Do we need to list any specific account details in our wills, or is it best to keep those off the documents and rely on beneficiary forms? – North Carolina

Short Answer

Under North Carolina law, most retirement accounts, POD bank accounts, and TOD investment accounts pass by contract through their own beneficiary designations, not through a will. For those accounts, it is usually better to rely on the institution’s beneficiary forms and keep detailed account numbers out of the will, while still using the will to provide a “backup” plan if a beneficiary designation fails or an asset ends up in the estate.

Understanding the Problem

The question is whether a North Carolina couple using a will-based estate plan must list specific financial account details in their wills, or whether retirement and similar accounts can instead pass under separate beneficiary designations. The concern is how to coordinate a will with nonprobate transfers, such as retirement plans, payable-on-death bank accounts, or transfer-on-death investment accounts, especially where spouses name each other and then children or other backups. The key issue is how North Carolina treats these beneficiary-designated assets and what role, if any, a will should play in naming those accounts or their beneficiaries.

Apply the Law

North Carolina treats properly titled POD and TOD accounts, and most retirement accounts with beneficiary designations, as nonprobate transfers that pass by contract with the institution rather than under a will. The main task is to coordinate those designations with the will so the overall plan works together, without creating conflicts or unnecessary probate issues.

Key Requirements

Nonprobate transfer structure: The account must be set up as payable on death (POD), transfer on death (TOD), or with named beneficiaries under the institution’s rules, so that it passes outside probate under the account contract.
Clear, current beneficiary designations: The financial institution’s beneficiary forms must clearly name primary and, ideally, contingent beneficiaries and be kept up to date; these designations generally control over any inconsistent will provision.
Coordinated estate plan: The will should cover only what actually passes through the estate, act as a safety net if a designation lapses, and avoid listing detailed account numbers that may change, while the overall plan still meets tax, creditor, and family goals.

What the Statutes Say

N.C. Gen. Stat. § 41-48 (Nontestamentary transfer on death) – Confirms that transfers on death from registrations in beneficiary form (such as TOD designations) are contractual and not controlled by a will, though still reachable if the estate cannot pay debts.
N.C. Gen. Stat. § 41-44 (Form of registration in beneficiary form) – Explains common TOD/POD titling (“TOD” or “POD” after the owner’s name and before the beneficiary’s name).
N.C. Gen. Stat. § 54C-166.1 (POD accounts at savings banks) – Provides that money in a POD account belongs to the named beneficiary at the owner’s death and is not controlled by will.
N.C. Gen. Stat. § 54B-130.1 (POD accounts at savings and loans) – Contains parallel rules for POD accounts at savings and loan associations.
N.C. Gen. Stat. § 54-109 (POD accounts at credit unions) – Contains similar provisions for POD accounts at credit unions.

Analysis

Apply the Rule to the Facts: In the described plan, the couple wants retirement accounts to pass by beneficiary designations rather than under their wills. Under North Carolina law, that is appropriate so long as the beneficiary forms with each retirement provider are correctly completed and coordinated with the overall plan. The wills can then focus on probate assets and include a “catch-all” (residuary) clause so that, if any account accidentally ends up in the estate, it still follows the intended distribution, without needing to list each account or number. Keeping specific account details out of the wills reduces the risk of outdated information and protects some financial privacy while still achieving the intended transfers.

Process & Timing

Who files: No court filing is needed just to name beneficiaries for retirement, POD, or TOD accounts. Where: Beneficiary forms are completed with each bank, credit union, brokerage, or retirement plan administrator in North Carolina or elsewhere. What: Use the institution’s official beneficiary designation or POD/TOD registration forms. When: Ideally before or at the time of signing the wills, and reviewed whenever there is a major life change.
After death, the named beneficiaries contact each institution directly, provide a death certificate, and complete any claim forms. Processing times vary by institution, but funds often transfer within a few weeks once paperwork is complete.
Meanwhile, the personal representative files the will with the clerk of superior court in the county of the decedent’s residence and opens an estate for assets that do not pass by beneficiary form. The will’s residuary clause governs those probate assets, while nonprobate accounts pay out directly to named beneficiaries.

Exceptions & Pitfalls

If a beneficiary designation is missing, invalid, or names a deceased person with no backup, that account may fall back into the estate and then pass under the will’s residuary clause rather than directly by contract.
Conflicts between a will and a beneficiary form usually resolve in favor of the beneficiary form, which can frustrate estate equalization plans if not coordinated in advance.
Listing specific account numbers in the will can create problems when accounts are renumbered, closed, or moved; future changes then require a new will rather than a simple beneficiary update with the institution.
Even though these assets are nonprobate, North Carolina statutes allow the personal representative to reach POD and TOD assets in some cases if the estate cannot pay valid debts, so overall liquidity and creditor issues still need attention.

Conclusion

For a North Carolina couple using a will-based plan, it is usually best not to list detailed retirement or POD/TOD account information inside the will. Properly structured beneficiary designations cause those accounts to pass outside probate and generally override any conflicting will language, while the will’s residuary clause acts as a safety net if a designation fails. The most important next step is to confirm and coordinate all beneficiary forms with the new wills before the signing appointment.

Talk to a Estate Planning Attorney

If you’re dealing with how to coordinate wills with POD, TOD, and retirement account beneficiary designations under North Carolina law, 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.