Explore our informative articles, insights, and updates focused on North Carolina Estate Administration, Estate Planning, Partition Actions, and Surplus Fund cases. Our goal is to make these complex topics accessible, offering you guidance and understanding at each step of the legal process. Whether you’re looking to navigate probate administration, protect your assets through careful planning, understand partition actions, or resolve issues with surplus funds, our articles are designed to empower you with practical advice, legal insights, and actionable steps. Stay informed and feel confident as you make decisions about your estate and legal matters.
How can the estate handle the SBA insisting on full payment under the personal guarantee when there aren’t enough assets? – North Carolina Short Answer In North Carolina, an estate that cannot pay all debts must follow the statutory order of payment. Costs of administration, liened debts, and limited funeral and gravestone expenses are paid…
Will the estate owe income tax on the canceled loan debt when a 1099-C is issued, even if there are no assets? – North Carolina Short Answer Usually no. Canceled-debt income can be excluded from tax if the taxpayer is insolvent or in bankruptcy. An estate is a separate taxpayer, and if the estate’s liabilities…
What happens if the estate can’t pay the tax liability from a 1099-C because it’s insolvent? – North Carolina Short Answer In North Carolina, an insolvent estate pays claims in a strict statutory order. Federal taxes and other claims owed to the United States (including some SBA claims) sit in the same high-priority class. If…
What steps can I take to gather insurance information for a wrongful death claim linked to the estate? – North Carolina Short Answer In North Carolina, the personal representative (executor or administrator) is the one authorized to investigate and pursue a wrongful death claim and to request insurance information. Start by qualifying with the Clerk…
What happens to personal belongings left by occupants if the home is sold through a partition action? – North Carolina Short Answer In North Carolina, a partition sale transfers the real estate to the buyer; it does not include other people’s personal belongings. After the sale is confirmed and the deed is delivered, the court…
Will outstanding property taxes or repair liens reduce my share in the partition sale? – North Carolina Short Answer Yes. In a North Carolina partition by sale, the clerk first uses the sale proceeds to pay costs of sale and valid liens on the property (like county property taxes) before any co-owner gets paid. After…
What happens if I can’t locate or serve notice to a potential co-heir during probate? – North Carolina Short Answer In North Carolina, if a person with equal or higher priority to serve as administrator won’t renounce and you cannot locate them, you can ask the Clerk of Superior Court to treat their right as…
Can I ask the court to appoint me administrator when a next-of-kin refuses to renounce their rights? – North Carolina Short Answer Yes. In North Carolina, if a higher‑priority next‑of‑kin won’t renounce or can’t be located, you can ask the Clerk of Superior Court to proceed by “implied renunciation.” After 30 days from death, the…
Can I protect my house from foreclosure when I co-signed a HELOC and the estate owes more than its value? – North Carolina Short Answer In North Carolina, the lender’s lien on the decedent’s house remains and can be enforced regardless of the estate’s insolvency. As co-signer, you are personally liable for any deficiency if…
Do I need to petition for insolvency or bankruptcy for the estate if liabilities exceed assets? – North Carolina Short Answer In North Carolina, you do not file “bankruptcy” for a decedent’s estate and you do not need a separate petition to declare an estate insolvent. Instead, the personal representative administers the estate as insolvent:…
How can I file an estate accounting when the estate is insolvent and debts exceed assets? – North Carolina Short Answer In North Carolina, you still file the required Annual or Final Account even if the estate is insolvent. Use AOC-E-506 and show all receipts and disbursements, pay claims strictly by statutory priority, and distribute…
What can I do if the court clerk won’t accept my final inventory because it shows a deficit? – North Carolina Short Answer In North Carolina, the inventory lists date‑of‑death asset values; it does not have to “balance,” and it should not show a cash deficit. Deficits appear on the annual or final account, which…
How can I handle creditor claims as executor without paying from my personal funds? – North Carolina Short Answer In North Carolina, an executor pays valid creditor claims from estate assets in a strict statutory order. You are not personally liable for estate debts if you follow the notice, claim, and payment rules, avoid paying…
How can I confirm if any creditors have filed claims in the estate in North Carolina? Short Answer In North Carolina, a creditor “files” a claim either by delivering a written claim to the personal representative or by filing it with the Clerk of Superior Court in the county where the estate is pending. To…
What steps do I need to open the probate estate once I have the file number? – North Carolina Short Answer In North Carolina, a file number alone does not open an estate. You must qualify before the Clerk of Superior Court by filing the correct application, taking an oath, and posting any required bond;…
What documentation does the insurance company need to approve my rental car request? – North Carolina Short Answer In North Carolina, the at-fault driver’s insurer typically approves a rental once it accepts liability and has enough proof of your loss of use and your eligibility to rent. Expect to provide a claim number, basic crash…
Will settling my outstanding medical and EMS bills with the insurer prevent me from pursuing additional compensation? – North Carolina Short Answer In North Carolina, simply having the insurer pay your hospital and EMS bills does not, by itself, stop you from seeking additional compensation. What bars future claims is signing a broad release of…
What should I do if the insurance company fails to coordinate payment with my medical providers? – North Carolina Short Answer In North Carolina, medical providers can assert statutory liens against your personal injury settlement, and those liens must be handled before you receive any net funds. If the insurer won’t coordinate payments, your attorney…
Can I accept an ACV offer for property damage to my car without affecting my bodily injury claim? – North Carolina Short Answer In North Carolina, your property damage claim (actual cash value for your car) and your bodily injury claim are separate. You can usually accept an ACV payment for the vehicle without waiving…
How can I negotiate or modify the release language in a bodily injury settlement so I don’t lose my future rights? – North Carolina Short Answer In North Carolina, a settlement release is a contract; what you sign controls what you give up. You can and should negotiate a limited release that preserves future bodily…