Short Answer

Yes, but the challenge usually runs through the estate’s personal representative and focuses on whether your sister, acting as a fiduciary (agent or guardian), had legal authority and followed her duties. In North Carolina, POD/TOD beneficiaries have no rights until death, and banks paying them are discharged; however, a court can order beneficiaries to return funds and can hold a fiduciary liable if she exceeded authority or breached duties. The first practical step is to open the estate and obtain records and accountings.

Understanding the Problem

In North Carolina probate, you want to know if you can undo payable-on-death (POD) designations your sister arranged while controlling your mother’s finances. The key decision point is whether you (or the estate) can challenge those designations and recover the money. One salient fact: your mother’s power of attorney was revoked and your sister later handled finances under a court-appointed guardianship.

Apply the Law

Under North Carolina law, POD/TOD designations are nonprobate transfers that pass at death; beneficiaries have no ownership during the owner’s life, and banks that pay them in good faith are discharged. Even so, when a fiduciary (agent under a power of attorney or a guardian of the estate) creates, changes, or uses such designations without proper authority or court approval, a court can compel an accounting, restore assets, impose a constructive trust, or surcharge the fiduciary. Typically, an estate’s personal representative brings recovery claims, and the Clerk of Superior Court supervises guardianship accountings while the Superior Court hears monetary claims.

Key Requirements

• Standing through the estate: An administrator is usually needed to demand records, compel accountings, and pursue recovery for the estate.
• Fiduciary authority and compliance: Show the sister (as agent or guardian) lacked authority, failed to obtain required court approval, or breached fiduciary duties when setting POD/TOD designations.
• Estate impact and remedy: Show the designations diverted assets or undermined estate obligations; seek restoration, surcharge, or a constructive trust over proceeds paid to beneficiaries.
• Forum: Clerk of Superior Court for guardianship accountings and related relief; Superior Court for monetary damages and equitable remedies.
• Threshold for collection: The personal representative may recover nonprobate assets (including POD/TOD) when estate assets are insufficient to pay claims.

What the Statutes Say

• North Carolina Gen. Stat. § 53C-6-7 (Payable-on-death bank accounts) – POD beneficiaries take at death; the bank is discharged by payment.
• North Carolina Gen. Stat. § 28A-15-10 (Personal representative’s right to collect) – PR may recover nonprobate transfers (including POD/JWROS) when needed to pay estate claims.
• North Carolina Gen. Stat. § 32C-1-117 (Agent’s liability under POA) – Violation is a breach of fiduciary duty; court may order restoration, accounting, constructive trust, and other relief.
• North Carolina Gen. Stat. § 35A-1253 (Guardian’s special powers with court approval) – Certain estate-planning transactions by a guardian require prior court authorization.

Analysis

Apply the Rule to the Facts: Because the power of attorney was revoked and your sister later acted as a court-appointed guardian, her ability to set or change POD designations turns on guardianship authority and court approvals. If she created or changed designations without required approval or contrary to her duties, that supports a breach. After you open the estate and are appointed administrator, you can compel a final guardianship accounting, obtain bank records, and, if warranted, seek restoration of POD proceeds and surcharge.

Process & Timing

1. Who files: An interested heir petitions to be appointed administrator. Where: Clerk of Superior Court in the North Carolina county where your mother was domiciled. What: AOC-E-202 (Application for Letters of Administration) and related qualification documents. When: File promptly so you can obtain records, publish notice to creditors, and preserve remedies; procedures and timelines can vary by county.
2. As administrator, demand bank records and request a final guardianship accounting from the Clerk’s office. If irregularities appear, move the Clerk to surcharge the former guardian and compel compliance; in parallel, prepare any Superior Court action for monetary relief or equitable remedies (e.g., constructive trust over POD proceeds).
3. If the estate is short of funds to pay claims, use the administrator’s statutory right to recover nonprobate transfers from recipients as needed. The expected outcome is a court order restoring funds to the estate or surcharging the fiduciary, followed by routine estate administration and distribution under intestacy.

Exceptions & Pitfalls

• Banks paying named POD/TOD beneficiaries in good faith are discharged; recovery is typically from the beneficiaries or the fiduciary, not the bank.
• Without letters of administration, heirs often lack standing to compel accountings or sue; get appointed first.
• If the guardian obtained prior court approval for the transactions, your challenge is harder; focus on whether approvals were followed and disclosures were complete.
• Beneficiaries have no rights before death; the challenge targets fiduciary authority and conduct, not the bank’s payout.

Talk to a Probate Attorney

If you’re dealing with suspected misuse of POD/TOD designations or guardianship funds, 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.