Dec32025
Probate Q&A Series

Do beneficiary‑only assets need to be listed on the probate forms, and do they affect the estate’s fee calculation? – North Carolina

Short Answer

Under North Carolina law, most beneficiary-only or other nonprobate assets (such as life insurance or retirement accounts payable to a named person, or POD/TOD accounts) are generally not listed on the formal estate Inventory and are not included in the clerk’s “gross estate” fee calculation. They may, however, appear on the initial application in check‑box form for information only. If any portion of a beneficiary‑only asset is actually pulled into the estate to pay debts or claims, that used portion must be reported in the accounts and will then affect the fee calculation.

Understanding the Problem

The narrow question is whether North Carolina probate law requires beneficiary‑only assets to be listed on probate forms and whether those assets change the estate administration fee the clerk of superior court charges. The focus is on nonprobate assets that pass by beneficiary designation or survivorship, rather than through the will or intestacy, in a standard estate administration in the office of the clerk of superior court.

Apply the Law

Under North Carolina law, the clerk calculates the main estate fee using the “gross estate” reported on the Inventory and later accounts, which generally covers probate personal property and certain sale proceeds, not assets that never pass through the personal representative’s hands. Beneficiary‑only assets are usually treated as nonprobate, but they can be reachable to pay claims and, if used that way, become part of what must be reported and costed.

Key Requirements

  • Probate vs. nonprobate status: Assets held solely in the decedent’s name or payable to the estate are probate and belong on the Inventory; assets passing directly to a named beneficiary or by survivorship are normally nonprobate and omitted from the Inventory’s value lines.
  • Effect on clerk’s “gross estate” fee: The clerk’s percentage fee is based on the gross estate of personal property and certain real estate sale proceeds reported in the Inventory and accounts; purely nonprobate assets are excluded unless the personal representative actually receives or uses them.
  • Use of nonprobate assets to pay claims: If nonprobate or beneficiary‑only assets are accessed to pay debts, claims, or expenses, the portion used must be reported on an account and becomes part of the gross estate for fee purposes.

What the Statutes Say

Analysis

Apply the Rule to the Facts: With no specific facts given, consider a life insurance policy that names an adult child as beneficiary. Under North Carolina practice, that policy would be disclosed on the preliminary application only by checking that such insurance exists, but the amount would not be listed on the Inventory because it is not payable to the estate. It would not be included in the gross estate fee under § 7A‑307. By contrast, if a payable‑on‑death bank account is tapped by the personal representative to pay funeral bills and medical expenses, the portion actually used must be reported on an account, and the clerk’s percentage fee would apply to that amount as gross estate.

Process & Timing

  1. Who files: The personal representative (executor or administrator). Where: Clerk of Superior Court, Estates Division, in the North Carolina county of the decedent’s domicile. What: Application for Letters (AOC‑E‑201), including the Preliminary Inventory, where beneficiary‑only assets are identified mainly by check boxes; later, a formal Inventory (AOC‑E‑505) listing probate assets only. When: The Inventory is due within three months after qualification, unless the clerk extends the deadline.
  2. When filing the Inventory, the personal representative lists probate assets and their values. Beneficiary‑only assets like life insurance or retirement accounts payable to individuals are not valued on that form, although some clerks expect POD accounts to be mentioned in a separate section if they might be reachable to pay claims. The clerk calculates the initial gross‑estate fee from this filing.
  3. In Annual and Final Accounts (AOC‑E‑506), the personal representative reports all receipts and disbursements of estate assets. If any portion of a beneficiary‑only or other nonprobate asset has been used to pay debts or expenses, that portion is shown as a receipt and disbursement, and any additional fee under § 7A‑307 on the added gross estate is assessed at that time.

Exceptions & Pitfalls

  • Some counties ask that POD/TOD or other reachable nonprobate assets be listed in informational sections (for example, “property which can be added to the estate to pay claims”), even though their value does not count toward the gross estate unless actually used. Local practice can differ.
  • If a beneficiary‑only asset is misclassified as probate and its value is put on the Inventory, the clerk may over‑assess the gross‑estate fee and beneficiaries may pay more than required unless the filing is corrected.
  • Conversely, if a personal representative uses part of a POD/TOD or joint account to pay debts but fails to report the use on the accountings, the estate may be out of compliance and subject to questions or surcharge in an audit.
  • Life insurance, annuities, retirement plans, or other death benefits payable to the estate (or to a testamentary trust that is part of the estate) are probate assets; they must be listed on the Inventory and will affect the fee calculation even though similar policies payable to individuals would not.

Conclusion

In North Carolina, beneficiary‑only assets such as life insurance and retirement accounts payable to a named person, POD/TOD accounts, and most joint‑with‑survivorship property are treated as nonprobate and are not valued on the estate Inventory or included in the clerk’s gross‑estate fee, unless the personal representative actually receives or uses them to pay debts or expenses. The key next step is to classify each asset correctly when preparing the Application and Inventory and to report any later use of nonprobate assets in the Annual or Final Account.

Talk to a Probate Attorney

If an estate involves a mix of probate and beneficiary‑only assets and there are questions about what must be listed or how court fees will be calculated, our firm has experienced probate attorneys who can help explain the options and local clerk expectations. 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.