority or for self-dealing. A thorough case often pleads both tracks.
  • Standing and proper parties: After death, the personal representative is often the right person to sue for recovery of estate assets. Also, anyone who received transferred property may need to be joined in a declaratory judgment case under N.C. Gen. Stat. § 1-260.
  • Recordkeeping and accounting fights: Agents sometimes claim the POA waived accountings. Even then, courts can order disclosure in appropriate cases, and the estate often needs those records to administer assets and evaluate claims.
  • Delay: Waiting can make it harder to obtain records and witness testimony. It can also create statute-of-limitations defenses.

Related reading: concerns about capacity and influence often overlap with will disputes, including challenging a will based on dementia and mental capacity and undue influence in last-minute estate changes.

Conclusion

In North Carolina, a power of attorney signed during dementia can be challenged by asking a court to declare it invalid based on lack of capacity at signing and/or improper procurement such as undue influence, fraud, or duress. Because the parent is deceased, the case often also targets what the agent did under the POA and seeks records and repayment tied to specific transactions. A practical next step is to have the estate’s personal representative file a civil action for declaratory relief in Superior Court within the applicable limitations period (often three years, depending on the claim).

Talk to a Probate Attorney

If a sibling used a power of attorney signed during dementia and there are concerns about capacity, undue influence, or missing money, our firm has experienced attorneys who can help explain options for challenging the document and tracing transactions through records and court process. 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.