Short Answer

No. In North Carolina, you generally cannot just send estate funds back to the State Treasurer. If you cannot pay a rightful recipient (for example, because an heir died and no one has opened that heir’s estate), you may deposit that heir’s share with the Clerk of Superior Court immediately before filing your final account. The clerk will hold the funds and, if unclaimed after a set period, transfer them to the State Treasurer.

Understanding the Problem

You are administering a North Carolina probate matter and must decide how to handle unclaimed property recovered for the decedent. You ask: can you return it directly to the state or county instead of navigating additional probate steps? One heir (your mother) died before distribution, and the other heir (your uncle) is also deceased; neither of their estates has been opened. You must file a final accounting by a set deadline in the county where the small estate was reopened.

Apply the Law

Under North Carolina law, a distributee’s share generally vests at the original decedent’s death. If a distributee dies before receiving payment, that share belongs to the distributee’s estate and must be paid to that estate’s personal representative or small-estate affiant. When a rightful recipient is missing or cannot be paid at closing, the personal representative may deposit that person’s share with the Clerk of Superior Court immediately before filing the final account. The clerk holds the funds without interest and, if still unclaimed after a period following the final account, forwards them to the State Treasurer as abandoned property.

Key Requirements

• Identify the correct payee: A deceased heir’s share is payable to that heir’s estate (not to family members personally).
• Use the clerk deposit option if needed: If you cannot timely pay a deceased heir’s estate (no one has qualified), you may deposit that share with the Clerk of Superior Court before filing the final account.
• Know the unclaimed property path: If no proper claim is made after the final account, the clerk later forwards the funds to the State Treasurer as abandoned property.
• Small-estate alternatives: For each deceased heir, a family member may consider a small-estate collection by affidavit if the estate qualifies; then you can pay that affiant.
• Close properly: File your final account; you remain responsible until the clerk audits and discharges you.

What the Statutes Say

• N.C. Gen. Stat. § 28A-22-9 (Deposits with clerk for known but unlocated heirs) – Allows deposit of a share with the clerk immediately before filing the final account; clerk holds and later remits to the State Treasurer if unclaimed.
• N.C. Gen. Stat. § 28A-23-1 (Settlement and discharge) – Clerk audits and approves the final account and enters discharge.
• N.C. Gen. Stat. § 116B-67 (Claims to the State Treasurer) – Governs how a rightful owner later claims abandoned property from the State Treasurer.
• N.C. Gen. Stat. § 28A-25-6 (Payment to clerk of money owed to decedent) – A separate procedure for debts owed to a decedent when no administrator has been appointed (limited to small amounts).

Analysis

Apply the Rule to the Facts: Here, the grandparent’s estate received unclaimed property. Because your mother and uncle died before distribution, their shares must be paid to their estates, not to individuals. If no one qualifies for their estates before your final accounting deadline, you can deposit each share with the Clerk of Superior Court right before filing your final account. The clerk will hold the funds so you can close; a later personal representative or small‑estate affiant for your mother’s or uncle’s estate can claim the funds, or they will eventually go to the State Treasurer.

Process & Timing

1. Who files: The small‑estate affiant or personal representative of the grandparent’s estate. Where: Clerk of Superior Court in the North Carolina county where the estate is administered. What: Final Account (AOC‑E‑506) with receipts (AOC‑E‑521). If you cannot pay a deceased heir’s estate, submit the funds and a short written request to deposit the share(s) with the clerk under § 28A‑22‑9 immediately before filing the final account. When: By your court‑set final accounting deadline.
2. The clerk holds deposited shares without interest. A qualified personal representative or small‑estate affiant for your mother’s or uncle’s estate may later present proof and receive payment from the clerk.
3. The clerk audits your final account. If complete, the clerk enters an order settling the estate and discharging you from further duties.

Exceptions & Pitfalls

• Do not pay a deceased heir’s share directly to relatives. It must go to that heir’s estate (through a qualified personal representative or an eligible small‑estate affiant).
• Do not send estate funds straight back to the State Treasurer. Use the clerk deposit process; if unclaimed after the final account, the clerk will handle transfer to the State Treasurer.
• Know the small‑amount limit in § 28A‑25‑6 applies to debts owed to a decedent when no administrator has been appointed, not to distributions from an open estate.
• County practices vary. Some clerks use local checklists or may request specific documentation for deposits; ask the estate division what they require.
• Missing your final accounting deadline can trigger compliance orders; communicate early with the clerk if you need brief additional time.

Talk to a Probate Attorney

If you’re dealing with unclaimed property in a North Carolina estate and an heir died before distribution, 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.