Jan232026
Probate Q&A Series

How can we challenge a joint bank account change if the account holder had dementia and may not have understood what they signed? – North Carolina

Short Answer

In North Carolina, a joint account with right of survivorship can move money outside the will, so a late-in-life change can matter a lot. A challenge usually focuses on whether the account change was validly created in writing and whether the account holder had the mental capacity to understand the change (or was pressured into it). In many cases, the personal representative (executor) opens an estate and then pursues records and, if needed, a court claim to recover funds from the surviving joint owner rather than from the bank.

Understanding the Problem

In North Carolina probate, the key question is often: can a joint bank account change made near the end of life be challenged when the account holder had dementia and may not have understood what was signed? This comes up when a grandparent’s will (and earlier payable-on-death planning) pointed toward splitting funds among living children, but the bank accounts were later retitled or changed so that one person may receive the balance at death. The decision point is whether the joint-account paperwork reflects a valid survivorship arrangement and a valid decision by the account holder at the time it was signed.

Apply the Law

North Carolina generally allows deposit accounts to be set up so that the surviving joint owner becomes the owner at death if the account was created with a written survivorship agreement signed by the parties. Even when a bank can pay the survivor under the account contract, the estate (through the personal representative) may still have claims against the person who received the funds if the change was the product of incapacity, undue influence, fraud, or an unlawful act by an agent acting under a power of attorney. Practically, disputes often turn on the signature card or account agreement, the timing of the change compared to the dementia progression, and evidence about who supplied the money and what the account holder intended.

Key Requirements

  • Valid account paperwork: Many survivorship accounts require a written agreement (often a signature card or similar bank form) that expressly creates survivorship rights and is signed as required.
  • Mental capacity at signing: A challenge commonly argues the account holder lacked capacity to understand the nature and effect of adding a joint owner or changing how the account would pass at death.
  • No improper pressure or misuse of authority: A challenge may also focus on undue influence, fraud, or misuse of a power of attorney (for example, an agent adding themselves to an account without proper authority).

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the will and the earlier payable-on-death setup suggest the grandparent intended the checking and savings funds to be split among living children. If the accounts were later changed to a joint account with survivorship (or otherwise changed so one person takes at death), the dispute usually turns on (1) what the bank’s signed paperwork actually created and (2) whether the grandparent had capacity to understand that the change could override the earlier plan. Evidence of dementia around the signing date can support an incapacity theory, and evidence of pressure, isolation, or control over finances can support an undue influence theory.

Process & Timing

  1. Who files: Typically the personal representative (executor) of the estate, sometimes joined by affected heirs/beneficiaries depending on the claims. Where: The estate is opened with the Clerk of Superior Court (Estates) in the county where the decedent lived, and any lawsuit to recover funds is usually filed in North Carolina Superior Court (county depends on the parties and facts). What: Start by opening the estate (if not already opened) and gathering records (signature cards, account agreements, change forms, and statements). When: Act promptly after death, because money in a survivorship account can be withdrawn quickly and records can take time to obtain.
  2. Build the proof: Request the bank’s complete account file (not just statements), identify the exact date and method of the change, and collect medical and witness evidence tied to that time period (diagnoses, cognitive testing, hospitalizations, caregiver notes, and who accompanied the account holder to the bank).
  3. Assert the claim: If the evidence supports it, the estate may pursue a claim to recover funds from the surviving joint owner (and sometimes seek court orders to preserve funds). The remedy often sought is return of funds to the estate or an order requiring the recipient to hold the funds for the proper beneficiaries.

Exceptions & Pitfalls

  • Bank payment vs. ultimate ownership: Even if the bank can pay the surviving joint owner under the account contract, that does not always end the dispute; the estate’s claim is often against the recipient, not the bank.
  • Paperwork problems cut both ways: If the signature card or agreement does not clearly create survivorship (or is not properly signed), the account may not pass the way the survivor claims. On the other hand, if the paperwork is clean and contemporaneous, the challenge usually depends heavily on medical and witness evidence.
  • Source-of-funds and intent disputes: These cases often become fact-heavy: who deposited the money, what it was used for during life, and whether the account holder intended a true gift versus convenience (for bill-paying).
  • Power of attorney issues: If an agent under a power of attorney arranged the change, the authority granted in the document and the agent’s conduct matter. A transaction that effectively benefits the agent can draw close scrutiny.
  • Do not rely on the will alone: A will does not automatically control survivorship accounts, so the challenge must target the account change itself (capacity/undue influence/fraud/authority), not just the will’s distribution plan.

Conclusion

In North Carolina, a joint account with right of survivorship can transfer the remaining balance to the surviving account holder at death if the survivorship agreement was properly created in writing and signed, and if the account holder had capacity and acted freely. When dementia is involved, challenges usually focus on the validity of the signed bank documents and whether incapacity or undue influence affected the change. A common next step is to open the estate and promptly request the bank’s full account file (signature cards and change forms) so the personal representative can evaluate and, if needed, file a recovery claim.

Talk to a Probate Attorney

If a late-in-life joint account change may have redirected money away from the intended family plan, our firm has experienced attorneys who can help evaluate the paperwork, timelines, and options for recovering funds through the estate. Call us today at [CONTACT NUMBER].

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.

Category: Probate Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.