Dec182025
Probate Q&A Series

What happens to money in a deceased person’s bank account if no one claims it? – North Carolina

Short Answer

In North Carolina, money in a deceased person’s bank account does not just “sit there forever.” If no one steps forward to administer the estate or claim the funds, the bank may eventually treat the account as unclaimed property and transfer it to the State Treasurer, or the funds may be handled through an estate administration and paid into the State’s Escheat Fund when there are no heirs.

Even after the State receives the money, a rightful heir (and in some situations a creditor) may still be able to file a claim for it, but the process and proof requirements matter.

Understanding the Problem

In North Carolina probate, the main question is what happens when a decedent’s bank account remains untouched because no family member, executor, or other person starts an estate process or makes a claim to the funds. The issue often turns on whether the account passes automatically at death (for example, to a surviving joint owner or a payable-on-death beneficiary) or whether the account is an estate asset that requires action through the Clerk of Superior Court. Timing matters because banks and the State have procedures for accounts that remain inactive and unclaimed.

Apply the Law

North Carolina generally routes unclaimed assets into State custody through its escheat and unclaimed property laws. If an estate is opened and the personal representative is ready to close the estate but there are no known heirs (or no one entitled comes forward), North Carolina law requires the personal representative to turn over remaining unclaimed personal property to the State Treasurer before closing the estate. If there is no estate administration at all, a bank may eventually transfer dormant funds as unclaimed property to the State’s unclaimed property program, and later claims typically go through the State rather than the bank.

Key Requirements

  • Whether the account is an estate asset: A single-owner account with no beneficiary designation is usually part of the probate estate, while some accounts (like joint accounts with survivorship features or payable-on-death designations) may pass outside the estate.
  • No one with legal authority claims the funds: Banks typically require “Letters” issued by the Clerk of Superior Court (or another recognized authority) before releasing estate funds, so inaction can lead to long-term inactivity and eventual reporting as unclaimed.
  • Transfer to the State and later claim process: When money becomes “unclaimed” under North Carolina’s escheat/unclaimed property framework, it generally gets paid to or held by the State Treasurer, and later recovery usually requires a claim and proof of entitlement.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because no specific facts are provided, two common North Carolina scenarios illustrate how this works. First, if the decedent had a bank account only in the decedent’s name with no payable-on-death beneficiary, the account is typically an estate asset; if no one qualifies as a personal representative, the bank may eventually treat the account as dormant and transfer it to the State as unclaimed property. Second, if an estate is opened but there are no known heirs and no one entitled claims the remaining cash when the estate is ready to close, North Carolina law directs the personal representative to pay those unclaimed funds to the State Treasurer before the estate can be closed.

Process & Timing

  1. Who files: If someone is handling the estate, the personal representative (executor or administrator). If no estate is open, a person claiming the funds later typically files a claim through the State Treasurer’s unclaimed property/escheat process. Where: Estate administration starts with the Clerk of Superior Court in the county where the decedent lived (or where property is located in certain cases). What: Common filings include the Application for Probate and Letters (for a will) or the Application for Letters of Administration (if no will), and banks often require certified Letters before releasing funds. When: It is usually best to start promptly after death; specific reporting deadlines for “unclaimed” funds depend on the type of property and the holder’s reporting cycle.
  2. If a personal representative qualifies, banks commonly close or freeze the decedent’s individual accounts and require the personal representative to open an estate account to receive estate funds and pay expenses. This keeps money traceable for required estate accounting and closing documents filed with the Clerk.
  3. If no one claims funds and they move to State custody, the practical “end point” is that the bank no longer holds the money. A later claimant typically must prove entitlement (for example, heirship documentation and identity proof) and follow the State’s claim steps to recover the funds.

Exceptions & Pitfalls

  • Joint and beneficiary accounts may change everything: Some accounts are designed to pass automatically at death (for example, joint accounts with survivorship rights or payable-on-death accounts). Those funds may not be controlled by the estate at all, although North Carolina law can allow recovery into the estate in limited situations to pay valid debts and claims.
  • No “Letters,” no access: A bank often will not release funds from a single-owner account to a family member without court-issued Letters. Waiting too long can lead to the bank transferring the funds to the State as unclaimed property, which adds an extra layer of paperwork.
  • Creditor timing can matter: North Carolina allows certain creditor claims against escheated property only if the creditor is not barred under the estate claims rules. Missing an estate-claim deadline can affect whether a creditor can later collect from property that has gone to the State.

Conclusion

In North Carolina, if no one claims money in a deceased person’s bank account, it typically becomes part of an estate that requires a personal representative to collect it, or it eventually moves into State custody as unclaimed/escheated property. When an estate is ready to close and there are no known heirs, the personal representative must pay unclaimed personal property to the State Treasurer before filing a final account. The practical next step is to open an estate with the Clerk of Superior Court (and obtain Letters) so the funds can be collected and handled correctly.

Talk to a Probate Attorney

If you’re dealing with a deceased person’s bank account that no one has claimed or an estate that may end up in unclaimed property status, our firm has experienced attorneys who can help explain the probate process, the paperwork banks require, and the timelines that can affect recovery. 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.

Category: Probate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.