Can I move the estate account to a different bank and still properly deposit estate checks there? – North Carolina

Short Answer

Yes. In North Carolina, a personal representative can generally move an estate checking account to a different bank and deposit estate receipts there, as long as the account is titled in the estate’s name and the personal representative has authority to act (usually shown by Letters Testamentary or Letters of Administration). The main practical issue is that many checks made payable to the decedent cannot be deposited into a personal account and may require the bank to see current Letters and an estate EIN before accepting the deposit. Bank policies vary, so the safest approach is to open the new estate account first, then move funds and deposit incoming checks into the new account with clear documentation.

Understanding the Problem

In North Carolina probate, a personal representative often needs a bank account to collect estate money and pay estate expenses. The question is whether the estate’s account can be moved to a different bank and still be used to deposit checks that arrive later, including checks made payable to the decedent (such as unclaimed-property payments). The single decision point is whether the estate account at the new bank is set up and documented in a way that allows proper deposit and tracking of estate receipts during administration.

Apply the Law

North Carolina law expects a personal representative to gather and manage estate assets and keep clear records for the estate administration process, which is supervised through the Clerk of Superior Court in the county where the estate is opened. Moving the estate’s banking relationship is usually allowed as an administrative choice, but the personal representative must keep estate funds separate from personal funds and must be able to show authority to endorse/deposit items payable to the estate or decedent into an estate account. In practice, banks commonly require (1) proof of appointment (Letters) and (2) an estate taxpayer identification number (EIN) to open and operate the estate account and to accept deposits of checks payable to the decedent/estate.

Key Requirements

Proper account title: The new account should be titled in the estate’s name (for example, “Estate of [Decedent], [Personal Representative], PR”) so deposits and payments clearly belong to the estate.
Authority to act: The personal representative should be able to present current Letters Testamentary or Letters of Administration when opening the account and when the bank requests proof for deposits or endorsements.
Clean paper trail: Estate receipts should be deposited into the estate account (not a personal account) and tracked so the personal representative can prepare inventories/accountings and support the final distribution.

What the Statutes Say

N.C. Gen. Stat. § 116B-3 (Unclaimed personalty on settlements of decedents’ estates) – Addresses handling certain unclaimed estate property in the context of estate administration and closing when there are no known heirs/claimants.
N.C. Gen. Stat. § 54-109.62 (Credit union payment to personal representative) – Recognizes that financial institutions may rely on a personal representative’s Letters as authority for payment to the personal representative.

Analysis

Apply the Rule to the Facts: Here, the personal representative is expecting one or more unclaimed-property checks payable to the decedent. If the estate account is moved to a new bank and opened in the estate’s name using the estate EIN, the personal representative can typically deposit those checks into the new estate account by presenting current Letters and following the bank’s endorsement instructions. The key is keeping the deposit path consistent (decedent/estate check → estate account) and preserving documentation so the receipt can be shown in the estate’s records.

Process & Timing

Who files: The personal representative (executor/administrator). Where: At the new bank (and the estate remains administered through the Clerk of Superior Court where the estate is open in North Carolina). What: Open a new estate checking account using the estate EIN and provide Letters Testamentary/Letters of Administration (many banks also ask for a certified death certificate and identification). When: Before closing the old estate account, so incoming checks have a place to be deposited without delay.
Move the funds: Transfer the balance from the old estate account to the new estate account (often by an official bank check payable to the estate). Keep statements from both banks showing the transfer and the ending/starting balances.
Deposit incoming checks: Deposit unclaimed-property checks and other estate receipts into the new estate account. If a check is payable to the decedent, the bank may require endorsement by the personal representative in that capacity and may ask to see current Letters again.

Exceptions & Pitfalls

Bank policy on “stale” Letters: Some banks require Letters dated within a recent window (often 30–60 days) before they will open an account or accept certain deposits. Planning ahead avoids delays when a check arrives.
Checks payable to the decedent (not the estate): A bank may refuse to deposit a decedent-payee check unless it goes into a properly titled estate account and the personal representative provides proof of authority. Depositing into a personal account can create accounting problems and may be rejected.
Mixing funds: Combining estate money with personal money (even temporarily) can create recordkeeping issues and can trigger objections in the estate accounting process.
Closing the old account too early: If automatic refunds, dividends, or late-arriving checks are still expected, closing the account can cause returned items and extra reissuance steps.
Unclaimed-property edge cases: Some payments are reissued only under specific procedures depending on the issuer and the program involved. If a check is rejected, the next step may be to request reissuance payable to the estate or to the personal representative as such.

For more context on handling funds that may be routed through unclaimed property during administration, see handling a deceased relative’s bank account when the bank says it will be sent to unclaimed property and setting up an estate bank account to deposit recovered funds.

Conclusion

In North Carolina, an estate account can generally be moved to a different bank and still be used to deposit estate receipts, including checks that arrive later. The practical requirements are that the new account is titled in the estate’s name, uses the estate EIN, and the personal representative can present current Letters to satisfy bank verification. The most important next step is to open the new estate account first and then transfer the old balance so incoming checks can be deposited without interruption.

Talk to a Probate Attorney

If an estate is receiving checks payable to a decedent and a bank is refusing deposits or asking for additional paperwork, our firm has experienced attorneys who can help explain the options and timelines for keeping estate funds properly handled during administration. 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.