Short Answer

In North Carolina, the personal representative must file an Inventory (AOC‑E‑505) with the Clerk of Superior Court within three months of qualifying. List each estate asset with fair market value as of the date of death, using an appraiser if needed. Do not include life insurance payable directly to named beneficiaries; add a supplemental inventory later if you find new assets or need corrections. File your proof of notice to creditors at the same time.

Understanding the Problem

In North Carolina probate, the personal representative must prepare and file an accurate inventory of the decedent’s assets with the Clerk of Superior Court. The key decision is what to include, how to value it, and when to file. Here, you are the personal representative and you discovered a life insurance policy payable to named beneficiaries.

Apply the Law

Under North Carolina law, a personal representative files a detailed inventory with the Clerk of Superior Court in the county where the estate is opened. The inventory is due within three months of qualification and must show fair market values as of the date of death. You may use an independent appraiser and can file a supplemental inventory if you later discover additional assets or need to correct values. Proof that you gave notice to creditors must be filed when you file the inventory.

Key Requirements

• Three‑month deadline: File the Inventory (AOC‑E‑505) within three months after you qualify as personal representative; ask the clerk for a short extension if you have good cause.
• Correct asset categories: List (1) property of the estate and (2) property that can be added to the estate to pay claims if needed; wrongful death claims are listed separately.
• Date‑of‑death values: Use fair market value as of the date of death; include enough detail (e.g., bank account numbers and balances on date of death; vehicle VIN and description; real property address and parcel/PIN).
• Appraisals allowed: You may use a disinterested appraiser; list the appraiser’s name and address with the item. If an appraisal is pending, you may temporarily mark the value as “undetermined.”
• Exclude non‑probate items: Do not include life insurance payable to named beneficiaries or other direct‑beneficiary assets unless the estate is the beneficiary.
• Proof of creditor notice: File your affidavit of notice to creditors and the newspaper affidavit with the inventory.
• Update when needed: If you find new assets or need corrections, file a supplemental inventory.

What the Statutes Say

• North Carolina Gen. Stat. § 28A‑20‑1 (Inventory due in three months) – Sets the duty and timing to file the inventory.
• North Carolina Gen. Stat. § 28A‑20‑4 (Appraisers) – Allows use of a disinterested appraiser and requires identifying the appraiser in the inventory.
• North Carolina Gen. Stat. § 28A‑14‑2 (Proof of notice to creditors) – Requires filing proof of published/mailed notice with the inventory.
• North Carolina Gen. Stat. § 28A‑20‑2 (Failure to file inventory) – Authorizes court orders and potential removal or contempt for not filing.

Analysis

Apply the Rule to the Facts: You, as personal representative, must file the AOC‑E‑505 inventory within three months of qualifying and include date‑of‑death values. The firm’s request for bank authorizations helps you obtain official balances and statements, which the clerk expects to see reflected in the inventory detail. The life insurance payable to named beneficiaries is a non‑probate asset and should not be listed unless the estate is the beneficiary. Be prepared to file a supplemental inventory if you uncover additional assets later.

Process & Timing

1. Who files: Personal representative. Where: Clerk of Superior Court, Estates Division, in the county where the estate is opened. What: Inventory for Decedent’s Estate (AOC‑E‑505) with supporting detail; Affidavit of Notice to Creditors (AOC‑E‑307) and newspaper affidavit. When: Within three months of qualification; request an extension beforehand if needed.
2. Review and follow‑up: The clerk reviews the filing and may request added detail or documentation (for example, account statements, VINs, or parcel identifiers) or adjust the bond. Response times vary by county.
3. After filing: Continue administering the estate. If new assets are found or values change, file a supplemental inventory; otherwise, reflect updates in the next account as permitted.

Exceptions & Pitfalls

• Non‑probate assets: Do not list life insurance with a named beneficiary, payable‑on‑death accounts, or retirement accounts with beneficiaries unless the estate is the beneficiary.
• Wrong categories: Keep jointly held assets with right of survivorship out of “property of the estate”; they may belong under “can be added to the estate to pay claims” only in limited debt‑payment scenarios.
• Insufficient detail: Missing account numbers, VINs, parcel/PINs, or date‑of‑death statements can trigger deficiency requests and delay approval.
• Valuation errors: Use date‑of‑death values; if an appraisal is pending, mark “undetermined” and update promptly.
• Creditor notice proof: File the affidavit(s) of published and mailed notice with the inventory; omitting this can delay administration.
• Late filing risk: Missing the deadline can lead to court orders to compel, fees assessed against the personal representative, and possible removal or contempt.

Talk to a Probate Attorney

If you’re dealing with preparing and filing a North Carolina probate inventory, 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.