1. Detailed Answer

When someone dies without leaving a valid will in North Carolina, the court appoints an intestate estate administrator to handle the estate. Under North Carolina law, the administrator owes a strict set of duties to the estate and its heirs. If heirs suspect that the administrator is withholding assets or undervaluing property, the law gives them clear tools to challenge that conduct.

Duties of an Intestate Estate Administrator

• Petition for Appointment: File a petition with the clerk of superior court to open the estate and request letters of administration. (See N.C. Gen. Stat. § 28A-6-2.)
• Post Bond: Post a fiduciary bond if required by the court to protect estate assets. (See N.C. Gen. Stat. § 28A-7.)
• Notify Creditors: Publish notice to creditors and serve notice on known creditors so they can file claims. (See N.C. Gen. Stat. § 28A-14-1.)
• Secure and Inventory Assets: Locate, take possession of, and safeguard real and personal property. File a detailed inventory with the clerk within 90 days. (See N.C. Gen. Stat. § 28A-12-2.)
• Value Property: Obtain appraisals or valuations for real estate, business interests, and unique items to determine fair market value.
• Pay Claims and Expenses: Review and pay valid creditor claims, final expenses, and estate taxes in the priority set by statute. (See N.C. Gen. Stat. § 28A-19-1.)
• File Tax Returns: Prepare and file any required federal or state income tax returns on behalf of the decedent and the estate.
• Account to Heirs: Prepare a final accounting that shows all receipts, disbursements, and distributions. File the account with the court and serve it on heirs. (See N.C. Gen. Stat. § 28A-19-6.)
• Distribute Remaining Assets: After court approval of the account, distribute the remaining estate according to North Carolina’s intestate succession laws. (See N.C. Gen. Stat. § 28A-13-1.)

How Beneficiaries Can Contest Withheld or Undervalued Assets

Heirs have the right to monitor administration and, if necessary, challenge misconduct. Here are common steps:

• Request an Accounting: File a written request for an interim or final accounting if you believe assets are missing or undervalued. (See N.C. Gen. Stat. § 28A-19-6.)
• Object to the Account: File formal objections within 30 days of service of the estate account. Point out specific undervaluations or omissions.
• Motion for Citation to Show Cause: Ask the clerk to issue a citation requiring the administrator to explain alleged misconduct. (See N.C. Gen. Stat. § 28A-17-1.)
• Petition for Removal: If the administrator breaches fiduciary duties, heirs can petition to remove them and appoint a successor. (See N.C. Gen. Stat. § 28A-17.)
• File for Surcharge: Seek a surcharge against the administrator to recover losses caused by undervaluation or mismanagement.
• Use Discovery Tools: In contested proceedings, beneficiaries can serve interrogatories, requests for production, and depositions to uncover hidden assets.

2. Key Takeaways

• An administrator must gather, value, and protect all estate assets and notify creditors.
• The administrator must file an inventory, pay valid claims, and account to heirs before distribution.
• North Carolina law gives beneficiaries the right to inspect accounts and file objections.
• Heirs can petition the court to compel answers, restate values, surcharge, or remove the administrator.
• Timely action and clear evidence help beneficiaries correct undervalued or missing assets.