Feb32026
Probate Q&A Series

If the home or a bank account was jointly titled with a surviving relative, can it still be brought into the estate to pay debts and expenses? – North Carolina

Short Answer

Sometimes. In North Carolina, many jointly titled assets pass automatically to the surviving co-owner and are not controlled by the estate. But certain jointly titled accounts (especially joint bank accounts with survivorship) and some other non-probate transfers can still be reached to pay administration costs and valid creditor claims if the estate does not have enough assets.

Understanding the Problem

In a North Carolina estate administration, the key question is whether a jointly titled townhome or a jointly titled bank account can be treated as available to pay estate debts and administration expenses when the probate estate itself is short on cash. The administrator’s role is to identify what is a probate asset versus what passes by survivorship, and then determine whether North Carolina law allows recovery from the surviving co-owner to cover allowed claims and costs. The timing trigger is the point when the estate’s available assets are not enough to pay claims and expenses in the required order.

Apply the Law

North Carolina generally treats jointly titled property with a right of survivorship as passing outside probate to the surviving co-owner. Even so, state law can make part of certain survivorship assets available to pay the year’s allowance (if applicable), funeral expenses, administration costs, and creditor claims when the estate is otherwise insufficient. The forum for resolving disputes and getting authority to act is typically the Clerk of Superior Court in the county where the estate is administered.

Key Requirements

  • Type of joint ownership matters: A joint bank account “with right of survivorship” is treated differently than an account without survivorship, and real estate held with survivorship is treated differently than a bank account.
  • Estate insufficiency: Recovery from certain survivorship assets is typically a backstop—used only after the estate’s other available assets are exhausted.
  • Limited reach and proper procedure: Even when recovery is allowed, the amount that can be reached may be limited by statute (for example, a defined portion of a survivorship bank account), and the administrator usually must follow the statutory collection process and obtain appropriate court authority.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the estate needs funds to pay claims and administration expenses and seeks permission to sell a townhome, but the townhome and at least one bank account appear to be jointly titled with a surviving relative. If the townhome is titled with survivorship, it may have passed automatically to the survivor and may not be a probate asset the administrator can sell through the estate. The bank account requires a closer look: if it is a survivorship account governed by North Carolina’s survivorship-account rules, a defined portion may be reachable for administration costs and creditor claims if the estate’s other assets are exhausted.

Process & Timing

  1. Who files: The administrator (personal representative). Where: The Clerk of Superior Court in the county where the estate is open. What: A request/petition for authority to sell real property (if the property is actually an estate asset) and, when applicable, a demand/collection effort for funds subject to estate claims from a survivorship account. When: After identifying allowed claims and projected administration expenses and confirming the estate lacks sufficient probate assets.
  2. Confirm title and account type: For the townhome, review the recorded deed to confirm whether it is (a) solely in the decedent’s name, (b) tenants in common, (c) joint tenancy with right of survivorship, or (d) (if a spouse is involved) tenancy by the entirety. For the bank account, obtain the signature card/account agreement to confirm whether it is a survivorship account under a written agreement and which statute or contract terms apply.
  3. Use probate assets first, then pursue permitted non-probate sources: If the estate has insufficient probate assets, North Carolina law may allow recovery from certain survivorship or transfer-on-death assets to the extent permitted. Any dispute about whether the estate is “insufficient,” what portion is reachable, or whether the asset is truly survivorship property may require a court determination.

Exceptions & Pitfalls

  • Real estate is not the same as a bank account: A survivorship bank account can be subject to a statutory “reach-back” for certain estate costs and claims, but a home titled with survivorship often passes outside probate and may not be sellable by the administrator as an estate asset unless the deed shows the decedent owned an interest that did not pass by survivorship.
  • Tenancy by the entirety (spouses) is a separate category: If the home was owned by spouses as tenants by the entirety, it generally passes to the surviving spouse at death and is not part of the probate estate, subject to narrow exceptions.
  • Do not assume the whole joint account is available: Under the survivorship bank account statute, the amount subject to claims can be limited (and the statute uses a specific method tied to the decedent’s “portion”). Overreaching can trigger objections and delay administration.
  • Documentation problems: Missing deeds, unclear survivorship language, or an unavailable signature card can create uncertainty about whether an asset is probate or non-probate. In that situation, the clerk/court may require additional proof before authorizing a sale or ordering recovery.
  • Sequence matters: North Carolina practice commonly treats survivorship/POD recovery as a last resort after probate assets (including any real property that is truly an estate asset) are considered for paying claims and expenses.

For more background on how survivorship accounts are handled in North Carolina probate, see joint bank accounts with right of survivorship and when survivorship status cannot be confirmed.

Conclusion

In North Carolina, jointly titled property with survivorship usually passes to the surviving co-owner and is not controlled by the estate. Even so, certain survivorship assets—especially joint bank accounts created with survivorship—can be reached in a limited way to pay administration costs and valid claims when the estate’s other assets are exhausted. The practical next step is to confirm the deed and the bank’s account agreement, then file the appropriate request with the Clerk of Superior Court for authority to proceed based on what is (and is not) an estate asset.

Talk to a Probate Attorney

If you’re dealing with an estate that lacks enough probate assets and there are jointly titled accounts or real estate in the mix, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [CONTACT NUMBER].

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.