When can I use North Carolina’s Small Estate Affidavit instead of opening a full probate estate?

Detailed Answer

In North Carolina, you may avoid full probate by using a Small Estate Affidavit if certain conditions are met. The procedure lets heirs or beneficiaries collect assets without appointing an administrator. North Carolina law creates two summary procedures:

1. Personal Property Only (N.C. Gen. Stat. § 28A-19-1): If the decedent owned only personal property in North Carolina valued at $20,000 or less, you may use an affidavit under N.C. Gen. Stat. § 28A-19-1. Requirements include:

• Personal property value does not exceed $20,000 at the date of death.
• No real estate in the decedent’s name.
• All just debts and funeral expenses are paid or provided for.
• Heirs sign the affidavit under penalty of perjury.

2. Real Property Summary Procedure (N.C. Gen. Stat. § 28A-19-2): If the estate includes real property in North Carolina valued at $100,000 or less, heirs or devisees may use an affidavit under N.C. Gen. Stat. § 28A-19-2. Key points include:

• Real property value does not exceed $100,000 at the date of death.
• No administrator or executor has been appointed.
• All distributees agree on the distribution to other heirs or devisees.
• All just debts, claims, and expenses must be paid or secured.

To use either affidavit, you must prepare a sworn statement listing the decedent’s assets, heirs or holders of future interests, and the distribution plan. After 10 days from filing the affidavit in the county where the decedent lived, you may collect and transfer titles to vehicles, bank accounts, and real estate as allowed by the statute.

Do not use the small estate affidavit if the estate contains secured debts that exceed available assets, if an interested party contests the procedure, or if the decedent’s will requires formal probate for distribution.

Key Points to Remember

• Personal property affidavit caps at $20,000 (§ 28A-19-1).
• Real property affidavit caps at $100,000 (§ 28A-19-2).
• All heirs must agree and sign under oath.
• All debts and funeral expenses must be paid or secured.
• File in the county where the decedent resided and wait 10 days before distribution.
• Do not use if estate requires formal probate due to debt, contest, or complex assets.

Using a Small Estate Affidavit can save time and costs. However, a mistake in eligibility or filing can lead to liability for personal representatives and heirs. Always confirm asset values, creditor status, and heirship before proceeding.

Ready to discuss your situation? Pierce Law Group has attorneys who handle probate questions and guide you through summary procedures. Contact us by email at intake@piercelaw.com or call (919) 341-7055 for a consultation.