Feb62026
Probate Q&A Series

If a family member dies with a bank account that has no beneficiary, who is allowed to claim the money? – North Carolina

Short Answer

In North Carolina, a bank account owned solely by the person who died and with no beneficiary designation is usually an estate asset. That means the person legally allowed to claim (collect) the money from the bank is the estate’s court-appointed personal representative (executor or administrator), not a sibling or other relative acting informally. After the personal representative collects the funds, the money is used to pay valid estate expenses and debts, and then it is distributed to the heirs under North Carolina intestacy law (or under a will, if there is one).

Understanding the Problem

In North Carolina probate, the key question is: when a sibling dies owning a bank account with no beneficiary listed, can a family member claim the money directly, or must the money be handled through an estate process? The decision point usually turns on who has legal authority to deal with the deceased person’s property and whether the account passes automatically to someone else (like a joint owner) or stays in the deceased person’s name. Timing often matters because banks typically freeze sole-owner accounts once they learn of the death.

Apply the Law

Under North Carolina law, a deposit account can pass outside probate if it was set up with a valid payable-on-death (POD) beneficiary or as a joint account with a right of survivorship. If there is no beneficiary designation and no surviving joint owner with survivorship rights, the account is generally treated as property owned solely by the decedent and becomes part of the probate estate. In that situation, the personal representative appointed through the Clerk of Superior Court is the person with authority to collect the account and then distribute what remains after debts and costs are handled.

Key Requirements

  • No automatic transfer feature: The account is not a POD account and is not a joint account with survivorship rights, so it does not pass directly to another person at death.
  • Proper authority to collect: A court-appointed personal representative (executor under a will or administrator in an intestate estate) is the person the bank can safely pay.
  • Right person ultimately receives it: After estate expenses and valid claims are addressed, the remaining funds go to the people entitled under a will or, if there is no will, under North Carolina intestate succession rules.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The scenario involves a deceased sibling’s bank account with no beneficiary designation. If the account was in the sibling’s name alone (not a survivorship joint account), North Carolina practice generally treats the funds as an estate asset, meaning a sibling does not “claim” the money directly from the bank just by being next of kin. Instead, the person who can collect the funds is the personal representative appointed for the estate, and then the funds are distributed to the proper heirs after estate costs and valid claims are handled.

Process & Timing

  1. Who files: A person with priority to serve (often a spouse, adult child, or other heir) seeks appointment as personal representative. Where: The Clerk of Superior Court in the North Carolina county where an estate should be opened (often tied to the decedent’s North Carolina domicile or property location). What: An application to qualify as executor (if there is a will) or administrator (if there is no will), and then the court issues letters (commonly called “letters testamentary” or “letters of administration”). When: As soon as practical after death, especially if bills, claims, or time-sensitive assets exist.
  2. Bank collection step: After appointment, the personal representative presents the court-issued letters and other bank-required documentation so the bank can release the funds to the estate (or to an estate account) rather than to an individual family member.
  3. Distribution step: After the estate addresses administration costs and valid claims, the personal representative distributes remaining funds to the people entitled under the will or, if there is no will, under intestacy.

Exceptions & Pitfalls

  • Joint owner or survivorship language: If the account was jointly titled with a right of survivorship, the surviving joint owner typically becomes the owner at death under North Carolina law, even if no beneficiary was listed. The paperwork on the account controls.
  • POD/TOD confusion: Some families assume “no beneficiary” means “next of kin can withdraw.” Banks usually require either a valid survivorship/POD setup or court authority.
  • Death outside the United States: A foreign death certificate or foreign estate documents can create extra steps for banks and the Clerk. The location of the account and the type of documentation available can affect how quickly funds can be collected. For related timing issues, see opening a probate case where the bank account is located.
  • No heirs scenario: If there are no heirs under North Carolina law, property located in North Carolina can escheat to the State. See N.C. Gen. Stat. § 116B-2.2.

Conclusion

In North Carolina, when a person dies owning a bank account with no beneficiary and no survivorship joint owner, the account is usually part of the probate estate. The person allowed to claim the money from the bank is the court-appointed personal representative, who must collect the funds, address estate expenses and valid claims, and then distribute what remains to the heirs under a will or North Carolina intestacy law. The next step is to open the estate and obtain letters from the Clerk of Superior Court as soon as practical.

Talk to a Probate Attorney

If a family is dealing with a deceased relative’s bank account that has no beneficiary designation (especially when the death occurred outside the United States), our firm has experienced attorneys who can help explain the probate steps, required documents, 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: 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.