How dividend checks indicate that estate stock shares have not been liquidated in North Carolina probate
1. Detailed Answer
When someone dies owning corporate stock, those shares become part of the probate estate. The personal representative must locate, preserve, and account for every asset, including stock certificates and any income generated by them. Dividend checks arrive when the corporation distributes a portion of its profits to shareholders. If the estate continues to receive dividend checks, it means the underlying shares remain registered in the decedent’s name (or the estate’s name) and have not been sold.
Under North Carolina law, a personal representative must collect all estate assets and protect their value. N.C.G.S. § 28A-13-3 requires the personal representative to gather personal property, including stocks, and keep those assets safe. If shares were sold soon after death, dividends would stop. Ongoing dividend payments show the shares still exist in corporate records.
When the estate receives dividend checks, the representative must:
- Endorse or deposit each check into the estate’s bank account.
- Record the income in the estate accounting under N.C.G.S. § 28A-17-1. The court reviews this income when approving annual or final accounts.
- Include the fair market value of remaining shares on the estate inventory under N.C.G.S. § 28A-15-1. Dividend issuance confirms unsold shares and helps establish their current value.
Failing to report dividend income or misplacing checks may lead to court objections or challenges from interested parties. By tracking dividend checks, you confirm the estate still holds the stock and comply with the personal representative’s duties.
2. Key Points to Remember
- Dividend checks prove shares remain in the estate’s name and have not been liquidated.
- Deposit all checks into the estate account to maintain clear records.
- Report dividend income in annual and final accountings per N.C.G.S. § 28A-17-1 (link).
- Value unsold shares on the estate inventory under N.C.G.S. § 28A-15-1 (link).
- Document every dividend check to avoid disputes and ensure transparency with beneficiaries and the court.
Contact Pierce Law Group
Dividend checks serve as clear evidence that estate stock shares remain unliquidated and must be properly handled and reported under North Carolina probate law. If you oversee an estate and need guidance on collecting dividends or preparing inventories and accountings, turn to Pierce Law Group. Our attorneys have years of experience in North Carolina probate administration and can help you fulfill your duties correctly. Reach out today by emailing intake@piercelaw.com or calling (919) 341-7055 for a consultation.
