Do we need to list any specific account details in our wills, or is it best to keep those off the documents and rely on beneficiary forms? – North Carolina

Short Answer

In North Carolina, a will controls probate assets, while most financial accounts with beneficiary, POD, or TOD designations pass outside the will. It is usually better not to list specific account numbers in the will. Instead, keep those details private and rely on up-to-date beneficiary forms with each institution, plus a solid residuary clause in the will to catch anything without a designation.

Understanding the Problem

The narrow question is whether a North Carolina estate plan should include specific account details inside a will or rely on beneficiary designations. The actors are spouses creating a will-based plan. The action is deciding how to direct retirement and financial accounts. The trigger is an upcoming in‑person signing and a preference to pass retirement accounts by beneficiary form rather than through the will.

Apply the Law

Under North Carolina law, assets pass in two main ways: (1) by will through probate; and (2) by contract or title outside probate (for example, retirement accounts and securities with POD/TOD designations, and joint accounts with rights of survivorship). A will does not override a valid beneficiary designation. Wills become part of the court file at probate, so sensitive account numbers are best kept out of the document. The main forum for beneficiary changes is the financial institution holding the account. A will should still include a strong residuary clause to capture assets without a valid beneficiary at death. At signing, making the will self‑proved streamlines probate.

Key Requirements

• Probate vs. nonprobate: The will governs probate assets; beneficiary, POD, and TOD designations govern nonprobate assets.
• Privacy: Do not include account numbers in the will because the probated will becomes public; keep a private list instead.
• Beneficiary forms control: Keep primary and contingent beneficiaries current with each custodian on the custodian’s forms.
• Residuary coverage: Use a residuary clause so assets without a valid designation at death pass under the will.
• Spousal/elective share coordination: Nonprobate transfers can still be counted to satisfy a spouse’s statutory share and creditors may reach certain nonprobate assets if the estate is insufficient.
• Avoid naming the estate unless necessary: Naming the estate as beneficiary can accelerate retirement plan payouts and expose funds to creditor claims.

What the Statutes Say

• North Carolina Gen. Stat. § 41-2.1 (Joint accounts with right of survivorship) – defines survivorship and notes creditor reach if the estate is insufficient.
• North Carolina Gen. Stat. § 54C-166.1 (Payable-on-death accounts) – sets creation and effect of POD designations at savings banks.
• North Carolina Gen. Stat. § 41-45 (Transfer-on-death securities—owner’s control) – confirms no beneficiary rights before death and owner’s ability to change designations.
• North Carolina Gen. Stat. § 31-11.6 (Self-proved wills) – allows a self-proving affidavit to simplify probate.

Analysis

Apply the Rule to the Facts: A North Carolina couple using a will-based plan can keep specific account numbers out of the will and direct retirement assets by beneficiary form. That approach aligns with state law because designations, not the will, control those accounts. Including a robust residuary clause ensures any account lacking a valid beneficiary at death falls back to the will. Before signing, confirm primary and contingent beneficiaries across all financial institutions so the plan and documents match.

Process & Timing

1. Who files: No court filing is needed to use beneficiary designations. Where: Execute wills at the signing with two witnesses and a notary for self‑proving under North Carolina law. What: Execute the will and self‑proving affidavit (G.S. 31-11.6). When: At the scheduled in‑person signing.
2. Update beneficiary forms with each retirement and financial account custodian. Institutions typically provide online or paper forms; confirmations often arrive within days, but timing varies by custodian.
3. Maintain a private, nonpublic “letter of instruction” or inventory of accounts (with numbers and contacts), store originals safely, and consider optional will safekeeping with the Clerk of Superior Court. Expect custodian updates to be effective on receipt/acceptance of the form.

Exceptions & Pitfalls

• No contingent beneficiary: if the primary predeceases or disclaims and no contingent is named, the asset may pay to the estate and be subject to probate and creditor claims.
• Outdated forms at different institutions: a will cannot fix conflicting or stale designations; update every custodian.
• Divorce and life changes: divorce may not automatically change nonprobate beneficiary designations; file new forms after major life events.
• Naming the estate as beneficiary: can trigger faster retirement payouts and reduce creditor protection; use only for a defined reason.
• Joint accounts and TOD/POD assets: if the probate estate is insufficient to pay valid claims, certain nonprobate assets can be reached to satisfy debts.
• Trust named as beneficiary: if a trust is designated for retirement benefits, plan administrators require specific post‑death documentation and deadlines; missing them can limit payout options.

Talk to a Estate Planning Attorney

If you’re deciding whether to keep account details out of a will and rely on beneficiary forms, our firm has experienced attorneys who can help you understand your options and timelines. 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.