How to Open a Small Estate in North Carolina When a Decedent Died Intestate with Under $20,000 in Assets

When someone dies without a will and leaves limited personal property, North Carolina law offers a streamlined process to collect assets. If the decedent’s personal property within the state, minus funeral expenses and exempt property, totals $20,000 or less, you may use the small estate procedure instead of formal administration.

What Is a Small Estate?

Under North Carolina General Statutes, a “small estate” means the decedent’s personal property in North Carolina does not exceed $20,000 after subtracting funeral expenses and the $5,000 exempt property allowance. See the full definition here: N.C.G.S. § 28A-13-2.

Step-by-Step Process to Open a Small Estate

1. Calculate Total Personal Property: List all personal items (bank accounts, vehicles, stocks) located in North Carolina. Deduct funeral costs and up to $5,000 in exempt property.
2. Identify Intestate Heirs: Without a will, heirs inherit under North Carolina’s intestate succession rules (N.C.G.S. Chapter 29A). Generally, this starts with a surviving spouse or children.
3. Prepare the Small Estate Affidavit: Complete the “Affidavit for Collection of Personal Property” required by N.C.G.S. § 28A-13-3. Your affidavit must include:
   • Decedent’s full name and date of death
   • Itemized list of assets and their values
   • Names and addresses of all heirs
   • Statement affirming the estate qualifies as a small estate
   • Certified copy of the death certificate
4. File with the Clerk of Superior Court: Submit the affidavit and death certificate in the county where the decedent resided. Pay any applicable filing fee.
5. Collect and Distribute Assets: Present the filed affidavit to banks or asset holders. They must release the property to the person entitled under the statute. Distribute proceeds to heirs following the intestate succession order.

Key Points to Remember

• This process covers only personal property, not real estate.
• You cannot use the small estate procedure if a valid will exists.
• If total personal property exceeds $20,000, you must open a formal estate administration under N.C.G.S. § 28A-2-1.
• Address any creditor claims before distributing assets to heirs.
• Check your local clerk’s office for specific forms and fee schedules.

Using the small estate procedure saves time and cost compared to full administration. Still, errors can cause delays. Pierce Law Group has attorneys with extensive North Carolina probate experience. We guide families step by step through opening a small estate. To discuss your situation, email intake@piercelaw.com or call us at (919) 341-7055.