Probate Q&A Series

What steps must a North Carolina estate administrator take to handle bank accounts, property sales and vehicle transfers?

Detailed Answer

When a court appoints an individual as an estate administrator (also called a personal representative) in North Carolina, that person gains the legal authority—and the duty—to identify, manage, and distribute the deceased’s assets. Three of the most common tasks involve dealing with bank accounts, selling real property, and transferring vehicles. Below is an overview of each process under North Carolina law.

1. Handling Bank Accounts

  1. Gather Documents: Obtain a certified copy of the Letters of Administration from the clerk of superior court. You’ll also need a death certificate.
  2. Notify the Bank: Present the Letters of Administration and death certificate to each financial institution where the decedent held accounts. This establishes your authority to act.
  3. Close or Transfer Accounts: Decide whether to close accounts or transfer funds into a dedicated estate account. Many administrators open an estate checking account to pay funeral expenses, debts, taxes, and administration costs.
  4. Keep Accurate Records: Track all deposits, withdrawals, and fees. You must prepare an inventory and account showing all estate assets under N.C. Gen. Stat. § 28A-13-3.

2. Selling Real Property

  1. Obtain Court Approval: File a petition to sell real estate under N.C. Gen. Stat. § 28A-15-1. Include the proposed terms of sale and a description of the property.
  2. Give Notice: Serve notice on heirs and beneficiaries. Publish notice if required by statute or court order.
  3. Attend Hearing: The court holds a hearing to approve the sale. Once approved, the clerk issues an order authorizing the sale and execution of the deed.
  4. Complete the Sale: Sign the deed and deliver it to the buyer. Record the deed in the county registry of deeds. Deposit the proceeds into the estate account.
  5. Report to the Court: File a report of sale and an updated account reflecting the proceeds and any expenses, including commissions or closing costs.

3. Transferring Vehicles

  1. Locate Titles: Find the vehicle’s title or registration. If lost, apply for a duplicate title through the DMV.
  2. Present Appointment Papers: Submit the Letters of Administration (certified copy) and death certificate to the North Carolina Division of Motor Vehicles.
  3. Complete Forms: Fill out the title transfer form (Form MVR-1) and any DMV affidavits required under N.C. Gen. Stat. § 20-71.5 for estate vehicle transfers.
  4. Pay Fees: Pay title transfer and registration fees. If the vehicle passes to a beneficiary, record the new owner’s name.
  5. Record Changes: The DMV issues a new title and registration in the estate’s name until final distribution. Keep copies for your estate account and inventory.

Key Steps Checklist

  • Obtain certified Letters of Administration and death certificate.
  • Open an estate bank account and track all transactions (§ 28A-13-3).
  • File a petition and obtain court approval for selling real estate (§ 28A-15-1).
  • Serve notice to heirs, attend the sale hearing, and record the deed.
  • Present appointment papers to the DMV, complete title forms, and pay fees (§ 20-71.5).
  • Maintain accurate records and submit all required inventories and accounts to the court.

Conclusion and Next Steps

Serving as an estate administrator carries significant responsibilities. You must follow statutory procedures for bank accounts, real property sales, and vehicle transfers to protect the estate and comply with North Carolina law. If you need guidance or legal support, Pierce Law Group has experienced attorneys ready to help you navigate every step.

Contact us today: intake@piercelaw.com or call (919) 341-7055.