Short Answer

Often no—if an IRA has no named beneficiary, it usually becomes part of the decedent’s probate estate. In North Carolina, you may avoid “full” probate if the total personal property of the estate does not exceed $20,000 and you use a Collection by Affidavit through the Clerk of Superior Court. With that affidavit, the custodian must release assets; if it refuses, you can seek a court order to compel compliance. If the estate exceeds $20,000, you’ll likely need formal letters.

Understanding the Problem

In North Carolina, can a grandchild collect a decedent’s IRA without opening a full probate when no beneficiary is on file and the bank will not disclose information? Here, the decedent’s IRA lacks a clear beneficiary, and the bank is requiring formal probate before releasing details or funds.

Apply the Law

Under North Carolina law, retirement accounts with a valid beneficiary generally bypass probate. When no beneficiary is on record, the plan’s default rules often make the account payable to the decedent’s estate, turning it into a probate asset. North Carolina offers a streamlined alternative to full probate—the Collection by Affidavit—if the estate’s personal property is small. The Clerk of Superior Court (Estates Division) handles these filings. You must wait at least 30 days after death, and the total personal property must not exceed $20,000 (spousal estates have a higher cap). The custodian must release property upon presentation of a certified affidavit, and a court can compel a noncompliant custodian. Distributions to minors follow special rules.

Key Requirements

• No beneficiary on the IRA: Without a designated beneficiary, the IRA typically falls to the estate under plan defaults, so someone needs legal authority to collect it.
• Small-estate eligibility: Total personal property of the estate (after liens) must be $20,000 or less; wait at least 30 days after death; no personal representative has been appointed.
• Who may file: An heir (such as the surviving child) or other authorized person may file a Collection by Affidavit with the Clerk of Superior Court in the county of the decedent’s domicile.
• Form and filing: Use the Affidavit for Collection of Personal Property (AOC-E-203B for post-2011 deaths), pay the filing fee, and obtain certified copies.
• Custodian compliance: Present a certified affidavit to the IRA custodian; if it refuses, you may bring an action to compel compliance.
• Minor heirs: If the grandchild is a minor, distributions must be paid to a parent/guardian, a UTMA custodian, or the Clerk, depending on the amount and circumstances.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-25-1 (Collection by affidavit; intestate) – Allows collection of a decedent’s personal property by affidavit for small estates after 30 days.
• North Carolina Gen. Stat. § 28A-25-2 (Action to compel compliance) – Lets an interested person seek a court order if a holder refuses to honor a proper affidavit.
• North Carolina Gen. Stat. § 29-15 (Intestate succession—order of takers) – States who inherits when there’s no will; a surviving child usually takes before parents.
• North Carolina Gen. Stat. § 28A-22-7 (Payment to parent or guardian of minor) – Provides how distributions to minors are paid and managed.

Analysis

Apply the Rule to the Facts: Because no beneficiary is on file, the IRA likely belongs to the estate under the plan’s default. If the decedent’s total personal property is $20,000 or less, your granddaughter (as heir) can use a Collection by Affidavit to collect assets, including the IRA, after 30 days. The custodian’s refusal to disclose before you have authority is common; once you file and present a certified affidavit, it must release funds or face an action to compel. If the IRA pushes the estate over $20,000, you’ll need a full administration (letters).

Process & Timing

1. Who files: An heir (e.g., the surviving child). Where: Clerk of Superior Court, Estates Division, in the North Carolina county where the decedent lived. What: Affidavit for Collection of Personal Property of Decedent (AOC-E-203B for deaths on/after 1/1/2012). When: At least 30 days after death, and only if total personal property ≤ $20,000 and no personal representative has been appointed.
2. Obtain certified copies from the Clerk. Present a certified affidavit to the IRA custodian and any other asset holders. If a custodian refuses to honor the affidavit, consider filing an action to compel or convert to a full administration; timeframes vary by county and institution.
3. Pay any approved allowances and valid claims, then distribute the remainder to the heir. File a final affidavit with the Clerk to close out the small-estate file.

Exceptions & Pitfalls

• Over the limit: If total personal property exceeds $20,000, you must open a formal estate and obtain letters.
• Plan defaults: Some retirement plans have default beneficiaries; confirm with the employer plan or custodian before filing.
• No creditor bar: Collection by Affidavit does not cut off creditors; recipients can be accountable to a later-appointed personal representative.
• Minor heirs: Funds for a minor must be paid to a parent/guardian, UTMA custodian, or to the Clerk, as the statute requires.
• Custodian resistance: If the custodian still demands letters despite a proper affidavit, an action to compel is available—but sometimes opening a formal estate is more efficient.

Talk to a Probate Attorney

If you’re dealing with an IRA that has no beneficiary and a bank that won’t release information without probate, our firm has experienced attorneys who can help you understand your options and timelines. Call us today.

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.