Short Answer

North Carolina does not impose a state inheritance or estate tax for people who died on or after January 1, 2013. If a state inheritance tax return was missed for another state (for example, where the decedent once lived or owned property), the personal representative should file the late return with that state and pay any tax and interest from the estate as a valid claim. At the same time, follow North Carolina probate steps: publish notice to creditors, file the inventory within three months, and account for any payment in the estate’s records.

Understanding the Problem

In North Carolina probate, can a personal representative fix a missed “state inheritance tax” return after the decedent’s death, and what steps must be taken in the estate? Here, the personal representative is opening a North Carolina estate with a small bank account and plans to publish a 90-day notice to creditors.

Apply the Law

In North Carolina, there is no state inheritance or estate tax for decedents who died in 2013 or later. A missed tax filing may still exist in another state if the decedent lived there, owned property there, or received an inheritance taxed by that state. The personal representative has a duty to settle the estate promptly, publish notice to creditors, file the inventory within three months, and pay valid debts (including taxes) in the proper order of priority. The Clerk of Superior Court oversees the administration in the county of domicile.

Key Requirements

• Confirm the tax: Verify that no North Carolina inheritance/estate tax applies for recent deaths; identify any other state’s inheritance or estate tax obligation that was missed.
• Treat it as a claim: If another state’s return is due, treat the tax, interest, and penalties as a claim against the estate and pay from estate funds.
• Follow NC probate steps: Publish the creditor notice, observe the 90-day claim window, and file the estate inventory within three months of qualification.
• Use an estate EIN and account: Obtain an estate EIN and open an estate checking account to receive and disburse funds, including tax payments.
• Update the record: List the bank account and any located unclaimed property on the inventory; file a supplemental inventory if new assets are found later.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-13-2 (PR’s duty to settle estate) – Personal representative must settle and distribute the estate expeditiously.
• North Carolina Gen. Stat. § 28A-14-1 (Notice to creditors) – Requires publication and mailing of notice to creditors to start the claim period.
• North Carolina Gen. Stat. § 28A-20-1 (Inventory due in three months) – Inventory must be filed within three months after qualification.
• North Carolina Gen. Stat. § 28A-19-6 (Order of payment of claims) – Sets the order for paying estate debts, including taxes.

Analysis

Apply the Rule to the Facts: Because the decedent’s estate is being opened in North Carolina and involves a small bank account, no North Carolina inheritance/estate tax should be due if the death occurred in 2013 or later. If a different state’s inheritance tax return was missed (for example, due to prior residency or property there), the personal representative should file that return now and pay from the estate in the claims order. Publishing the creditor notice and filing the inventory within three months keeps the North Carolina administration on track while the tax issue is resolved.

Process & Timing

1. Who files: Personal representative. Where: Clerk of Superior Court in the North Carolina county of domicile for probate steps; the other state’s department of revenue for the missed inheritance tax filing. What: Publish notice to creditors, file the Inventory, obtain an estate EIN and open an estate account; submit the overdue out-of-state inheritance/estate tax return and payment. When: Publish notice soon after qualification; file the Inventory within three months of qualification; submit any late out-of-state return promptly and document it in the estate file.
2. Collect statements for the bank account, deposit funds into the estate account, and track any tax payment as an estate disbursement. If unclaimed property from another jurisdiction is located, list it and file a supplemental inventory as needed; timing varies by what you find.
3. After the 90-day creditor window closes and valid claims (including any tax) are paid in the statutory order, continue with required accountings and distributions, then file the final account for the Clerk’s review.

Exceptions & Pitfalls

• No North Carolina inheritance/estate tax applies for deaths in 2013 or later; the missed return usually relates to another state’s tax. Confirm the taxing state and its rules.
• Out-of-state issues vary: penalties and interest may accrue; ask that state about late-filing relief and whether ancillary administration is needed for assets located there.
• Pay claims in the statutory order; do not pay lower-priority debts before taxes or higher-priority expenses.
• Open and use an estate EIN and account; avoid commingling and keep clear records of any tax payments.
• File a supplemental inventory if you discover new assets (like unclaimed property) after the initial inventory.

Talk to a Probate Attorney

If you’re dealing with a missed out-of-state inheritance tax return while opening a North Carolina estate, 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.