Short Answer

In North Carolina, your Inventory (AOC-E-505) lists all probate assets you control as executor, with date-of-death values. Real estate is listed differently depending on whether it’s devised to the estate or only reachable to pay debts; life insurance with a named beneficiary is usually not a probate asset. After you qualify, publish a 4-week Notice to Creditors and mail the notice to known or reasonably ascertainable creditors, then file proof (AOC-E-307) with the Clerk when you file your 90‑day Inventory.

Understanding the Problem

You’re the named executor under a simple North Carolina will and have not opened the estate yet. You want to know (1) what assets and debts you must list for the estate, and (2) how to notify creditors so claims are properly handled. The decedent owned a mortgaged home, a low‑value car, and a small life insurance policy.

Apply the Law

North Carolina requires a personal representative to file an Inventory within three months after qualification listing estate assets and certain other interests, valued as of the date of death. The Clerk of Superior Court (Estates Division) oversees this. Real property is handled differently from personal property. A Notice to Creditors must be published (and mailed to known or reasonably ascertainable creditors) to set the claim deadline. Proof of notice is filed with the Inventory.

Key Requirements

• List probate assets with date‑of‑death values: Bank accounts titled solely to the decedent, vehicles, and other personal property go on the Inventory; include identifying details (e.g., VIN for vehicles). Real estate devised to the estate is listed as estate property; otherwise list solely owned real estate as property potentially available to pay claims.
• Classify non‑probate items correctly: Life insurance payable to a named beneficiary, POD/TOD accounts, and survivorship interests do not go on the probate asset list (though some can be reached if the estate lacks funds to pay claims).
• Publish and mail notice: After you receive Letters, publish a Notice to Creditors once a week for four consecutive weeks in the county of administration, and mail or deliver the same notice to known or reasonably ascertainable creditors before filing proof.
• File on time with the Clerk: File the Inventory (AOC‑E‑505) within three months of qualification and include the notice proof (AOC‑E‑307 plus the newspaper’s affidavit and a copy of the published notice).
• Pay claims by statutory priority: Evaluate claims and pay in the required order; secured debts (like a mortgage) remain against the collateral and are treated accordingly.

What the Statutes Say

• North Carolina Gen. Stat. § 28A‑20‑1 (Inventory due in 3 months) – Inventory of the decedent’s property must be filed within three months after qualification.
• North Carolina Gen. Stat. § 28A‑14‑1 (Notice to creditors) – Requires publication and mailing/delivery of notice to creditors after Letters are issued.
• North Carolina Gen. Stat. § 28A‑14‑2 (Proof of notice) – Describes filing the publisher’s affidavit and the personal representative’s affidavit (AOC‑E‑307).
• North Carolina Gen. Stat. § 28A‑19‑3 (Bar of claims) – Bars claims not presented by the published deadline or, for mailed creditors, within the required mailed‑notice period.

Analysis

Apply the Rule to the Facts: List the car (with VIN, title, and value) and any solely‑titled bank accounts on the Inventory at date‑of‑death values. List the mortgaged home as real property; if the will devised the home to the estate or you obtain control to pay debts, treat it as estate property, otherwise list it as property that can be used to pay claims if needed. Do not list the life insurance as a probate asset if it names a beneficiary. Publish a 4‑week Notice to Creditors and mail notice to known creditors (e.g., the mortgage servicer) before filing your proof of notice with the Clerk.

Process & Timing

1. Who files: The named executor. Where: Clerk of Superior Court, Estates Division, in the North Carolina county where the decedent was domiciled. What: Apply and qualify using Application for Probate and Letters (AOC‑E‑201) with the original will and death certificate; after Letters issue, publish the Notice to Creditors and prepare Inventory (AOC‑E‑505) and Affidavit of Notice to Creditors (AOC‑E‑307). When: Publish the notice promptly after qualification and file the Inventory within three months of qualification; include the notice proof when you file the Inventory.
2. The newspaper runs the notice once a week for four consecutive weeks. During and after the run, mail/deliver notice to known or reasonably ascertainable creditors. Creditors must present claims by the published deadline; mailed creditors get at least the mailed‑notice period set by statute.
3. Review claims and pay by statutory priority. If estate cash is short, consider whether you need authority over real property to pay debts. When claims are resolved and distributions made, file the Final Account (AOC‑E‑506) to close the estate.

Exceptions & Pitfalls

• Non‑probate assets: Life insurance payable to a named beneficiary is generally not a probate asset and is not listed as such; list it only for information on your initial application if requested.
• Real property control: Unless the will gives the executor control or the court authorizes it, real estate does not automatically come under the executor’s control; list it correctly and seek authority if needed to pay debts.
• Secured debts: A mortgage is secured by the property; do not ignore the lien. Mail notice to the lender and track arrears to protect the estate’s interests.
• Notice errors: Use a qualified county newspaper; if none, follow posting alternatives. Mail notice to creditors you actually know about or can find with reasonable diligence (statements, medical bills, lenders).
• Late filings: Missing the 90‑day Inventory can trigger Clerk orders and penalties. Ask for an extension before the deadline if needed.
• Out‑of‑state executor: You can serve from out of state, but you’ll need to appoint a North Carolina resident process agent when you qualify.

Talk to a Probate Attorney

If you’re handling an estate and need to know what to list and how to notify creditors, our firm has attorneys who can help you understand your options and timelines. Call us today.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.