Short Answer

In North Carolina, you can petition the Clerk of Superior Court to force the agent under a power of attorney to account, limit or suspend their authority, and order money or property returned. If you need monetary damages or broader injunctions, file a civil action in Superior Court for breach of fiduciary duty and related claims. Act quickly to request an accounting, freeze suspect transfers, and trace funds.

Understanding the Problem

You want to stop and unwind your sibling’s transfers from a dedicated account that was set up for you while they were acting under a power of attorney in North Carolina. One key fact: your sibling allegedly moved money from that dedicated account into their own and used it for personal expenses.

Apply the Law

In North Carolina, an agent under a power of attorney owes strict fiduciary duties: act in the principal’s best interests, avoid self-dealing, keep records, and follow the document’s limits. Gifts or transfers that benefit the agent generally require express gifting authority and must still be consistent with the principal’s interests. The main forum to compel an accounting or limit an agent’s powers is the Clerk of Superior Court; claims for money damages belong in Superior Court. Venue is proper where the principal lives, where the agent lives, or where the property is located. Respondents in a contested petition typically have 20 days to answer after service.

Key Requirements

• Standing: The principal or another interested person may seek court relief against an agent; after the principal’s death, the personal representative pursues recovery.
• Fiduciary duty and breach: Show the agent owed duties, engaged in self-dealing or unauthorized transfers, or failed to act in the principal’s best interests.
• Gifting limits: Transfers benefiting the agent require express gift authority; absent that, such transfers are usually voidable.
• Forum selection: Use the Clerk of Superior Court to compel an accounting, construe the POA, or suspend/limit the agent; file in Superior Court for monetary damages and broad injunctive relief.
• Remedies and tracing: Seek restoration of property, constructive trust, suspension/removal, denial of compensation, and orders to trace and recover proceeds.
• Venue and response time: File in a proper county; in contested petitions, the agent generally has 20 days to respond after service.

What the Statutes Say

• North Carolina Gen. Stat. § 32C-1-116 (Judicial relief re: powers of attorney) – Clerk may order an accounting, construe the POA, and limit/suspend authority; some matters go to Superior Court.
• North Carolina Gen. Stat. § 32C-1-117 (Agent’s liability) – Court may restore property, impose constructive trusts, suspend/remove the agent, and award other relief.
• North Carolina Gen. Stat. § 32C-2-217 (Gifts) – Gifts require specific authority and must be reasonable under the circumstances.
• North Carolina Gen. Stat. § 28A-15-12 (Recover property of a decedent) – After death, the personal representative or an interested person may examine holders of estate property and seek recovery.

Analysis

Apply the Rule to the Facts: Your sibling, as agent, owed fiduciary duties and had to act for the parent’s benefit, not their own. Moving money from your dedicated account to themselves for personal expenses points to self-dealing and a likely breach unless the POA expressly allowed such gifts and the transfers were in the parent’s interests. You can ask the Clerk to compel an accounting and suspend the agent now, and ask the Superior Court to order restoration, impose a constructive trust, and enter judgment for losses.

Process & Timing

1. Who files: You (as an interested person) or the principal. Where: Clerk of Superior Court in a proper county (principal’s residence, agent’s residence, or where assets are). What: Petition under § 32C-1-116 to compel an accounting, construe the POA, and limit/suspend the agent; request orders to trace and restore funds under § 32C-1-117. When: File promptly; in a contested petition, the agent typically has 20 days after service to answer.
2. Parallel relief: File a civil action in Superior Court for breach of fiduciary duty, conversion, constructive fraud, unjust enrichment, and request a temporary restraining order/preliminary injunction to freeze accounts and preserve assets. Courts often set injunction hearings within days to a few weeks, varying by county.
3. If the principal dies: The personal representative (or an interested person in an estate proceeding) may initiate an examination and recovery of estate property under § 28A-15-12 and pursue civil claims for losses and return of assets.

Exceptions & Pitfalls

• If the POA document expressly authorizes gifts to the agent, recovery may be more complex; the agent still must act in the principal’s best interests and keep records.
• Choose the right forum: the Clerk for accountings and limiting authority; Superior Court for monetary damages and broader injunctions.
• Preserve proof early: obtain bank statements, transfer records, and communications to support tracing and remedies like constructive trust.
• If the “account” is actually a trust or guardianship asset, different procedures may apply; file in the correct proceeding and venue.
• After death, coordinate with the personal representative to avoid duplicate filings and to use the estate recovery tools effectively.

Talk to a Probate Attorney

If you’re dealing with suspect transfers under a power of attorney and need to freeze, trace, and recover 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.