If a shareholder account was closed before the person died, do I still report it in probate and how can I confirm its final balance and transactions? – North Carolina

Short Answer

In North Carolina probate, the inventory generally lists what the decedent owned at death. If a shareholder (stock/DRIP) account was fully closed before death and no shares or cash remained on the date of death, it usually is not listed as an estate asset on the inventory—but the personal representative should still document the closure and any final proceeds because those records may be needed for the estate accounting and to explain where the asset went.

To confirm the final balance and transactions, the most reliable path is a written request to the broker/transfer agent using the estate’s authority (Letters) and any required identity documents, asking for statements from the requested date range through the closure date and a “date-of-death position” statement for any account that remained open at death.

Understanding the Problem

In North Carolina probate administration, a personal representative must identify what property belonged to the decedent at the time of death and report it to the Clerk of Superior Court. The practical question is whether a shareholder account that was already closed before death still belongs on the probate inventory, and—separately—how the personal representative can confirm the account’s final balance and transaction history when a transfer agent will not provide details without proper verification.

Apply the Law

North Carolina probate reporting focuses on assets owned at death. A shareholder account that was closed before death may still matter to the estate administration (because it can explain deposits, checks, reinvested dividends, or transfers), but it is typically documented as a prior transaction rather than inventoried as a current asset—unless something remained payable to the decedent or the estate at death (for example, an unpaid dividend, a residual cash-out, or shares that were not actually redeemed).

For accounts that remained open at death, the personal representative generally must gather records that show the date-of-death holdings and value, then later support the estate’s receipts and disbursements with statements and confirmations. Transfer agents and brokers commonly require formal proof of authority before releasing statements, and they often have specific requirements for how requests must be submitted.

Key Requirements

Owned at death vs. closed before death: The inventory is aimed at property owned on the date of death. A closed account is usually not an inventory line item unless there is still a payable interest tied to it at death (unpaid proceeds, dividends, or residual shares/cash).
Documentation for the accounting: Even if not inventoried as an asset, the estate file should still include proof of the closure and the final “zero balance” (or final distribution) so the estate’s later accounting can be supported with records.
Proof of authority to obtain statements: Transfer agents and brokers typically will not release transaction-level details until the requester proves authority (usually through Letters issued by the Clerk of Superior Court and related verification documents).

What the Statutes Say

N.C. Gen. Stat. § 1-339.32 (Including sale proceeds in the next account) – When an executor/administrator sells property under certain court-sale procedures, the receipts and disbursements are generally reported in the next annual or final account, reinforcing that transactions are documented through the accounting process.

Analysis

Apply the Rule to the Facts: One shareholder account was closed before death, and another remained open at death. Under North Carolina probate practice, the open-at-death account is typically the one that belongs on the inventory as an estate asset (with date-of-death holdings/value supported by statements). The closed-before-death account usually is not listed as an estate asset if it truly had no shares/cash payable at death, but the estate should still obtain statements from the requested date range through closure to document the final balance, any liquidation, and where the proceeds went.

Process & Timing

Who requests records: The Personal Representative (or counsel/assistant acting with written authorization). Where: The stock transfer agent or broker’s estate/decendent-services unit (often a dedicated issuer line). What: A written request for (a) statements from the requested start date through the closure date for the closed account, and (b) a date-of-death position statement plus post-death statements for the account that remained open at death. When: As soon as Letters are issued and certified copies can be obtained; many transfer agents also require “recently dated” certified Letters.
Verification package: Provide certified Letters (and any other documents the transfer agent requires, which commonly include an affidavit of domicile and sometimes a certified death certificate and/or certified Will). If the transfer agent requires signature guarantees for transfers, plan for a medallion signature guarantee through an eligible financial institution.
Follow-up and reconciliation: Once statements arrive, reconcile (1) the final transaction that closed the pre-death account (sale, transfer, redemption, or re-registration) and (2) any proceeds path (check number, ACH, reinvestment, or transfer to another account). Keep those statements in the estate file to support the inventory and the later estate accounting.

Exceptions & Pitfalls

“Closed” does not always mean “nothing left”: Some shareholder plans close but still have residual items (unpaid dividends, fractional-share cash-outs, escheated/unclaimed property, or a check that was issued but never negotiated). If anything remained payable at death, it may need to be treated as an estate asset or a receivable.
Wrong requester: A law office assistant may receive only general information until the transfer agent has written proof of authority and any required identity verification. Requests should be made in the personal representative’s name (or by counsel with clear authorization) and routed to the transfer agent’s estate department.
Incomplete date range: Asking only for “current” statements may miss the closure transaction. The request should specify “from [DATE] through the account closure date” and ask for the final statement showing a zero balance (or the final distribution).
Mismatch between inventory and accounting support: Even when a closed account is not inventoried as an asset, the estate file should still contain enough documentation to explain any related deposits into estate accounts or other transfers that appear later in the accounting.

For more on organizing records for the inventory and supporting documentation, see what to gather for a complete estate inventory and how estate accountings are supported with statements and proof of payments.

Conclusion

In North Carolina probate, a shareholder account that was fully closed before death usually is not reported as an estate asset on the inventory if nothing remained owned or payable at the date of death. Even so, the personal representative should still obtain and keep the final statements showing the closure transaction and ending balance to support the estate’s later accounting and to explain any related proceeds. The next step is to submit a written statement request to the transfer agent’s estate unit with certified Letters and required verification as soon as possible.

Talk to a Probate Attorney

If you’re dealing with shareholder accounts that were closed before death and a transfer agent will not release statements without verification, our firm has experienced attorneys who can help you understand your options 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.