Who is responsible for property taxes for the year of death when I plan to disclaim my share and my sibling occupies the home? – North Carolina

Short Answer

In North Carolina, property taxes are a charge against the real estate for the tax year, and they are typically handled as part of the estate’s administration until the property is legally and practically in the beneficiary’s hands. If an heir disclaims an inherited interest, the disclaimer can shift who ends up owning the property, but it does not automatically “erase” taxes that accrued while the estate still held the property. In practice, families often allocate the year-of-death taxes by agreement (for example, the occupant pays from the date of death forward), but the county can still look to the property if taxes go unpaid.

Understanding the Problem

In North Carolina probate, a personal representative must wrap up an estate and deliver clear title to inherited real estate. The question is: when a co-heir plans to disclaim an inherited share so that only the sibling ends up on title, and that sibling occupies the home, who is responsible for the property taxes for the year the owner died? The key trigger is the timing of the death, the timing of the disclaimer and recording, and whether the taxes are treated as an estate expense versus an owner/occupant expense during administration.

Apply the Law

North Carolina law allows an heir to disclaim (renounce) an inherited interest. A properly filed disclaimer is effective when filed with the Clerk of Superior Court in the county where the estate is being administered, and if the disclaimer involves real estate it must also be recorded with the Register of Deeds for the public record to reflect the change in record title. Property taxes, however, attach to the property for the tax year and are commonly paid during administration to prevent a tax lien or enforcement against the real estate, even if the family later reallocates the cost between heirs.

Key Requirements

Valid disclaimer (renunciation): The renunciation must be in a proper written instrument and filed on time to be treated as a qualified disclaimer, and it becomes effective when filed with the Clerk of Superior Court in the estate county.
Recording for clear record title: If the renunciation involves real property, it must also be recorded with the Register of Deeds so the public land records show the interest passing as a result of the disclaimer.
Taxes must be kept current to protect the property: Regardless of how heirs plan to split costs, unpaid property taxes can become a problem for title and can be enforced against the property, so the estate administration plan usually addresses who pays and when.

What the Statutes Say

N.C. Gen. Stat. § 31B-2 (Filing and registering of renunciations) – Explains where and when a disclaimer must be filed, and requires recording with the Register of Deeds for real property to update record title.
N.C. Gen. Stat. § 105-384 (Duties and liabilities of life tenant) – Places the duty to pay property taxes on a life tenant when a life estate exists (which can matter if the estate plan creates a life estate rather than outright ownership).

Analysis

Apply the Rule to the Facts: The estate is close to closing, and the home is co-inherited with a sibling who occupies it. If the co-heir files a timely renunciation with the Clerk of Superior Court and records it with the Register of Deeds, record title can be updated so the sibling becomes the sole owner through the disclaimer path. Even with that plan, the year-of-death property taxes still need to be paid on time to protect title and avoid enforcement against the property; the practical question becomes whether the estate pays them as an administration expense or whether the occupying sibling reimburses the estate (or pays directly) based on an agreement and the timing of the transfer.

Process & Timing

Who files: The disclaiming heir. Where: File the written renunciation with the Clerk of Superior Court in the county where the estate is being administered. What: A written instrument of renunciation that meets North Carolina requirements. When: File within the time period required for a qualified disclaimer (often discussed as a nine-month window tied to federal disclaimer timing rules).
Record for real estate: Record the renunciation with the Register of Deeds in the county where the property is located so the land records show the interest passing due to the disclaimer. Until recording happens, the disclaimer may be effective between family members, but record title may not reflect the change.
Handle taxes and closing the estate: Confirm the county tax status (paid/unpaid, billing name, and any delinquency). Decide whether the estate pays the current year bill and gets reimbursed, or whether the occupying sibling pays directly. Then reflect the arrangement in the final accounting and closing steps with the Clerk.

Exceptions & Pitfalls

Late or improperly handled disclaimer: If the renunciation is not filed on time with the Clerk, or not recorded for real property, the plan to put only the sibling on title can stall and create title objections later.
Occupancy without a written cost-sharing plan: When one heir lives in the home during administration, disputes often arise about whether that heir should cover taxes, insurance, and upkeep during that period. A short written agreement can prevent problems in the final accounting.
Life estate vs. outright inheritance: If the will or intestacy outcome creates a life estate (or similar split interests), the life tenant generally has the duty to pay property taxes, which can change the analysis.
Tax office records vs. deed records: Updating the county tax listing and recording documents are related but not the same. A tax office update does not replace recording with the Register of Deeds for clear title.

Conclusion

In North Carolina, a disclaimer can shift who ultimately takes title to inherited real estate, but it does not automatically resolve who covers property taxes that come due during the year of death and the administration period. The safest approach is to keep taxes current to protect the property and then allocate the cost between the estate and the occupying sibling based on timing and agreement. The next step is to file the written renunciation with the Clerk of Superior Court within the applicable deadline and record it with the Register of Deeds promptly.

Talk to a Probate Attorney

If a family is trying to close an estate, clear title to a home, and handle a disclaimer while one heir occupies the property, small timing and paperwork issues can cause big delays. Our firm has experienced attorneys who can help explain options, coordinate filing and recording, and line up the final accounting with the Clerk. 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.