Detailed Answer

When you inherit property under a handwritten (holographic) will in North Carolina, you must first admit that will to probate so the court can appoint someone to manage the estate and pay debts, including any reverse mortgage balance. Here is how the process works under North Carolina law.

1. Validating a Handwritten (Holographic) Will

North Carolina recognizes handwritten wills if they meet these requirements:

• The entire document is in the testator’s handwriting.
• It bears the testator’s signature.
• It was written while the testator had capacity.

See N.C. Gen. Stat. § 31-4.5 for details on holographic wills. You must file the original will with the clerk of superior court in the county where the decedent lived. The clerk reviews the document and, if it appears valid, issues an order admitting it to probate and appointing a personal representative.

2. Opening Probate and Appointing a Personal Representative

After you file the will, the clerk:

• Sets a date for a hearing on admission of the will.
• Notifies heirs and creditors.
• Appoints the personal representative (formerly called executor or administrator) once the will is admitted.

The personal representative manages the estate, locates assets, pays valid debts and taxes, and then distributes what remains under the will. See Chapter 28A of the North Carolina General Statutes for the rules on estate administration.

3. Identifying and Addressing the Reverse Mortgage

A reverse mortgage is a loan secured by the home that does not require monthly payments while the homeowner lives there. Upon the homeowner’s death, the loan balance becomes due. In probate, the reverse mortgage is an estate debt. Here’s what you must do:

• Notify the loan servicer of the death within 30 days. They will send a claim form.
• Value the home through an appraiser or real estate agent.
• Decide whether heirs will pay off the reverse mortgage to keep the property or sell the home. If heirs keep the home, they must pay the balance plus fees. If they sell, sale proceeds repay the lender first.
• File the lender’s claim with the clerk by the deadline set for creditor claims. North Carolina law generally gives creditors up to three months after first publication of notice to file a claim. See N.C. Gen. Stat. § 28A-19-3.

Once you resolve the reverse mortgage, the personal representative distributes any remaining property under the terms of the will.

4. Closing the Estate

After debts, taxes, and the reverse mortgage are paid, the personal representative files a final accounting and petition for discharge. The clerk reviews it and, if all is in order, issues an order closing the estate and discharging the personal representative. At that point, heirs receive their inheritances.

Key Takeaways

• North Carolina accepts handwritten wills if wholly in the testator’s handwriting and signed. (See N.C. Gen. Stat. § 31-4.5.)
• Probate starts when you file the original will with the clerk of superior court in the decedent’s county.
• The clerk appoints a personal representative to manage the estate and pay debts.
• A reverse mortgage is an estate debt. Notify the lender, value the home, and decide whether heirs will keep or sell the property.
• Heirs who wish to keep the home must pay off the loan. Otherwise, sell and use proceeds to repay the lender first.
• File creditor claims, including the reverse mortgage, within three months of first notice. (See N.C. Gen. Stat. § 28A-19-3.)
• File a final accounting to close the estate and distribute remaining assets.

Contact Pierce Law Group

Probating a handwritten will and handling a reverse mortgage can feel overwhelming. Pierce Law Group has seasoned attorneys ready to guide you. Reach out for a clear roadmap through each step. Call us at (919) 341-7055 or email intake@piercelaw.com to schedule your consultation.