How do I access or transfer a certificate of deposit after the account owner dies if there is no payable-on-death beneficiary listed? – North Carolina

Short Answer

In North Carolina, if a certificate of deposit (CD) has no payable-on-death (POD) beneficiary and no surviving joint owner with survivorship rights, the CD usually becomes part of the decedent’s probate estate. That means the bank typically will not release or “transfer” the CD to an heir based on family relationship alone. Access usually requires a court-authorized personal representative (executor/administrator) or, for qualifying smaller estates, a small-estate collection process through the Clerk of Superior Court.

Understanding the Problem

In North Carolina probate, the key question is: when a parent dies owning a certificate of deposit, can an heir access or transfer that CD if there is no POD beneficiary listed on the account? The answer turns on how the CD is titled (sole owner versus joint owners with survivorship) and whether the financial institution has a valid beneficiary designation on file. If the CD is a probate asset, the Clerk of Superior Court process controls who has authority to collect it and what paperwork the bank can accept.

Apply the Law

North Carolina treats many bank transfers at death as contract-based transfers when the account is properly set up as POD. But when there is no POD beneficiary (or the designation fails and does not result in a valid non-probate transfer), the CD is typically handled like other personal property: it is collected by the estate’s personal representative and then distributed to heirs or beneficiaries after required estate steps are followed. In practice, banks commonly require (1) proof of death and (2) proof of legal authority to act for the estate before they will close or retitle a CD.

Key Requirements

Confirm the CD’s legal “title” at death: The bank’s signature card/account agreement controls whether the CD is sole ownership, joint ownership with survivorship, or a POD account.
Establish who has authority to collect the CD: If the CD is a probate asset, a court-authorized personal representative (or a qualifying small-estate procedure) is usually required before the bank will release funds.
Provide the bank the documents it can rely on: Financial institutions often require certified death certificates and certified court documents (or other bank-approved forms) before releasing date-of-death balances and closing a CD.

What the Statutes Say

N.C. Gen. Stat. § 54C-166.1 (Payable on Death (POD) accounts) – Explains how a valid POD deposit account works and that, when properly created, funds pass to the listed beneficiary at the owner’s death.
N.C. Gen. Stat. § 41-2.1 (Right of survivorship in bank deposits) – Addresses deposit accounts with survivorship rights created by written agreement and how ownership passes to the survivor, subject to certain estate claims.

Analysis

Apply the Rule to the Facts: Here, the parent died in North Carolina and the main assets are a checking account and a CD. If the CD has no POD beneficiary and no surviving joint owner with survivorship rights, the CD is usually a probate asset, and the bank will typically require estate authority before releasing it. The fact that at least one account beneficiary designation names a now-deceased relative is a red flag that the bank’s paperwork must be reviewed closely, because the bank’s records (not assumptions about family intent) usually control whether the account passes outside probate or falls back into the estate.

Process & Timing

Who gathers information: The person likely to serve as personal representative (often the sole heir in an intestate estate). Where: The financial institution holding the CD and the Clerk of Superior Court in the county where the estate is opened. What: Request the CD account details and a copy of the signature card/account agreement (banks often treat this as the controlling document). When: As soon as possible after death, because banks may restrict access until they receive proof of authority.
Open the correct estate procedure: If the CD is a probate asset, the next step is usually either (a) qualify a personal representative through the Clerk of Superior Court (formal estate) or (b) use a small-estate collection process if the estate qualifies. The bank commonly will not close or retitle a CD until it receives certified court paperwork showing who can act for the estate.
Collect and transfer/close the CD: Once the personal representative (or authorized small-estate affiant) has authority, the bank can typically close the CD and issue funds to an estate account or otherwise as permitted by the estate paperwork and bank policy. After valid estate expenses and claims are handled, the remaining funds are distributed to the heir(s) under North Carolina intestacy rules or the will, as applicable.

Exceptions & Pitfalls

Assuming “only heir” status is enough: Even if there is only one living heir, banks usually require court authority (or a qualifying small-estate procedure) to release a sole-owned CD with no POD beneficiary.
Not verifying the bank’s paperwork: The signature card/account agreement may show survivorship language, a POD designation, or other terms that change whether the CD is a probate asset.
Beneficiary problems: If a beneficiary designation exists but names someone who died first, the result may depend on the specific account contract and bank rules; it can lead to the funds being treated as part of the estate rather than passing automatically.
Information access issues: Some institutions will not provide balances, interest details, or copies of signature cards to family members without proof of authority, which can slow down decision-making unless the estate process is started.

Conclusion

In North Carolina, a certificate of deposit with no POD beneficiary (and no surviving joint owner with survivorship rights) is usually a probate asset, so the bank typically requires court-recognized authority before releasing or transferring it. The practical first step is to confirm the CD’s title and beneficiary status using the bank’s signature card/account agreement. The next step is to obtain authority through the Clerk of Superior Court (or a qualifying small-estate process) so the CD can be collected and properly distributed.

Talk to a Probate Attorney

If a parent died owning a certificate of deposit and the bank will not release it because there is no POD beneficiary (or the listed beneficiary is deceased), our firm has experienced attorneys who can help explain the probate steps, the paperwork the Clerk of Superior Court will require, and the timelines to expect. 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.