Accessing and Withdrawing Funds From a Deceased Person’s Bank Account in North Carolina
Detailed Answer
In North Carolina, money held solely in a decedent’s name becomes part of the probate estate. No one may legally withdraw those funds until they obtain authority from the Clerk of Superior Court or meet a statutory exemption. Attempting to remove money without authority can create personal liability. Below are the four lawful paths for accessing the account:
1. Determine Whether the Account Actually Needs Probate
- Joint Account With Right of Survivorship. Under G.S. 41-2.1, a surviving joint owner may present a death certificate and valid ID to the bank and take ownership immediately—no probate filing required.
- Pay-On-Death (POD) or Transfer-On-Death (TOD) Account. The named beneficiary simply provides the bank with a certified death certificate and proof of identity.
- Retirement or Life-Insurance Proceeds. IRAs, 401(k)s, and life-insurance policies with a designated beneficiary bypass probate as well.
If the account falls into one of these categories, skip to Helpful Hints below.
2. Full Probate Administration—Letters Testamentary or Letters of Administration
- File the will (if any), a death certificate, and Application for Probate and Letters (Form AOC-E-202) with the Clerk in the county where the decedent resided.
- Once the Clerk issues Letters Testamentary (executor) or Letters of Administration (administrator) under G.S. 28A-6-1, the personal representative (PR) can act.
- The PR obtains an EIN from the IRS and opens an estate checking account.
- Show the bank certified copies of the Letters. The bank will close the decedent’s account and issue a check payable to “Estate of [Name]” for deposit into the estate account.
- The PR uses those funds to pay claims in the statutory order (G.S. 28A-19-6) and later distributes the residue to heirs or devisees.
3. Small-Estate Collection by Affidavit (Personal Property ≤ $20,000, or ≤ $30,000 if only a surviving spouse)
- Wait 30 days after death (G.S. 28A-25-1).
- File the Affidavit for Collection of Personal Property (Form AOC-E-203) with the Clerk and pay the $120 filing fee.
- The Clerk returns a certified affidavit. Present it and the death certificate to the bank. The institution must release up to the statutory cap to the affiant (G.S. 28A-25-2).
- The affiant pays valid debts and distributes the balance according to intestacy or the will.
4. Immediate Funeral-Expense Withdrawal up to $10,000
Under G.S. 28A-15-13, a bank may release up to $10,000 from the decedent’s account directly to the funeral home once shown the unpaid bill and a certified death certificate. Any remainder stays frozen until one of the methods above applies.
Helpful Hints
- Order at least 10 certified death certificates; most banks will keep one.
- If the decedent had multiple accounts, ask each bank for a date-of-death balance letter—required for the probate inventory.
- The surviving spouse may claim a Year’s Allowance of up to $60,000 from bank funds before most creditors are paid (G.S. 30-15 et seq.).
- Never mingle estate money with personal funds; the PR should keep detailed records for the Clerk’s periodic accountings.
- Financial institutions sometimes impose internal forms or holds—politely escalate to a branch manager if the statute supports your request.
Need guidance? North Carolina probate law contains many deadlines and priority rules. A single misstep can delay distribution or expose you to personal liability. Our firm’s attorneys have years of experience guiding families through every stage of estate administration—large or small. Call us today at (919) 341-7055 for a free consultation.
