How can I close a deceased person’s bank account if the bank says they can only issue the check to the state or estate? – North Carolina

Short Answer

In North Carolina, a bank generally issues funds from a deceased person’s account only to a legally authorized recipient: the “Estate of [Name]” (through a personal representative or small-estate affiant) or, in limited cases when no one is appointed and the balance is small, to the Clerk of Superior Court. Show the bank your Letters (or a certified small-estate affidavit) and ask for a check payable to “Estate of [Name]” so it can be deposited into an estate bank account. If no administrator is appointed and the balance is small, the bank may pay the Clerk instead.

Understanding the Problem

You’re administering a North Carolina estate and need to close the decedent’s bank account. The bank says it can only make the check payable to the state or to the estate. You’re unsure whether an estate bank account exists, and you plan to mail the check to the law firm handling the estate. The core question is: how do you get the bank to release and properly direct the funds so they can be deposited for the estate?

Apply the Law

Under North Carolina law, only a legally authorized person can collect a decedent’s funds. That authority comes from Letters Testamentary/Letters of Administration issued by the Clerk of Superior Court, or from a properly filed and certified small-estate affidavit. With that authority, the bank should issue the check to “Estate of [Decedent].” If no one is appointed and the balance is small, a debtor (like a bank) may pay the Clerk of Superior Court instead. The personal representative must safeguard funds in a separate estate account and later report them to the Clerk.

Key Requirements

• Show legal authority: Present Letters (testate or intestate) or a certified small-estate affidavit; banks rely on these to release funds.
• Use the correct payee: Ask for the check to “Estate of [Decedent]”; do not accept it in an individual’s name.
• Estate account required: Obtain an EIN and open an estate bank account; deposit estate funds only into that account.
• Small sum, no administrator: If no one is appointed and the balance is small, the bank may pay the Clerk of Superior Court instead of the estate.
• If the bank refuses: A certified small-estate affidavit compels turnover; if refusal continues, court action to compel may be available.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-25-1 (Collection by affidavit – intestate) – Allows collection of a decedent’s personal property (including bank accounts) by certified affidavit.
• North Carolina Gen. Stat. § 28A-25-1.1 (Collection by affidavit – testate) – Similar affidavit process when there is a will (after probate).
• North Carolina Gen. Stat. § 28A-25-6 (Payment to the Clerk) – Permits payment of small sums owed to a decedent to the Clerk when no administrator is appointed.
• North Carolina Gen. Stat. § 28A-15-2 (Title to personal property) – Vests title to the decedent’s personal property in the personal representative.

Analysis

Apply the Rule to the Facts: As the administrator, you can present your Letters to the bank; that is sufficient authority for the bank to issue the check to “Estate of [Decedent].” If instead you’re using a small-estate affidavit, give the bank a certified copy; that compels the bank to release and title the funds to the estate. If there is no estate account yet, obtain an EIN and open one; the check can be mailed to your law firm for forwarding, but funds should be deposited into the estate’s account. The “state” (Clerk) payee option is usually for small sums when no one has been appointed.

Process & Timing

1. Who files: Personal representative (executor/administrator) or small‑estate affiant. Where: Clerk of Superior Court in the North Carolina county where the decedent was domiciled. What: For full administration, file AOC‑E‑201 (testate) or AOC‑E‑202 (intestate) to obtain Letters; for small‑estate collection, file AOC‑E‑203A/B (affidavit) and obtain certified copies. When: After death; present your Letters or certified affidavit to the bank before requesting the check.
2. Open an estate bank account using an EIN; ask the bank to close the decedent’s account and issue the check payable to “Estate of [Decedent]” and mail it to your attorney or to you for deposit into the estate account. Processing times vary by institution and county.
3. Deposit the funds into the estate account and report the asset and receipt on your required filings with the Clerk. Keep supporting statements for the Inventory and accountings.

Exceptions & Pitfalls

• Accounts that pass outside the estate (e.g., joint with right of survivorship or POD) usually cannot be closed by the estate administrator; confirm ownership before demanding funds.
• If a bank refuses to honor a certified small‑estate affidavit, consider opening a full estate or pursuing an action to compel turnover.
• Checks payable to the Clerk are typically used only when no administrator is appointed and the total tendered for the decedent does not exceed the statutory small‑sum limit; over that threshold, the Clerk may require an appointment.
• Do not accept checks payable to you personally or deposit estate funds into a personal account; use an estate account tied to an EIN.
• If you have Letters, the bank should not insist on paying the Clerk; show certified Letters and request the check to the estate.

Talk to a Probate Attorney

If you’re dealing with a bank that will only issue funds to the state or the estate, our firm has experienced attorneys who can help you understand your options and timelines. 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.