How to Transfer Your Late Spouse’s Corporate Interests into His Intestate Probate Estate in North Carolina

Detailed Answer

When your spouse dies without a will in North Carolina, the estate passes under the intestacy rules in Chapter 28A of the North Carolina General Statutes. Corporate interests—like shares in a corporation or membership units in a limited liability company—are personal property. To transfer these interests into the probate estate, follow these key steps:

1. Open probate and appoint a personal representative. File a petition for administration under N.C.G.S. § 28A-3-4. The clerk of superior court will issue letters of administration. These letters grant legal authority to collect, manage, and transfer estate assets on behalf of the estate.
2. Inventory the corporate interests. Under N.C.G.S. § 28A-17-1, list all stock certificates or LLC membership units in the estate inventory. Obtain certified copies of the death certificate and your letters of administration.
3. Review governing documents. Examine the corporation’s bylaws or the LLC’s operating agreement for any transfer restrictions or approval requirements. For corporations, see N.C.G.S. § 55-6-03. For LLCs, consult N.C.G.S. § 57D-3-02.
4. Submit documents to the company. Provide the death certificate, letters of administration, and the endorsed certificates or signed assignments to the corporate secretary or LLC manager. The company will update its records to show the estate as the new owner.
5. Distribute interests to heirs. Once the corporate ledger reflects the estate as owner, you may transfer the interests to the heirs under the intestacy scheme in N.C.G.S. § 28A-2-1. Notify all heirs and confirm distributions.

Key Steps to Transfer Corporate Interests

• File a petition for administration (N.C.G.S. § 28A-3-4).
• Prepare an accurate inventory of corporate interests (N.C.G.S. § 28A-17-1).
• Examine bylaws and operating agreements for transfer rules (N.C.G.S. § 55-6-03; N.C.G.S. § 57D-3-02).
• Provide death certificate and letters of administration.
• Endorse certificates or execute written assignments.
• Update the company’s records to list the estate as owner.
• Distribute interests to heirs under intestacy (N.C.G.S. § 28A-2-1).

Transferring corporate interests into an intestate probate estate requires opening the estate, inventorying assets, obtaining legal authority, reviewing governing documents, and updating corporate records. Following these steps under North Carolina law helps ensure a smooth distribution to the rightful heirs.

To get clear guidance and avoid delays, reach out to the experienced probate attorneys at Pierce Law Group. Email us at intake@piercelaw.com or call (919) 341-7055 for a case review.