Category Archives: Probate Q&A Series

What steps do I need to prepare and file estate and corporate tax returns after a debt discharge?: Practical steps for North Carolina estates with closely held business interests

What steps do I need to prepare and file estate and corporate tax returns after a debt discharge? – North Carolina Short Answer In North Carolina, the personal representative must gather prior tax records, determine where any cancellation of debt income belongs (estate vs. company), and file the decedent’s final individual returns and the estate’s…

Can I settle an SBA claim against the estate when its assets are largely illiquid?: North Carolina probate answer

Can I settle an SBA claim against the estate when its assets are largely illiquid? – North Carolina Short Answer Yes. In North Carolina, a personal representative may negotiate and settle creditor claims, including an SBA debt, but must follow the state’s claims‑priority rules and protect all interested parties. When the estate is illiquid, you…

What do I need to do to close an estate when creditors might still issue a 1099 next year?: Practical steps to close or hold open a North Carolina estate

What do I need to do to close an estate when creditors might still issue a 1099 next year? – North Carolina Short Answer In North Carolina, you can close an estate only after all claims are paid or adequately provided for and the Clerk of Superior Court approves your final account. If a creditor…

Can I list and sell a decedent’s property without court approval to satisfy debts?: Clear guidance under North Carolina law

Can I list and sell a decedent’s property without court approval to satisfy debts? – North Carolina Short Answer In North Carolina, a personal representative may sell a decedent’s real property without court approval only if the will clearly authorizes a sale (for example, an express power of sale or incorporation of statutory powers) and…

How do I open probate for both parents when neither left a will and one served as personal representative of the other’s estate?: Answered for North Carolina

How do I open probate for both parents when neither left a will and one served as personal representative of the other’s estate? – North Carolina Short Answer In North Carolina, you open two intestate estates: (1) appoint a successor administrator de bonis non to finish the first parent’s estate (because the prior personal representative…

How do I properly deposit life insurance payouts into a parent’s estate during probate?

How do I properly deposit life insurance payouts into a parent’s estate during probate? – North Carolina Short Answer In North Carolina, deposit life insurance funds into an estate only if that estate is the named beneficiary on the policy. The personal representative must open an estate bank account using the estate’s EIN, claim the…

How do I use proceeds from the sale of estate property to pay off a creditor’s claim?: North Carolina guidance

How do I use proceeds from the sale of estate property to pay off a creditor’s claim? – North Carolina Short Answer In North Carolina, a personal representative may use sale proceeds to pay valid estate debts, but only after securing authority to sell, completing a proper sale, and applying the proceeds in the statutory…

What steps can I take to challenge my sibling being named executor if they try to disinherit me?: Clear steps to object or remove an executor in North Carolina

What steps can I take to challenge my sibling being named executor if they try to disinherit me? – North Carolina Short Answer In North Carolina, you can challenge your sibling’s appointment by filing a verified petition with the Clerk of Superior Court to deny or revoke their letters and, if a will is involved,…

Can I contest a will that gives a portion of my parent’s estate to my sibling’s spouse against my interests?: Answered under North Carolina probate law

Can I contest a will that gives a portion of my parent’s estate to my sibling’s spouse against my interests? – North Carolina Short Answer Yes. In North Carolina, a child or other person with a direct financial stake can challenge a will by filing a “caveat” in the Clerk of Superior Court. You generally…

How do I protect the inheritance my parents intended for me as a child with a disability?

How do I protect the inheritance my parents intended for me as a child with a disability? – North Carolina Short Answer In North Carolina, you protect an intended inheritance by promptly opening the estate, freezing and accounting for suspect transactions, and using the correct forum to recover assets. The Clerk of Superior Court can…