Jan22026
Probate Q&A Series

How can I claim funds held in a bank account left to me after someone dies? – North Carolina

Short Answer

In North Carolina, how to claim a deceased person’s bank funds depends on how the account was titled. If the account named a payable-on-death (POD) beneficiary or was a joint account with right of survivorship, the bank usually pays the surviving owner/beneficiary directly after proof of death and identity. If the account was only in the decedent’s name, a personal representative generally must be appointed through the Clerk of Superior Court to collect the funds into an estate account. If the money was turned over to the State as unclaimed property, a claim can be filed with the State Treasurer.

Understanding the Problem

In North Carolina probate, the key question is: can funds in a bank account be collected directly by an heir or beneficiary after the account owner dies, or must the funds be collected through an estate administration. The answer usually turns on the account’s legal “ownership path” at death, such as a payable-on-death designation, a joint account with survivorship, or an account titled only in the decedent’s name. Timing can matter because accounts may be closed or reported as unclaimed property if no one steps forward, and an estate may need to be opened to create legal authority to collect and distribute the funds.

Apply the Law

North Carolina treats bank accounts differently depending on whether the account passes outside probate (like many POD and survivorship accounts) or becomes part of the probate estate (accounts titled only in the decedent’s name). Even when an account passes automatically to a survivor or POD beneficiary, North Carolina law can still allow the estate’s personal representative to recover some of those funds if the estate lacks enough assets to pay certain expenses and valid claims. If funds were never collected and were transferred to the State as unclaimed property or escheated estate funds, a claim is typically made through the State Treasurer’s process.

Key Requirements

  • Identify how the account was titled: The bank’s records control whether the account was POD, joint with survivorship, or solely owned by the decedent (probate).
  • Show legal authority to receive the funds: A POD beneficiary or surviving joint owner usually proves identity and provides a death certificate; a probate account usually requires Letters issued by the Clerk of Superior Court to a personal representative.
  • Confirm whether the funds are held by the bank, the estate, or the State: If the bank no longer holds the funds and they were reported to the State, the claim typically goes through the North Carolina State Treasurer’s unclaimed property process.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe multiple deaths and assets that may still be uncollected, including a parent who died without a known will and without an administered estate. If the parent’s bank account was solely in the parent’s name with no POD beneficiary and no survivorship co-owner, a personal representative appointment through the Clerk of Superior Court is usually the step that creates authority to demand the funds from the bank and deposit them into an estate account. If the account had a POD designation or survivorship co-owner, the bank may pay the named beneficiary/owner directly, but those funds can still be pulled back into the estate in a limited way if the estate lacks funds to pay certain expenses and valid claims. If the funds were never claimed and were turned over to the State, the claim typically goes through the State Treasurer under the unclaimed property process.

Process & Timing

  1. Who files: The person with the right to receive the funds (for unclaimed property) or the person seeking appointment as personal representative (for probate collection). Where: For probate authority, the Estates Division of the Clerk of Superior Court in the North Carolina county where probate can be filed; for unclaimed property, the North Carolina State Treasurer’s Unclaimed Property Division. What: For probate, an application/petition to be appointed and to receive Letters (the bank commonly requests certified Letters); for unclaimed property, a claim on the Treasurer’s prescribed form with supporting proof. When: If filing an unclaimed property claim with the Treasurer, the Treasurer generally must allow or deny the claim within 90 days after it is filed, and if allowed, payment is generally made within 30 days after allowance.
  2. Collect and document the account status: Request the bank’s requirements in writing (death certificate, identification, and proof of beneficiary status). If the bank indicates the funds were escheated or reported as unclaimed, shift to the Treasurer claim process and gather proof of the decedent’s identity and the claimant’s relationship/right to inherit.
  3. Receive funds and handle them correctly: If the funds are probate assets, the personal representative typically opens an estate checking account after qualification and deposits collected funds there, keeping clean records for required accountings. If the funds are paid directly to a POD beneficiary or surviving joint owner, keep records because the estate may later request information if estate expenses and claims cannot be paid from other estate assets.

Exceptions & Pitfalls

  • POD and survivorship paperwork must be done correctly: North Carolina treats POD designations as statutory, and banks typically rely on the signed account agreement/signature card. If the bank’s documents do not meet the statutory requirements, the account may be treated as a probate asset instead of a POD transfer.
  • “Automatic transfer” does not always end the story: Even if a survivorship or POD account passes directly to a survivor/beneficiary, the estate’s personal representative may have a right to recover some funds if the estate lacks enough assets to pay certain expenses and valid claims. This issue often turns on what other estate assets exist and what claims must be paid.
  • No estate opened means no one has authority to demand probate-only funds: Banks usually will not release a solely owned account to an heir without Letters from the Clerk of Superior Court.
  • Unclaimed property claims fail for proof problems: Missing death certificates, name variations, outdated addresses, and incomplete proof of heirship commonly delay or derail claims. Consistent documentation (names, dates, and relationship) matters.
  • Relatives holding information or funds: When records are incomplete and someone else may have control of information or property, a personal representative may need formal tools available in an estate proceeding to demand information and pursue recovery.

Conclusion

In North Carolina, claiming a deceased person’s bank funds depends on whether the account passes outside probate (POD or survivorship) or is a probate asset titled only in the decedent’s name. Probate-only accounts usually require appointment of a personal representative by the Clerk of Superior Court and presentation of Letters to the bank. If the funds were turned over to the State as unclaimed property, a claim is filed with the State Treasurer, who generally must decide the claim within 90 days. Next step: file to be appointed personal representative with the Clerk of Superior Court if the account was solely owned.

Talk to a Probate Attorney

If funds were left in a bank account after a death and it is unclear whether the account was POD, survivorship, probate-only, or already reported as unclaimed property, a probate attorney can help identify the correct path and avoid delays. Call 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.