Short Answer

In North Carolina, list life insurance differently based on who gets the money. If the decedent’s estate is the beneficiary (or no beneficiary survives and the policy defaults to the estate), include the proceeds as an estate asset on the inventory and later as a receipt on the account. If a named person or trust is the beneficiary, it is a non-probate transfer: note it only on the preliminary inventory’s “other property” for information, but do not include it on the 90-day inventory or as a receipt. Each decedent’s estate is filed and reported separately.

Understanding the Problem

In North Carolina probate, you want to know how to list life insurance on the required court forms for your role as personal representative. You handled your grandfather’s estate before, and now you’re completing your mother’s inventory and accounting. Although the estates are related, each is legally separate, so you must report life insurance for each decedent in that decedent’s file, following North Carolina Clerk of Superior Court procedures and timelines.

Apply the Law

North Carolina probate forms separate assets that the personal representative administers from assets that pass outside probate. Life insurance is treated by who receives the proceeds and who owns the policy. The Clerk of Superior Court (Estates Division) is the forum for filings. A detailed inventory is due within three months of qualification, and annual/final accounts follow to report receipts and disbursements.

Key Requirements

• Identify the beneficiary: If the estate is the beneficiary (or no surviving beneficiary causes a default to the estate), list the proceeds as an estate asset; otherwise, treat as a non‑probate transfer.
• Use the right form section: Non‑probate life insurance is listed only as “other property” on the preliminary inventory for information; it is not included on the 90‑day inventory.
• Report only estate receipts: On annual/final accounts, include life insurance only if the estate actually received the proceeds.
• Ownership matters: A policy the decedent owned on someone else’s life is an estate asset (typically valued at its date‑of‑death value), even if no death benefit was paid.
• Separate estates, separate filings: Do not cross‑list one decedent’s life insurance in another decedent’s file; each estate stands alone.
• Timing and updates: File the inventory within three months of qualification and use a supplemental inventory if you later discover or correct information.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-20-1 (Inventory due in 3 months) – Requires a just, true, and perfect inventory within three months of qualification.
• North Carolina Gen. Stat. § 28A-20-3 (Supplemental inventory) – Allows updates when new assets are found or descriptions/values change.
• North Carolina Gen. Stat. § 28A-21-1 (Annual accounts) – Requires annual accounts if the estate remains open beyond one year.
• North Carolina Gen. Stat. § 28A-15-1 (Assets available for debts) – Defines what property is available to pay claims absent a statute excluding it.

Analysis

Apply the Rule to the Facts: For your mother’s estate, list any policy that pays to her estate as an estate asset on the 90‑day inventory and, when collected, as a receipt on the account. If a policy names a child or trust as beneficiary, note it only as “other property” on the preliminary inventory and exclude it from the 90‑day inventory and accounts. Do not reference your grandfather’s policies in your mother’s filings; his estate was a separate file with its own inventory and accounts. Filing in different counties does not change these classifications.

Process & Timing

1. Who files: The personal representative. Where: Clerk of Superior Court (Estates Division) in the decedent’s county of domicile. What: Preliminary inventory within the Application for Letters (AOC‑E‑201 for testate or AOC‑E‑202 for intestate); then INVENTORY FOR DECEDENT’S ESTATE (AOC‑E‑505). When: Inventory is due within 3 months of qualification.
2. If a policy is payable to the estate, submit the insurer’s claim requirements (death certificate, Letters, and claim form), deposit proceeds to the estate account, and include them in the next accounting period.
3. File an Annual Account if the estate stays open beyond a year and a Final Account to close the estate; list only receipts actually received by the estate.

Exceptions & Pitfalls

• Do not put beneficiary‑paid life insurance on the 90‑day inventory; it belongs only in the preliminary inventory’s informational “other property.”
• If the policy owner is the decedent but the insured is someone else, the policy itself is an estate asset—account for its date‑of‑death value and transfer or administer as appropriate.
• Beneficiary designations can lapse; if no beneficiary survives and the policy defaults to the estate, treat it as an estate asset.
• Use a supplemental inventory if you learn of a policy after filing the 90‑day inventory or need to correct values.
• Each estate is separate—never cross‑list a prior decedent’s policy in a later decedent’s file.
• County practices vary on documentation; keep copies of the policy, claim paperwork, and any appraisals or valuations used.

Talk to a Probate Attorney

If you’re sorting out which life insurance belongs on which probate form and how to report it, our firm can help you understand your options and deadlines. Call us today to talk through your specific situation.

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.