When can you use North Carolina’s small estate affidavit instead of full probate if assets are under $20,000?

1. Detailed Answer

North Carolina law lets you avoid a full probate proceeding by using a small estate affidavit when certain conditions are met. Under N.C.G.S. § 28A-25-1, an heir or surviving spouse may collect and distribute a decedent’s personal property without formal administration if:

1. Total Personal Property Does Not Exceed $20,000

Calculate the fair market value of all personal property the decedent owned in North Carolina. The total must not exceed $20,000. Personal property includes:

• Bank and investment accounts
• Vehicles and tangible household items
• Stocks, bonds, and other intangible assets

2. No Personal Representative Has Been Appointed

You can use the affidavit only if no one has filed for formal probate and received letters testamentary or letters of administration. Once the clerk appoints a personal representative, you must open a full probate estate.

3. You Wait at Least 45 Days After the Date of Death

The law requires a 45-day waiting period to allow creditors to make claims. You must file the affidavit with the clerk of superior court at least 45 days after the decedent’s death.

4. Property Is Located in North Carolina

The affidavit applies only to personal property in North Carolina. If the decedent owned real estate or assets outside the state, you must pursue formal probate or ancillary administration in the other jurisdiction.

5. The Affiant Is Entitled to Distribution

Only a person entitled to receive assets—such as an heir or surviving spouse—may sign the affidavit under oath. You must identify other distributees, describe the property, and state its value.

2. Key Steps and Requirements

• Obtain Documents: Secure a certified copy of the death certificate and documentation showing the value and location of all personal property.
• Prepare the Affidavit: Use the form prescribed by N.C.G.S. § 28A-25-1. Include names, addresses of distributees, and a detailed inventory.
• File After 45 Days: Submit the affidavit to the clerk of superior court at least 45 days after death. The clerk stamps it and returns a certified copy.
• Present to Custodians: Deliver the certified affidavit to banks or other holders of property. They must release or transfer assets within 10 days of receipt.
• Distribute Assets: Once the affidavit period ends and any claims resolve, distribute property to rightful heirs per the affidavit.

Conclusion and Next Steps

Using a small estate affidavit can save time and reduce costs when the decedent’s personal property in North Carolina totals $20,000 or less. To ensure you meet all legal requirements and accurately complete the process, turn to Pierce Law Group. Our attorneys guide you through every step and help you close the estate smoothly.

Contact us today by emailing intake@piercelaw.com or calling (919) 341-7055.