Jan232026
Probate Q&A Series

What happens if someone used a power of attorney before the death to close bank accounts or move money, and now the family can’t get records? – North Carolina

Short Answer

In North Carolina, a power of attorney (POA) generally allows an agent to act for the person while that person is alive, but it does not give the agent ownership of the money. After death, the estate’s personal representative (administrator) is the person with legal authority to demand records and trace assets, and the clerk of superior court can be asked to compel information and address missing assets through an estate proceeding. If accounts were closed or money was moved improperly, the remedy is usually an accounting and recovery action through the estate, not informal family requests to the bank.

Understanding the Problem

In a North Carolina probate case, what happens when an agent acting under a power of attorney closes bank accounts or moves money shortly before death, and then the family cannot get statements or paperwork to understand what happened? The key decision point is whether the estate’s administrator is using the probate process to gather records and explain the transactions, because banks and other institutions typically require formal estate authority before releasing information, and the clerk of superior court can supervise disputes about missing estate assets.

Apply the Law

Under North Carolina law, a POA is a tool for acting on someone else’s behalf during life; it is not a blank check to treat the person’s money as the agent’s money. After death, the administrator (personal representative) is responsible for finding, collecting, and reporting estate assets and for explaining estate transactions through required filings. When there are reasonable grounds to believe someone has estate property or key records, North Carolina allows an estate proceeding before the clerk of superior court to examine that person and seek recovery of property.

Key Requirements

  • Proper authority and timing: A POA is meant for actions taken for the principal while alive; after death, the administrator’s authority controls estate property and record requests.
  • Fiduciary conduct and traceability: An agent should be able to explain what was done, why it was done, and where the money went; unexplained transfers raise red flags in estate administration.
  • Probate enforcement tools: If someone is believed to have estate property or documents, the clerk can handle an estate proceeding to require examination and, where appropriate, order recovery.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the decedent died without a will, and the administrator filed an inventory showing little to no value while being accused of using a POA before death to close accounts or move money and of withholding documents. Under North Carolina practice, the administrator is responsible for discovering assets and supporting the inventory with real account information, including signature cards and statements when needed. If the administrator (or another person) has records or property and will not produce them, the estate can ask the clerk of superior court to use probate procedures to examine the person and pursue recovery of estate property.

Process & Timing

  1. Who files: Typically the estate administrator (personal representative). In some disputes, an interested person may need to ask the clerk to require action or to open a contested estate proceeding. Where: The Clerk of Superior Court (Estates) in the county where the estate is administered. What: A verified petition in an estate proceeding seeking examination/production of information and, if appropriate, recovery of estate property. When: As soon as missing records or unexplained transfers are identified, because delays can make tracing harder.
  2. Record requests to banks: Banks commonly require letters of administration (or other formal estate authority) before releasing records. If accounts were closed, the institution may still have statements, signature cards, and transaction histories, but it may only release them to the administrator or under court process.
  3. Spouse’s allowance deadline (often critical): If a personal representative has been appointed, a spouse’s allowance petition generally must be filed within six months after letters of administration issue, and it must be filed as a verified petition with the clerk with a copy delivered/mailed to the personal representative.

Exceptions & Pitfalls

  • Bank “good faith” protection is not the same as agent immunity: Some statutes protect a financial institution that honored a POA before it had notice of death, but that does not automatically make the agent’s transfers proper as between the agent and the estate.
  • Joint accounts and beneficiary designations can change what is “estate” property: If money was moved into a joint-with-right-of-survivorship account or a payable-on-death arrangement, it may pass outside probate, but it can still raise disputes about whether the change was authorized or wrongful.
  • Incomplete inventories create downstream problems: A low-value inventory can block a fair evaluation of a spouse’s allowance and intestate share. The practical fix is usually to force documentation (statements, signature cards, closing documents) and then amend filings as needed.
  • Document destruction/withholding: When key papers disappear, the estate often has to rebuild the paper trail using third-party records (banks, brokers, county records) and court-supervised examination rather than relying on family requests.

Conclusion

In North Carolina, using a power of attorney before death to close accounts or move money does not automatically make the money the agent’s, and after death the estate administrator is the person with authority to demand records and trace assets. When records are missing or transfers look improper, the next step is usually an estate proceeding before the clerk of superior court to require information and pursue recovery. If a spouse’s allowance is part of the plan, file the verified petition with the clerk within six months after letters issue.

Talk to a Probate Attorney

If there are concerns that a power of attorney was used to move money before death and the estate records do not add up, our firm has experienced attorneys who can help explain the probate process, the clerk’s procedures, and the timelines that matter. 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.