Short Answer

Yes. In North Carolina, an interested heir can ask the Clerk of Superior Court to investigate and order the return of estate funds taken or used before anyone is appointed. You can file an estate proceeding to examine the person using the money and seek a turnover order, and you can also ask the court to appoint a temporary fiduciary (a collector) to secure accounts and make necessary payments until an administrator is appointed.

How North Carolina Law Applies

After death, your parent’s money in accounts titled in the parent’s sole name becomes part of the estate. No one is authorized to spend those funds until the court issues letters to a personal representative (executor or administrator). If a sibling uses those funds before appointment—even for mortgage payments—that use is generally unauthorized. You can petition the Clerk to require an examination, an accounting, and, if appropriate, an order to return the funds. If action is needed quickly to protect the home, you can also ask the court to appoint a temporary fiduciary called a “collector” to safeguard assets and pay urgent bills until an administrator is in place.

Different rules apply if the account was a true joint account with right of survivorship or payable-on-death (POD). Those funds usually pass to the survivor at death, but the estate can still recover a portion if other assets are insufficient to pay valid estate debts. The court can sort out whether the funds used should be returned, offset, or treated as a claim for reimbursement.

Key Requirements

• Challenge before appointment: Any “interested person” (such as an heir) may start an estate proceeding to examine someone believed to be holding estate property and seek recovery. This does not require waiting for an administrator to qualify.
• Temporary control of assets: If there’s a delay in appointing an administrator, you may ask the Clerk to appoint a collector to take custody of funds, open a short-term estate account, and pay urgent expenses (like insurance or utilities) to preserve estate property.
• Joint/POD accounts: A surviving joint owner may own the funds, but a personal representative can recover the decedent’s statutory share from survivorship accounts—and certain POD funds—if needed to pay estate debts. The amount recoverable and timing depend on the account type and whether the estate has other assets to pay claims.
• Reimbursement: If your sibling advanced money (even improperly) to prevent loss (e.g., to keep the mortgage current), they must submit a proper creditor’s claim after the personal representative publishes and mails the notice to creditors. The court will evaluate whether the estate should reimburse those payments.
• Agents under power of attorney: A power of attorney ends at death. After death, the personal representative can require the former agent to provide records of transactions. Pre-death transfers may be reviewed; post-death use must stop.

Process & Timing

1. File a petition with the Clerk of Superior Court (in the county of domicile) to open an estate proceeding seeking: (a) examination of the sibling who used funds; (b) an order to account and return funds; and (c) if urgent, appointment of a collector to secure accounts and make preservation payments.
2. Hearing before the Clerk: The Clerk can order the sibling to appear, produce bank records, and answer questions. If the Clerk determines the funds are estate property or were used without authority, the Clerk can order delivery/return. Orders can be enforced by contempt if ignored.
3. If funds are at risk of being dissipated: Once a collector or administrator is appointed, they can file a civil action to recover funds and, if needed, seek temporary restraining orders or injunctions to freeze accounts while the case is decided.
4. Appointment of administrator: The Clerk will issue letters to an eligible person. The fiduciary will open an estate bank account using an IRS EIN, marshal funds, and take over necessary payments.
5. Claims and reimbursement: The fiduciary publishes and mails a notice to creditors. Anyone seeking repayment (including a sibling who paid a mortgage) should present a written, itemized claim within the deadline stated in the notice (at least 90 days after publication/mailing). Valid claims are paid in statutory order of priority.

What the Statutes Say

• Examination and recovery of estate property: N.C. Gen. Stat. § 28A-15-12 allows an estate proceeding to examine a person believed to hold estate property and to order recovery. It also authorizes the fiduciary to bring a civil action and use provisional remedies (like injunctions) when needed.
• Appointment of a temporary fiduciary (collector): N.C. Gen. Stat. § 28A-11-1 permits the Clerk to appoint a collector when there is a delay in appointing a personal representative or when doing so is in the estate’s best interest.
• Survivorship accounts—estate’s right to recover a share for debts: N.C. Gen. Stat. § 41-2.1 states survivorship funds pass to the survivor at death, but a personal representative may recover the decedent’s statutory portion if needed to pay claims, after other estate assets are exhausted.
• Other nonprobate funds recoverable to pay debts if estate assets are insufficient: N.C. Gen. Stat. § 28A-15-10 authorizes recovery of certain nonprobate funds for limited purposes (like paying valid estate claims).
• Notice to creditors and deadline to present claims: N.C. Gen. Stat. § 28A-14-1 (notice to creditors) and N.C. Gen. Stat. § 28A-19-3 (time limits) govern how and when claims must be presented, generally within the time stated in the notice (at least 90 days).
• Agent’s recordkeeping duty: N.C. Gen. Stat. § 32C-1-114 requires an agent under a power of attorney to keep records and, upon the principal’s death, to provide information to the personal representative or successor in interest.

Exceptions & Pitfalls

• Joint or POD funds may not be estate property at death. However, they can still be pulled back in part to pay estate debts if the estate lacks other assets. Do not assume “it was a joint account, so I can spend freely.”
• Estate proceeding limits. The Clerk can order an examination and return of funds, but emergency injunctions usually require a civil action by a duly appointed fiduciary. If dissipation is ongoing, ask for a collector immediately.
• Power of attorney ends at death. Using the decedent’s debit card or online banking after death is unauthorized and may result in personal liability or a court-ordered return of funds.
• Reimbursement is not automatic. If your sibling paid the mortgage, they must file a timely claim with receipts. The court will consider whether the payments preserved estate property and whether the estate has funds to reimburse.
• Deadlines change. Claims, notices, and hearing schedules can vary by county. Missing a deadline can affect reimbursement and recovery rights.

Helpful Hints

• Move fast if funds are being used—ask the Clerk to appoint a collector to secure accounts and pay only necessary preservation expenses.
• Gather bank statements, screenshots, and receipts showing dates, amounts, and purposes of payments made after death.
• Notify banks of the death and ask them to flag sole-owner accounts pending the court’s appointment of a fiduciary.
• Once appointed, open an estate bank account using an IRS EIN, and route all receipts and payments through that account.
• If you advanced payments, submit a written, itemized creditor’s claim promptly after the notice to creditors is published/mailed.

Talk to a Probate Attorney

If you’re dealing with a sibling using bank funds after a parent’s death, 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.