Detailed Answer
1. Open the Estate With the Clerk of Superior Court
Intestate estates in North Carolina begin with an Application for Letters of Administration (form AOC-E-201) filed with the Clerk of Superior Court in the county where the decedent lived. The Clerk issues Letters of Administration granting the personal representative (called the administrator) legal authority to gather, protect, and distribute the assets. See N.C. Gen. Stat. Chapter 28A.
2. Identify All Property the Decedent Owned
- Real Property: Search county deed books and tax cards; review the decedent’s homeowner’s insurance and loan statements; and physically inspect known residences or land.
- Personal Property: Collect bank statements, brokerage statements, vehicle titles, storage-unit contracts, safe-deposit box contents, and digital assets such as cryptocurrency keys.
- Non-Probate Assets: Joint bank accounts with right of survivorship, payable-on-death (POD) or transfer-on-death (TOD) designations, life-insurance proceeds with named beneficiaries, and retirement accounts generally bypass probate. Note them, but do not list them on the probate inventory.
3. Secure and Value the Assets
Change locks, forward mail, and move valuables to a secure location. Obtain written appraisals for real estate, vehicles, collectibles, and business interests. The date-of-death value becomes the tax basis for heirs.
4. File the Inventory Within Three Months
Under N.C.G.S. § 28A-20-1, the administrator must submit Form AOC-E-506 inventorying the probate estate within 90 days after qualification. Although real estate passes immediately to heirs at death (§ 28A-15-2), list it for information and potential sale authority.
5. Notify Creditors and Pay Valid Claims
The administrator must publish a Notice to Creditors for four consecutive weeks (§ 28A-14-1) and personally mail it to known creditors. Creditors then have 90 days to file claims. The estate pays funeral expenses, administration costs, taxes, and valid debts in the priority order set by § 28A-19-6.
6. Distribute the Property Under Intestate Succession
After debts and costs are satisfied, the administrator distributes the remaining assets:
- Real Estate: Title already vested in the heirs at death. If the administrator must sell land to pay debts or divide shares, obtain a special proceeding order from the Clerk per § 28A-17-3. Sale proceeds then follow the intestacy shares below.
- Personal Estate: Transfer by deed, assignment, or check once the Clerk approves a Final Account (Form AOC-E-506).
North Carolina’s intestate shares appear in Chapter 29. Common scenarios:
| Survivors | Share of Spouse | Share of Others |
|---|---|---|
| Children (or descendants) | First $60,000 in personal property + one-half balance; one-half of real property | Children split the other half equally (§ 29-15) |
| No children; at least one parent | First $100,000 in personal property + one-half balance; one-half real property | Parents split the other half (§ 29-14) |
| No spouse or descendants | N/A | Parents, then siblings, then more distant kin in descending order (§ 29-15 et seq.) |
7. Close the Estate
File a verified Final Account showing every receipt and disbursement (§ 28A-21-1). Once the Clerk approves, the administrator is discharged and liability ends.
Helpful Hints
- Order at least ten certified death certificates; every financial institution will ask for one.
- Run a free online unclaimed-property search at nccash.com; any funds recovered still flow through the estate.
- Ask a CPA to prepare the decedent’s final income tax return and any fiduciary returns (Form 1041).
- If an heir is a minor, set up a UTMA account or request a small-estate guardianship so you can distribute legally.
- Keep estate funds in a dedicated checking account; never mingle them with personal money.
- Missed the three-month inventory deadline? File it anyway and explain the delay—the Clerk usually imposes a small penalty but allows administration to continue.
Need guidance with a North Carolina intestate estate? Our probate attorneys have years of experience streamlining administration, protecting administrators from personal liability, and maximizing heirs’ inheritances. Call (919) 341-7055 now for a no-pressure consultation.
