Probate Q&A Series

What steps are required to open an intestate estate in North Carolina when the decedent held only bank accounts?

Detailed Answer

When someone dies without a will in North Carolina and only leaves bank accounts, you must administer the estate under Chapter 28A of the North Carolina General Statutes. The process ensures proper collection and distribution of funds to heirs. Below are the primary steps to open and close an intestate estate that consists solely of bank accounts.

1. Determine If a Small Estate Affidavit Applies

If the total personal property (including all bank accounts) does not exceed $20,000, an heir may use the Small Estate Affidavit procedure. Under G.S. 28A-19-1, an heir waits at least 10 days after the decedent’s death, then presents a sworn affidavit to the bank. The institution must release the funds without formal probate.

2. File a Petition for Administration

If the estate’s value exceeds $20,000 or the bank refuses the affidavit, file a Petition for Administration with the clerk of superior court in the decedent’s county of residence. Under G.S. 28A-6-1, the clerk appoints an administrator—usually an heir—who gains authority to collect and manage estate assets.

3. Notify Heirs and Creditors

After the clerk issues letters of administration, the administrator must notify all known heirs and publish notice to creditors. North Carolina law requires direct notice to heirs and a publication in a local newspaper to give creditors an opportunity to file claims. See G.S. 28A-6-3.

4. Inventory and Collect Bank Accounts

The administrator inventories the bank accounts and files the inventory with the court within 90 days of appointment, as mandated by G.S. 28A-21-2. Many banks require certified letters of administration before releasing large balances. Once received, the administrator secures all funds in an estate account.

5. Distribute Funds Under Intestate Succession Rules

After paying valid claims, expenses, and taxes, the administrator distributes the remaining funds to heirs according to North Carolina’s intestate succession rules in Chapter 29 of the General Statutes. Distribution shares depend on the surviving spouse, children, or nearest relatives.

Key Takeaways

  • Use a Small Estate Affidavit under G.S. 28A-19-1 when bank account totals do not exceed $20,000.
  • File a Petition for Administration and obtain letters of administration if the estate exceeds the small estate threshold.
  • Notify heirs and creditors per G.S. 28A-6-3 to protect the estate from claims.
  • Inventory and collect bank account assets within 90 days under G.S. 28A-21-2.
  • Distribute the remaining funds according to Chapter 29 of the North Carolina General Statutes.

Opening an intestate estate, even one with only bank accounts, involves specific legal steps and strict deadlines. Pierce Law Group guides families through each phase to ensure smooth administration and fair distribution. Reach out to us with any questions or to start the process. Email intake@piercelaw.com or call (919) 341-7055 to schedule your consultation today.