How to Transfer Real Property and Close Small Accounts Without Full Probate in North Carolina
Detailed Answer
When someone dies, their assets typically pass through probate. North Carolina probate can take several months and involve court filings, notices and fees. You can avoid a full probate for certain assets by using nonprobate tools and summary procedures under state law.
1. Small Estate Affidavit for Personal Property
North Carolina law lets you collect personal property—bank accounts, stocks and other intangible assets—worth up to $20,000 without full probate. Under N.C.G.S. § 28A-19-2, an heir or personal representative can present a sworn affidavit and a certified death certificate to a financial institution. After waiting 10 days from the date of death, the institution must release funds up to the statutory limit. This process works only for property that the decedent owned outright, not jointly owned or in a trust. View N.C.G.S. § 28A-19-2.
2. Payable-On-Death and Transfer-On-Death Designations
You can avoid probate for many bank and investment accounts by naming a payable-on-death (POD) beneficiary. The account passes directly to that person when you die. Real estate cannot use POD, but some states allow transfer-on-death (TOD) deeds for homes. North Carolina does not currently recognize TOD deeds for real property. Instead, consider other nonprobate methods.
3. Joint Ownership with Right of Survivorship
Holding real estate in joint tenancy or tenancy by the entirety lets property pass automatically to the surviving owner. For married couples, tenancy by the entirety is common. After one spouse dies, the survivor owns the property without probate. You record an affidavit of death and certified death certificate in the county registry.
4. Revocable Living Trusts
A revocable living trust is a popular tool for avoiding probate on real property. You transfer the deed to a trust while you’re living. When you die, a successor trustee distributes assets according to your instructions. The trust never enters probate, which saves time and maintains privacy. You must properly fund the trust before you die—retitle deeds and accounts in the trust’s name.
5. Limited Ancillary Probate
If the decedent’s main estate went through probate in another state and only real property remains in North Carolina, you may use a limited ancillary proceeding rather than full probate. The court admits the out-of-state personal representative’s appointment and issues an order to transfer the North Carolina property.
Key Steps to Follow
- Review all assets: identify bank accounts, investment accounts and real estate titles.
- File a small estate affidavit under N.C.G.S. § 28A-19-2 for personal property up to $20,000.
- Ensure you have payable-on-death beneficiaries on financial accounts.
- Consider joint tenancy or tenancy by the entirety for real estate deeds.
- Set up and fund a revocable living trust to hold real property.
- If needed, open a limited ancillary probate for out-of-state estates that own North Carolina real estate.
Conclusion and Next Steps
Proper planning and use of North Carolina’s small estate procedures let you transfer personal property and close small accounts without full probate. For real estate, nonprobate ownership methods and trusts can help you avoid a lengthy court process. Navigating these tools can be complex. Our attorneys at Pierce Law Group have decades of experience guiding families through estate administration and asset transfers. Contact us today to discuss your situation and build a clear plan for your loved one’s estate.
Call us at (919) 341-7055 or email intake@piercelaw.com to schedule a consultation.
