What steps must I take to file a creditor claim in North Carolina probate to recover court-ordered life insurance benefits?
1. Detailed Answer
When a decedent’s life insurance proceeds become part of an estate, anyone entitled under a court order—such as a support order—may need to present a creditor claim to the personal representative to secure payment. In North Carolina, creditor claims against an estate follow a clear statutory process under Chapter 28A, Article 18 of the North Carolina General Statutes.
Identify Your Claim
First, confirm you hold a valid court order directing the decedent’s insurer or estate to pay you benefits. These benefits become a debt of the estate once the insurer pays into probate or the personal representative collects them.
Deadlines for Presenting Claims
North Carolina law gives creditors a limited time to present claims:
- If you receive direct notice from the personal representative, you have 90 days from the date of that notice.
- If you learn of the estate through published notice, you have three months after the first date of publication to present your claim. (See N.C. Gen. Stat. § 28A-18-2.)
How to File Your Claim
1. Prepare a written statement that includes:
- Your name and address;
- The basis of the claim (attach a certified copy of the court order directing payment of life insurance benefits);
- The amount owed, or a statement of how it will be calculated.
2. Submit the original claim to the Clerk of Superior Court in the county where the estate is open. 3. Serve a copy on the personal representative by certified mail or in person.
Allowance or Objection
After you present a claim, the personal representative must allow or reject it in writing within 30 days (N.C. Gen. Stat. § 28A-18-3). If the representative disallows your claim, you may petition the court to review the issue.
2. Key Steps at a Glance
- Confirm you qualify under the court order to receive benefits.
- Track deadlines: 90 days after notice or three months after publication.
- Draft a written claim with your contact information, basis, amount, and supporting documents.
- File the claim with the Clerk of Superior Court where the estate is being administered.
- Serve the personal representative with a copy of your claim.
- Monitor the personal representative’s response; prepare to petition the court if your claim is disallowed.
Recovering court-ordered life insurance benefits through probate requires careful compliance with North Carolina’s claims procedure. Missing a deadline or failing to follow the prescribed form can forfeit your right to payment.
Contact Pierce Law Group
If you need guidance on filing a creditor claim for life insurance benefits or any other probate matter, our attorneys at Pierce Law Group help you protect your rights. Contact us today by email at intake@piercelaw.com or call us at (919) 341-7055.
