Detailed Answer

If a loved one dies owning less than $20,000 in personal property located in North Carolina, you may be able to use a Small Estate Affidavit instead of full probate. The Small Estate Affidavit process lets certain heirs collect bank accounts and other personal assets without appointing a personal representative or filing extensive court papers.

Under North Carolina law, a Small Estate Affidavit applies when the decedent’s personal property (excluding real estate, insurance proceeds paid to named beneficiaries, and assets held in a transfer-on-death or payable-on-death arrangement) does not exceed $20,000 in value. You find this threshold in N.C.G.S. § 28A-19-1.

To use a Small Estate Affidavit for bank accounts under $20,000:

1. Wait at least 30 days from the date of death. North Carolina law requires you to wait 30 days after the decedent’s death before presenting the affidavit to a bank or financial institution.
2. Confirm no formal estate administration is pending. You cannot use the affidavit if someone already filed for probate or was appointed as a personal representative.
3. Value the decedent’s personal property. Add up cash, checking and savings accounts, stocks, bonds, and other personal items. Do not include real estate, jointly held assets that automatically pass to a survivor, or insurance proceeds with named beneficiaries.
4. Prepare the sworn affidavit. The person entitled to inherit (often the surviving spouse or next of kin) swears under oath to the facts of death, relationship to the decedent, and value of assets. North Carolina statutes provide a model form in Article 19 of Chapter 28A.
5. Present the affidavit to the bank. Most banks will release funds up to the $20,000 limit once they review the signed affidavit, a certified death certificate, and proper identification.

Using a Small Estate Affidavit saves time and expense. It lets you avoid filing a full probate petition, publishing notice to creditors, and posting a surety bond. However, if the estate exceeds $20,000 or if you face claims from creditors, you must open a formal estate administration under Chapter 28A of the North Carolina General Statutes.

Key Points to Remember

• Threshold: Total personal property in North Carolina must be $20,000 or less (N.C.G.S. § 28A-19-1).
• Waiting period: You must wait at least 30 days after the decedent’s death before using the affidavit.
• Eligible assets: Bank accounts, cash, stocks, bonds, and personal items. Exclude real estate, insurance proceeds payable to named beneficiaries, and transfer-on-death assets.
• Eligible applicants: A surviving spouse, next of kin, or other intestate heir entitled by statute.
• No pending administration: You cannot use the affidavit if someone has already opened formal probate.
• Bank requirements: Present a certified death certificate, identification, and the sworn affidavit to your financial institution.
• Formal probate: If the estate exceeds $20,000 or creditors object, you must file for formal administration under Chapter 28A.

Call to Action

Handling a loved one’s estate can feel overwhelming. If you need guidance on whether you qualify for a Small Estate Affidavit or require full probate administration, Pierce Law Group can help. Our team has extensive experience in North Carolina probate law and stands ready to answer your questions.

Contact us today by emailing intake@piercelaw.com or calling (919) 341-7055. Let us guide you through the process with clarity and confidence.