Who is allowed to discuss the deceased person’s accounts with the bank and authorize payment from the estate? – North Carolina

Short Answer

In North Carolina, the person the Clerk of Superior Court has formally appointed as the estate’s personal representative (the executor under a will or the administrator if there is no will) is the person with legal authority to deal with the decedent’s bank accounts and to approve payment of valid estate debts. Banks and other financial institutions usually require proof of that appointment, typically in the form of Letters Testamentary or Letters of Administration. The personal representative can also authorize the estate’s attorney to communicate with the bank and gather account and loan documents, but the personal representative remains the decision-maker for paying claims.

Understanding the Problem

In North Carolina probate, when a financial institution files a creditor claim against an estate, the key question becomes: who can speak with the bank about the deceased person’s accounts and who can approve any payment from estate funds? The answer turns on whether a court-appointed personal representative has qualified, and whether the bank has been given acceptable proof of that authority. The same issue comes up when the estate’s representative, through counsel, asks the bank for account statements, loan documents, payoff figures, and other details needed to verify and resolve a claim during the probate administration.

Apply the Law

Under North Carolina law, the estate acts through a court-appointed personal representative. The personal representative gathers the decedent’s assets, deals with creditors, and pays valid claims in the proper order from estate funds. As a practical matter, banks typically will not discuss account details or release funds based on a death certificate alone; they usually require the personal representative to present Letters Testamentary (for an executor) or Letters of Administration (for an administrator). The main forum for appointment and estate administration is the Clerk of Superior Court (Estates Division) in the county where the estate is opened.

Key Requirements

Court appointment (qualification): A personal representative must qualify before acting for the estate; heirs and family members generally do not have authority to access information or direct payments just because they are related.
Proof of authority to the bank: Financial institutions usually require current Letters Testamentary/Letters of Administration to confirm who may receive information, close accounts, or move funds into an estate account.
Payment authority stays with the personal representative: Even when an attorney communicates with the bank or creditors, the personal representative is the fiduciary who approves payment decisions and signs off on disbursements from the estate.

What the Statutes Say

N.C. Gen. Stat. Chapter 28A (Estates and Trusts) – Governs appointment of personal representatives and the administration of estates, including handling estate assets and creditor claims.
N.C. Gen. Stat. § 54-109.62 (Payment to personal representative; credit unions) – Allows payment of a deceased depositor’s balance to a duly qualified personal representative upon presentation of a letter of qualification and provides discharge for good-faith payment.

Analysis

Apply the Rule to the Facts: A financial institution has filed a creditor claim against the estate, and the estate’s representative (through counsel) is asking the institution for account and claim details to verify and resolve the debt. Under North Carolina practice, the bank will typically treat the court-appointed personal representative as the only person entitled to receive nonpublic account information and to direct any payment from estate funds. Counsel can request statements, signature cards, loan notes, guaranties, and payoff details on behalf of the personal representative, but the bank generally expects to see the personal representative’s Letters and may require written authorization from the personal representative for the attorney to act as the point of contact.

Process & Timing

Who files: The proposed personal representative. Where: Clerk of Superior Court (Estates Division) in the North Carolina county where the estate is opened. What: Application to qualify and obtain Letters Testamentary or Letters of Administration (local forms vary by county). When: Before requesting the bank to release estate funds or provide detailed account documents beyond what the bank will share voluntarily.
Bank contact and documentation: After qualification, the personal representative (often through the estate’s attorney) provides the bank with the Letters and requests date-of-death balances, accrued interest, account ownership details (sole, joint with survivorship, payable-on-death), and any loan documents tied to the claim. Banks commonly close the decedent’s individual accounts soon after qualification and require the personal representative to open an estate account for incoming funds and payments.
Payment step: Once the claim details are verified, the personal representative decides whether to pay, compromise, or contest the claim, and authorizes any payment from the estate account with proper records for the estate accounting.

Exceptions & Pitfalls

Non-probate accounts: If an account is jointly owned with right of survivorship or has a payable-on-death beneficiary, that money may pass outside the estate. The personal representative may still need information to evaluate a creditor’s position, but the payment authority may not rest with the estate for those funds.
Attorney access without written authority: Even when an attorney represents the estate, some banks will not discuss details without a written authorization signed by the personal representative (in addition to the Letters). Planning for that requirement helps avoid delays.
Paying the wrong party from the wrong account: Payments should generally come from an estate account after qualification and after verifying the claim basis, balance, and any collateral or insurance. Paying directly from a decedent’s old account or paying a claim without adequate documentation can create accounting and fiduciary issues.

Conclusion

In North Carolina, the court-appointed personal representative is the person allowed to discuss the deceased person’s accounts with the bank and to authorize payment of estate debts. Banks typically require Letters Testamentary or Letters of Administration before they will share account details or release funds. The practical next step is to provide the financial institution with the personal representative’s Letters (and any written authorization for counsel) so the bank can release statements, payoff figures, and loan documents needed to verify the creditor claim.

Talk to a Probate Attorney

If you’re dealing with a creditor claim and a bank will not provide account details or accept payment instructions without proper authority, our firm has experienced attorneys who can help you understand your options 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.