What is a letter of authorization used for during the process of handling a deceased parent’s affairs? – North Carolina

Short Answer

In North Carolina probate matters, a “letter of authorization” is commonly used to let a third party (like a bank, insurer, employer, or other institution) share information about a deceased parent’s accounts with the law firm or the person handling the estate. It is usually an information-gathering tool, not a court appointment. For actions like closing accounts or transferring assets, institutions often require court-issued “letters” (letters testamentary or letters of administration) or another court-recognized document.

Understanding the Problem

In North Carolina, when a parent dies, a family member or other person often needs to identify accounts, confirm balances, and collect paperwork before the estate can be handled correctly. The question is what a “letter of authorization” does during that process: can it be used to get information from banks and other institutions, and what role it plays compared to court-issued authority. The key decision point is whether the task is limited to requesting information or whether the task requires legal authority to move, close, or transfer assets.

Apply the Law

North Carolina estate administration usually runs through the Clerk of Superior Court (estate division) in the county where the decedent lived. A personal representative (executor under a will, or administrator if there is no will) typically proves authority with court-issued letters testamentary or letters of administration. By contrast, a “letter of authorization” is commonly a signed authorization/release used to help a law firm or the person handling the estate obtain records and account details from third parties so the estate can be identified, valued, and administered.

Key Requirements

Clear permission to disclose information: The authorization should plainly tell the institution it may release account and property information about the decedent to the named recipient (often the attorney or law firm working with the estate).
Correct identification of the decedent and the recipient: Institutions usually need enough identifying details to locate the right records (often including the decedent’s full name, date of death, and sometimes a Social Security number or account number).
Understanding the limit of the document: An authorization may help obtain information, but it usually does not replace court-issued letters when the institution requires proof of appointment before it will allow asset transfers, account closures, or title changes.

What the Statutes Say

N.C. Gen. Stat. § 36F-8 (Disclosure of digital assets of deceased user) – For certain digital-asset disclosures, custodians can require a written request plus a certified death certificate and proof of authority such as letters testamentary/letters of administration (or other listed estate documents).

Analysis

Apply the Rule to the Facts: Here, the law firm is preparing a letter of authorization while helping handle a deceased parent’s affairs. That fits the common use of an authorization/release: it helps the firm request information from banks, insurers, and similar institutions to identify accounts and confirm details needed for estate administration. The request for the decedent’s Social Security number also fits typical record-search needs, because many institutions will not locate or release information without a reliable identifier, and publicly filed death certificate copies may be redacted.

Process & Timing

Who signs: Often the person who will serve (or is serving) as the personal representative, or another legally authorized person, depending on what the institution will accept. Where: The document is typically prepared by the law firm (not filed with the court). What: A signed authorization/release naming the institution(s) and the person/law firm allowed to receive information; some institutions also require notarization or their own internal form. When: Commonly early in the case, before or while opening the estate, to gather account details and date-of-death values.
Information requests: The firm uses the authorization to request balances, interest figures, account ownership details (such as survivorship or payable-on-death designations), signature cards, and loan information so the estate can be valued and administered correctly.
Next documents if action is required: If the institution will not act on an authorization alone (for example, to close an account), it may require court-issued letters testamentary or letters of administration, or another court-recognized estate document, before releasing funds or changing ownership.

Exceptions & Pitfalls

Authorization is not the same as “letters” from the court: Many people hear “letter” and assume it proves legal authority. In North Carolina, institutions often treat court-issued letters testamentary/letters of administration as the key proof of authority, and a private authorization may not be enough to transfer or close accounts.
Redacted documents and missing identifiers: A redacted death certificate copy may not show the Social Security number. If the institution requires it to locate records, the estate may need to provide the number from personal records or use other account identifiers.
Ownership controls what can be collected: Even with good information, some assets may pass outside probate (for example, survivorship or payable-on-death accounts). The authorization helps confirm how the account is titled, but it does not change who is legally entitled to the asset.
Digital accounts can require formal proof: For certain digital-asset disclosures, custodians may require a certified death certificate and court-issued letters (or another listed estate document) rather than relying on a general authorization alone.

Conclusion

In North Carolina, a letter of authorization is commonly used during a deceased parent’s estate process to allow banks and other institutions to share account information with the law firm or the person handling the estate. It is mainly an information-gathering tool and often does not replace court-issued letters testamentary or letters of administration when an institution requires proof of appointment to transfer or close assets. The next step is to use the authorization to request records and, if an institution requires it, open the estate with the Clerk of Superior Court to obtain the needed court letters.

Talk to a Probate Attorney

If you’re dealing with a deceased parent’s affairs and a bank or other institution is asking for “letters” or additional documentation, our firm has experienced attorneys who can help explain what each document does and what timelines apply. 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.