Dec182025
Probate Q&A Series

Can we recover funds if a relative emptied bank accounts by being added as a joint owner or coosigner, and how do we document that for the estate? – North Carolina

Short Answer

Sometimes, yes. In North Carolina, whether an estate can recover money from a joint bank account usually turns on whether the account paperwork created a valid right of survivorship (or a valid payable-on-death designation) and, if so, whether the personal representative has a statutory right to collect some or all of those funds to pay allowed estate expenses and claims.

Documenting the issue for the estate typically means gathering the account agreement/signature card, death-date balance, and contribution history, then reporting the estates recoverable portion (if any) on the estate inventory and accountings filed with the Clerk of Superior Court.

Understanding the Problem

In North Carolina probate, a common question is: can an estate recover money when a family member was added to a bank account as a joint owner or co-signer and then withdrew the funds, especially when that person also held a power of attorney before death? The decision point is whether the account became a true joint account with survivorship (or a similar non-probate transfer), or whether some or all of the money still counts as estate property that must be brought into the estate and reported in the estate filings with the Clerk of Superior Court.

Apply the Law

North Carolina treats many joint accounts and payable-on-death (POD) accounts as transfers that can pass outside the estate at death, but only if the account was set up in the way state law requires. Even when survivorship or POD is valid, North Carolina law can give the personal representative a limited right to collect funds from the surviving joint owner or beneficiary to cover certain estate expenses and claims. If survivorship was not created correctly, the estate may be able to claim the decedents ownership share based on what the decedent contributed to the account.

Key Requirements

  • Proof of the account type and paperwork: The account agreement/signature card (or separate written instrument) must show whether the account had a valid right of survivorship or POD feature under the governing statute or deposit contract.
  • Ownership/contribution tracing: When survivorship is unclear or not properly created, ownership can depend on who contributed what funds to the account (and, in some settings, whether a gift was intended).
  • Authority and forum to recover: Recovery typically must be pursued by the court-appointed personal representative through the estate process before the Clerk of Superior Court (and, in some disputes, the matter can be moved to Superior Court).

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a decedent with bank accounts and a sibling who held power of attorney before death and is now asserting control. Under North Carolina law, the key factual questions are what the bank paperwork actually created (true survivorship, POD, or something else) and whether the sibling withdrew funds based on valid account rights or based on authority that ended at death (such as power of attorney). If the survivorship or POD feature was not properly created or documented, the estate may be able to treat some or all of the money as estate property and report it on the estate inventory, then pursue recovery through the estate proceeding.

Process & Timing

  1. Who files: The court-appointed personal representative. Where: The Estate Division of the Clerk of Superior Court in the county where the estate is opened. What: Open the estate (to obtain Letters), then request financial records and obtain the account agreement/signature card and death-date balance documentation from each institution. When: The personal representative generally must file an inventory with the clerk within 3 months after qualification (often called the 90-day inventory), and later file accountings as required.
  2. Confirm account status and estate share: Compare the signature card/deposit agreement to the statutory requirements for survivorship or POD and determine whether the decedents contributions can be traced. If the paperwork is missing or incomplete, the clerk may require more documentation (and some clerks may require reporting the full date-of-death balance if the decedents portion cannot be determined with certainty).
  3. Recovery step if needed: If the personal representative reasonably believes the joint owner/beneficiary has estate property, the personal representative can pursue an estate proceeding before the clerk to require an examination and, if appropriate, an order directing delivery of recoverable funds. If the dispute becomes complex, a party may seek transfer to Superior Court.

Exceptions & Pitfalls

  • Valid survivorship can defeat an estate claim: If the account was properly established as a survivorship account, the surviving joint owner may take the funds at death, subject to any statutory right of collection the personal representative can assert for allowed estate expenses and claims.
  • Missing signature card or unclear contract language: North Carolina courts require strict compliance with statutory survivorship requirements. When documentation is incomplete, ownership disputes become fact-driven and can force the estate to prove what was intended and who contributed the money.
  • Confusing a POA with ownership: A power of attorney gives authority to act during life, not ownership, and it ends at death. If withdrawals happened near the end of life or after death, the timing and paper trail matter.
  • Funds already spent or transferred: Estate proceedings aimed at examining someone believed to be holding estate property can be less effective if the money is no longer in the persons possession, which may affect strategy and forum.
  • Reporting mistakes on the inventory/accounting: The personal representative must report estate assets. If account classification is uncertain, the personal representative should document what was learned from the institution and how the reported number was calculated.

Conclusion

In North Carolina, an estate may be able to recover funds from a relative who gained access through a joint account or co-signer arrangement, but the outcome depends on whether the account was properly set up with survivorship or POD features and what portion of the funds is treated as the decedents. The personal representative should gather the signature card/deposit agreement and death-date balance, trace contributions where possible, and then report any estate portion on the inventory. The most important next step is to qualify a personal representative and file the inventory with the Clerk of Superior Court within 3 months.

Talk to a Probate Attorney

If a family member is claiming control of accounts after a death based on being added as a joint owner, co-signer, or prior agent under a power of attorney, our firm has experienced attorneys who can help explain what North Carolina law allows and what deadlines apply in the estate process. 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: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.