What is the difference between a guardianship and a power of attorney?

The difference between a guardianship and a power of attorney in North Carolina is significant. A guardianship is a court-ordered relationship between a guardian and a ward, while a power of attorney is an agreement between two adults for one adult (the principal) to appoint another adult (the agent) to act on their behalf. A guardianship is established when a court decides that a person (the ward) is unable to make personal or financial decisions and orders a court-appointed guardian to make those decisions instead. The guardian must provide regular reports to the court on the ward’s condition and is accountable to the court. A power of attorney is an agreement that allows a person (the principal) to appoint an agent to act on their behalf. With a power of attorney, the principal can decide precisely what powers they are giving to their agent to act on their behalf. They can give the agent the power to make financial decisions, sign documents, and even act in their place if they become incapacitated. The difference between a guardianship and a power of attorney goes beyond just the purpose. A guardianship is court-ordered and must meet certain requirements, while a power of attorney is an agreement that can be tailor-made to fit individual needs.

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What is the difference between a guardianship and a power of attorney?

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