Short Answer

In North Carolina, final wages owed to a deceased employee are a debt owed to the estate and should be paid to the court-appointed personal representative. If the employer mistakenly paid someone else (like an insurance beneficiary), you can demand correction. If the employer won’t reissue, you can pursue the recipient and/or use a court proceeding to recover estate property; which route you choose depends on who has the money and whether it’s been spent.

Understanding the Problem

You’re the North Carolina estate administrator asking: can you require the employer to reissue the decedent’s last paycheck to the estate after it was mistakenly paid to a life insurance beneficiary? One key fact: that beneficiary has already spent part of the funds. You need the money returned and proper documentation for the Clerk of Superior Court.

Apply the Law

Under North Carolina law, unpaid wages are part of the decedent’s personal property and belong in the estate once a personal representative is appointed. The employer should direct final wages to the personal representative for proper collection and accounting. If the employer paid the wrong person, the personal representative can (a) ask the employer to correct the error and reissue payment to the estate, and/or (b) pursue the person who received or holds the funds through an estate proceeding or a civil action to recover estate property. The Clerk of Superior Court has authority to order the return of estate property in an estate proceeding; the Superior Court can enter money judgments and use injunctions where broader remedies are needed. If no personal representative had been appointed and only a small dollar amount is owed, North Carolina law allows limited payments to the Clerk, but once a personal representative is in place, payment should go to the estate.

Key Requirements

• Estate entitlement: Last wages are a debt owed to the estate, payable to the court‑appointed personal representative.
• Correction of mistaken payment: The administrator may demand the employer reissue payment to the estate; if refused, seek recovery from the recipient and/or file to recover estate property.
• Proper forum and remedy: Use an estate proceeding before the Clerk to examine and compel return of estate property; use a Superior Court civil action if you need a money judgment, injunction, or the funds were spent.
• Small-amount exception: If no administrator is appointed, a debtor may pay limited amounts to the Clerk, but this does not apply once a personal representative is in place.
• Accounting and documentation: Report the wages as an estate receipt and document any partial repayments and distributions in your inventory and accountings.

What the Statutes Say

• N.C. Gen. Stat. § 28A-15-12 (Actions to recover property of decedent) – Lets a personal representative recover estate property via an estate proceeding before the Clerk or a civil action in Superior Court.
• N.C. Gen. Stat. § 28A-13-3 (Powers and duties of personal representative) – Confirms the administrator’s authority to collect estate assets and manage estate claims.
• N.C. Gen. Stat. § 28A-25-6 (Payment to clerk of money owed to decedent) – Allows limited payments to the Clerk when no administrator is appointed (not applicable once letters are issued).

Analysis

Apply the Rule to the Facts: Because you are the court‑appointed administrator, the final paycheck belongs in the estate. Start by sending the employer your Letters of Administration and a written demand to reissue the wages to the estate and correct payroll records. If the employer refuses or insists the prior payment discharged its obligation, proceed against the recipient: file an estate proceeding before the Clerk to examine them and seek an order to turn over the remaining funds. Since part of the money has been spent, you may need a Superior Court action for a money judgment for the spent portion.

Process & Timing

1. Who files: Personal representative (administrator). Where: First, address the employer directly; if recovery is needed, file with the Clerk of Superior Court in the county where the estate is administered. What: Written demand to employer with Letters of Administration; if needed, a verified petition for recovery of estate property under § 28A‑15‑12. When: As soon as you confirm the mistaken payment; do not delay, especially if funds are being spent.
2. After filing an estate proceeding, the Clerk can order the recipient to appear, answer questions, and deliver estate property. If the funds are gone or you need broader relief (injunctions or a money judgment), file a civil action in Superior Court under § 28A‑15‑12 and seek appropriate remedies. Timelines vary by county and court calendars.
3. Once recovered, deposit funds into the estate account and record them on the inventory and in annual/final accountings with supporting receipts and any employer payroll corrections (such as a corrected wage payment and W‑2 reporting).

Exceptions & Pitfalls

• If no personal representative existed and the employer paid under a lawful small‑payment procedure (for example, to the Clerk or a statutorily authorized recipient), the employer may be discharged; recovery then focuses on the recipient.
• If the recipient spent the funds, a simple turnover order may be insufficient; consider a Superior Court action for a money judgment and, where appropriate, interim relief to prevent further dissipation.
• Serve the estate petition and any civil complaint properly. Defective service can delay recovery or risk dismissal.
• Coordinate with the employer on corrected payroll records and tax forms so the estate’s accounting matches wage reporting.

Talk to a Probate Attorney

If you’re dealing with a misdirected final paycheck and need to recover and document wages for the estate, 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.