Detailed Answer

When a person dies, their bank accounts form part of the probate estate. A bank will only release those funds to someone who proves they can act for the estate. In North Carolina, that proof comes through court-issued letters and supporting documents.

First, you must become the personal representative. If the decedent left a will, file a petition for probate of the will. If there is no will, file a petition for administration of the estate. In both cases, you submit:

• A certified copy of the decedent’s death certificate.
• The original will, if one exists.
• An inventory of known assets, including bank accounts.
• A list of heirs or beneficiaries.

After you file, the clerk of superior court issues Letters Testamentary or Letters of Administration. Those letters serve as your official authority. Request several certified copies directly from the court.

Next, take the certified letters and a death certificate to the bank. Present a government-issued ID for the personal representative. The bank may also ask for:

• Copies of the court’s order appointing you as personal representative.
• A corporate surety bond, if the court requires one under N.C.G.S. § 28A-7-1.
• Bank-specific release or affidavit forms.

For small estates, North Carolina law allows a simplified process. If the total personal property does not exceed $20,000 (or $30,000 if a surviving spouse or minor child applies), you can use a Small Estate Affidavit under N.C.G.S. § 28A-17-2. You must still provide a death certificate and the affidavit to the bank.

Finally, the estate may need an Employer Identification Number (EIN). File IRS Form SS-4 with the IRS. Some banks will not disburse funds until the estate has an EIN to handle any tax obligations.

Key Points to Remember

• Letters of Testamentary or Administration: Obtain certified copies from the clerk of superior court. (See N.C.G.S. § 28A-13-1.)
• Death Certificate: Order at least one certified copy from the Register of Deeds.
• Small Estate Affidavit: Use if personal property totals $20,000 or less ($30,000 with spouse or minor). (See N.C.G.S. § 28A-17-2.)
• Identification: Bring a valid, government-issued ID for the personal representative.
• Surety Bond: Provide if the court orders one under N.C.G.S. § 28A-7-1.
• Bank Forms: Complete any bank-specific affidavits or release forms.
• IRS EIN: File for an EIN using IRS Form SS-4 before requesting large distributions.

Call to Action

Successfully releasing a decedent’s bank funds requires careful preparation. Pierce Law Group’s attorneys guide you through every step. We help you prepare petitions, secure court letters, and work with banks efficiently. Contact us today to protect the estate and fulfill your duties with confidence. Email us at intake@piercelaw.com or call (919) 341-7055.