Dec222025
Probate Q&A Series

What happens to joint bank accounts when the account holder dies, and can a trustee get records or challenge the joint owner’s access? – North Carolina

Short Answer

In North Carolina, many joint bank accounts pass automatically to the surviving joint owner at death if the account was set up with a valid right of survivorship. Even when survivorship applies, part of the balance may still be reachable to pay certain estate expenses and claims, and disputes can arise about whether survivorship was validly created or whether the surviving owner wrongfully took funds. A trustee can often obtain bank records through the estate or through court process, and a trustee (or the estate’s personal representative) may be able to challenge the joint owner’s access based on issues like lack of a valid survivorship agreement, undue influence, fraud, incapacity, or misuse of authority under a power of attorney.

Understanding the Problem

When a North Carolina trust exists with a pour-over will, a common problem is that some money remained in a joint bank account at death instead of being titled in the trust. The single decision point is whether the joint bank account passes outside probate to the surviving joint owner, or whether some (or all) of the account belongs to the decedent’s estate or trust. The related question is whether a trustee has a way to get bank records to understand what happened and whether the trustee can contest the surviving joint owner’s access to the funds based on how the account was created or used.

Apply the Law

Under North Carolina law, what happens at death depends heavily on the type of joint account and whether the account documents created a right of survivorship in the way the governing statute requires. If the account is a valid “joint account with right of survivorship,” the surviving owner generally becomes the owner of the remaining balance by operation of law, not through the will or the trust. Even then, North Carolina law can allow a personal representative to collect certain amounts (or pursue the surviving joint owner) to satisfy limited categories of estate costs and claims. If survivorship was not properly created, then the decedent may be treated as owning what the decedent contributed, which may make that portion an estate asset that could flow to the trust through the pour-over will.

Key Requirements

  • Identify whether survivorship was validly created: The signature card, deposit agreement, or other written election must show a right of survivorship if survivorship is being claimed. North Carolina courts generally require strict compliance with the statutory method for creating survivorship.
  • Determine the decedent’s ownership interest if survivorship does not apply: If there is no valid survivorship feature, the decedent is typically treated as owning the portion the decedent contributed (and disputes often turn on tracing deposits, intent, and whether any gift was intended).
  • Confirm who has authority to demand information or bring claims: A trustee may need the estate’s personal representative (if probate is opened) to use estate powers for record requests and recovery, or the trustee may need a court order/subpoena in a trust or estate dispute to obtain records and pursue claims against a joint owner.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts indicate a trustee is administering a trust with a pour-over will, but some assets were not titled to the trust at death and probate may be needed. If the decedent’s bank account was set up as a valid joint account with right of survivorship, the balance likely passed directly to the surviving joint owner rather than into probate or the trust. If survivorship was not validly created, or if the surviving joint owner’s claim depends on improper conduct (for example, undue influence, fraud, incapacity, or unlawful creation by an agent), then the estate (and ultimately the trust through the pour-over will) may have a basis to pursue recovery and require an accounting of deposits and withdrawals.

Process & Timing

  1. Who files: Often the personal representative of the estate (if a probate estate is opened), sometimes coordinated with the trustee. Where: The Clerk of Superior Court (Estates) in the county where the estate is administered, and/or Superior Court for litigation if a lawsuit is needed. What: A request for date-of-death account documentation (signature card/deposit agreement) and statements; if necessary, a subpoena or court order in an estate or trust dispute. When: As early as possible after death, because banks may release funds to a survivor quickly once they receive proof of death.
  2. Document review and classification: Confirm the type of institution (bank, credit union, savings bank/savings and loan) and identify the controlling account contract and any statutory survivorship election language. If the paperwork is missing or incomplete, the estate may need formal discovery to confirm how the account was opened and titled over time.
  3. Recovery/challenge if warranted: If facts support it, bring a claim to determine ownership or set aside survivorship (or to recover misappropriated funds), and request appropriate relief such as turnover, tracing, or equitable remedies. If the dispute is about pre-death withdrawals, the focus often shifts from “who owns it at death” to “who had authority to take it during life.”

Exceptions & Pitfalls

  • Missing or defective survivorship paperwork: If the signature card or other written election does not clearly create survivorship (or required signatures are missing), survivorship may fail and the decedent’s contributions may be treated as estate property.
  • “Convenience” joint accounts vs. true survivorship intent: Disputes often arise when an account was added for bill-paying help. Without valid survivorship language, North Carolina courts may look to factors like source of funds, intent, and whether a gift was intended when deciding ownership.
  • Challenges similar to will contests: Survivorship designations can be challenged on grounds like incapacity, undue influence, and fraud, which can require evidence about the decedent’s condition and relationships when the account was created or changed.
  • Power of attorney issues: If an agent created or used a joint account in a way that effectively transferred the decedent’s money to the agent without proper authority, that can support claims to unwind the transaction or recover funds, depending on the facts.
  • Trustee authority vs. estate authority: A trustee’s authority typically covers trust property. If the account passed outside the trust (or is disputed), the estate’s personal representative may need to act, or a court may need to authorize record production and determine ownership.

Conclusion

In North Carolina, a joint bank account usually passes to the surviving joint owner at death if the account was properly created with a right of survivorship under the account documents and applicable statutes, but part of the balance may still be reachable for limited estate expenses and claims. If survivorship was not validly created or if misconduct affected the account’s creation or use, the estate (often working alongside the trustee) may challenge the survivor’s claim and seek recovery. A practical next step is to open probate (if needed) and have the personal representative request the signature card/deposit agreement and statements promptly.

Talk to a Probate Attorney

If a joint bank account is keeping money out of a North Carolina estate or trust, and there are questions about records, authority, or whether survivorship can be challenged, our firm has experienced attorneys who can help explain 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.

Category: Probate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.