Short Answer

In North Carolina, a U.S. savings bond titled only in the decedent’s name with no co-owner or payable-on-death beneficiary is a probate asset. The executor should list it on the estate Inventory, use Letters (Testamentary or of Administration) and the death certificate to redeem or reissue the bond through a bank or the U.S. Treasury, deposit the proceeds into the estate account, and wait to distribute until after claims are handled.

Understanding the Problem

You’re the North Carolina executor and found a U.S. savings bond in your parent’s sole name with no beneficiary. Can you cash it, and when? The decision is whether to treat the bond as a probate asset, include it on the Inventory, and redeem or reissue it while the 90-day creditor notice period runs.

Apply the Law

Under North Carolina law, property titled only to the decedent is part of the probate estate and is available to pay estate expenses and valid claims before any distribution. U.S. savings bonds follow federal registration rules: if the decedent was the sole owner with no payable-on-death beneficiary or co-owner, the bond becomes part of the estate. The executor uses Letters to redeem or reissue the bond and deposits the funds in the estate account. File the Inventory with the Clerk of Superior Court and wait to distribute until claims are resolved.

Key Requirements

• Confirm registration: Verify the bond shows the decedent as sole owner with no co-owner (“A or B”) and no payable-on-death beneficiary.
• Inventory and classify: List the bond as probate personal property on the Inventory filed with the Clerk of Superior Court.
• Redeem or reissue properly: Use your Letters and a certified death certificate to redeem at a bank (paying agent) or submit required U.S. Treasury forms to reissue or pay the bond.
• Use the estate account: Deposit proceeds into the estate account to pay costs and allowed claims before distributing to heirs or devisees.
• Mind the timelines: File the Inventory on time and allow the creditor window to run; many banks and the U.S. Treasury want Letters issued within a recent period when processing.

What the Statutes Say

• N.C. Gen. Stat. § 28A-15-1 (Assets of decedent; possession by personal representative) – All the decedent’s property is available to pay estate debts and claims.
• N.C. Gen. Stat. § 28A-20-1 (Inventory) – Inventory must be filed with the clerk within the statutory timeframe after qualification.
• N.C. Gen. Stat. § 28A-19-3 (Nonclaim statute) – Sets creditor presentation deadlines after notice; late claims are barred.
• N.C. Gen. Stat. § 28A-19-6 (Order of claims) – Establishes the priority for paying estate claims and expenses.

Analysis

Apply the Rule to the Facts: Because the savings bond has no beneficiary and no co-owner, it is a probate asset. Include it on the Inventory and value it as of date of death. During the 90-day creditor period, you may redeem or reissue the bond using your Letters and the death certificate, then hold the proceeds in the estate account to pay allowed claims and costs before any distribution after the claim period ends.

Process & Timing

1. Who files: Executor/administrator. Where: Clerk of Superior Court in the North Carolina county of domicile. What: File the estate Inventory listing the bond; bring Letters and a certified death certificate to a bank paying agent or submit U.S. Treasury forms (e.g., FS Form 1522 for payment or FS Form 1455 for fiduciary distribution). When: File the Inventory within the statutory period (generally within 3 months of qualification) and allow the creditor notice period to run.
2. Redeem or reissue: Most banks can process redemptions for eligible paper bonds; otherwise, mail required forms to the Treasury Retail Securities Site. Processing can take days to several weeks depending on the method.
3. Close-out: After the creditor window closes and claims are paid in statutory order, distribute any remaining proceeds under the will or intestacy and reflect the transaction in the final accounting.

Exceptions & Pitfalls

• If the bond is actually co-owned or lists a payable-on-death beneficiary, it is not a probate asset; handle under the registration rules and consider recovery only if estate assets are insufficient to pay claims.
• Do not transfer title informally; savings bonds are nontransferable and must be redeemed or reissued using the U.S. Treasury’s required process.
• Banks and the Treasury often require recent Letters; if your Letters are older, be prepared to provide updated certification from the clerk.
• Keep date-of-death values and interest records; accrued interest may be taxable income to the estate or recipient, so coordinate with a tax professional.

Talk to a Probate Attorney

If you’re dealing with a U.S. savings bond titled only to the decedent and need to redeem or reissue it during probate, 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.