Probate Q&A Series

Detailed Answer

A small estate affidavit in North Carolina allows heirs to collect certain assets without opening formal probate when the estate’s value (excluding exempt property) does not exceed $20,000. See N.C.G.S. § 28A-19-1. But if you discover out-of-state funds or property that exceed this limit, or if a third party refuses to honor the affidavit, you must convert to a full estate administration.

To make the switch, follow these steps under North Carolina law:

  1. Prepare a Petition for Administration. File this petition with the clerk of superior court in the county where the decedent lived. You’ll request that the court appoint a personal representative under N.C.G.S. § 28A-2-1.
  2. Rescind the Small Estate Affidavit (if needed). If you already used a small estate affidavit, notify all parties that received funds and ask the court to cancel the affidavit distribution so assets can flow through formal probate.
  3. Submit Required Documents. Attach a certified copy of the death certificate, the will (if any), an inventory of all estate assets (including out-of-state funds), and an acceptance of appointment by the proposed personal representative.
  4. Post Bond (when applicable). The court may require a bond to guarantee faithful administration. In many cases, heirs can waive bond if the will so provides or if all beneficiaries agree. See N.C.G.S. § 28A-12.
  5. Serve Notice to Creditors. Publish notice in the county newspaper and mail notice to known creditors under N.C.G.S. § 28A-15-1. This step protects the personal representative from unfiled claims.
  6. Obtain Letters of Administration. Once all filings are in order, the clerk issues Letters Testamentary (if there’s a will) or Letters of Administration. These letters authorize you to collect estate assets, including those located in other states.
  7. Ancillary Administration for Out-of-State Assets. In some states, you must open a short ancillary proceeding to transfer property back to North Carolina administration. Contact counsel in the jurisdiction holding the funds for local requirements.
  8. Distribute Assets and Close the Estate. After collecting and selling assets, paying debts, and filing a final account, petition the court to approve distribution to beneficiaries and close the estate.

Checklist for Switching to Full Probate

  • Confirm the total estate value exceeds the small estate affidavit limit of $20,000.
  • Draft and file a Petition for Administration in the decedent’s home county.
  • Gather and submit the death certificate, will (if any), and asset inventory.
  • Rescind any previously filed small estate affidavit distributions.
  • Post bond or obtain waivers if the court requires security.
  • Serve and publish notice for creditor claims.
  • Secure Letters of Administration to act on behalf of the estate.
  • Open ancillary probate where out-of-state funds are held, if required.
  • Collect, manage, and distribute assets per the court-approved plan.

If you need to switch from a small estate affidavit to full probate to collect out-of-state funds, don’t navigate these steps alone. Pierce Law Group’s attorneys guide you through every requirement under North Carolina law. Contact us today by emailing intake@piercelaw.com or calling (919) 341-7055.