Dec222025
Probate Q&A Series

Can I recover life insurance or retirement plan funds that bypassed the estate or went to child welfare? – North Carolina

Short Answer

Sometimes. In North Carolina, life insurance and many retirement benefits usually pass outside probate to the named beneficiary, so the estate (and heirs) often cannot “pull them back” just because the estate is open. However, if a beneficiary is disqualified under North Carolina’s slayer statute, the law generally treats the slayer as having died before the decedent, which can redirect life insurance proceeds to an alternate beneficiary or to the estate. Separate rules can apply when funds were paid for a minor and held or disbursed through the Clerk of Superior Court, which may limit what can be recovered and may require a court proceeding to review what happened.

Understanding the Problem

When a North Carolina decedent had life insurance or retirement plan benefits, those funds often transfer by beneficiary designation instead of going through the estate. The decision point is whether an heir can recover those non-estate funds after learning the estate has been open for decades with an administrator, particularly when a potential beneficiary was convicted of killing the decedent and the question is whether that beneficiary must be disqualified and the funds redirected. A related issue arises when the funds were paid for a child and ended up being handled through the court system or child welfare channels rather than through the estate.

Apply the Law

North Carolina generally treats beneficiary-designation assets (like many life insurance policies and many retirement plans) as “nonprobate” transfers, meaning they pay to the named beneficiary and bypass the estate. But North Carolina’s slayer law can block a killer from receiving benefits and can redirect certain benefits as if the slayer predeceased the decedent. In addition, if insurance money is paid for a minor and received by the Clerk of Superior Court (or the public guardian, if applicable) under a specific statute, the clerk can administer and disburse those funds for the child’s benefit under court-controlled rules.

Key Requirements

  • Identify whether the funds were truly nonprobate: The policy, plan document, or account agreement controls whether benefits paid directly to a named beneficiary (instead of to the estate) and whether any contingent beneficiaries exist.
  • Establish disqualification under the slayer statute (if applicable): If the named beneficiary is a “slayer” under the statute, North Carolina treats that person as having died before the decedent for purposes of receiving benefits, including certain insurance benefits.
  • Match the remedy to the payee and where the money went: A claim may involve (a) redirecting unpaid proceeds, (b) recovering proceeds from the person who received them, or (c) addressing funds paid for a minor and held/administered through the Clerk of Superior Court.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The scenario involves a decades-old intestate estate with an appointed administrator and a request to disqualify an heir convicted of killing the decedent. If life insurance proceeds were payable to that heir, North Carolina’s slayer statute can change who is entitled to those proceeds by treating the slayer as predeceased, which may shift payment to a contingent beneficiary or into the estate. If the proceeds were paid long ago to a minor and routed through court-controlled handling, recovery often depends on what the clerk received, how funds were disbursed, and whether any balance remains or any court order governs distribution.

Process & Timing

  1. Who files: An interested person in the estate (often an heir) or the personal representative, depending on the issue. Where: The Clerk of Superior Court in the county where the estate is administered (estate file). What: A request for a hearing in the estate matter (often treated as a contested estate proceeding when factual disputes exist), along with supporting documents such as the criminal judgment/conviction record and the insurance/plan beneficiary records. When: As soon as the issue is discovered, because delays can increase practical recovery problems (missing records, closed accounts, prior disbursements).
  2. Notice and evidence: The clerk typically requires notice to affected parties (the administrator/personal representative, the alleged slayer or that person’s representative, and any alternate beneficiaries). Evidence usually focuses on the slayer status and on the benefit designation and payment history (who was paid, when, and under what authority).
  3. Order and follow-through: If the clerk determines the slayer statute applies, the order can direct the proper recipient framework (for example, treat the slayer as predeceased). If funds remain unpaid, the insurer or plan administrator may be asked to reissue payment to the correct recipient. If funds were already paid, the next step may involve a recovery action against the recipient or a proceeding addressing funds administered through the clerk for a minor.

Exceptions & Pitfalls

  • “Bypass” is often the point: Life insurance and many retirement benefits are designed to avoid probate. If the beneficiary was not disqualified and the payor properly paid under the contract, the estate may have no direct claim to those funds.
  • Insurer/plan protections if paid without notice: North Carolina’s slayer law can protect an insurer/annuity company that paid according to the contract without notice of facts that would trigger the slayer statute, which can shift the real recovery target to the person who received the money.
  • Child-related handling can be court-controlled: When money was paid for a minor to the Clerk of Superior Court under the minor-funds statute, the clerk can disburse funds under statutory standards and requires proof the money was used for the child’s benefit. That history matters when evaluating whether anything is left to recover and what court orders exist.
  • Old estates create proof problems: Decades-old files often involve lost beneficiary forms, changed insurers/plan administrators, missing payment records, and unclear chains of custody. A practical first step is to obtain the policy/plan file and payment history directly from the payor and compare it to the estate file.
  • Do not assume the administrator can “collect” nonprobate benefits: Unless the estate is the beneficiary (or becomes the recipient because no alternate beneficiary exists after disqualification), the administrator may have no authority to demand payment into the estate.

Conclusion

In North Carolina, life insurance and many retirement plan benefits usually bypass the estate and pay the named beneficiary, so recovery is often only possible if a legal rule changes who should have received the money. The slayer statute can disqualify a beneficiary convicted of killing the decedent and can redirect life insurance proceeds to the alternate beneficiary or, if none exists, into the estate. The most important next step is to file a request for a hearing with the Clerk of Superior Court in the estate file to address disqualification and direct the proper recipient of any benefits still at issue.

Talk to a Probate Attorney

If there is a question about life insurance or retirement funds that bypassed the estate, or whether a convicted heir must be disqualified under North Carolina’s slayer statute, our firm has experienced attorneys who can help explain the options and deadlines in the clerk’s office and any related court proceedings. Call us today at (919) 341-7055.

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.

Category: Probate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.