How to Determine Whether a Vehicle’s Value Qualifies for Inclusion in a North Carolina Spousal Allowance
Detailed Answer
1. What is the spousal allowance?
North Carolina grants a surviving spouse a one-time Year’s Allowance of up to $60,000 in personal property, protected from most estate creditors. See N.C.G.S. § 30-15 through § 30-20. The spouse applies to the clerk of superior court with AOC Form E-100. The clerk then “sets aside” eligible assets—cash, household goods, vehicles, etc.—up to the $60,000 cap.
2. Does a motor vehicle count?
Yes. A car, truck, motorcycle, boat trailer, or similar titled vehicle is personal property under North Carolina law, so its value can be included in the allowance if:
- The decedent owned the vehicle individually (or owned a fractional interest); and
- Title did not pass automatically by survivorship (for example, not titled “John Doe OR Jane Doe”).
3. How to value the vehicle
- Identify the valuation date. Use fair-market value (FMV) as of the decedent’s date of death—not today’s price. That is the date the clerk looks to under § 30-17.
- Gather objective pricing. Print the NADA Guides or Kelley Blue Book private-party FMV for the exact year, make, model, trim, and mileage. If the vehicle is rare or modified, obtain a written appraisal.
- Subtract secured liens? The statutes measure the gross value of personal property, not the owner’s “equity.” Because practice varies by county, attach the payoff letter to show current liens and request the clerk to use net equity if it helps stay within the $60,000 cap.
- Document the calculation. List the source (e.g., “KBB private-party value, $12,400”) beside the vehicle on AOC Form E-100.
4. Apply the vehicle toward (or beyond) the $60,000 cap
After valuing all eligible personal property:
- If the combined FMV is ≤ $60,000, the clerk can set aside the entire vehicle and the rest of the listed items.
- If the combined FMV is > $60,000, the clerk must reduce or exclude items until the allowance equals $60,000. Often, the spouse keeps the vehicle and receives less cash or fewer household goods.
- If the vehicle alone exceeds $60,000, the clerk may still assign it, but the surplus value becomes part of the probate estate and remains subject to creditor claims.
5. Ownership transfer after the clerk’s order
File the clerk-signed Order and Assignment with the N.C. Division of Motor Vehicles (DMV) along with:
- Original title (signed by the personal representative if one is appointed),
- New title application (MVR-1), and
- Proof of insurance.
Because the allowance order exempts the vehicle from probate, DMV will retitle it directly to the surviving spouse without the full estate process.
Example
Mary’s husband died owning a 2019 Ford F-150 worth $38,000 and household furniture worth $12,000. Mary applies for the spousal allowance:
- Vehicle – $38,000
- Furniture – $12,000
- Total – $50,000
The total is under $60,000, so the clerk sets aside both items in full. Mary files the order with DMV, and the truck is retitled directly to her—all without satisfying estate debts first.
Helpful Hints
- Review the title first. Joint ownership with survivorship means the vehicle already belongs to you and does not count toward the allowance.
- Use private-party FMV figures. Retail prices may push you over the limit.
- Liens reduce equity; include the payoff letter to support a lower net value if needed.
- Submit photographs and odometer readings with your application to avoid valuation disputes.
- File within one year of the decedent’s death (§ 30-17). Missing the deadline forfeits the allowance.
- If children are also claiming their $5,000 allowance each (§ 30-17), reserve enough of the $60,000 cap to cover theirs first.
Ready to protect your fair share? North Carolina probate rules favor quick action, and strategic asset selection can save thousands. Our firm guides surviving spouses statewide through the allowance process and every other estate step. Call our experienced attorneys today at (919) 341-7055 for a free consultation.
