Detailed Answer

Losing a loved one is difficult. Handling their assets without a will—known as dying intestate—can feel overwhelming. In North Carolina, you follow a set legal process to open probate and distribute assets, including 401(k) plans and life insurance.

1. Determine If Probate Is Required

First, identify the value and type of estate assets. If the total personal property is $20,000 or less and real estate isn’t involved, you may qualify for a small estate affidavit under N.C. Gen. Stat. § 28A-19-1. Otherwise, you must open formal probate.

2. Apply to Become Administrator

Without a will, the clerk of superior court appoints an administrator to handle the estate. Follow these steps:

• File a petition for administration in the county where the decedent lived. Include the decedent’s death certificate, a list of next of kin, and an inventory of known assets.
• Post a bond, if required. The clerk may waive bond for close relatives (spouse or lineal descendant).
• Publish or mail notice to creditors within 30 days of appointment. This opens a two-year period for creditor claims (N.C. Gen. Stat. § 28A-15-1).

3. Identify and Inventory Assets

Once appointed, you must:

• Compile a full inventory of estate assets and file it with the court (N.C. Gen. Stat. § 28A-11-6).
• Secure real estate, bank accounts, vehicles and other personal property.

4. Handle 401(k) and Life Insurance Proceeds

Retirement plans and life insurance often pass outside probate if a valid beneficiary designation exists:

• If the decedent named a beneficiary, the plan administrator or insurer pays proceeds directly to that person.
• If no beneficiary or the designation is invalid, the asset becomes part of the probate estate. You must include those funds on the inventory and distribute them under North Carolina’s intestate succession rules (N.C. Gen. Stat. § 28A-2-1).

5. Distribute Estate According to Intestate Succession

Without a will, North Carolina law dictates how to distribute assets:

• Surviving spouse and children generally share. If all children are from the surviving spouse, the spouse inherits everything.
• Other relatives inherit if there is no spouse or children, following the hierarchy in N.C. Gen. Stat. § 28A-2-1.

6. Final Accounting and Closing

After paying valid debts, filing tax returns and obtaining court approval, you submit a final accounting. The court reviews it and discharges you as administrator.

Key Takeaways

• Not all estates need formal probate—small estate affidavits may simplify the process (G.S. 28A-19-1).
• Without a will, a court-appointed administrator handles the estate.
• Beneficiary designations on 401(k)s and life insurance generally avoid probate.
• No designation means the asset enters probate and follows intestate succession (G.S. 28A-2-1).
• Creditors must file claims within two years, and you must file an inventory and accounting.