1. Detailed Answer

When someone in North Carolina dies without a will (intestate), any retirement accounts they left behind and did not collect become part of their estate if they lack a valid beneficiary designation. To claim those funds, follow these key steps:

1. Verify Beneficiary Designation. Contact the retirement plan administrator (such as a pension plan, 401(k), or IRA custodian). Ask for a copy of the account statements and the beneficiary designation form. If the decedent named a valid, living beneficiary, the funds pass outside probate directly to that person.
2. Open an Intestate Estate. If no beneficiary survives or the designation is invalid, you must administer the account through probate. File a petition in the Clerk of Superior Court’s office to open an estate and appoint a personal representative. See N.C. Gen. Stat. § 28A-4-1.
3. Obtain Letters of Administration. The court issues Letters of Administration to the personal representative. This document proves your authority to deal with financial institutions and retirement plan administrators.
4. Notify the Plan Administrator. Provide a certified copy of the death certificate and your Letters of Administration. The plan administrator will prepare a distribution package, which may include tax withholding forms and an election to roll over funds to an inherited IRA.
5. Settle Debts and Expenses. Before distributing estate assets, the personal representative must pay valid debts, funeral expenses, and administration costs using estate funds, including the retirement account balance if necessary.
6. Distribute Proceeds Under Intestacy Law. Any net balance of the retirement account then becomes part of the residuary estate. Distribute it according to North Carolina’s intestate succession rules. For example, if the decedent leaves a surviving spouse and children, see N.C. Gen. Stat. § 29-14; the distribution may vary based on whether all children are also children of the surviving spouse.
7. File Final Accounting and Close the Estate. After distribution, file a final account with the court. Once approved, the clerk issues an order to discharge the personal representative and close the estate.

2. Key Points to Claim an Uncollected Retirement Account

• Locate plan documents and beneficiary forms immediately after death.
• Determine whether a beneficiary designation still applies.
• File for probate to become personal representative if the account passes to the estate.
• Use Letters of Administration to access the account.
• Settle valid estate debts before distributing retirement funds.
• Distribute the net proceeds under North Carolina’s intestacy statutes.
• File a final accounting and obtain court approval to close the estate.

Ready for Help?

Claiming a decedent’s retirement account can involve complex probate steps. Pierce Law Group has years of experience guiding families through every stage of estate administration. Contact us today to discuss your situation. Email intake@piercelaw.com or call (919) 341-7055.