Durable power of attorney for finances
A financial power of attorney names an agent to act for you in money and property matters. Depending on what you grant, your agent can pay bills, manage bank accounts, deal with insurance and government benefits, file taxes, and handle real estate.
Under North Carolina law, a power of attorney is generally durable, meaning it keeps working if you become incapacitated, unless the document says otherwise. You can make it effective right away or only when you become incapacitated. Each choice has trade-offs. One that takes effect right away is easier to use in an emergency. One that springs into effect later requires proof of incapacity first.
Some powers, such as making gifts, changing beneficiary designations, or using your powers over a revocable trust you created, must be granted expressly. If you do not include them, your agent cannot use them.
How a power of attorney must be signed
A North Carolina power of attorney must be signed by you and acknowledged, usually before a notary. If your agent will use it to sell, buy, or mortgage real estate, it generally must be recorded with the register of deeds.
Your agent has legal duties. The agent must act in good faith, within the authority you gave, and in your interest. The agent must keep records of what the agent receives and spends for you. A power of attorney is not permission to use your money for the agent’s own benefit.
Health care power of attorney
A health care power of attorney names a health care agent to make medical decisions for you when your doctor decides you cannot make or communicate them yourself. Your agent can talk with your doctors, review your records, consent to or refuse treatment, and make decisions about where you receive care.
You can give your agent instructions and limits. You can also name backup agents. North Carolina requires specific witnessing and notary steps for this document, and it is important to follow them exactly.
Living will
A living will states whether you want life-prolonging measures in certain situations, such as a terminal condition or permanent unconsciousness. It speaks for you when you cannot speak.
A living will and a health care power of attorney work together. The living will states your wishes. Your health care agent makes the decisions the living will does not cover. Some people also sign a separate document about mental health treatment.
Give copies to your health care agent, your doctors, and your family. Tell them what you want. Doctors also use medical order forms for people who are seriously ill. Those are completed with your doctor, not a lawyer.
What happens if you do not have these documents
If you lose capacity without a financial power of attorney, your family may have to go to court to have a guardian appointed. Guardianship takes time, costs money, and becomes part of a court record. The court chooses the guardian, who may not be the person you would have chosen.
For medical decisions, North Carolina law lists who may decide for a person without a health care agent, usually starting with close family. If your family disagrees, or if you would want someone outside that list to decide, a health care power of attorney matters even more.
Choosing your agents and keeping documents current
Choose people who are honest, organized, and willing to serve, and who will follow your wishes even if they disagree. Talk with them before you sign. Review your documents after a marriage, divorce, move, or illness, or if an agent can no longer serve. Divorce can affect whether a former spouse can act as your agent, so update your documents after a divorce.
How Huggins Law Firm can help
We prepare financial powers of attorney, health care powers of attorney, and living wills, and supervise the signing so the formalities are met. We explain what each power means in plain English and help you choose your agents. We also advise agents who are not sure what they are allowed to do, and families who learn a loved one can no longer manage alone.
Sign these documents while you are healthy. Once capacity is in question, it may be too late.
Our office is at 826 N. Elm Street in Greensboro. Hablamos español. We explain our fee in writing before you hire us. Call (336) 281-2008 to request a consultation.
This page is general information about North Carolina law, not legal advice. Every case is different, and no lawyer can promise a result.
Questions people ask us
Does a power of attorney need to be notarized in NC?
A North Carolina power of attorney must be signed and acknowledged, usually before a notary. If it will be used for real estate, it generally must also be recorded with the register of deeds. Health care powers of attorney have their own witnessing and notary requirements.
What is the difference between a power of attorney and a health care power of attorney?
A financial power of attorney covers money and property. A health care power of attorney covers medical decisions. Most people sign both, and they can name the same person or different people.
Does a power of attorney end at death?
Yes. A power of attorney ends when you die. After death, your executor or estate administrator handles your affairs through the estate.
Can I revoke a power of attorney?
Yes, while you have capacity. Revoke it in writing and give notice to the agent and to anyone who has relied on it, such as your bank. If it was recorded, record the revocation too.
Who makes medical decisions for me if I do not have a health care power of attorney?
North Carolina law sets an order of people who may decide, beginning with a court-appointed guardian, then your spouse, then a majority of your adult parents and children, then a majority of your adult brothers and sisters. A health care power of attorney lets you choose for yourself.