What is a year’s allowance and how can it help me and my sibling secure our shares of the estate? – North Carolina

Short Answer

Under North Carolina law, a “year’s allowance” lets a surviving spouse and qualifying children quickly receive certain personal property or cash from the estate for support, ahead of most creditor claims. For children under 21, the standard allowance is typically paid from the decedent’s personal property (like household items, bank funds, or a vehicle) and does not reduce the child’s inheritance. If the standard amount is not enough, a court can award more through a separate proceeding.

Understanding the Problem

In North Carolina probate, can a child beneficiary use a year’s allowance to get personal property and a vehicle released while the personal representative reviews creditors? Here, the child is under 21, and the uncle serving as personal representative has not released household items or a vehicle.

Apply the Law

North Carolina provides a statutory allowance for a surviving spouse and for certain children after a parent dies. A qualifying child’s allowance comes from the decedent’s personal property, is generally available without a full court hearing, and is assigned by the Clerk of Superior Court. It is prioritized over most creditor claims and, for a child, is in addition to the child’s inheritance under the will or by intestacy. The Clerk can assign specific property (such as household goods or a motor vehicle) or cash to satisfy the allowance; real estate is not used to fund it. For decedents dying on or after March 1, 2024, the child’s allowance is $10,000 per eligible child under age 21. If the standard amount is insufficient, a separate special proceeding can request an additional allowance above the statutory amount.

Key Requirements

• Eligibility: A child under 21 at the parent’s death is generally eligible for the child’s allowance; it is paid from the decedent’s personal property.
• Amount: For most recent decedents, the standard child’s allowance is $10,000; a larger allowance may be requested in a special proceeding if needed.
• Priority vs. debts: The allowance is assigned ahead of most estate creditor claims and is exempt from judgment liens against the decedent.
• What can be assigned: Personal property only (e.g., household furnishings, funds, a motor vehicle). Non-probate assets like life insurance payable to a named beneficiary are not used.
• Process: File an Application and Assignment of Year’s Allowance (AOC-E-100) with the Clerk of Superior Court; if a personal representative has been appointed, deliver a copy of the application to that personal representative. For minors, a guardian or next friend files; the Clerk issues a signed list that can be used to collect or retitle assets.
• Timing: If a personal representative has been appointed, file within six months after letters are issued. If no personal representative is appointed, filing can occur later, but act promptly because local practice and procedures can affect timing.

What the Statutes Say

• North Carolina Gen. Stat. § 30-17 (Child’s year’s allowance) – Defines which children qualify and the child’s allowance amount; paid from personal property and in addition to the child’s inheritance.
• North Carolina Gen. Stat. § 30-27 (Additional year’s allowance) – Allows a spouse or eligible child to seek more than the standard allowance by special proceeding.
• North Carolina Gen. Stat. § 20-77 (DMV title transfer after death) – Provides a mechanism to transfer a motor vehicle’s title, including when assigned as part of a year’s allowance.
• North Carolina Gen. Stat. § 28A-19-6 (Order of claims) – Establishes the priority of claims against an estate; allowances are addressed outside the usual creditor order.

Analysis

Apply the Rule to the Facts: You are under 21, so you qualify for a child’s year’s allowance funded from your parent’s personal property. The Clerk can assign specific property—such as your personal items or a vehicle—up to the allowance amount before most creditors are paid. Because life insurance payable directly to you is a non-probate asset, the insurer’s review does not affect your right to a year’s allowance from the estate; however, the allowance cannot be funded with that insurance. If your sibling is also under 21, they can apply for their own allowance as well.

Process & Timing

1. Who files: The child through a guardian or next friend. Where: Clerk of Superior Court in the county where the estate is being administered in North Carolina. What: File AOC-E-100 (Application and Assignment of Year’s Allowance) and deliver a copy to the personal representative if one has been appointed. When: If letters have been issued, file within six months after the date letters were issued; if no letters have issued, file as soon as possible.
2. The Clerk reviews the application and either assigns the allowance on the papers or schedules a brief hearing. If granted, the Clerk signs a list describing the property or cash assigned to the child and provides certified copies.
3. Use the certified copy to collect assets or retitle them. For a vehicle assigned as part of the allowance, present the Clerk’s assignment and DMV documents to transfer title. If the child lacks a guardian of the estate, the Clerk may hold or disburse funds for the child’s benefit.

Exceptions & Pitfalls

• Eligibility depends on age at the parent’s death; for earlier deaths, different age categories and conditions may apply.
• Non-probate assets (life insurance to a named beneficiary, POD accounts, joint-with-survivorship accounts) do not fund the allowance.
• Real estate cannot fund the allowance; sale proceeds generally are not used unless all heirs/devisees agree.
• If multiple eligible claimants and limited estate assets, allowances may be prorated; a surviving spouse’s allowance (if any) is typically satisfied before children’s allowances.
• Serve a copy of your application on the personal representative if one has been appointed; missing this step can delay assignment.
• For minors seeking an additional allowance above the standard amount, a separate special proceeding is required and judicial approval may be needed.

Talk to a Probate Attorney

If you’re dealing with securing personal property or a vehicle through a year’s allowance while an estate is pending, 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.