Short Answer

In North Carolina, bank accounts and CDs titled only in the decedent’s name usually pass under the will after any valid spousal or child’s year’s allowance is assigned from the estate’s personal property. Accounts with survivorship or POD/TOD designations generally bypass the will and go directly to the named survivor or beneficiary. The spousal allowance is typically up to $60,000 and is taken from personal property first; it is charged against the spouse’s share under a will.

Understanding the Problem

You want to know, under North Carolina probate rules, who gets the decedent’s bank accounts and CDs—under the will or through a year’s allowance claim. A surviving spouse has applied for a year’s allowance, but the known will is not on file. The immediate question is how these accounts and CDs are treated and in what order they are distributed.

Apply the Law

Under North Carolina law, the year’s allowance gives support from the decedent’s personal property to the surviving spouse (and certain children) before ordinary estate distributions. Personal property includes cash, bank accounts, and CDs owned by the decedent. However, many financial accounts pass outside the will if they have a survivorship or POD/TOD designation. When a will controls, probate assets are collected and distributed according to the will’s terms, but the spousal allowance is applied first and then charged against what the spouse takes under the will.

Key Requirements

• Identify the account type: Determine if each bank account or CD is solely owned, joint with right of survivorship, or has POD/TOD instructions.
• Year’s allowance comes first from personal property: The spouse can receive up to $60,000, and eligible children $5,000 each, from the decedent’s personal property before general creditor claims and before will distributions.
• Effect on the spouse’s will share: In a testate estate, the spousal allowance is an advance on, and reduces, the spouse’s share under the will.
• Nonprobate accounts bypass the will: Survivorship and POD/TOD accounts typically pass directly to the survivor/beneficiary and are not controlled by the will; limited statutes may allow a decedent’s pro‑rata share in certain joint deposit arrangements to fund the allowance.
• Forum and timing: The Clerk of Superior Court (Estates Division) assigns the allowance. Filing deadlines and appeal windows apply; local practice can vary.

What the Statutes Say

• North Carolina Gen. Stat. § 30-15 (Spousal year’s allowance) – Sets the spousal allowance from personal property, generally up to $60,000.
• North Carolina Gen. Stat. § 30-17 (Child’s year’s allowance) – Provides $5,000 to certain eligible children from personal property.
• North Carolina Gen. Stat. § 41-2.1 (Joint deposit accounts with survivorship) – Defines survivorship in joint deposit accounts and allows the decedent’s pro‑rata share to be applied to a year’s allowance in certain accounts.
• North Carolina Gen. Stat. § 53C-6-7 (Bank POD accounts) – Payable‑on‑death accounts pass to the named beneficiary outside probate.

Analysis

Apply the Rule to the Facts: Because the will has not been filed, assets that would pass under the will are not yet being distributed. The surviving spouse’s year’s allowance can be assigned now from personal property, such as any solely‑owned bank accounts or CDs, and it will later be credited against the spouse’s share under the will. Accounts titled with survivorship or POD/TOD designations will usually pass directly to the named survivor or beneficiary and not under the will; some joint deposit setups allow using the decedent’s pro‑rata share to fund the allowance. Concerns about undue influence relate to a will contest and do not change how the allowance is assigned.

Process & Timing

1. Who files: Surviving spouse (or PR). Where: Clerk of Superior Court, Estates Division, in the county of the decedent’s residence. What: Application and Assignment of Year’s Allowance (AOC‑E‑100). When: File promptly; if an allowance is assigned, any appeal to superior court must be filed within 10 days of the assignment.
2. Probate the will: The person holding the original will should deliver it to the Clerk for probate; the named executor (or another interested person) applies to open the estate and obtain Letters so probate assets (including solely‑owned accounts and CDs) can be collected and distributed under the will.
3. Sort the accounts/CDs and distribute: Identify titling and beneficiary designations for each account/CD. Survivorship and POD/TOD funds are paid directly by the bank to the survivor/beneficiary. Sole‑owner accounts fund the allowance first, then are distributed per the will by the personal representative.

Exceptions & Pitfalls

• Nonprobate overrides the will: Survivorship and POD/TOD designations generally control, even if the will says otherwise.
• Limited reach into joint deposits: For some joint deposit accounts created by written survivorship agreement, the decedent’s pro‑rata share can be applied to fund the allowance; other joint or POD accounts are typically not available for the allowance.
• Allowance reduces the spouse’s will share: In a testate estate, the spousal allowance is charged against the spouse’s inheritance under the will.
• Real estate cannot fund the allowance: The allowance is paid from personal property; do not expect to use real property sale proceeds to satisfy it absent agreement.
• Appeal window is short: If you disagree with the allowance assignment, act within 10 days to appeal.
• Will contests are separate: Challenges based on undue influence are brought after probate by caveat and have their own deadline. See North Carolina Gen. Stat. § 31-32.

Conclusion

Bank accounts and CDs owned solely by the decedent fund the year’s allowance first and then pass under the will; accounts with survivorship or POD/TOD designations usually bypass the will and go directly to the survivor or beneficiary. The spousal allowance is typically up to $60,000 and reduces the spouse’s later take under the will. Next step: file AOC‑E‑100 with the Clerk of Superior Court and move to probate the will so probate assets can be collected and distributed.

Talk to a Probate Attorney

If you’re dealing with how bank accounts and CDs pass between a will and a year’s allowance, 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.