If my parent told me the farm equipment was gifted to me before death but it isn’t titled, how can I prove ownership and keep it out of the estate? – North Carolina

Short Answer

In North Carolina, untitled farm equipment can be owned outside the estate if it was truly gifted during the parent’s lifetime (an “inter vivos” gift). Proving that usually comes down to evidence of (1) the parent’s intent to make a present gift, (2) delivery of the equipment (or control over it), and (3) acceptance by the recipient. Practical proof often includes written statements, witness affidavits, possession and control, insurance and tax records, and repair or storage records showing the equipment was treated as the recipient’s property before death.

Understanding the Problem

In a North Carolina probate estate, can a personal representative treat untitled farm equipment as already owned by an heir because the parent said it was gifted before death, and if so, what proof is needed to show the equipment is not an estate asset? The decision point is whether the transfer happened during life as a completed gift (so it is not part of the probate inventory) versus a statement of future intent (so it remains part of the estate and must be administered through the Clerk of Superior Court process).

Apply the Law

North Carolina generally treats a lifetime gift of personal property as valid if it was completed before death. When there is no title document (as with many pieces of farm equipment), ownership is proven through facts and records rather than a DMV-style title. In probate, the Clerk of Superior Court oversees estate administration, and disputes about whether property belongs to the estate often turn on whether the gift was completed before death and whether the evidence is consistent and credible.

Key Requirements

Present intent to gift: The parent must have intended to give the equipment as a gift at that time, not “someday” and not “after death.”
Delivery (transfer of control): The parent must have delivered the equipment or transferred control in a way that shows the parent gave up ownership (for example, turning over keys, moving the equipment to the recipient’s property, or giving exclusive control).
Acceptance: The recipient must have accepted the gift, which is usually shown by taking possession, using it, maintaining it, or paying costs tied to it.

What the Statutes Say

N.C. Gen. Stat. § 31-40 (What property passes by will) – A will generally disposes of property the decedent owned at death, which highlights the key question: was the equipment still owned at death or already transferred during life?
N.C. Gen. Stat. § 29-28 (Inventory of lifetime transfers in intestate estates) – In certain intestate situations, the clerk can order an inventory of property received during the donor’s lifetime, which can become relevant when heirs disagree about lifetime transfers.

Analysis

Apply the Rule to the Facts: The estate includes mostly untitled farm equipment that the parent said was gifted before death. To keep that equipment out of the estate inventory, the key is showing a completed lifetime gift: clear proof the parent meant to give it then, proof the parent actually turned over possession or control, and proof the recipient treated it as their own before death. If the only proof is a verbal statement with no delivery or change in control, the equipment is more likely to be treated as an estate asset that must be administered through the estate.

Process & Timing

Who addresses ownership: The personal representative (or the person claiming the gift). Where: The Clerk of Superior Court in the county where the estate is pending. What: Gather and organize proof of the lifetime gift before finalizing the estate inventory and before any distribution decisions are made. When: As early as possible in administration, and before the final account is filed and approved.
Build a proof packet: Collect documents and witness statements that line up with intent, delivery, and acceptance. Strong items include: a dated writing from the parent (letter, note, text message printouts), affidavits from neutral witnesses who heard the gift and saw the handoff, photos showing the equipment stored at the recipient’s property before death, repair invoices in the recipient’s name, insurance schedules listing the equipment, and evidence the recipient paid maintenance, storage, or parts before death.
Decide how to administer: If the proof supports a completed gift, the equipment is typically treated as non-estate property and should not be sold or distributed by the estate. If proof is mixed or contested, the safer approach is often to pause transfers, document the dispute, and get direction through the Clerk of Superior Court (and, if needed, a court proceeding) before closing the estate.

Exceptions & Pitfalls

“It’s yours when I’m gone” is usually not a lifetime gift: A statement that the equipment will go to someone at death is generally handled by a will (or intestacy), not by a completed inter vivos gift.
No real delivery: If the parent kept exclusive control (kept it at the parent’s property, used it as their own, paid all upkeep, and never turned over keys or access), it is harder to prove delivery.
Mixed records: If the parent insured the equipment, depreciated it for business purposes, or listed it as their asset right up to death, that can undermine the gift claim. (For any tax-related questions, a tax attorney or CPA should be consulted.)
Creditor pressure and personal liability fears: A personal representative is usually not personally responsible for valid estate debts if estate administration is handled correctly (separate estate account, proper notice to creditors, documented payments, and no improper distributions). Problems arise when assets are transferred out while creditor issues are still open or when estate and personal funds get mixed.
Family disputes: If another heir challenges the “gift,” the issue can become a formal dispute. Neutral witness affidavits and consistent records often matter more than family recollections.

Conclusion

In North Carolina, untitled farm equipment can stay out of probate only if it was actually gifted during the parent’s lifetime through present intent, delivery of the equipment or control, and acceptance. The practical way to prove that is to assemble consistent records and witness statements showing the parent gave up ownership before death and the recipient treated the equipment as their own. The next step is to organize that proof and address the classification of the equipment with the Clerk of Superior Court before filing the final account and closing the estate.

Talk to a Probate Attorney

If dealing with a North Carolina estate involves untitled farm equipment, creditor communications, and questions about what belongs in the probate inventory, a probate attorney can help sort out proof of ownership, reduce conflict, and keep the administration on track. 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.