Probate Q&A Series

How a North Carolina Personal Representative Confirms Payable-on-Death (POD) Designations on Frozen Bank or Credit-Union Accounts

Short Answer

In North Carolina, payable-on-death (POD) accounts bypass probate. A personal representative (PR) can learn whether a decedent’s frozen accounts carry POD designations by supplying the financial institution with a death certificate and certified Letters Testamentary or Letters of Administration. The bank or credit union must then tell the PR whether the funds are probate assets or belong directly to the named POD beneficiary.

Detailed Answer

1. Know the Law Behind POD Accounts

  • N.C. Gen. Stat. § 53C-6-6 governs multiple-party and POD accounts held at state-chartered banks.
  • N.C. Gen. Stat. § 54-109.58 covers similar accounts at credit unions.
  • POD language such as “payable on death to” or “in trust for” creates a non-probate transfer at the owner’s death.

2. Gather the Right Documents

  1. Original death certificate.
  2. Certified Letters issued by the Clerk of Superior Court (see N.C. Gen. Stat. § 28A-4-2).
  3. Valid photo ID for the PR.

3. Contact the Financial Institution’s Estate Department

Most banks and credit unions freeze individual accounts once they learn of a customer’s death. The PR should:

  • Call the institution’s estate services or deposit operations line and request its decedent-account affidavit or similar form.
  • Deliver the documents in person or by secure upload per the bank’s instructions.

4. Obtain Written Confirmation of Account Status

After verifying the PR’s authority, the institution must disclose:

  • Whether any account is titled as POD, ITF (in-trust-for), or Totten-trust.
  • The exact beneficiary names and last known addresses.
  • Current balance and accrued interest through date of death.

Under § 53C-6-6(i), the bank may only pay the funds directly to the named beneficiary, who must present identification and a death certificate.

5. Accessing Non-POD Funds

Accounts without a POD designation belong to the estate. The PR can:

  • Provide the bank with the estate’s federal tax ID (EIN) and request the funds be transferred into a court-approved estate checking account.
  • Track every receipt and disbursement on the Inventory and annual Accounting required by the clerk (N.C. Gen. Stat. §§ 28A-20-1 & 28A-25-1).

Hypothetical Example

Maria dies owning two checking accounts at Triangle Bank:

  • Account #1: “Maria Smith POD John Smith.” Balance $15,000.
  • Account #2: “Maria Smith.” Balance $8,500.

As PR, daughter Angela brings certified Letters and the death certificate to Triangle Bank. The bank confirms Account #1 is a POD account. It notifies John Smith he may collect the $15,000 upon proof of identity. Account #2 has no beneficiary, so Triangle Bank cuts a cashier’s check payable to “Estate of Maria Smith” for $8,500, which Angela deposits into the estate account for probate administration.

Helpful Hints

  • Financial institutions often keep original signature cards for seven years. Ask specifically for the signature card to verify POD wording.
  • If the bank refuses to provide information, a subpoena duces tecum under N.C. Rule of Civil Procedure 45 may compel production.
  • POD designations override contrary terms in a will. Remind disappointed heirs the statute controls.
  • Always keep copies of every bank communication for the Clerk’s audit trail.
  • Alert POD beneficiaries that they are liable up to the amount received for any estate taxes owed under N.C. Gen. Stat. § 105-32.2.

Need Help Unlocking Accounts?

Determining whether an account is POD and retrieving funds can feel daunting while you are mourning a loved one. Our North Carolina probate team has handled countless estate administrations and knows how to persuade banks to cooperate quickly. Call us today at (919) 341-7055 to schedule a confidential consultation and move your probate forward.