Short Answer

No. In North Carolina, a personal representative must distribute the estate within a reasonable time after paying claims, not wait years until a child turns 18. When a minor is entitled to receive money, the law provides specific ways to hold it safely: a transfer to a custodian under the Uniform Transfers to Minors Act (often to age 21), a deposit with the Clerk of Superior Court (with release at 18), a guardianship of the estate, or a trust approved by the court.

Understanding the Problem

You’re administering a North Carolina estate where the decedent’s mother will serve as administrator, and the only heir is a minor. You want to know if you can simply keep the estate open and hold the funds until the child turns 18 to avoid setting up a guardianship or a supervised arrangement.

Apply the Law

North Carolina requires estate assets to be distributed in a reasonable time once claims and expenses are handled. If a minor is entitled to money, the funds cannot be paid directly to the child. Instead, the law allows specific safeguarding options: (1) transfer to a UTMA custodian (which typically delays control until age 21), (2) deposit with the Clerk of Superior Court for the minor’s benefit (generally released at 18), (3) appointment of a guardian of the estate, or (4) use of a trust if established or approved. Wrongful death proceeds require judicial approval of the settlement and must be allocated and safeguarded for the minor using one of these methods.

Key Requirements

• Timely administration: The personal representative cannot hold the estate open for years solely to avoid minor-safeguard options; distribute within a reasonable time after paying valid claims.
• Approved vehicles for a minor’s share: Use one of the statutory paths: UTMA custodianship, deposit with the Clerk, guardianship of the estate, or a trust approved by the court.
• UTMA safeguards: A personal representative may transfer to a custodian if it is in the minor’s best interest; court authorization is required in certain cases (for example, larger transfers).
• Clerk-held funds: Up to defined limits per source can be deposited with the Clerk for the minor and are generally released to the child at 18.
• Wrongful death settlements: A judge must approve the settlement when a minor will receive proceeds; the order should specify how the minor’s share is to be protected.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-18-2 (Wrongful death) – Requires judicial approval of settlements in many cases and distribution of net proceeds to heirs.
• North Carolina Gen. Stat. § 33A-6 (UTMA transfers by fiduciaries) – Allows a personal representative to transfer a minor’s property to a custodian (with court authorization in certain situations).
• North Carolina Gen. Stat. § 28A-23-2 (Payment to Clerk for minor) – Lets a personal representative deliver a minor’s share to the Clerk, who then invests it or appoints a guardian.
• North Carolina Gen. Stat. § 7A-111 (Clerk’s administration of minor funds) – Authorizes the Clerk to receive and manage certain funds for minors and release them at majority.

Analysis

Apply the Rule to the Facts: Here, the minor is the sole heir. The administrator cannot hold the estate open for years until age 18. Instead, after paying claims and costs, the administrator must place the child’s share into a permitted vehicle. If the money comes from a wrongful death settlement, the judge’s approval is required, and the order should direct whether the minor’s share goes to a UTMA custodian, to the Clerk, to a guardian of the estate, or into a trust.

Process & Timing

1. Who files: The decedent’s mother (as administrator). Where: Clerk of Superior Court in the North Carolina county where the real property is located. What: Apply for letters (e.g., AOC-E-201/AOC-E-202), publish and run the creditor notice, and manage assets; for wrongful death, seek judicial approval of any settlement and allocation. When: Make distributions after the creditor claim window and approval steps are complete.
2. To avoid guardianship, consider a UTMA transfer: file a petition or motion for court authorization if the amount requires it, naming the proposed custodian and showing why it is in the child’s best interest; alternatively, deliver eligible funds to the Clerk with the information the Clerk requires to invest for the child.
3. Document the distribution path in the estate’s final account. Expect the Clerk to audit the account and then discharge the administrator after proper distribution.

Exceptions & Pitfalls

• Do not keep the estate open merely to wait for the child to turn 18; the Clerk can compel accounting, and undue delay risks removal.
• For larger sums, a guardianship of the estate may be required if UTMA or Clerk deposit is not suitable.
• UTMA transfers often need court authorization for larger amounts; skipping this step can derail closing.
• Funds deposited with the Clerk are typically released at 18; if you want control to extend longer, use UTMA (usually until 21) or a trust.
• Wrongful death proceeds must not be commingled with estate assets except for limited statutory expenses; follow the court’s approval order closely.

Talk to a Probate Attorney

If you’re handling an estate with a minor heir and need help choosing the safest way to hold the child’s share, our firm can help you understand your options and timelines. Call us today to discuss your situation.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.