Short Answer

In North Carolina, a creditor must present a written claim that states the amount and basis of the debt. As personal representative, you can require supporting proof (such as an affidavit and records) and reject a claim that lacks documentation. After a written rejection, the claimant has three months to file a lawsuit or the claim is barred. North Carolina’s Dead Man’s Statute limits an interested claimant’s testimony about oral dealings with the decedent, so corroborating evidence matters.

Understanding the Problem

You are the North Carolina executor and a relative submitted a claim saying the decedent owed them a loan, but they have no written agreement. Can you deny that claim, and what process should you follow to protect the estate?

Apply the Law

Under North Carolina law, a creditor must present a claim in writing that states the amount and the basis for the claim and identifies the claimant. The personal representative reviews claims, may demand verification and documents, and may dispute or reject a claim. If rejected in writing, the creditor must start a civil action within three months, or the claim is barred. Disputes over rejected claims are resolved in civil court, not by the Clerk of Superior Court. The general “bar date” for presenting claims runs from the notice to creditors.

Key Requirements

• Proper presentment: The claim must be in writing, state the amount and basis, and identify the claimant; it must be delivered to the personal representative or filed with the clerk.
• Verification on request: The personal representative may require an affidavit and supporting records showing the claim is due, any payments/offsets, and how the amount is calculated.
• Timeliness: The claim must be presented by the deadline in the published notice to creditors (or within 90 days of personal notice if later).
• Rejection and lawsuit: After a written rejection, the claimant has three months to file a civil action; otherwise, the claim is barred.
• Forum: The Clerk of Superior Court does not adjudicate rejected claims; any lawsuit is filed in civil court.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-19-1 (Presenting a claim) – Written claims must state the amount, basis, and claimant info and be properly delivered.
• North Carolina Gen. Stat. § 28A-19-3 (Non-claim deadlines) – Sets the bar date for presenting claims after notice to creditors.
• North Carolina Gen. Stat. § 28A-19-16 (Action on rejected claim) – Creditor must sue within three months after written rejection.
• North Carolina R. Evid. 601(c) (Dead Man’s Statute) – Limits an interested person’s testimony about oral transactions with the decedent.

Analysis

Apply the Rule to the Facts: The relative’s claim must be in writing and state the amount and basis of the alleged loan. If they provided no documents, you may demand an affidavit and proof (e.g., transfers, receipts); if not provided or insufficient, issue a written rejection. That starts the three-month clock for them to sue; if they do not, the claim is barred. If they file suit, expect the court to require corroborating evidence because the Dead Man’s Statute restricts their testimony about any oral loan.

Process & Timing

1. Who files: Personal representative. Where: Send written rejection to the claimant; keep a copy in the estate file. What: First, request an affidavit and supporting records for the claim; if inadequate, deliver a clear written “Notice of Rejection of Claim.” If not already done, file proof of notice to creditors with the Clerk (AOC‑E‑307) to establish the bar date. When: Do this promptly after reviewing the claim and before paying lower‑priority claims.
2. If the claimant sues: Any lawsuit on a rejected claim is filed in civil court. Calendar deadlines under the Rules of Civil Procedure apply. Prepare defenses: late presentment, lack of proof, payments/offsets, and Dead Man’s Statute limits on oral testimony.
3. Final step: If no lawsuit is filed within three months after your written rejection, treat the claim as barred and proceed with administration and payments in statutory priority.

Exceptions & Pitfalls

• Timely, corroborated oral loans can still be enforced. Look for independent evidence (bank records, texts/emails, third‑party witnesses), not just the claimant’s testimony.
• Serve your rejection in a way you can prove delivery. If delivery is unclear, the three‑month period may not start.
• Late claims after the notice-to-creditors deadline are generally barred. Confirm publication/posting dates and any required personal notices.
• Optional path: By written agreement, you and the claimant may refer a disputed claim to one to three disinterested persons for a binding decision instead of going to court.
• If the personal representative has a personal claim against the estate, they must seek the clerk’s written approval before payment.

Talk to a Probate Attorney

If you’re dealing with an oral loan claim against an estate and unclear proof, 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.