Jan22026
Probate Q&A Series

How do I notify the IRS and the Social Security Administration after my parent has passed away? – North Carolina

Short Answer

In most North Carolina cases, the Social Security Administration (SSA) is notified through the funeral home when the death certificate is filed, but the family should still confirm SSA stopped monthly benefits and ask whether any last payment must be returned. The IRS is usually “notified” through filing the parent’s final federal income tax return, and an estate only needs separate IRS notice and an estate tax ID number if a personal representative is appointed or the estate has income that requires an estate return. If no probate estate is opened because all assets pass by beneficiary or transfer-on-death designations, there may be no separate IRS or SSA filing beyond benefit clean-up and the final tax return.

Understanding the Problem

After a parent’s death in North Carolina, a common question is what steps must be taken to notify the Internal Revenue Service and the Social Security Administration, especially when most assets pass outside probate through beneficiary designations or transfer-on-death arrangements. The decision point is whether any estate administration is actually needed (for example, to deal with an unexpected asset), because that can change whether a court-appointed personal representative must communicate with the IRS and whether the SSA will require action beyond confirming benefits were stopped.

Apply the Law

Under North Carolina practice, SSA notice often happens automatically when the death is reported for vital records purposes, but families still need to confirm that monthly benefits stopped and that any payment issued for a period after death is handled correctly. For the IRS, the main “notice” is the decedent’s final federal income tax filing; however, if a North Carolina personal representative is appointed, it is often practical to file a fiduciary notice with the IRS so IRS mail goes to the personal representative. If an estate needs its own tax reporting (for example, it earns income after death), the estate typically needs its own taxpayer identification number (EIN).

Key Requirements

  • Confirm SSA has the death recorded and benefits stopped: SSA benefits generally cannot continue after death, and the family should verify SSA’s records and ask whether any last payment must be returned.
  • File the decedent’s final federal income tax return: The IRS is typically addressed through the final Form 1040 for the year of death (and any prior-year returns that were not filed).
  • If a personal representative is appointed, use the right IRS “fiduciary” steps: When a North Carolina clerk of superior court appoints a personal representative, it can be important to notify the IRS of that fiduciary relationship and obtain an EIN if the estate will have post-death income that must be reported under the estate rather than the decedent’s Social Security number.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the parent died after selling a home and left only liquid assets, and the accounts have beneficiary designations or transfer-on-death arrangements. That fact pattern often means no North Carolina estate needs to be opened with the clerk of superior court, which also often means there is no court-appointed personal representative to file fiduciary notices with the IRS. Even without probate, it still matters to (1) confirm SSA stopped benefits and address any final payment issue, and (2) make sure the parent’s final federal income tax filing is handled correctly.

Process & Timing

  1. Who contacts SSA: Usually a family member, sometimes the funeral home. Where: The local Social Security office (or SSA’s national contact channels). What: Report the death if it was not reported, confirm benefits stopped, and ask whether any last payment must be returned; ask about any one-time death benefit if applicable. When: As soon as practical after death, especially before any monthly benefit is spent.
  2. Who handles the IRS side: The person responsible for the decedent’s final tax matters (often a surviving spouse, a family member, or a court-appointed personal representative if one exists). Where: IRS filing channels for the final federal income tax return. What: File the final Form 1040 for the year of death and address any missing prior-year filings; if a personal representative is appointed, consider IRS Form 56 (fiduciary notice) so IRS mail goes to the personal representative.
  3. If an unexpected asset triggers estate administration: A personal representative may need to be appointed by the clerk of superior court in the county where the decedent lived. In that situation, it is often practical to obtain an estate EIN (IRS Form SS-4) so post-death income is reported under the estate’s tax ID rather than the decedent’s Social Security number.

Exceptions & Pitfalls

  • Final SSA payment issues: A payment received after death (or for a month not payable due to the date of death) can create an overpayment that SSA expects to be returned. Confirming this early helps avoid later collection problems.
  • Assuming “no probate” means “no tax filing”: Even if everything passes by beneficiary designation, the decedent may still have a final federal income tax return due, and sometimes prior-year returns need attention.
  • Opening an estate later without organizing tax mail: When a personal representative is appointed, failing to notify the IRS of the fiduciary relationship can lead to IRS notices going to the decedent’s last known address and being missed.
  • Using the wrong payee for post-death income: If assets generate income after death and an estate is opened, reporting under the decedent’s Social Security number instead of an estate EIN can create avoidable confusion and mismatched tax reporting.
  • Public assistance checks payable to the decedent: If any state-administered assistance checks arrive payable to the decedent and were not endorsed before death, North Carolina statutes may require returning them to the issuing agency or delivering them to the clerk of superior court, depending on the program.

Conclusion

In North Carolina, SSA is often notified through the death certificate process, but the family should still confirm SSA stopped benefits and ask whether any final payment must be returned. The IRS is typically addressed by filing the parent’s final federal income tax return, and separate IRS fiduciary steps usually matter only if a clerk of superior court appoints a personal representative or the estate has post-death income that requires an estate tax ID number. Next step: confirm SSA’s status and benefit payment instructions promptly after death.

Talk to a Probate Attorney

If a parent died with mostly beneficiary-designated accounts but there is uncertainty about whether an estate needs to be opened or what to do if an unexpected asset appears, a probate attorney can help sort out the steps, paperwork, 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.

Category: Probate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.