Detailed Answer

When you serve as personal representative for a decedent’s estate in North Carolina, you must handle all estate funds with care and in compliance with state law. A refund check—whether from the IRS, NCDOR, or another agency—belongs to the estate. NC General Statute §28B-12(A)(4) requires you to deposit estate funds into a trust account at a financial institution in this State. Here’s how to do it correctly:

1. Obtain Your Letters Testamentary or Letters of Administration

Before opening any bank account in the estate’s name, present your certified letters testamentary or letters of administration to the bank. These documents, issued by the clerk of superior court, prove your authority to act.

2. Open an Estate (Fiduciary) Bank Account

Visit a bank licensed in North Carolina and request a fiduciary account titled something like “Estate of Jane Doe, Deceased—John Smith, Personal Representative.” Use the estate’s tax identification number (EIN), not your Social Security number. Fund this account only with estate money.

3. Endorse the Refund Check Properly

On the back of the check, write the full estate title followed by your name and role. For example:

Pay to the order of: [Name of Bank]
Estate of Jane Doe, Deceased
By John Smith, Personal Representative

This endorsement clearly shows the check belongs to the estate and that you have authority to deposit it.

4. Deposit the Check and Keep Detailed Records

Make the deposit promptly into the estate account. Request and keep a deposit receipt. Record the transaction in your estate accounting ledger, noting date, amount, source of refund, and check number. Accurate records help you meet your fiduciary duty and prepare the final accounting.

5. Follow Ongoing Reporting Requirements

Under N.C. Gen. Stat. §28B-12, you must safeguard estate assets and report regularly to the court and beneficiaries. Document each deposit and all estate income for your inventory and final accounting.

Helpful Takeaways

• Always use your letters testamentary or letters of administration to open the estate account.
• Title the account clearly: “Estate of [Decedent Name], Deceased—[Your Name], Personal Representative.”
• Endorse refund checks with the estate name and your representative title before depositing.
• Deposit all estate funds in a North Carolina fiduciary account by law (see N.C. Gen. Stat. §28B-12).
• Maintain detailed records of every deposit, including source, date, and amount.

Handling a decedent’s refund check properly helps you fulfill your duties and avoid delays in estate administration. If you have questions or need guidance, turn to Pierce Law Group. Our attorneys guide personal representatives through each step of probate administration.

Contact us today by email at intake@piercelaw.com or call (919) 341-7055.