Dec192025
Probate Q&A Series

How should I list joint accounts, beneficiary-designated accounts, and assets sold after death on the inventory and later accounting? – North Carolina

Short Answer

In North Carolina, the inventory generally lists only assets owned by the decedent (or payable to the estate) as of the date of death. Joint accounts with survivorship and beneficiary-designated accounts (like POD/TOD) usually pass outside probate, so they are typically not listed as estate assets unless the personal representative needs to reach them to pay valid estate debts or expenses. Assets sold after death are still listed on the inventory at their date-of-death value, and the later accounting shows the sale proceeds as a receipt and explains any gain or loss compared to the inventory value.

Understanding the Problem

In a North Carolina estate administration, a court-appointed executor must file an inventory showing what the decedent owned at death, and later file an annual account or final account showing what happened to those assets during administration. Confusion often comes up when an asset has a co-owner (a joint account), has a named beneficiary (a payable-on-death or transfer-on-death designation), or was sold after death (such as a vehicle sale during administration). The decision point is how to classify each item as an estate asset to be inventoried, a non-probate transfer to be excluded, or a non-probate asset that still needs to be disclosed or accounted for if used to pay estate obligations.

Apply the Law

North Carolina requires the personal representative to report probate assets as of the date of death on the inventory and then report receipts, disbursements, and distributions on later accountings filed with the Clerk of Superior Court (Estates Division). Generally, a joint account with a right of survivorship and a beneficiary-designated account are non-probate transfers, meaning they pass by contract to the survivor or beneficiary rather than through the estate. Even so, North Carolina law can make part of those non-probate transfers reachable for certain estate obligations when the probate estate is not enough, and those items may need to be shown on the inventory in the section for property potentially recoverable to pay claims. Assets sold after death stay on the inventory at the date-of-death value, and the later accounting reports the sale proceeds and documents the change in value.

Key Requirements

  • Inventory reports date-of-death ownership: List assets the decedent owned in a sole name (or payable to the estate) as of the date of death, using a fair market value as of that date.
  • Joint/beneficiary assets are usually non-probate, but may be “recoverable” for claims: Survivorship joint accounts and POD/TOD assets generally pass outside probate, but may still be reached (in limited ways) to pay certain estate debts/expenses when the probate estate is insufficient.
  • Later accountings report what the personal representative received and spent: The annual/final account shows what came under the personal representative’s control (including sale proceeds of inventoried assets) and what was paid out, with supporting documentation.

What the Statutes Say

Analysis

Apply the Rule to the Facts: With multiple properties, vehicles, and financial accounts, the inventory should be built around what was owned in the decedent’s sole name (and any asset payable to the estate) as of the date of death, valued as of that date. A joint bank account should be treated based on the account contract: if it is a survivorship joint account, it usually is not an estate asset, but it may need to be identified in the “recoverable” category if the probate estate would otherwise be short on paying approved claims and expenses. The investment account should be classified based on its title and any TOD/beneficiary form; if it is TOD, it usually is not listed as a probate asset, but it may still be relevant if estate claims require recovery. The vehicle sold after death should still appear on the inventory at its date-of-death value, and the later accounting should show the sale proceeds as a receipt and then show where the proceeds went.

Process & Timing

  1. Who files: The executor/personal representative. Where: The Clerk of Superior Court (Estates Division) in the county where the estate is open in North Carolina. What: The inventory (often on the court’s inventory form) and later the annual account or final account (commonly on AOC-E-506). When: The inventory is typically due within 90 days after qualification (or by the deadline stated in the Clerk’s notice if a notice to file has already been issued).
  2. Inventory content steps: (a) Identify each asset and how it was titled at death (sole name, joint, TOD/POD). (b) For bank and brokerage accounts, capture the exact date-of-death balance and accrued interest/dividends to date of death, and list accounts without showing full account numbers. (c) List vehicles and other tangible property at a fair market value as of the date of death.
  3. Accounting steps: Use the ending inventory as the “starting balance” conceptually, then list (a) receipts (income, refunds, sale proceeds, amounts actually collected by the executor), (b) disbursements (debts, expenses, taxes, fees), and (c) distributions to the beneficiary. Keep documentation for every disbursement; Clerks commonly require vouchers or proof of payment.

Exceptions & Pitfalls

  • Joint account ownership is document-driven: A “joint” label is not enough. The account contract/signature card controls whether survivorship exists. When survivorship is unclear, Clerks may require conservative reporting or additional documentation to explain what portion is treated as estate property.
  • POD/TOD is usually not a probate asset, but spending it can create accounting issues: If a POD/TOD or survivorship asset is used to pay estate bills (even if the executor and the beneficiary are the same person), it often needs to be reflected on the accounting to the extent it was used for estate obligations so the Clerk can follow the money trail.
  • Sold-after-death assets are still inventory items: Do not list the sale proceeds as the inventory value. List the asset on the inventory at date-of-death value; then show the sale as a later transaction on the accounting, including any gain/loss relative to the inventory value and where the proceeds were deposited.
  • Real estate proceeds may not belong on the routine estate accounting in some situations: North Carolina practice commonly treats many real estate proceeds differently depending on how the real estate passed and whether a court proceeding authorized a sale for debts. If real estate was sold, it is important to confirm with the Clerk how that county expects the sale proceeds to be reflected.

Conclusion

In North Carolina, the inventory should list what the decedent owned (or what was payable to the estate) as of the date of death and should use date-of-death values, not later sale prices. Joint accounts with survivorship and POD/TOD assets usually do not become probate assets, but they can matter if the probate estate cannot cover approved obligations, or if those funds were used to pay estate bills and must be tracked. The next step is to file the inventory with the Clerk of Superior Court by the deadline in the notice.

Talk to a Probate Attorney

If an executor needs to correct a late inventory and properly report joint accounts, beneficiary-designated accounts, or assets sold during administration, our firm has experienced attorneys who can help explain options and timelines and prepare filings for the Clerk of Superior Court. 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.