Short Answer

No. In North Carolina, wrongful death proceeds do not pass under the decedent’s Last Will and Testament. By statute, they are distributed to the decedent’s heirs as if the person died without a will (intestate). They are also generally not part of the probate estate and are not available to pay most estate debts. See N.C. Gen. Stat. § 28A-18-2.

How North Carolina distributes wrongful death proceeds

North Carolina’s wrongful death law requires the personal representative (executor or administrator) to bring the claim, but any money recovered is distributed to the decedent’s heirs following North Carolina’s intestacy rules—not the will’s beneficiaries. See § 28A-18-2.

Intestate shares depend on who survived the decedent. Key intestacy statutes include:

• Share of a surviving spouse: § 29-14
• Shares of children/other heirs: § 29-15 and representation rules at § 29-16

Practical examples:

• Spouse and children survive: The spouse and children share the proceeds under the intestacy formula.
• Only a spouse survives: The spouse receives the entire recovery.
• Children but no spouse: The children share the recovery equally by representation.
• No spouse or children: Parents or next of kin inherit under the intestacy order.

Note: Certain people may be barred from inheriting under special rules. For instance, a person who unlawfully and willfully killed the decedent cannot take under the Slayer Statute and § 31A-4. A spouse may also be disqualified for certain conduct under § 31A-1.

Why the will does not control wrongful death proceeds

North Carolina law treats wrongful death recovery as a special category. The funds are not assets of the probate estate, and the will does not direct where they go. The statute commands distribution to heirs under the intestacy laws. See § 28A-18-2.

So, even if a will leaves everything to a friend or charity, the wrongful death recovery still goes to the heirs at law under Chapter 29.

Wrongful death vs. survival claims

It’s common for a case to include both:

• Wrongful death claim (§ 28A-18-2): Proceeds go to heirs by intestacy and generally do not pay estate debts (with limited exceptions).
• Survival claim (§ 28A-18-1): This covers the decedent’s own claims that existed before death (for example, property damage or pre-death pain and suffering). Recovery is an estate asset, subject to creditors, and distributed under the will (or by intestacy if there is no will).

Because the two claims distribute differently, clear settlement allocations matter.

Creditor claims and liens against wrongful death proceeds

Wrongful death proceeds are generally shielded from the decedent’s debts. However, North Carolina allows limited payments from the recovery before distributing it to heirs, including:

• Costs and reasonable attorneys’ fees for bringing the claim;
• Reasonable hospital, medical, and funeral expenses related to the injury and death. See § 28A-18-2;
• Health care provider liens under § 44-49 and limitations in § 44-50.

Minors, court approval, and guardians

Because heirs may include minors, North Carolina courts typically review and approve wrongful death settlements and distributions to protect those minors. A guardian of the estate or restricted account is often required for a minor’s share. The personal representative should seek court approval before finalizing a settlement or distribution plan.

Helpful Hints

• Don’t assume the will controls: Wrongful death proceeds follow intestacy, not the will—confirm who the “heirs at law” are under Chapter 29.
• Identify all claims: Separate wrongful death from any survival claims because they distribute differently and affect creditors differently.
• Expect court oversight: Plan for court approval of any settlement and for safeguards when minors inherit.
• Address liens early: Gather medical bills and potential lien information to streamline approval and payout.
• Act promptly: North Carolina generally requires filing a wrongful death action within two years of death. See § 1-53.
• Watch for disqualifiers: The Slayer Statute and certain spousal disqualification rules can change who inherits. See § 31A-3, § 31A-4, and § 31A-1.

Bottom line and next steps

In North Carolina, wrongful death proceeds bypass the will and go to heirs under the intestacy laws, with limited deductions for costs, attorneys’ fees, and certain medical and funeral expenses. If you are navigating a wrongful death claim and probate, our firm can help you identify the correct heirs, structure settlements, address liens, and obtain court approvals efficiently. Call us today at (919) 341-7055 to speak with an attorney.