Detailed Answer

When a loved one passes and holds assets in a Merrill Lynch account, the personal representative must follow North Carolina probate law to close that account and distribute proceeds to heirs. Below is a step-by-step guide to complete the process smoothly.

1. Obtain Letters of Appointment. First, secure the court’s authorization by filing the will (if any) with the clerk of superior court. The clerk issues Letters of Appointment, also known as letters testamentary or letters of administration. These documents confirm your authority to act on behalf of the estate.
2. Inventory and Appraisal. Within 90 days of appointment, prepare an inventory of all estate assets, including the Merrill Lynch account. File this inventory and appraisal with the clerk as required by N.C.G.S. § 28A-13-19. The court must approve the values before distributions occur.
3. Pay Allowable Expenses and Debts. Before distributing funds to heirs, pay funeral expenses, administration costs, taxes, and valid claims. Notice to creditors must comply with N.C.G.S. § 28A-15-1. You must also file or resolve any inheritance tax obligations.
4. Prepare a Final Account. Draft a detailed accounting of receipts and disbursements covering the Merrill Lynch account. This report shows total funds received, fees paid, debts settled, and the balance available for distribution. File the final account with the clerk under N.C.G.S. § 28A-13-20.
5. Obtain Court Approval of the Account. Schedule a hearing or submit the accounting to the clerk for allowance. Once approved, the clerk signs an order authorizing distribution of the remaining funds to the heirs.
6. Coordinate with Merrill Lynch. Provide Merrill Lynch with certified copies of the Letters of Appointment and the court’s order allowing the final account. Submit any required release forms. The brokerage will then transfer or liquidate assets and issue distribution checks or wire transfers to the estate’s bank account.
7. Distribute to Heirs. After receiving funds, distribute them according to the court‐approved plan. If beneficiaries hold pending claims or disclaimers, address those before final payment. You may prepare a Certificate of Assent form to transfer certain securities directly to heirs without sale.
8. Close the Estate. Once funds reach heirs and no further administration remains, petition the court to discharge you as personal representative. The clerk will issue an order closing the estate.

Key Takeaways

• Secure Letters of Appointment to act on behalf of the estate.
• File an inventory and appraisal with the clerk within 90 days (N.C.G.S. § 28A-13-19).
• Settle all debts, taxes, and administration expenses before distribution.
• Prepare and file a final account for court approval (N.C.G.S. § 28A-13-20).
• Provide Merrill Lynch with certified court documents to liquidate or transfer assets.
• Distribute estate funds in accordance with the court’s order.
• Close the estate by obtaining a final discharge from the court.