Short Answer

In North Carolina, heirs or devisees who receive real property at death are generally responsible for ongoing property taxes after the date of death, unless and until the personal representative brings the property under estate administration with proper authority. The personal representative may pay taxes with estate funds only if the will authorizes it or the Clerk of Superior Court approves using estate funds (for example, after the personal representative takes possession or seeks authority to sell, lease, or mortgage the property to raise cash).

Understanding the Problem

In North Carolina probate, can the personal representative or must the heirs pay the county property taxes that come due on inherited real estate before the estate has cash? Here, a small real property interest passed to heirs. This single decision centers on who bears the taxes right after death and when estate funds can be used.

Apply the Law

Under North Carolina law, title to a decedent’s real property vests in the heirs (intestacy) or devisees (will) at death. Because title passes outside the estate by default, heirs/devisees ordinarily bear ongoing expenses for that real property—including property taxes—after death. The personal representative may take possession or control of the real property if doing so is in the estate’s best interest, and with that authority may seek to use estate funds to preserve or dispose of the property. If the estate needs cash to pay claims, the personal representative can ask the Clerk of Superior Court for authority to sell, lease, or mortgage the real property. Property tax liens are typically paid from sale proceeds before general claims.

Key Requirements

• Vesting at death: Real property passes to heirs or devisees at death, so they handle post‑death carrying costs unless the personal representative lawfully assumes control.
• Estate control/authority: The personal representative may take possession or control if it benefits administration; court approval is often required if the will does not grant power.
• Using estate funds: Do not pay post‑death real property taxes from estate funds unless the will authorizes it or the Clerk approves (for example, after an order for possession or a sale/lease/mortgage proceeding).
• Raising cash: If needed to pay claims, the personal representative can petition to sell, lease, or mortgage the real property; property tax liens are paid first from sale proceeds.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-15-2 (Vesting of real property) – At death, real property vests in heirs/devisees.
• North Carolina Gen. Stat. § 28A-13-3 (Powers of personal representative) – PR may take possession/control of real property if in the estate’s best interest.
• North Carolina Gen. Stat. § 28A-17-1 (Sale of land to create assets) – PR may seek court authority to sell real property to pay claims.
• North Carolina Gen. Stat. § 28A-17-11 (Lease or mortgage of real property) – Clerk may authorize leasing or mortgaging real property when in the estate’s best interest.

Analysis

Apply the Rule to the Facts: Because the small real property interest passed to heirs at death, they bear ongoing property taxes unless the personal representative obtains authority to take control. If the estate later needs that property to pay claims, the personal representative can petition the Clerk to take possession and to sell, lease, or mortgage it. If a sale occurs, any delinquent property taxes are paid from the sale proceeds before other debts, so heirs should keep tax payments current to avoid penalties and interest.

Process & Timing

1. Who files: Personal representative. Where: Clerk of Superior Court in the county where the estate is administered. What: Petition to take possession/custody/control of real property and, if needed, petition to sell (create assets) or to lease/mortgage. When: As soon as it’s clear the estate needs the property to pay claims or to prevent waste (hearing timelines vary by county).
2. After filing, the Clerk sets a hearing and requires service on heirs/devisees. Orders authorizing possession and a sale/lease/mortgage typically issue within several weeks, depending on county calendars.
3. Once authorized, the personal representative may proceed to close a sale or financing; at closing, outstanding property tax liens are paid first, then net proceeds are applied to estate claims as required.

Exceptions & Pitfalls

• If the will gives the personal representative title or explicit power over real property, the personal representative may act without a separate court order; confirm the will’s language before paying taxes with estate funds.
• Do not use estate funds for post‑death real property taxes unless authorized; the Clerk may question unauthorized disbursements when auditing accounts.
• If heirs delay paying taxes, penalties and a tax lien can accrue and risk enforcement; even if the estate later sells, those taxes come off the top, reducing what heirs receive.
• In sale proceedings, ensure proper notice to heirs/devisees; service or upset‑bid missteps can delay closing and increase carrying costs.

Talk to a Probate Attorney

If you’re dealing with inherited real estate taxes before the estate has cash, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.