Can a loan personally guaranteed by a decedent be partially settled by an estate? – North Carolina Short Answer Yes. In North Carolina, a decedent’s personal guaranty is a claim against the estate. If estate assets are insufficient, the claim can be compromised or paid only in part after costs of administration and higher‑priority claims.…
How can I negotiate a reduced loan payoff through an estate probate process? – North Carolina Short Answer In North Carolina, a personal representative (PR) may negotiate and compromise creditor claims, including loans guaranteed by the decedent. When an estate is insolvent, claims are paid by statutory priority and then pro rata within each class,…
Will I receive a tax form for any loan balance forgiven and what are my obligations? – North Carolina Short Answer In North Carolina, if a lender cancels or forgives a debt owed by a decedent or the estate, the lender may issue IRS Form 1099-C to the estate. Your obligations as personal representative are…
What rights does my parent’s separated spouse have to estate assets when there is no will? – North Carolina Short Answer In North Carolina, a separated but still-married spouse is treated as the “surviving spouse” unless a statute cuts off their rights or they waived them. If not disqualified, the spouse may claim a $60,000…
How does the small estate procedure work for assets under the threshold in North Carolina? – North Carolina Short Answer North Carolina allows “collection by affidavit” when a decedent’s net personal property is at or below the small-estate limit ($20,000 in most cases; $30,000 only if the surviving spouse is the sole heir). You must…
Can I sell my parent’s vehicles before obtaining letters of administration? – North Carolina Short Answer In North Carolina, you generally need legal authority before selling a deceased parent’s vehicles. You can either (1) qualify as administrator and then sell, or (2) if no one will qualify, use the DMV’s affidavit process (MVR-317) signed by…
Am I or my siblings legally responsible for our parent’s debts if they died without a will? – North Carolina Short Answer In North Carolina, children do not owe a deceased parent’s debts. Creditors get paid from the parent’s estate, not from the heirs personally. If you serve as the administrator, you avoid personal liability…
Does an insurance policy payable to named beneficiaries bypass the estate entirely? – North Carolina Short Answer Yes. In North Carolina, life insurance payable to named beneficiaries is a non-probate asset and is paid directly by the insurer to those beneficiaries, not into the estate. Key exceptions apply if the estate is the named beneficiary,…
How do I prepare and submit the probate inventory to the court? – North Carolina Short Answer In North Carolina, the personal representative must file an Inventory (AOC‑E‑505) with the Clerk of Superior Court within three months of qualifying. List each estate asset with fair market value as of the date of death, using an…
Can the deed recorded after death be challenged if the original will wasn’t properly probated? – North Carolina Short Answer Often, yes. In North Carolina, you generally must first get the will admitted to probate (even as a “lost” will) before using it to fix title to real estate. Once probated and recorded, you can…
