Probate Q&A Series

What do ongoing dividend checks indicate about estate stock liquidation under North Carolina probate law?

1. Detailed Answer

When a personal representative continues to receive dividend checks on estate-owned stock, it shows the estate still holds those shares. Under North Carolina law, a personal representative must manage and preserve estate assets until the clerk of superior court authorizes their sale or until the estate closes.

Until the representative petitions the court for approval to sell the stock, they may hold the shares and collect any dividends. North Carolina General Statutes require that the representative inventory all assets and report ongoing income.

  • Inventory and Accounting: The representative lists each security and any dividends received in the estate inventory per N.C. Gen. Stat. § 28A-14-3. View statute.
  • Duty to Manage Prudently: Under N.C. Gen. Stat. § 28A-13-3, the representative must preserve estate property and act in the beneficiaries’ best interests. View statute.
  • Petition for Sale of Stock: To convert stock into cash for distribution, the representative files a petition under N.C. Gen. Stat. § 28A-15-1. The clerk issues an order after notice to creditors and beneficiaries. View statute.

Continuing to receive dividends may delay final distribution because the representative must include that income in partial or final accounting reports. Beneficiaries can request an accounting at any time to see how the representative managed all estate assets, including dividend income.

2. Key Takeaways

  • Ongoing dividend checks mean the estate still owns the stock.
  • Personal representatives must inventory all dividends and report them under N.C. Gen. Stat. § 28A-14-3.
  • The representative must manage assets prudently per N.C. Gen. Stat. § 28A-13-3.
  • To sell the stock, the representative needs court approval under N.C. Gen. Stat. § 28A-15-1.
  • Dividends count as estate income and can affect beneficiary distributions.
  • Beneficiaries may request an accounting of dividends and sales at any time.

Contact Pierce Law Group

Understanding how dividend checks affect estate stock liquidation can feel overwhelming. At Pierce Law Group, our attorneys guide you through each step of probate administration. To discuss your situation, email us at intake@piercelaw.com or call (919) 341-7055.