How to Access a Decedent’s Credit Union Account and Insurance Proceeds in North Carolina When You’re Not a Named Account Holder
Detailed Answer
When someone passes away, any funds in a credit union account or insurance policy typically become part of the decedent’s estate unless there is a payable-on-death (POD) designation or named beneficiary. If you are not a named account holder or beneficiary, North Carolina law requires you to qualify as the personal representative (also called the executor or administrator) of the estate. Once appointed by the clerk of superior court, you use the court-issued letters testamentary or letters of administration to collect assets, pay debts, and distribute property.
1. Qualify as Personal Representative
To start probate, you file a petition under G.S. 28A-6-2. The clerk reviews the will (if one exists) and approves your appointment. If there is no will, the clerk issues letters of administration under G.S. 28A-7-3. You then receive official letters you present to banks, credit unions, and insurance companies.
2. Use the Small Estate Procedure (When Applicable)
If the total value of personal property (excluding real estate) does not exceed $20,000, you may avoid full probate by using the small estate affidavit process detailed in G.S. 28A-19-1. After waiting the 10-day notice period, you file an affidavit with the clerk’s office. The clerk issues a certificate that you present to the credit union or insurer to claim funds without appointing a formal personal representative.
3. Accessing Credit Union Accounts
- Gather a certified copy of the death certificate.
- Obtain letters testamentary or letters of administration (or small estate certificate).
- Submit these documents to the credit union’s probate or legal department.
- Complete any institution-specific forms (they often request an affidavit and signature).
4. Collecting Insurance Proceeds
Life insurance proceeds pay directly to the named beneficiary. If the decedent named you, submit a claim form and death certificate. If no beneficiary remains or none was named, the policy proceeds pass to the estate. Present your letters or small estate certificate and complete the insurer’s form. The insurer will issue payment to the estate.
Key Steps to Access Funds
- Determine if the account or policy has a POD or beneficiary designation.
- Choose the probate route (formal probate or small estate affidavit).
- File the required petition or affidavit with the clerk of superior court.
- Obtain and serve letters testamentary, letters of administration, or small estate certificate.
- Deliver certified death certificate and court documents to the credit union or insurance company.
- Complete all institution-specific payout forms.
- Follow up for release of funds and distribute according to the will or North Carolina intestacy laws.
Navigating probate and accessing a decedent’s assets can feel overwhelming. At Pierce Law Group, our attorneys handle probate administration daily and guide families step by step. Contact us today to discuss your situation. Email us at intake@piercelaw.com or call (919) 341-7055 to schedule a consultation.
