Jan152026
Probate Q&A Series

Can an executor be required to explain what happened to retirement accounts or other financial accounts that had no updated beneficiary listed? – North Carolina

Short Answer

Yes. In North Carolina, an executor (personal representative) can be required to file a full inventory and accounting with the Clerk of Superior Court, and an interested person can ask the Clerk to order the executor to provide a complete, satisfactory account of estate assets and transactions.

However, many retirement accounts and “payable-on-death/transfer-on-death” accounts pass outside probate if a valid beneficiary designation exists. If no beneficiary is listed (or the designation fails), the account may become a probate asset and should generally be addressed in the estate inventory and accounting.

Understanding the Problem

In a North Carolina estate administration, can an executor be required to explain what happened to retirement accounts or other financial accounts when the probate inventory looks incomplete and the executor has stopped communicating as the estate approaches closing?

The decision point is whether the accounts were probate assets that the executor had a duty to identify, report, and account for in the estate file, or whether the accounts passed outside probate by beneficiary designation (and therefore may not appear on the probate inventory even though they existed).

Apply the Law

North Carolina estate administration is supervised by the Clerk of Superior Court. A personal representative must identify estate assets, file required reports, and support the numbers with records. If an interested person believes assets are missing or transactions are unclear, that person can ask the Clerk to compel a fuller accounting and, in serious situations, consider remedies such as removal or other court orders.

Key Requirements

  • Probate vs. nonprobate classification: The executor generally accounts for assets owned by the decedent that are part of the probate estate. Many retirement accounts and POD/TOD accounts transfer by contract to named beneficiaries and may not be probate assets.
  • Complete inventory and accounting: The executor must report estate assets and later show what came in and what went out, with enough detail to make the accounting “full and satisfactory” to the Clerk.
  • Ability to compel compliance: A creditor or other interested person can seek an order requiring the executor to file a full account within a short deadline, and the Clerk has enforcement tools if the executor does not comply.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The probate file reportedly shows real estate but little cash, and there is concern that retirement accounts or bank funds existed but do not appear. Under North Carolina practice, that can mean either (1) the accounts were nonprobate transfers (beneficiary/POD/TOD/joint ownership) and therefore do not show up as estate assets, or (2) the accounts should have been treated as probate assets and reported, which would make a fuller inventory/accounting and supporting records important.

If the executor stopped communicating and the estate is nearing closing, the practical focus often becomes forcing clarity: what accounts existed, whether they were probate or nonprobate, and if probate, what happened to the funds (collection, expenses paid, distributions, or transfers). Concerns about unpaid taxes also matter because final closing typically requires the executor to address tax obligations before the Clerk approves a final account.

Process & Timing

  1. Who files: An “interested person” (commonly an heir, beneficiary, or creditor) or counsel on that person’s behalf. Where: The Estates Division (before the Clerk of Superior Court) in the county where the estate is pending in North Carolina. What: A request/motion asking the Clerk to order the personal representative to file a full and satisfactory accounting and to produce supporting documentation as required by the Clerk’s procedures. When: As soon as it becomes clear the inventory/accounting is incomplete or the executor is not responding, and before the estate is closed.
  2. Clerk-directed compliance steps: In many counties, the Clerk’s office uses a stepped approach (notice to file, order to file within a set period, then a show-cause hearing). If the executor still does not comply, the Clerk can consider stronger enforcement measures.
  3. Outcome: A filed inventory/accounting that is detailed enough for review, and if problems remain, additional orders (for amended filings, documentation, or other relief) before the estate can properly close.

Exceptions & Pitfalls

  • Nonprobate assets may not appear in the inventory: Retirement accounts and financial accounts often pass by beneficiary designation, POD, TOD, or survivorship. If a valid designation exists, the executor may not control that asset, even if family members expected it to be “part of the estate.”
  • “No updated beneficiary” is not always “no beneficiary”: Financial institutions may still have an older beneficiary designation on file. If that designation is valid, the asset may transfer outside probate even if it feels “out of date.”
  • Failed beneficiary designations can pull assets into probate: If the beneficiary is deceased, the designation is invalid, or the plan terms default to the estate, the account may become a probate asset that should be inventoried and accounted for.
  • Documentation gaps: A common problem is an accounting that lists totals without backup. Clerks often expect enough detail to track receipts and disbursements, and missing records can trigger hearings, amended filings, or other court involvement.
  • Debt and tax pressure points: Even when an asset passes outside probate (TOD/POD), North Carolina law can allow recovery from the beneficiary in certain situations if the estate cannot pay debts. Tax issues can also delay or prevent approval of a final account.

For more detail on reviewing what was filed with the court, see getting a full copy of the probate inventory and accounting. For a deeper look at what a proper filing usually includes, see what the court usually requires in a personal representative’s accounting.

Conclusion

In North Carolina, an executor can be required to explain missing or unclear estate finances by filing a full, satisfactory accounting with the Clerk of Superior Court, especially when the probate inventory appears incomplete. Whether retirement or bank accounts should appear in the probate file depends on whether they passed outside probate by beneficiary/POD/TOD designation or became probate assets because no valid designation applied. The most important next step is to promptly ask the Clerk to compel a complete accounting before the final account is approved and the estate closes.

Talk to a Probate Attorney

If a North Carolina estate inventory looks incomplete and an executor has stopped communicating about retirement accounts or bank funds, a probate attorney can help clarify what should be in the estate, what may have passed outside probate, and what can be requested from the Clerk of Superior Court. 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.