What is the correct process for closing the decedent’s personal accounts and transferring the funds into the estate account? – North Carolina

Short Answer

In North Carolina, once the executor is officially appointed, the usual process is to (1) open an estate bank account using the estate’s tax ID number (not the decedent’s Social Security number), (2) present certified Letters Testamentary (and typically a certified death certificate) to each bank holding the decedent’s sole‑name accounts, and (3) have the bank close those accounts and issue a check payable to the estate for deposit into the estate account. Joint accounts and accounts with named beneficiaries often follow different rules and may not be “estate money” at all.

Understanding the Problem

In North Carolina probate, the executor’s job includes gathering the decedent’s money that belongs to the estate and moving it into an estate account so bills, claims, and distributions can be handled through one clear set of records. The single decision point is whether the funds are in accounts that are part of the probate estate (for example, a bank account titled only in the decedent’s name) versus accounts that pass outside probate (for example, a joint account with survivorship or an account with a payable-on-death beneficiary). The process starts after the executor is appointed by the Clerk of Superior Court and receives court-issued Letters.

Apply the Law

After qualification, a North Carolina personal representative generally has authority to collect and manage estate assets and to deal with custodians holding the decedent’s property. Banks typically require proof of authority (Letters) before they will close a decedent’s account or release funds. As a practical matter, the estate account should be opened promptly after qualification so incoming checks and closed-account proceeds can be deposited and tracked in one place. If the estate account is interest-bearing, banks commonly request a completed IRS Form W-9 for the estate to avoid backup withholding.

Key Requirements

Proper authority: The executor must have certified Letters Testamentary (or Letters of Administration) showing the appointment by the Clerk of Superior Court.
Correct estate account setup: The estate bank account should be opened in the estate’s name using the estate’s taxpayer identification number (EIN), not the decedent’s Social Security number.
Account-by-account classification: Each account must be identified as (a) probate/estate property (often sole-name accounts) or (b) non-probate property (often joint-with-survivorship or beneficiary-designated accounts), because the transfer steps differ.

What the Statutes Say

N.C. Gen. Stat. § 36F-8 (Disclosure of digital assets of deceased user) – Lists the documents a personal representative can provide (including certified Letters) to obtain certain non-content digital assets from a custodian; it illustrates the common “Letters + death certificate + written request” approach custodians use when releasing a decedent’s assets.

Analysis

Apply the Rule to the Facts: Here, the executor has been appointed and wants to open an estate bank account at a bank where the executor already banks. The cleanest workflow is to open the estate account immediately after qualification using the estate EIN, then contact each bank where the decedent held accounts and request closure and issuance of an estate-payable check for the date-of-death balance (plus any posted interest), and deposit those proceeds into the estate account. Keeping all deposits and payments flowing through the estate account also makes later inventory and accounting work much easier.

One common complication is that not every “decedent account” is automatically an estate asset. For example, if an account is joint with survivorship, the bank may treat some or all of the balance as belonging to the surviving joint owner rather than the estate. Similarly, if an account has a payable-on-death beneficiary, the bank may pay that beneficiary directly instead of paying the estate.

Process & Timing

Who files: The executor/personal representative. Where: At the chosen bank (often the same bank where the executor already has a personal account). What: Open an account titled in the estate’s name (for example, “Estate of [Decedent], [Executor], Executor”), provide certified Letters, and provide the estate EIN; if the account earns interest, the bank may request an IRS Form W-9 for the estate. When: As soon as possible after qualification, because checks payable to the decedent and bank proceeds often arrive soon after death.
Close and transfer each decedent account: Contact each financial institution holding the decedent’s accounts, provide the bank’s required documents (commonly certified Letters and a certified death certificate), and request (a) closure of sole-name accounts and (b) a check payable to the estate for the estate’s share. Ask the bank for a date-of-death balance and any accrued/posted interest information for recordkeeping.
Deposit and document: Deposit each check into the estate account and keep a simple paper trail (closing statements, date-of-death balances, and deposit confirmations). Provide the firm the estate account confirmation and the account details requested so the administration file can track receipts and prepare required filings and accountings.

Exceptions & Pitfalls

Using the wrong tax ID: Banks often require an EIN for the estate account. Using the decedent’s Social Security number for a new estate account can create reporting and administrative problems.
Mixing funds: Depositing estate money into a personal account (even temporarily) can create avoidable accounting issues. A dedicated estate account is the safer practice.
Joint and beneficiary accounts: Joint-with-survivorship and payable-on-death accounts may pass outside probate. Trying to “move everything into the estate account” without confirming title/beneficiary status can cause disputes and delays.
Missing documentation: Banks commonly ask for certified Letters (not photocopies) and may require a certified death certificate and specific account identifiers. Gathering recent statements and account numbers early reduces delays.
Statement tracking: If monthly statements are not preserved, it becomes harder to prepare accurate estate accountings. Arranging for statements (or copies) to be retained consistently is a practical safeguard.

For more background on the appointment step that produces the Letters banks require, see getting appointed as executor and obtaining the court letters. For related banking logistics, see setting up the estate account at the same bank.

Conclusion

In North Carolina, the usual process is: qualify as executor, open a dedicated estate bank account using the estate EIN, then present certified Letters to each bank holding the decedent’s probate accounts and request closure with proceeds paid by check to the estate for deposit into the estate account. Joint and beneficiary-designated accounts may follow different transfer rules. The next step is to open the estate account promptly after qualification and then request each bank’s closing statement and date-of-death balance documentation.

Talk to a Probate Attorney

If you’re dealing with closing a decedent’s bank accounts and moving funds into an estate account, our firm has experienced attorneys who can help explain the steps, required documents, 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.