Do unclaimed-property funds for a deceased person have to be deposited into an estate account, or can they go into my personal account? – North Carolina

Short Answer

In North Carolina, unclaimed-property funds issued in a deceased person’s name are generally estate assets that should be received and deposited by the estate’s personal representative into an estate account, not a personal account. Depositing the decedent’s funds into a personal account can create avoidable problems, including “commingling” estate money with personal money and making the required estate accounting harder. If the unclaimed-property office issues the payment to the “Estate of” the decedent (or to the personal representative), an estate account is typically required to deposit it.

Understanding the Problem

In a North Carolina probate administration, the key question is whether unclaimed-property funds payable to a deceased person can be treated as personal money of the person administering the estate, or whether those funds must be handled as estate property. The decision point is simple: when a check is made payable to the decedent (or the estate), must the personal representative collect and deposit it into an estate account as part of the probate process, rather than depositing it into an individual account. The timing issue that often triggers the question is that the unclaimed-property payment may arrive after the estate has already opened, or while the estate is still in the middle of paying bills and preparing the required filings with the Clerk of Superior Court.

Apply the Law

Under North Carolina probate practice, the personal representative (executor or administrator) is responsible for collecting the decedent’s assets, keeping them separate from personal funds, and reporting receipts and disbursements in the estate accounting filed with the Clerk of Superior Court. Unclaimed-property funds that belong to the decedent are part of what the personal representative must collect and account for during administration. North Carolina’s unclaimed-property statutes also provide a process for filing claims with the State Treasurer and set timelines for the Treasurer to allow or deny a claim and then pay an allowed claim.

Key Requirements

Proper payee and authority: The person cashing or depositing the funds must have legal authority to act for the estate (typically shown by Letters Testamentary or Letters of Administration).
Separate handling of estate money: Estate funds should be kept separate from personal funds so the estate’s receipts and disbursements can be tracked and reported accurately.
Accurate probate accounting: The personal representative must be able to show where the money went (deposit, payments, and distributions) when filing accountings with the Clerk of Superior Court.

What the Statutes Say

N.C. Gen. Stat. § 116B-67 (Claim for property paid or delivered to the Treasurer) – Allows a claimant to file a claim for unclaimed property with the State Treasurer and sets key timing rules (including a 90-day decision period and a 30-day payment period after allowance).
N.C. Gen. Stat. § 116B-4 (Claim for escheated property) – Permits certain claims to escheated property by heirs or creditors and ties those claims to the general unclaimed-property claim process.

Analysis

Apply the Rule to the Facts: Here, the estate is being administered and one or more unclaimed-property checks are expected that are payable to the decedent. Because those funds belong to the decedent, they are typically estate assets that the personal representative should collect, deposit into an estate account, and then report in the estate accounting. Depositing a decedent-payable check into a personal account can blur the paper trail and create questions in the probate accounting about whether estate money was kept separate and used only for proper estate purposes.

Process & Timing

Who files: The personal representative (executor/administrator) or other legally authorized claimant. Where: The North Carolina Unclaimed Property Division (State Treasurer) for the claim; the Clerk of Superior Court in the county where the estate is administered for the estate accounting. What: The Treasurer’s claim form and supporting documents showing authority (commonly Letters Testamentary/Letters of Administration and proof of death). When: As soon as the claim can be documented and while the estate is still open, if possible.
Claim review: By statute, the Treasurer generally must allow or deny a claim within 90 days after it is filed, and may request additional evidence if the claim is denied. See N.C. Gen. Stat. § 116B-67(c).
Payment and deposit: If the claim is allowed, the Treasurer generally must pay or deliver the property within 30 days. The personal representative should then deposit the funds into the estate account, document the deposit, and reflect it in the next estate accounting filed with the Clerk of Superior Court. See N.C. Gen. Stat. § 116B-67(d).

Exceptions & Pitfalls

Check payable format matters: If the check is payable to the decedent (not the personal representative), a bank may refuse to deposit it into a personal account and may require an estate account and proof of appointment.
Commingling risk: Mixing estate funds with personal funds can create disputes with heirs and can complicate the required accounting to the Clerk of Superior Court.
Estate may need to stay open: If unclaimed-property funds are expected, closing the estate too early can create extra steps later (including reopening or using other procedures depending on the situation and local practice).
Multiple checks over time: Unclaimed-property recoveries sometimes arrive in more than one payment, which increases the importance of consistent deposit and recordkeeping. For more on handling multiple payments, see multiple checks over time.

Conclusion

In North Carolina, unclaimed-property funds payable to a deceased person are typically estate assets that should be handled by the personal representative and deposited into an estate account, not a personal account. Keeping the funds in an estate account helps avoid commingling and makes the required probate accounting clearer. The practical next step is to open (or use) an estate bank account and deposit the unclaimed-property check there, then include the deposit in the next accounting filed with the Clerk of Superior Court.

Talk to a Probate Attorney

If you’re dealing with unclaimed-property checks issued in a deceased person’s name during a North Carolina estate administration, our firm has experienced attorneys who can help explain the proper way to receive, deposit, and account for those funds. 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.