Probate Q&A Series

How can I regain control of a deceased parent’s bank and credit card accounts if someone else is using them after her death? — North Carolina

Short Answer

In North Carolina, only a court‑appointed personal representative (executor or administrator) or a qualified small‑estate affiant has legal authority to take control of a decedent’s financial accounts. Your first step is to open an estate (or use the small‑estate affidavit if eligible), then immediately notify banks and card issuers and demand they freeze or close the accounts to stop any unauthorized use. If someone refuses to turn over funds or records, the estate can ask the clerk or court to compel delivery and account for the money.

How North Carolina Law Applies

After death, a power of attorney ends, and no one may use the decedent’s cards or bank access unless and until the probate court authorizes it. In North Carolina, the personal representative (PR) has the duty and power to gather the decedent’s financial assets, open an estate bank account, and close or retitle accounts into the estate. If the estate is small enough, an heir or other qualified person may collect bank funds by affidavit (without full probate). Credit cards are the decedent’s debts; the PR—not family members—works with the issuers to close accounts and dispute any unauthorized charges.

If someone is using the accounts after death, the PR or small‑estate affiant can present Letters or a certified affidavit to the bank to shut down access and move funds. If a person or institution won’t cooperate, the estate can file a proceeding before the clerk to examine that person, compel delivery of assets, and, if needed, bring a civil action to recover funds (including joint or payable‑on‑death funds when required to pay estate debts).

Key Requirements

  • Legal authority: Qualify as personal representative (executor/administrator) or, if eligible, as a small‑estate affiant to collect bank funds.
  • Proof of death and identity: Death certificate and ID; banks also typically require certified Letters or certified affidavit copies.
  • Estate bank account and EIN: Open a dedicated estate account using an IRS EIN (not the decedent’s SSN) to receive funds and pay estate expenses.
  • Timely notices and filings: Publish notice to creditors and file required inventories and accounts; procedures and timelines apply once you qualify.
  • Recovery authority: The estate can recover certain joint or payable‑on‑death funds if estate assets are insufficient to pay allowed claims.

Process & Timing

  1. Stop the bleeding now: Notify each bank and card issuer of the death and request an immediate freeze on the decedent’s access credentials and cards. Tell them you are seeking appointment or filing a small‑estate affidavit.
  2. Choose the path to authority:
    • Full probate: File an application for Letters with the clerk of superior court in the county of domicile. Once appointed, you receive Letters Testamentary or Letters of Administration authorizing control of assets.
    • Small‑estate affidavit: If the personal property value fits the statutory limits and 30 days have passed since death, file the affidavit. The clerk provides certified copies you present to banks to collect funds.
  3. Open the estate account and get an EIN: After qualification, obtain an EIN and open an “Estate of [Decedent]” checking account. Deposit collected funds here and pay estate expenses from this account only.
  4. Collect and close accounts: Provide the bank with certified Letters or certified affidavit copies. For sole‑owner accounts, request closure and payment to the estate. For joint or POD accounts, coordinate with the institution; note the estate’s right to recover funds if needed to pay claims.
  5. Credit cards: Provide notice of death, close the accounts, and dispute any unauthorized post‑death charges. Do not promise personal payment—credit card balances are estate debts unless you are a co‑obligor.
  6. If someone refuses to cooperate: File an estate proceeding before the clerk to examine the person believed to hold estate assets and request an order requiring delivery. If necessary, bring a civil action to recover funds; the court can enter judgments and use enforcement remedies.
  7. Notice to creditors and inventory: After qualification, publish and send statutory notices to creditors and file the required inventory by the statutory deadline. Timelines and local practices can vary.
  8. Pay claims and distribute: Pay allowed claims in the statutory order of priority, then distribute any remaining funds to heirs or devisees and file the final account.

What the Statutes Say

Exceptions & Pitfalls

  • Using the decedent’s bank card or credit card after death is not permitted—even if you were an authorized user. Stop all use immediately.
  • Joint and POD accounts usually pass outside probate; however, the estate can recover the decedent’s share (or more, depending on the arrangement and evidence of ownership) if needed to pay valid claims.
  • Without Letters or a certified small‑estate affidavit, banks typically won’t (and shouldn’t) release funds. Get authority first.
  • Don’t commingle funds. Use an estate account and keep clear records for the court‑required inventory and accountings.
  • Deadlines and local practices vary. Inventory, notice to creditors, and accounting timing can change—confirm current requirements with the clerk.
  • If a holder refuses to deliver funds to a small‑estate affiant, the court can compel compliance and tax costs/fees against the refusing party.

Helpful Hints

  • Bring multiple certified copies of your Letters or small‑estate affidavit to banks and card issuers.
  • Ask banks for full date‑of‑death balances, accrued interest, signature cards, and transaction histories to spot any post‑death activity.
  • Open the estate account and obtain an EIN before collecting funds. Deposit all receipts to the estate account and pay expenses from it.
  • Document every call and letter to institutions and keep copies of all statements for your inventory and accounting.
  • If you suspect misuse (before or after death), act quickly: freeze accounts, preserve statements, and consider an estate proceeding to examine the person and recover funds.

Disclaimer: This article is general information about North Carolina law, not legal advice. Reading it does not create an attorney‑client relationship.

Talk to a Probate Attorney

If you’re dealing with unauthorized use of a deceased parent’s accounts and need to secure and recover funds, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at (919) 341-7055.