Jan22026
Probate Q&A Series

How do I list a payable‑on‑death bank account on the probate inventory, and what proof do I need of the POD designation and date‑of‑death balance? – North Carolina

Short Answer

In North Carolina, a payable-on-death (POD) bank account usually passes directly to the named beneficiary and is not treated like a regular probate asset. Many Clerks still want the POD account disclosed on the probate inventory, often in the section for property that can be pulled into the estate if needed to pay valid debts and expenses. Proof typically includes bank documentation showing the POD beneficiary designation and a statement (or bank letter) showing the account balance as of the date of death (often with any accrued interest to that date).

Understanding the Problem

In a North Carolina estate, a personal representative must decide how to report a deposit account that has a “payable on death” designation. The decision point is whether the POD account belongs on the probate inventory as an estate asset, or whether it should be listed only as property that transfers outside probate but may be reachable if the estate lacks funds to pay allowed debts and expenses. The same issue includes what documentation should be gathered from the financial institution to show the POD designation and the date-of-death balance for inventory reporting.

Apply the Law

North Carolina law recognizes POD accounts as accounts created by a signed written agreement with the financial institution that names one or more beneficiaries. During the owner’s lifetime, the owner keeps control of the funds and can change beneficiaries in writing. After the last owner dies, the remaining funds belong to the beneficiary, and the institution may pay the beneficiary upon proof of death. Even so, POD funds can still be subject to collection by the personal representative if the estate does not have enough other assets to pay allowed claims and expenses, which is why many Clerks expect POD accounts to be disclosed on the inventory in a “recoverable” category rather than as a standard probate asset.

Key Requirements

  • Valid POD designation in writing: The account must be set up under a signed account agreement (often a signature card or similar document) that creates the POD beneficiary arrangement with the financial institution.
  • Date-of-death value for reporting: For inventory purposes, bank-type accounts are typically described with a date-of-death balance (and commonly any interest accrued to the date of death) rather than a current balance.
  • Correct inventory placement: Because POD funds generally pass outside probate, many estates list the POD account in the inventory section for property that is not a regular probate asset but may be added/recovered if needed to pay debts and expenses (local Clerk practices vary by county).

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a checking account with a POD designation and a need for documentation showing both the POD designation and the date-of-death balance. Under North Carolina practice, that account usually does not become a standard probate asset because it passes to the named beneficiary at death, but it is still commonly disclosed on the inventory (often in a “recoverable” section) because POD funds can be pursued if the estate later needs money to pay allowed debts and expenses. The inventory entry should describe the account without listing the account number and should use the date-of-death balance (and commonly accrued interest to the date of death) rather than a later balance.

Process & Timing

  1. Who files: The personal representative. Where: The Clerk of Superior Court (Estates) in the county where the estate is opened in North Carolina. What: The probate Inventory form used by the North Carolina court system (the AOC inventory form used in estate administration). When: By the inventory deadline set in the estate file; if the deadline was missed, file a motion/request for extension as soon as possible and confirm any local filing requirements with the Estates division.
  2. Gather proof from the bank: Request (a) documentation showing the POD beneficiary designation (often a copy of the signature card/account agreement, or a bank letter confirming the POD beneficiaries on the date of death) and (b) a date-of-death balance verification (a statement covering the date of death, a printout showing the balance as of that date, or a bank “date of death balance letter,” ideally including interest accrued to the date of death if the institution can provide it).
  3. List the account correctly on the inventory: Identify the institution and type of account (checking/savings/CD), list the date-of-death balance, and avoid including any account numbers (even partial). If local practice expects it, place the POD account in the part of the inventory for property that is not a standard probate asset but may be recoverable/added if needed to pay claims; keep the supporting bank proof in the file in case the Clerk requests it.

Exceptions & Pitfalls

  • Not all “POD” labels are legally effective: A POD account is a statutory arrangement and typically requires a signed written agreement that meets the statute’s requirements. If the bank cannot produce documentation showing a valid POD setup, the account may need to be treated as a probate asset until the ownership issue is resolved.
  • County-by-county inventory expectations: Some Clerks expect POD accounts to be listed in the “recoverable” section of the inventory even though they pass outside probate. Failing to disclose the account can create questions later, especially if the estate ends up needing to pursue the funds to pay allowed claims.
  • Using the wrong balance: The inventory typically calls for the date-of-death balance (and commonly interest accrued to the date of death). A later “current balance” can be misleading if checks cleared or deposits posted after death.
  • Including account numbers: Inventory practice generally avoids listing account numbers or any portion of them. Use the institution name and account type instead.
  • Mixing non-probate assets into the inventory: Other beneficiary-designated assets (like life insurance or retirement benefits payable to a named beneficiary) are generally not listed as probate assets. Keep the inventory focused on probate assets and any non-probate assets that local practice expects to be disclosed as potentially recoverable.

Conclusion

In North Carolina, a POD bank account usually transfers to the named beneficiary at death, but it is often still disclosed on the probate inventory in the section for property that may be recovered if needed to pay allowed debts and expenses. The inventory entry should describe the account without any account number and should report the date-of-death balance (often including interest accrued to the date of death). The next step is to obtain a bank statement or bank letter confirming the POD designation and the date-of-death balance and file the inventory (or an extension request) by the deadline in the estate file.

Talk to a Probate Attorney

If an estate includes a POD bank account and the probate inventory is due (or already late), our firm has experienced attorneys who can help sort out what must be disclosed, what proof to gather from the bank, and how to request more time from the Clerk if needed. 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.