Jan82026
Probate Q&A Series

Can I challenge transactions where a relative emptied bank accounts or used credit cards in the decedent’s name before death? – North Carolina

Short Answer

Yes. Under North Carolina law, suspicious pre-death transfers can often be challenged through the estate, especially when they were made while the decedent lacked capacity or were driven by undue influence, deception, or misuse of a power of attorney. The usual path is for the estate’s personal representative to demand records, require an accounting, and file a civil action to recover the money or trace it into other property. Timing matters, so the estate typically should act quickly to preserve bank and credit-card records and prevent further transfers.

Understanding the Problem

In North Carolina probate, the core question is whether transactions made shortly before death—such as draining bank accounts, adding a relative to accounts, changing beneficiary designations, or running up credit cards—were authorized and valid when the decedent was incapacitated. When a relative acts as an agent under a power of attorney or has practical control over finances during a coma or other incapacity, the legal issue often becomes whether that person used a position of trust to move money for personal benefit. If the transactions were not truly the decedent’s decision, the estate may have tools to challenge them and seek recovery.

Apply the Law

North Carolina law gives estates and other interested parties several ways to challenge pre-death financial transactions. The most common theories involve (1) lack of capacity or undue influence behind a change, (2) breach of fiduciary duty or constructive fraud by an agent under a power of attorney, and (3) conversion or unjust enrichment when someone takes funds that do not belong to them. Practically, these disputes often end up in the Clerk of Superior Court’s estate proceeding (for administration issues) and, when necessary, in a separate civil lawsuit to recover assets or unwind transfers.

Key Requirements

  • Standing and proper plaintiff: Usually the estate’s personal representative brings the claim to recover what belonged to the decedent. In some situations, a “successor in interest” may also have rights to request information, but recovery actions are typically handled through the estate.
  • A legal basis to unwind or recover the transfer: Common bases include lack of capacity, undue influence, fraud, conversion (wrongful taking), breach of fiduciary duty by an agent, or constructive fraud where a trusted person benefits from a transaction that harms the principal.
  • Proof through records and timelines: These cases often turn on bank signature cards, beneficiary change forms, power-of-attorney documents, medical capacity evidence, and a transaction timeline showing what changed and when.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a period of incapacity (a coma) followed by alleged document changes and beneficiary changes that removed a prior agent/beneficiary and benefited a relative. Under North Carolina principles used in fiduciary and probate disputes, that combination often triggers scrutiny of capacity, undue influence, and whether a trusted person used control over access, paperwork, or accounts to benefit themselves. If the relative acted under a power of attorney (or effectively controlled finances), the estate commonly focuses on demanding records, forcing an accounting, and tracing where the money went, including whether funds were moved into joint accounts or used for the relative’s benefit.

Process & Timing

  1. Who files: Typically the personal representative (executor/administrator) of the estate. Where: The estate is administered through the Clerk of Superior Court in the county where the estate is opened; recovery lawsuits are usually filed in North Carolina state court (often Superior Court) depending on the claims and amounts. What: A written demand for records and an accounting (especially if a power of attorney was involved), followed by a civil complaint if voluntary repayment does not happen. When: As soon as the personal representative is appointed, because banks and card issuers may only keep detailed records for limited periods and delays can make tracing harder.
  2. Build the paper trail: Gather the power of attorney, bank signature cards, account statements, beneficiary change forms, and medical records showing incapacity. In many cases, the key question is whether the decedent actually authorized the change, and if not, whether the relative used a position of trust to make it happen.
  3. Seek recovery and protective relief: If the evidence supports it, the estate may pursue remedies aimed at returning funds to the estate, tracing funds into other property, or imposing equitable remedies (such as treating the recipient as holding the property for the estate). If criminal exploitation is suspected, a report to law enforcement may also be appropriate; criminal and civil cases can proceed on separate tracks.

Exceptions & Pitfalls

  • “My name was on the account” is not the end of the analysis: Adding a relative to a joint account (including survivorship-style accounts) can still be challenged if the funds were not a true gift and the withdrawals were wrongful, especially when the relative did not contribute to the account and the change happened during incapacity or undue influence.
  • Power of attorney authority is not unlimited: Even when someone is an agent, self-benefiting transfers can create serious liability issues. A common pitfall is assuming that being an agent automatically permits gifts, beneficiary changes, or moving assets into joint ownership for the agent’s benefit.
  • Wrong forum or wrong plaintiff: Heirs and would-be beneficiaries often want to sue immediately, but many recovery claims must be brought by the estate’s personal representative. If the estate is not opened or the wrong person files, the case can stall.
  • Mixing a will contest with asset-recovery claims: A caveat (will contest) focuses on whether a will is valid. Asset-recovery claims focus on whether property was wrongfully taken before death. They can be related, but they are not the same case and often require different filings and evidence. For background on will challenges, see contesting a last-minute will change.

Conclusion

Yes—North Carolina law often allows an estate to challenge pre-death transactions when a relative took money or changed account/beneficiary paperwork while the decedent was incapacitated or under undue influence, especially if the relative acted from a position of trust or under a power of attorney. The usual next step is for the estate’s personal representative to demand records and an accounting and, if needed, file a civil action to recover and trace the funds. The most important timing issue is acting promptly after appointment to preserve bank and credit-card records.

Talk to a Probate Attorney

If a family member may have drained accounts, changed beneficiaries, or used credit cards in the decedent’s name before death, our firm has experienced attorneys who can help explain options for records requests, estate administration steps, and potential recovery claims. 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: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.