Dec302025
Probate Q&A Series

Do joint bank accounts and refund checks have to be included in the estate inventory? – North Carolina

Short Answer

In North Carolina, a refund check payable to the decedent or the estate is typically a probate asset and should be listed on the estate inventory. A joint bank account may or may not be listed, depending on whether it has a right of survivorship and whether any portion may need to be collected to pay estate expenses and claims. When a joint account has survivorship rights, the account generally passes to the surviving joint owner, but a limited portion can be pulled into the estate if needed to pay certain claims.

Understanding the Problem

In a North Carolina estate administration, can a personal representative file a complete inventory on time when the estate includes (1) a joint bank account with a relative and (2) a small refund check, and there is also a beneficiary designation to a trust that does not yet have a trustee? The decision point is whether each item is an “estate asset” that must be reported on the inventory, or whether it is a non-probate asset that is only reported in a limited way (or not at all) unless it must be used to pay estate claims and expenses.

Apply the Law

North Carolina inventories generally report property that is subject to the personal representative’s administration. Some assets pass outside probate (for example, many survivorship accounts), but North Carolina law allows certain non-probate assets to be collected in a limited amount if needed to pay estate expenses and claims. That is why joint accounts often show up on the inventory in a separate “Part II” category when they have survivorship features, while items payable to the decedent (like many refund checks) are usually listed as regular probate assets.

Key Requirements

  • Identify how title is held: For a joint bank account, the key question is whether the account agreement creates a right of survivorship or not. That choice changes whether the account is treated as passing to the survivor or as partly owned by the decedent at death.
  • Classify the asset as probate vs. non-probate: A refund check payable to the decedent or the estate is typically an estate receivable and is usually reported as an estate asset. A survivorship account is generally non-probate, but it can be reported in the inventory’s “addable if needed” category when claims may require it.
  • Report what the personal representative can collect (and what may be needed for claims): Even when a joint account passes to the surviving owner, North Carolina law can allow the personal representative to collect a limited portion if needed for items like administration costs and creditor claims, depending on the account type and documentation.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The refund check should generally be included on the inventory because it is a receivable payable to the decedent or the estate and is part of what the personal representative collects and administers. The joint bank account must be classified based on the signature card or account agreement: if it is a survivorship account, it usually passes to the surviving joint owner but may still be listed under the inventory category for property that can be added if needed to pay claims; if it is not a survivorship account, the decedent’s share is typically treated as an estate asset to be reported. If the trust is named as beneficiary of an account but no trustee is appointed yet, the beneficiary designation still controls who should receive the funds, but the institution may require proof of the acting trustee or other documentation before releasing the funds, which can affect timing and what can be collected before the inventory deadline.

Process & Timing

  1. Who files: The personal representative. Where: The Clerk of Superior Court (Estates) in the county where the estate is being administered in North Carolina. What: The estate inventory form required by the Clerk (often a form inventory with “Part I” and “Part II” categories). When: Generally within 3 months (90 days) after qualification, unless the Clerk grants an extension.
  2. Gather proof of ownership and death-date values: For the joint account, obtain the signature card or other written confirmation from the financial institution showing whether the account has survivorship rights and, if possible, the date-of-death balance and contribution information. For the refund check, confirm the payee line (decedent vs. estate) and keep a copy for the file.
  3. List the items in the correct inventory category: List the refund check as an estate receivable/asset. For the joint account, list it based on survivorship status: survivorship accounts are often reported in the inventory section used for property that can be added if needed to pay claims; non-survivorship joint accounts are typically reported to the extent of the decedent’s share as an estate asset. If any portion of a survivorship account is actually collected and used to pay estate expenses/claims, include that collected amount in later accountings to the extent used.

Exceptions & Pitfalls

  • Survivorship vs. non-survivorship confusion: A joint account with right of survivorship usually does not pass under the will, but it can still matter for estate claims. Misclassifying the account can lead to an inventory that the Clerk questions or requires to be corrected.
  • Missing documentation: Clerks commonly expect proof of the survivorship election (often the signature card). If the signature card is unavailable, a written statement from the financial institution may be needed to support how the account was reported.
  • Overreporting or underreporting joint accounts: Some situations require reporting only the decedent’s portion, while others call for listing the account in the “addable if needed” category. When contributions cannot be determined, some offices may push for a more conservative reporting approach until the facts are clarified.
  • Refund check handling: A refund check payable to the decedent or estate should not be ignored because it seems small. It is still an estate asset that should be tracked, deposited properly, and reflected on the inventory/accounting.
  • Beneficiary-to-trust delays: If an account names a trust as beneficiary, institutions often require proof of the acting trustee. A missing trustee appointment can delay collection and may require planning around the inventory deadline (including requesting an extension if necessary).

Conclusion

In North Carolina, a refund check payable to the decedent or the estate is typically part of the probate estate and should be listed on the inventory. A joint bank account depends on the account’s survivorship language: if it has a right of survivorship, it usually passes to the surviving joint owner but may still be reported in the inventory section for property that can be added if needed to pay estate claims; if it lacks survivorship rights, the decedent’s share is generally reported as an estate asset. The next step is to file the inventory with the Clerk of Superior Court within 90 days of qualification (or request an extension if documentation is delayed).

Talk to a Probate Attorney

If you’re dealing with an estate inventory that involves joint accounts, beneficiary designations, and small checks that still must be reported, our firm has experienced attorneys who can help explain what must be listed and how to meet court deadlines. 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.