Probate Q&A Series

How do I open a North Carolina estate with Medicaid and guardianship issues, and handle the family home?

Detailed Answer

Opening an estate in North Carolina when Medicaid benefits and a guardianship are involved requires careful planning. You must protect the decedent’s assets, address any Medicaid liens, and honor the rights of a guardian-appointing court. Below is a step-by-step guide:

1. Gather Key Documents and Information

  • Death certificate
  • Last will and testament, if one exists
  • Information about all assets, including the family home
  • Records of Medicaid benefits paid on behalf of the decedent
  • Court orders establishing a guardian, if one was in place

2. File a Petition for Probate

Under N.C. Gen. Stat. § 28A-12-1 (ncleg.gov), you begin by filing a petition in the clerk of superior court’s office in the county where the decedent lived. The petition asks the court to admit the will (if there is one) and appoint a personal representative.

3. Notify Interested Parties

After filing, serve notice to heirs, creditors, and the Medicaid agency. This step ensures compliance with N.C. Gen. Stat. § 28A-13-1 (ncleg.gov), which governs notice to creditors. You must also inform the court-appointed guardian, as proceedings may affect the guardian’s authority.

4. Address Medicaid Liens

North Carolina’s Medicaid estate recovery program allows the state to file a claim against the estate under N.C. Gen. Stat. § 108A-70 (ncleg.gov). The personal representative must collect assets, pay valid debts, and satisfy the Medicaid claim before distributing property to heirs.

5. Work with Guardianship Proceedings (if applicable)

If the decedent had a guardian, the guardian’s duties usually end at death. You must file a final accounting for the guardianship estate under N.C. Gen. Stat. § 35A-1211 (ncleg.gov). Once the court approves the final report, you can transfer assets to the probate estate.

6. Manage the Family Home

During probate, the personal representative owes a fiduciary duty to maintain estate property. That includes:

  • Paying property taxes and insurance premiums
  • Securing and maintaining the property
  • Deciding whether to sell, rent or transfer the home according to the will or intestacy rules (see N.C. Gen. Stat. § 28A-15-3: ncleg.gov)

If the home passes to a minor or incapacitated heir, the court may require a guardian ad litem or deposit of sale proceeds with the clerk.

7. Close the Estate

After paying debts (including Medicaid) and distributing assets, file a final accounting and petition for discharge under N.C. Gen. Stat. § 28A-21-1 (ncleg.gov). Once the court approves, the personal representative is discharged.

Key Takeaways

  • File a probate petition with the clerk of superior court in the decedent’s county of residence.
  • Notify heirs, creditors, the Medicaid agency, and the guardian.
  • Settle Medicaid estate recovery claims under N.C. Gen. Stat. § 108A-70.
  • Close out any guardianship estate with a final accounting per N.C. Gen. Stat. § 35A-1211.
  • Maintain, insure, and decide the fate of the family home under N.C. Gen. Stat. § 28A-15-3.
  • File a final accounting and petition for discharge to close the estate.

Handling an estate with Medicaid and guardianship issues can feel overwhelming. Pierce Law Group has experienced attorneys ready to guide you through each step. Contact us today to protect your loved one’s legacy and resolve the family home question. Email us at intake@piercelaw.com or call (919) 341-7055.