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Probate Q&A Series ·

Who is responsible for issuing the 1099 if an account changed custodians during the tax year, and how do I make sure the estate receives all required forms? NC

Who is responsible for issuing the 1099 if an account changed custodians during the tax year, and how do I make sure the estate receives all required forms? – North Carolina Short Answer In North Carolina estate administration, the financial institution (the “payer”) that actually paid the taxable income is generally the one responsible for…

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Probate Q&A Series ·

How can out-of-state family members handle probate court filings remotely? NC

How can out-of-state family members handle probate court filings remotely? – North Carolina Short Answer In North Carolina, most probate administration happens through the county Clerk of Superior Court, and many required signatures (including the personal representative’s oath) can often be completed outside the county—and sometimes outside the state—using a notary and then submitted by…

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Will transferring the property or selling it affect my relative’s Medicare or any Medicaid benefits they currently receive? NC

Will transferring the property or selling it affect my relative’s Medicare or any Medicaid benefits they currently receive? – North Carolina Short Answer In North Carolina, transferring a house for less than fair market value can trigger a Medicaid “transfer penalty” that can temporarily stop Medicaid from paying for certain long-term care services. Selling the…

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Probate Q&A Series ·

What fiduciary duties and potential costs would I face as administrator of an estate with no direct probate assets? NC

What fiduciary duties and potential costs would I face as administrator of an estate with no direct probate assets? – North Carolina Short Answer In North Carolina, a court-appointed estate administrator (personal representative) owes fiduciary duties even if most property passed outside probate. Those duties usually include identifying any probate assets, filing required paperwork with…

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Can the court require service at multiple addresses or alternate methods if the co-owner ignores mail and calls? NC

Can the court require service at multiple addresses or alternate methods if the co-owner ignores mail and calls? – North Carolina Short Answer Yes. In a North Carolina partition case, the court (often through the Clerk of Superior Court handling the special proceeding) can require service that is reasonably calculated to give notice, which may…

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Probate Q&A Series ·

In what order are creditor claims like a hospital bill paid before we fund the trust and distribute to beneficiaries? NC

In what order are creditor claims like a hospital bill paid before we fund the trust and distribute to beneficiaries? – North Carolina Short Answer In North Carolina, an estate generally should not fund a trust or distribute to beneficiaries until the personal representative has handled creditor notice, collected and reviewed claims, and paid valid…

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