Probate Q&A Series

Detailed Answer

When someone passes away owning a vehicle that an insurer declares a total loss, the personal representative (sometimes called an executor) handles the insurance claim as part of estate administration. In North Carolina, you follow clear steps to collect insurance proceeds, account for any salvage value, and distribute funds according to the will or state law.

First, confirm your appointment as personal representative by obtaining Letters Testamentary or Letters of Administration from the clerk of superior court. Next, notify the insurer and provide a certified copy of the death certificate, your letters, and the original title. The insurer will assign an adjuster to inspect the vehicle and determine its actual cash value (ACV), less any deductible.

If you decide to keep the salvage, you may need to pay the insurer a salvage retention fee or follow the requirements under the North Carolina Motor Vehicle Rebuilt Salvage Law. Otherwise, the insurer retains the salvage title and pays you the total loss settlement amount. Sign any required release forms to close the claim.

Once you receive the settlement check, deposit it into the estate bank account. Under N.C.G.S. § 28A-14, you must include the insurance proceeds in the estate inventory. If the estate has a valid will, distribute the funds as directed. If there is no will, follow intestacy rules under Chapter 29 of the North Carolina General Statutes.

Key Steps to Resolve a Total Loss Vehicle Claim

  • Obtain Letters Testamentary or Letters of Administration to prove your authority.
  • Gather the vehicle title, insurance policy, death certificate, and your letters.
  • Notify the insurer promptly and submit all required documents.
  • Coordinate with the adjuster for vehicle inspection and valuation.
  • Decide whether to retain salvage or allow the insurer to keep it.
  • Sign release forms and accept the total loss settlement check.
  • Deposit proceeds into the estate account and list them in the inventory per N.C.G.S. § 28A-16.
  • Distribute funds according to the will or North Carolina intestacy laws.

Handling a total loss vehicle claim in probate involves clear procedures. If you need guidance or have questions about this process, turn to the experienced attorneys at Pierce Law Group. Our team understands North Carolina probate law and stands ready to help. Reach out by email at intake@piercelaw.com or call us at (919) 341-7055.