1. Detailed Answer

When someone passes away owning a business or real property, the personal representative (previously called executor or administrator) must follow North Carolina law to protect assets, pay creditors, and distribute property to beneficiaries. Below is a step-by-step guide:

a. Appointment and Authority of the Personal Representative

First, the clerk of superior court issues Letters Testamentary or Letters of Administration. These letters grant the personal representative authority to act on behalf of the estate. They also serve as proof of authority for banks, corporations, and county register of deeds offices.

b. Inventory and Valuation

Under N.C. Gen. Stat. § 28A-13-1 (link), the personal representative must prepare an inventory of all estate assets. For a business, that inventory includes:

• Bank and brokerage account balances
• Stock certificates and membership interests
• Equipment, inventory, and goodwill

For real estate, the representative obtains an appraisal or market analysis under N.C. Gen. Stat. § 28A-19-1 (link).

c. Managing Business Bank Accounts

After appointment, present Letters to the bank to transfer accounts into a new estate account. The personal representative uses this estate account to:

• Collect business income
• Pay ongoing expenses (rent, payroll, utilities)
• Pay estate debts and taxes

Keep detailed records. NC courts require clear accounting under N.C. Gen. Stat. § 28A-15-1 (link).

d. Transferring Corporate or Membership Interests

If the decedent owned stock or membership interests:

• Review the company’s bylaws or operating agreement for transfer restrictions.
• Obtain a valuation of the shares or units.
• Deliver the original certificate or membership certificate and Letters to the corporation’s transfer agent or manager.
• Update the corporate ledger or membership register in accordance with N.C. Gen. Stat. § 55-14 and § 57D-2-06.

e. Disposing of Real Estate

To transfer or sell real property:

• Obtain court approval if required. For sale of estate realty outside the terms of a will, file a sale petition under N.C. Gen. Stat. § 28A-17-3 (link).
• Execute a deed conveying title from the estate to the buyer or beneficiary. File the deed in the county register of deeds office.

f. Final Accounting and Distribution

Once liabilities and expenses are paid, prepare a final accounting for the court and beneficiaries. After approval, distribute remaining business interests, cash, and real estate according to the will or, if there is no will, under the intestacy rules in N.C. Gen. Stat. § 29.

2. Key Steps Checklist

1. Obtain Letters Testamentary or Administration from the clerk’s office.
2. Create and maintain a separate estate bank account.
3. Prepare inventory and valuation of business and real estate assets.
4. Follow corporate or LLC procedures to transfer ownership interests.
5. Seek court approval for selling or transferring real property if required.
6. File deeds and corporate documents with the register of deeds and secretary of state.
7. Maintain accurate records and account to the court and beneficiaries.
8. Distribute remaining assets under the will or state law.

Handling estate business accounts and property calls for careful compliance with North Carolina statutes and fiduciary duties. If you need guidance, reach out for experienced legal support.

Contact Pierce Law Group for assistance with estate administration in North Carolina. Email intake@piercelaw.com or call (919) 341-7055 to schedule a consultation.