Dec212025
Probate Q&A Series

What happens if we report someone for taking funds from a deceased person’s accounts—could that lead to criminal charges, and is there a deadline to act? – North Carolina

Short Answer

In North Carolina, reporting the suspected taking of a deceased person’s money or property can lead to a criminal investigation and potentially criminal charges, but law enforcement (not the family) decides whether charges are filed. Separately, the estate usually has civil options through the Clerk of Superior Court to force disclosure and recover property, and those steps often matter just as much as any criminal case. There is no single universal “deadline to report,” but civil recovery tools and other legal rights can become harder to use over time, so acting promptly is important.

Understanding the Problem

Under North Carolina probate administration, what happens if heirs or a personal representative report that a family member took funds from a deceased person’s accounts (or took estate property) before the estate made distributions, and does North Carolina law impose a time limit to act? The decision point is whether a report about suspected estate theft can create criminal exposure and whether delaying action can limit the estate’s practical ability to trace, freeze, or recover assets.

Apply the Law

In North Carolina, taking or using a decedent’s money or property without legal authority may trigger two parallel tracks: (1) a criminal investigation (depending on facts like authorization, intent, and how access was obtained), and (2) estate remedies that focus on getting a full accounting and returning assets to the estate. The main forum for estate-side relief is typically a contested estate proceeding in front of the Clerk of Superior Court in the county where the estate is being administered, and the personal representative’s fiduciary duties (including the duty not to commingle, self-deal, or misapply assets) are enforceable through the estate accounting process.

Key Requirements

  • Authority to access the asset: Whether the person had legal authority to withdraw funds or take property (for example, as the duly appointed personal representative, or under a valid power of attorney while it was still effective).
  • Estate ownership and timing: Whether the money or property belonged to the decedent/estate at the time of the transfer and whether the transfer happened before proper estate distribution or court approval.
  • Proof and traceability: Whether records exist to show what was taken, when, and where it went (bank statements, title/DMV records, sale documents, and communications), which affects both criminal investigation and estate recovery.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe multiple heirs administering a North Carolina estate where one sibling took estate funds and a vehicle before distribution, with bankruptcy issues affecting offsets and a potential trustee interest in an heir’s share. If the sibling had no legal authority to remove estate money or take estate property, the conduct can be reported to law enforcement and may also support estate-side relief to compel disclosure and return of assets. Because estate administration requires inventories and accountings, and because the clerk can hear a discovery-of-assets proceeding, the estate can use probate procedures to build the record of what was taken and seek recovery even if criminal charges are never filed.

Process & Timing

  1. Who files: Usually the estate’s personal representative (or sometimes another “interested person,” depending on the relief sought). Where: The Clerk of Superior Court in the county where the estate is pending in North Carolina. What: A verified petition in an estate proceeding seeking examination of the person believed to have estate property and a demand for recovery (a “discovery of assets” proceeding). When: As soon as there is a reasonable belief property belongs to the estate and is being held or has been taken; delays can make tracing and recovery harder.
  2. Next step: The clerk typically sets the matter as a contested estate proceeding, issues notices, and may allow civil-procedure tools (including, in appropriate cases, broader discovery) to obtain bank records, title history, and other proof. Timeframes vary by county and the complexity of the dispute.
  3. Final step: If the clerk finds the estate owns the property (or funds), the clerk can order delivery/turnover or other appropriate relief in the estate proceeding; separately, the personal representative must still complete required estate accountings, and any proven loss can be charged against the responsible fiduciary or reflected in distributions.

Exceptions & Pitfalls

  • “It was authorized” defenses: Some transactions that look like “taking” may have been authorized by a valid beneficiary designation, joint ownership with survivorship, or other non-probate transfer. That can change whether the asset is actually an estate asset.
  • Access through prior authority: If money was moved using a power of attorney, the key questions often become when the transfer occurred (before vs. after death) and whether it was for the decedent’s benefit. A power of attorney generally does not authorize post-death transactions, but the exact facts matter.
  • Waiting too long: Even when a civil claim remains technically possible, delay can lead to missing records, closed accounts, sold vehicles, and harder tracing. Delay can also increase the risk that distributions occur before a setoff or recovery is documented.
  • Bankruptcy overlap: When an heir is in bankruptcy, some or all of that heir’s inheritance may need to be paid to a bankruptcy trustee. Estate-side steps (accurate accounting, clear documentation of setoff, and court orders if needed) help reduce later disputes about what is owed and to whom.
  • Assuming criminal charges will “fix” the estate: Criminal cases focus on punishment and may not return property quickly (or at all). Probate remedies often provide the more direct route to identify, freeze, and recover estate assets.

Conclusion

In North Carolina, reporting suspected removal of a decedent’s funds or property can trigger a criminal investigation and potentially criminal charges, but prosecutors control that decision. Separately, the estate can use probate procedures—often through a verified discovery-of-assets proceeding before the Clerk of Superior Court—to compel information and recover property, and a fiduciary can be held liable for estate losses caused by embezzlement, commingling, or self-dealing. The most practical time pressure is the estate’s accounting timeline, so the next step is to file an appropriate estate petition with the Clerk of Superior Court as soon as the problem is identified.

Talk to a Probate Attorney

If there is concern that estate funds or property were taken before distribution—especially where bankruptcy issues complicate setoff and who receives an heir’s share—an experienced attorney can help clarify the best probate procedure, evidence needed, and timing. 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.