1. Detailed Answer

When someone dies in North Carolina with assets in their name, the personal representative (sometimes called executor) must wrap up debts and then move remaining funds into any trust the decedent created. North Carolina law lays out clear steps.

Step 1: Notify and Review Creditor Claims

Under N.C.G.S. § 28A-18-2, the personal representative must publish a Notice to Creditors in a local newspaper. This notice starts the three-month period for submitting claims. You must also mail written notice to known creditors.

Creditors then file claims against the estate. The personal representative reviews each claim and determines whether it is valid.

Step 2: Pay or Reject Claims

If a claim is valid, you pay it from estate assets. North Carolina law places priority on funeral expenses, administrative expenses and certain taxes first. See N.C.G.S. § 28A-13-2 for the order of payment.

If you reject a claim, you must notify the creditor in writing. A creditor whose claim is rejected may petition the clerk of court within 30 days to allow the claim under N.C.G.S. § 28A-18-3.

Step 3: Open a Fiduciary Bank Account

Before you pay claims or make distributions, open an estate checking account in the name “Estate of [Decedent’s Name],” using the estate’s federal tax ID. Keep this account separate from personal funds.

Step 4: Fund the Trust Account

If the decedent’s will directs that remaining assets flow into a trust, you must transfer the net estate funds after debts and expenses are paid. First, confirm that the trust document is valid under the North Carolina Uniform Trust Code (Chapter 36C). Then:

• Obtain or confirm the trust’s tax ID, if needed.
• Open a bank account in the trust’s name.
• Write a check or initiate a wire from the estate account to the trust account.
• Record the transaction in the estate accounting.

Once the trust holds those assets, the successor trustee manages them under the trust terms.

By following these steps, the personal representative completes administration in compliance with North Carolina statutes and protects both the estate and beneficiaries.

2. Key Steps and Considerations

• Publish Notice to Creditors and mail to known creditors (N.C.G.S. § 28A-18-2).
• Evaluate each claim, pay valid ones, reject invalid ones in writing (N.C.G.S. § 28A-18-3).
• Open a separate estate bank account using the estate’s EIN.
• Confirm trust validity under Chapter 36C of the North Carolina General Statutes.
• Transfer net estate funds to the trust account and document the transfer in your accounting.
• Keep detailed records of payments, rejections, and transfers for the final accounting report.