Dec242025
Probate Q&A Series

How do I handle bank or card activity that occurred after the death, and what proof do I need if someone used those funds? – North Carolina

Short Answer

In North Carolina, the personal representative should quickly identify and document any post-death bank or card transactions, notify the financial institution, and preserve records so the transactions can be explained on the estate’s inventory and later accounting. If someone used the decedent’s funds after death without authority, the key proof is usually (1) bank/card records showing the transactions, (2) evidence tying the transactions to a person, and (3) proof the person lacked legal authority to spend estate money. When the transaction involves a joint or survivorship account, the account paperwork matters because ownership and the estate’s recovery rights can differ.

Understanding the Problem

In a North Carolina intestate estate administration, a personal representative can face the question: what happens when a bank account or debit/credit card shows charges, withdrawals, transfers, or deposits after the death, and what is required to prove someone used those funds improperly. The issue often turns on the type of account involved (sole ownership versus joint or payable-on-death) and whether the transactions were authorized for estate purposes. The personal representative’s job is to gather clear documentation so the Clerk of Superior Court can review an accurate inventory and accounting.

Apply the Law

North Carolina law expects the personal representative to identify estate assets, safeguard them, and account for money coming in and going out. Post-death bank and card activity is handled by (1) determining whether the funds are estate assets or pass outside the estate (for example, some survivorship or payable-on-death arrangements), (2) documenting the date-of-death value and later transactions, and (3) pursuing recovery when funds that should have been available for estate administration were taken or diverted. The primary forum for disputes during administration is usually an estate proceeding before the Clerk of Superior Court, although some recovery actions may be filed in Superior Court depending on the claim and posture.

Key Requirements

  • Identify ownership and the “bucket” the asset belongs in: Determine whether each account was solely owned, jointly owned (with or without survivorship), or payable-on-death, because that affects whether the funds are reported as probate assets or as property that may be added if needed to pay claims.
  • Document the date-of-death balance and transaction history: Obtain statements, transaction details, and account agreements (such as signature cards) to show what existed at death and what happened after death.
  • Show authority (or lack of authority) for each transaction: Preserve proof of the personal representative’s appointment (letters), who had access, and whether the transaction was for estate expenses (funeral, administration) or personal use.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the personal representative is gathering bank statements to prepare the court inventory and plans to open an estate account once funds arrive. That makes the immediate priority to lock down records that show the date-of-death balances, the account type (sole/joint/survivorship/POD), and a complete list of post-death transactions. If transactions appear after death, the personal representative should be prepared to show whether each transaction was for estate purposes and, if not, preserve proof connecting the transaction to the person who benefited and proof that person had no authority to use estate funds.

Process & Timing

  1. Who files: The personal representative. Where: Estates Division of the Clerk of Superior Court in the county where the estate is administered in North Carolina. What: The 90-day inventory and later accountings (typically on AOC estate forms). When: Generally, the inventory is due within about 90 days after qualification, unless extended by the Clerk.
  2. Freeze the paper trail: Request from each bank/credit union a date-of-death balance, transaction history from shortly before death through the present, and copies of the signature card/account agreement. If a debit/credit card was used, request merchant/transaction detail (not just the monthly statement) and keep copies of any card issuer fraud or dispute correspondence.
  3. Address questionable transactions: Send a written dispute/records request to the institution and a written demand to the person suspected of using the funds, asking for receipts, explanations, and repayment. If repayment does not happen, discuss with counsel whether to bring an estate proceeding before the Clerk or a civil action in Superior Court, depending on the claim and what relief is needed.

Exceptions & Pitfalls

  • Survivorship and POD accounts can change what counts as “estate money”: A charge on an account after death may involve funds that pass to a survivor or beneficiary by operation of law, yet those funds can still be subject to limited estate recovery if estate assets are not enough to pay certain expenses and claims. The account paperwork (signature card/contract language) often decides this issue.
  • “The bank let it happen” is not the same as “it was authorized”: Many account contracts allow a bank to honor withdrawals by an authorized signer, and banks may not be responsible for amounts paid before receiving notice of death. Proof should focus on what happened, who benefited, and whether the spender had legal authority after death.
  • Missing documentation creates inventory/accounting problems: Clerks often expect backup for how an account was titled and how date-of-death values were calculated. When signature cards cannot be obtained, written confirmation from the institution is often needed to support how the asset is reported.
  • Common “grey area” spending: Mortgage, utilities, and upkeep on a co-owned home may be paid by a resident family member. If those payments came from the decedent’s accounts after death, the personal representative should document the purpose and consider whether reimbursement or an offset should be addressed as part of administration.

Conclusion

In North Carolina, post-death bank or card activity should be handled by promptly gathering complete bank/card records, confirming how each account was titled (sole, joint with survivorship, or POD), and documenting whether each transaction was authorized for estate administration. The most persuasive proof usually includes statements and transaction details, the account agreement/signature card, and evidence linking the transaction to the person who benefited and showing a lack of authority. The next step is to file the estate inventory with the Clerk of Superior Court and attach or retain the supporting records for any questioned transactions.

Talk to a Probate Attorney

If a North Carolina estate shows bank withdrawals or card charges after the death, a probate attorney can help sort out which funds belong to the estate, what belongs to a joint owner or beneficiary, and what records are needed to seek repayment when funds were misused. 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.