If a deceased person’s account has no beneficiary listed, does it have to go through probate? – North Carolina

Short Answer

In North Carolina, if an account is titled in the deceased person’s name alone and has no valid beneficiary (and no surviving joint owner with survivorship rights), it is usually a probate asset and is handled through the estate administration process. By contrast, accounts with a proper pay-on-death (POD) or transfer-on-death (TOD) designation generally pass outside probate to the named beneficiary. Even when an account passes outside probate, it may still be reachable by the personal representative if the estate lacks enough assets to pay valid debts and expenses.

Understanding the Problem

Under North Carolina probate law, the key question is whether a financial account is set up to transfer automatically at death (for example, to a named beneficiary) or whether it is owned in a way that requires a personal representative to collect it as part of the estate. In an estate administration, a law firm may locate an account believed to be held at a financial institution and then must determine whether the account can be paid directly to someone or whether the Clerk of Superior Court probate process is needed to access and distribute it.

Apply the Law

North Carolina separates many assets into two buckets: (1) assets that pass by contract or title at death (often called “non-probate” transfers, like POD/TOD designations), and (2) assets that the personal representative must collect and administer through the estate (often called “probate” assets, like a sole-owner account with no beneficiary). For deposit accounts, a POD designation must be created in the way North Carolina statutes require; if the account is not properly set up as POD, it is generally treated like a regular account owned by the decedent and is administered through the estate. For securities, a TOD registration in beneficiary form transfers to the beneficiary at death; if no beneficiary survives, the security belongs to the estate.

Key Requirements

  • How the account is titled: A sole-owner account with no beneficiary is typically collected by the personal representative as an estate asset; a joint account with survivorship or a valid POD/TOD designation typically transfers at death by operation of the account contract/registration.
  • Whether a valid beneficiary designation exists: A POD/TOD transfer generally requires the designation to be properly established under North Carolina law and the institution’s paperwork; if no beneficiary is listed (or the designation fails), the account commonly becomes part of the estate.
  • Estate debts and expenses: Even when an account transfers outside probate, North Carolina law can allow the personal representative to pursue recovery from the recipient if the estate does not have enough assets to pay valid claims and administration costs.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the estate administration team believes the decedent held an account at a financial institution, but there is no beneficiary listed. If the account is in the decedent’s name alone and there is no valid POD/TOD designation (and no surviving joint owner with survivorship rights), the account is typically treated as an estate asset that the personal representative collects through the probate estate. If the institution’s records show the account was properly set up as POD/TOD, then the institution will usually pay it to the beneficiary upon proof of death, although the personal representative may still need to evaluate whether recovery is required to pay estate debts and expenses.

Process & Timing

  1. Who files: The person seeking authority to act for the estate (executor named in a will or an administrator if there is no will). Where: The Clerk of Superior Court (Estates Division) in the North Carolina county where the estate is opened. What: An application to qualify as personal representative and obtain Letters (commonly called Letters Testamentary or Letters of Administration). When: As soon as practical after death when an asset must be collected, bills must be paid, or deadlines are approaching.
  2. Confirm the account type: Request the institution’s “date-of-death” titling and designation information (sole owner vs. joint owner; POD/TOD status; beneficiary name(s), if any). Institutions often require certified death certificates and Letters before releasing information or funds for a probate account.
  3. Collect or document the asset: If it is a probate account, the personal representative typically opens an estate account and transfers/collects the funds into the estate for administration. If it is a POD/TOD account, the beneficiary generally claims it directly, while the personal representative documents it for administration purposes and evaluates whether estate claims require recovery.

Exceptions & Pitfalls

  • “No beneficiary” is not the only issue: An account can have a beneficiary listed informally, but still fail as a POD/TOD transfer if the designation was not created in the way North Carolina law and the institution’s required paperwork demand.
  • Joint ownership changes the answer: If the account is joint with right of survivorship, it may pass to the surviving owner outside probate even without a beneficiary designation.
  • Beneficiary died first: For TOD-registered securities, if no beneficiary survives, the asset belongs to the estate and is handled through probate. Similar “failed designation” issues can arise with deposit accounts depending on how the account is structured.
  • Debt and expense recovery: Even when an account passes outside probate (POD/TOD), the personal representative may have to pursue recovery from the recipient if the probate estate cannot cover valid debts, claims, and administration costs.
  • Bank “won’t talk without Letters”: Many institutions will not release details or funds for a sole-owner, no-beneficiary account until a personal representative is appointed by the Clerk of Superior Court.

For related guidance on investigating designations and what they mean in administration, see how to find out whether accounts have a beneficiary, POD, or TOD designation and whether beneficiary-designated accounts can be pulled back to pay debts or expenses.

Conclusion

In North Carolina, an account with no beneficiary listed is usually a probate asset if it is owned in the decedent’s name alone and does not have a valid POD/TOD setup or a surviving joint owner with survivorship rights. The practical next step is to confirm the account’s titling and designation with the financial institution and, if it is a probate account, have a personal representative qualify with the Clerk of Superior Court so Letters can be issued and the funds can be collected into the estate.

Talk to a Probate Attorney

If a deceased person may have an account with no beneficiary listed and the financial institution is requesting probate paperwork, our firm has experienced attorneys who can help clarify whether the account is a probate asset, what documents the institution will require, and what timelines apply. 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.