Probate Q&A Series

North Carolina Probate Guide: Locating, Inventorying, and Distributing Estate Assets While Settling Debts

Detailed Answer

1. Open the Estate and Secure Authority

File an Application for Letters Testamentary (with a will) or Letters of Administration (without a will) in the clerk of court’s office of the county where the decedent lived. Once the clerk issues you Letters, you have legal authority to act for the estate under N.C. Gen. Stat. Chapter 28A.

2. Locate and Secure All Assets

  • Redirect mail and review recent statements, tax returns, and safe-deposit box records.
  • Visit any real property and change locks if necessary.
  • Notify banks, brokers, and insurance companies of the death. Provide a certified death certificate and your Letters.
  • Order a credit report to spot unknown accounts or loans.
  • Hypothetical: If the decedent owned a vacation cabin, photograph its contents immediately to document value and prevent disputes.

3. Value the Property

You must determine each asset’s fair-market value as of the date of death. Common methods:

  • Use county tax value and a comparative market analysis for real estate.
  • Obtain brokerage statements for securities.
  • Hire a certified appraiser for collectibles or closely held businesses.

4. File the Inventory Within 90 Days

Under G.S. 28A-20-1, the personal representative must file Form AOC-E-505 (Inventory) within 90 days of qualifying. List all probate assets and values.

5. Publish Notice to Creditors

Within 60 days after qualification you must:

  1. Publish a notice to creditors once a week for four weeks in a local newspaper (G.S. 28A-14-1).
  2. Mail the notice to known creditors (same statute).

Creditors have three months after the final publication to file claims.

6. Pay Valid Debts in Statutory Order

Once the claim period closes, pay expenses and debts in the order set by G.S. 28A-19-6. If assets are insufficient, pay higher-priority claims first. Never distribute to heirs before settling approved debts or you risk personal liability.

7. Prepare the Final Account and Distribute Assets

After paying debts and taxes:

  • Prepare a Final Account (Form AOC-E-506) showing all receipts, disbursements, and proposed distributions (G.S. 28A-21-2).
  • Obtain heirs’ receipts or canceled checks for each distribution.
  • File the Final Account; once the clerk approves, you receive a Certificate of Settlement.

8. Close the Estate

After approval, your duties end and liability generally ceases. Keep records at least three years in case questions arise.

Helpful Hints

  • Open an estate-only checking account—never mix estate funds with personal money.
  • Track mileage and hours; you may request a commission under G.S. 28A-23-3.
  • Do not rush distributions. Wait until the creditor window closes and taxes clear.
  • If property must sell, confirm whether the will requires permission of heirs or the court.
  • Consult a tax professional; estates with gross value over the federal exemption may owe estate tax.

Ready for guidance? Probate is deadline-driven and detail-oriented. Our seasoned North Carolina probate attorneys streamline the process, protect you from missteps, and shorten the timeline. Call (919) 341-7055 today for a confidential consultation.