Short Answer

In North Carolina, you open an estate bank account after you qualify with the Clerk of Superior Court as the personal representative and receive Letters (Letters Testamentary or Letters of Administration). Then you obtain an IRS Employer Identification Number (EIN) for the estate and take your Letters, EIN confirmation, death certificate, and ID to the bank to open the account. Use the estate account for all deposits and payments—do not use the decedent’s Social Security number or personal accounts. Small estates may be handled by affidavit instead of a full estate, but the steps and limits differ.

How North Carolina Law Applies

To set up an estate account, North Carolina requires that someone be formally appointed to act for the estate. Once you qualify and receive Letters from the clerk, you have legal authority to collect assets and open bank and investment accounts for the estate. Banks will ask for those Letters plus the estate’s IRS EIN; do not use the decedent’s Social Security number. You must keep estate funds separate and use the account for all estate receipts and disbursements so you can file required inventories and accountings.

If the estate is small, you may be able to collect certain assets (including bank funds) by filing a collection-by-affidavit procedure instead of opening a full estate. That option has dollar limits and a 30‑day waiting period from death. Some banks still insist on Letters; in that case you may need to open a full estate to proceed.

Example: If your mother died owning a single checking account with $15,000 and no other personal property, you may use the small‑estate affidavit to collect those funds without opening a full estate. If the bank refuses the affidavit and requires Letters, you would qualify as personal representative and then open an estate account using the EIN.

Key Requirements

• Appointment: Qualify as personal representative (executor if there is a will; administrator if not) and receive Letters from the clerk.
• EIN: Obtain an IRS EIN for the estate and use it for all estate accounts and tax reporting; never use the decedent’s SSN.
• Documentation for the bank: Letters, EIN confirmation, certified death certificate, and valid photo ID. Some banks also request a completed W‑9 for the estate (with the EIN).
• Segregation of funds: No commingling. Deposit all estate receipts into the estate account and pay all estate expenses from that account.
• Small estate option: Collection by affidavit is available for limited personal property estates and can be used to collect bank funds without full qualification, subject to statutory limits and timing.

Process & Timing

1. Decide the path: Determine whether you will open a full estate or use the collection-by-affidavit process (small estate). For small estates, ensure the personal property value fits the statutory cap and at least 30 days have passed since death.
2. Qualify (full estate): File the application, take the oath, and post bond if required. The clerk issues Letters authorizing you to act.
3. Get the EIN: Apply to the IRS for an estate EIN (often same day online). Keep the IRS confirmation letter.
4. Open the account: Take your Letters, EIN confirmation, death certificate, and ID to the bank. Title the account “Estate of [Parent’s Name], [Your Name], Personal Representative.” Provide a W‑9 listing the estate’s EIN if requested.
5. Move funds and pay bills: Redirect and deposit all checks payable to the decedent or the estate into the estate account. Pay legitimate estate expenses from the estate account only.
6. Accountings: Keep detailed records and monthly statements. If the estate remains open beyond one year, file an annual account on the schedule set by statute. File the final account before closing the estate.
7. Close the account: After the clerk approves the final account and you distribute the estate, you can close the estate account.

What the Statutes Say

• North Carolina General Statutes § 28A-6-1 — Application for appointment and issuance of Letters to serve as personal representative.
• North Carolina General Statutes § 28A-7-1 — Oath of the personal representative.
• North Carolina General Statutes § 28A-8-1 — Bond requirements (when bond is required or may be waived).
• North Carolina General Statutes § 28A-13-3 — Powers and duties of personal representatives to collect assets, manage property, and transact with financial institutions.
• North Carolina General Statutes § 28A-21-1 — Timing of annual accounts if the estate remains open beyond one year.
• North Carolina General Statutes § 28A-25-1 and § 28A-25-1.1 — Collection of personal property by affidavit (small estates) and required contents/timing.
• North Carolina General Statutes § 28A-25-2 — Action to compel delivery if a holder refuses to honor the small‑estate affidavit.
• North Carolina General Statutes § 28A-13-10 — Personal representative liability for breach of fiduciary duty (e.g., commingling).

Exceptions & Pitfalls

• Do not use the decedent’s Social Security number. Open accounts only with the estate’s EIN.
• Never commingle. Mixing estate money with personal funds can lead to personal liability and removal.
• Small‑estate limits. The affidavit option has dollar caps and a 30‑day wait; if the bank will not honor it, you may need to qualify and get Letters.
• Bank preferences vary. Even with an affidavit, some banks insist on Letters before releasing funds.
• Use the estate account for all activity. Do not pay estate bills from your personal account or the decedent’s old account.
• Mind accounting deadlines. If the estate stays open over a year, you must file an annual account on time.

Helpful Hints

• Name the account clearly, e.g., “Estate of Jane Q. Doe, John Doe, Personal Representative.”
• Ask the bank for multiple official checks and online access with monthly statements showing check images to simplify accounting.
• Bring several certified copies of your Letters; many banks and transfer agents require Letters dated within 60 days.
• Provide a completed W‑9 listing the estate’s EIN to avoid backup withholding on interest.
• Deposit all checks payable to the decedent or the estate into the estate account—no cashing checks made out to the decedent.
• Keep a simple ledger noting date, payee/payer, purpose, and amount for every transaction; it makes your court accountings straightforward.

Disclaimer: This article is general information about North Carolina law, not legal advice. Reading it does not create an attorney‑client relationship.

Talk to a Probate Attorney

If you’re dealing with opening an estate and setting up an estate bank account, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at (919) 341-7055.