What documents will the bank require to close a deceased person’s accounts and move the money into an estate account? – North Carolina

Short Answer

In North Carolina, a bank usually requires (1) a certified death certificate and (2) proof of the personal representative’s authority, typically certified Letters Testamentary (executor) or Letters of Administration (administrator), before it will close a deceased person’s solely owned accounts and release funds to an estate account. The bank will also require information to identify the accounts and, when opening the estate account, an estate taxpayer identification number (EIN), not the deceased person’s Social Security number. Requirements vary by institution and by whether the account had a payable-on-death beneficiary or joint owner.

Understanding the Problem

When a North Carolina account holder dies, a bank must decide who has legal authority to act for the deceased person’s solely owned accounts and where the funds should go. The key question is what paperwork proves (a) the death and (b) the authority of the person asking the bank to close the accounts and move the money into an estate account. Timing often matters because banks commonly restrict activity once they learn of the death, and the estate may need an estate account quickly to receive incoming checks and pay estate expenses.

Apply the Law

Under North Carolina law, a bank typically will not treat someone as having authority over a deceased person’s assets just because that person is a spouse, child, or agent under a power of attorney. After death, authority usually comes from the Clerk of Superior Court through the appointment of a personal representative (executor or administrator). Banks commonly require certified proof of that appointment (Letters) and a certified death certificate before they will close solely owned accounts and transfer funds into an estate account.

Key Requirements

Proof of death: A certified copy of the death certificate is commonly required for financial transactions involving the deceased person’s property.
Proof of legal authority: Certified Letters Testamentary or Letters of Administration (or, in some situations, a certified small estate affidavit or summary administration order) show the bank who can act for the estate.
Estate account setup information: To open an estate account and receive transferred funds, the bank typically requires the estate’s taxpayer identification number (EIN) and may request a completed IRS Form W-9 for interest-bearing accounts.

What the Statutes Say

N.C. Gen. Stat. § 54C-174 (Power of attorney; notice of death) – A bank may honor a power of attorney until it receives notice of the customer’s death; once the bank has notice, the power of attorney generally stops being the tool to access the account.
N.C. Gen. Stat. § 36F-8 (Disclosure of digital assets; required documents) – For certain custodians holding digital assets, the personal representative can obtain information by providing a written request, certified death certificate, and certified Letters (or a certified small estate affidavit, summary administration order, or court order), plus identifying account information if requested.
N.C. Gen. Stat. § 36F-7 (Disclosure of electronic communications; required documents) – Similar documentation may be required to obtain the contents of electronic communications when the deceased user consented or a court orders disclosure.

Analysis

Apply the Rule to the Facts: The goal is to close the deceased person’s accounts and move the money into an estate account. Banks usually ask for a certified death certificate to confirm the death and certified Letters to confirm who has authority to act for the estate. When the estate account is opened to receive the funds, the bank typically requires an estate EIN (not the deceased person’s Social Security number) and may request a W-9 if the account will earn interest.

Process & Timing

Who files: The person seeking to serve as personal representative. Where: The Clerk of Superior Court in the North Carolina county with estate jurisdiction. What: The probate filing that results in issuance of certified Letters Testamentary (if there is a will naming an executor) or certified Letters of Administration (if there is no executor qualified). When: As soon as practical after death, especially if bills must be paid or funds must be gathered quickly.
Open the estate account: After qualification, the personal representative opens an estate checking account. The bank typically asks for a copy of the certified Letters and the estate’s EIN. If the account is interest-bearing, the bank may request a completed IRS Form W-9 to avoid backup withholding.
Close and transfer the deceased person’s solely owned accounts: The personal representative provides the bank with the certified death certificate, certified Letters, and account identifiers (account numbers, recent statements, or other proof linking the accounts to the deceased person). The bank then closes the accounts and issues a check payable to the estate or transfers funds into the estate account, depending on the bank’s procedures.

Exceptions & Pitfalls

Power of attorney confusion: A power of attorney generally does not give authority after the bank has notice of death. Banks commonly require estate authority documents instead.
Ownership and beneficiary designations change the paperwork: Joint accounts, payable-on-death (POD) accounts, and trust accounts may not be “estate accounts” at all. A bank may require different documents (and may pay directly to a surviving joint owner or named beneficiary) rather than transferring funds into the estate account.
Name mismatches and incomplete records: Misspellings or inconsistent names between the death certificate, bank records, and probate documents can delay closure. Banks also often require account identifiers; gathering recent statements and certificates of deposit information early helps.
Estate account setup mistakes: Banks typically require an estate EIN. Using the deceased person’s Social Security number for a new estate account can create reporting problems and delays.
Digital “accounts” are not handled like bank accounts: If the request involves online accounts or digital assets held by a custodian, North Carolina law may require a written request plus certified documents and account identifiers before disclosure occurs.

Conclusion

In North Carolina, banks usually require a certified death certificate and certified Letters Testamentary or Letters of Administration before they will close a deceased person’s solely owned accounts and release funds to an estate account. To open the estate account that will receive the money, the bank typically requires the estate’s EIN (not the deceased person’s Social Security number) and may request a W-9 for interest-bearing accounts. The next step is to qualify with the Clerk of Superior Court and obtain certified Letters to present to the bank.

Talk to a Probate Attorney

If you’re dealing with closing a deceased person’s bank accounts and moving funds into an estate account, our firm has experienced attorneys who can help explain the required documents, the probate steps, and the timing issues that often cause delays. 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.