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A power of attorney lets you designate an agent to handle your legal affairs when you can’t be there, prepared properly under North Carolina’s Uniform Power of Attorney Act.
What does a power of attorney do? We can’t be everywhere at all times, and often need the help of others in managing our daily affairs. That is truer as we grow older. A power of attorney allows you to designate an agent to handle your legal affairs. Powers of attorney are established under Chapter 32C of the North Carolina General Statutes, the North Carolina Uniform Power of Attorney Act. If you find yourself needing one, don’t hesitate to contact the office to get started.
Durable by default, and why that matters.
- Power of attorney A writing or record granting authority to an agent to act in place of the principal, whether or not the term “power of attorney” is used (§32C-1-102(9)).
- Durable The incapacity of the principal does not terminate the power of attorney (§32C-1-102(2)), the protection most people actually want.
- NC default A power of attorney created under Chapter 32C is durable unless the instrument expressly provides otherwise (§32C-1-104).
- Healthcare coordination Your agent must cooperate with whoever holds authority over your health care decisions, which is why a POA pairs naturally with a living will.
The law holds your agent to a standard.
Under §32C-1-114, once an agent accepts appointment, the agent is bound to act in accordance with your reasonable expectations to the extent actually known, and otherwise in your best interest, to act in good faith, and to act only within the scope of authority granted. An agent who exercises granted powers must also:
The statutory duties, in full (§32C-1-114)
- Act loyally for the principal’s benefit.
- Act so as not to create a conflict of interest that impairs acting impartially in the principal’s best interest.
- Act with the care, competence, and diligence ordinarily exercised by agents in similar circumstances.
- Keep a record of all receipts, disbursements, and transactions made on the principal’s behalf.
- Cooperate with a person that has authority to make health care decisions for the principal.
- Attempt to preserve the principal’s estate plan (considering property value, foreseeable obligations, tax minimization, and benefit eligibility).
An agent acting in good faith is protected in several ways: not liable to estate-plan beneficiaries for failure to preserve the plan; good-faith acts in the principal’s best interest are not voidable solely because the agent also benefits; not liable when property values decline absent a breach of duty; and not liable for a carefully selected and monitored delegate’s errors. Except as provided in the document, an agent isn’t required to disclose transactions unless ordered by a court or requested by the principal or certain designated persons.
Power of attorney FAQs.
When should I set up a power of attorney?
Before you need it. A POA must be executed while you have capacity. Most clients set one up alongside other life planning: a health event in the family, travel, aging, or simply getting affairs in order.
Does a power of attorney survive incapacity?
In North Carolina, yes by default: a power of attorney created under Chapter 32C is durable (meaning your incapacity does not terminate it) unless the document expressly says otherwise.
Can my agent do whatever they want?
No. The agent may act only within the scope of authority granted, must act in good faith and loyally for your benefit, must avoid disqualifying conflicts of interest, and must keep records of every transaction made on your behalf.
What’s the difference between a POA and a living will?
A power of attorney appoints a person to act for you. A living will records your own end-of-life treatment decisions so they don’t fall to anyone else. They work together, and many clients prepare both at once.
A conversation today spares your family a crisis later.
704-675-9939Call the office to get started. Straightforward documents, prepared properly.