Short Answer

In North Carolina, the personal representative distributes what’s left either under the will or, if there’s no will, under the Intestate Succession Act. Before distributing to children, the representative should ensure the creditors’ claim period has run, all valid debts, taxes, and allowances are paid or provided for, and a final accounting with the clerk is ready. Distributions are documented with receipts/releases and, when appropriate, refunding agreements; the clerk audits the final account and then discharges the representative.

How North Carolina Law Applies

After claims, taxes, and expenses are fully handled, the personal representative (executor or administrator) moves to distribution. If there is a will, the representative follows the will’s instructions for gifts to children. If there is no will, the Intestate Succession Act controls: the surviving spouse (if any) takes first according to statute, and the balance goes to the child or children, with shares adjusted if a child predeceased leaving descendants. Distributions to minors must be made through an approved method (for example, to a custodian under the Uniform Transfers to Minors Act (UTMA), to a guardian, or by depositing with the clerk). Before closing, the representative typically circulates a proposed final account and distribution schedule, obtains signed receipts/releases, and may retain a small reserve for any last costs. The clerk audits the final account; after approval and distribution, the clerk enters an order discharging the representative.

Key Requirements

• Notice-to-creditors period has expired and all allowed claims, taxes, and administration costs are paid or properly provided for.
• If intestate: confirm the class of heirs and their shares (account for surviving spouse, children, and descendants of any deceased child).
• Account for special heirship rules: adopted children inherit from adoptive parents; nonmarital children inherit if statutory requirements are met; after-born children may inherit.
• If intestate, evaluate any lifetime advancements to a child and charge them against that child’s share as the statute requires.
• For minors or incapacitated children, use a lawful distribution method (clerk deposit, guardian, or UTMA) before making payment.
• Prepare a proposed final account and distribution schedule; consider serving permissive notice of the proposed final account to start a 30‑day objection window.
• Obtain receipts, releases, and if appropriate, refunding agreements; keep a prudent reserve until the clerk approves the final account.
• File the final account; after audit and approval, the clerk enters an order discharging the personal representative.

Process & Timing

1. Confirm solvency and finish claims: Publish and mail notice to creditors; wait at least the statutory claim period; pay or provide for all valid claims, taxes, and allowances.
2. Determine who gets what: If a will exists, follow it. If no will, calculate shares under intestacy, including any surviving spouse share and each child’s share; adjust for any qualifying advancements and any predeceased child’s descendants.
3. Address minors or special cases: If a child is under 18 or legally incapacitated, plan a compliant distribution (e.g., approved UTMA transfer, guardian payment, or deposit with the clerk).
4. Draft the proposed final account and distribution schedule: Include a clear calculation and attach exhibits showing receipts, disbursements, and remaining balance.
5. Optional notice to heirs/beneficiaries: Serve the proposed final account to children (and other beneficiaries/heirs) to trigger a 30‑day objection period; file a certificate of service with the clerk.
6. Collect receipts/releases: Have each recipient sign a receipt and release for their share; consider refunding language to allow recovery if an unexpected liability appears.
7. File the final account: Submit vouchers and proofs; the clerk audits and, if satisfied, approves the account.
8. Make final distributions and close: Distribute funds per the approved schedule; resolve any reserve; the clerk enters an order discharging the personal representative.

What the Statutes Say

• G.S. 28A-22-1: After paying claims and expenses, the personal representative distributes the remainder per the will or, if no will, under the Intestate Succession Act.
• G.S. 29-15 and G.S. 29-16: Identify heirs and explain how shares are calculated in intestacy, including distribution among children and descendants.
• G.S. 29-17, G.S. 29-19, and G.S. 29-9: Special heirship rules for adopted children, nonmarital children, and after-born children.
• G.S. 29-24, G.S. 29-25, and G.S. 29-26: Advancements—how lifetime transfers to a child may be charged against that child’s intestate share.
• G.S. 28A-22-7, G.S. 33A-6, and G.S. 28A-23-2: Methods to distribute to minors (small payments to a parent/guardian with clerk approval, UTMA transfers, or payment to the clerk/guardian).
• G.S. 28A-21-2: Final accounts—when and how the personal representative files a final account with the clerk.
• G.S. 28A-21-6: Permissive notice of the proposed final account; if served under Rule 4, heirs/beneficiaries have 30 days to object.
• G.S. 28A-23-1: After approval of the final account and distribution, the clerk enters an order discharging the personal representative.
• G.S. 28A-22-9: If an heir is known but can’t be located, the representative may deliver that share to the clerk before the final account; the clerk holds it until claimed or escheats if unclaimed after the statutory period.
• G.S. 28A-19-6: Priority of claims—must be satisfied or provided for before any distribution to children.
• G.S. 28A-14-1, G.S. 30-15, and G.S. 30-17: Notice to creditors and year’s allowances, which affect timing and amounts available for distribution.

Exceptions & Pitfalls

• Premature distribution risk: Paying children before the claims period expires or before taxes are settled can expose the representative to personal liability. Keep a reasonable reserve until the clerk approves the final account.
• Advancements: In intestacy, a lifetime transfer that qualifies as an advancement is charged against that child’s share. Failing to account for it causes overpayment to that child and underpayment to others.
• Minors and incapacitated heirs: Direct payment to a minor is improper. Use UTMA, a guardian, or deposit with the clerk to comply with statute.
• Missing or unresponsive heirs: If a child can’t be located, deliver that share to the clerk before the final account to avoid delaying closing.
• Spousal rights: A surviving spouse’s statutory share (or elective share) and year’s allowance come ahead of children’s distributions. Confirm those rights are resolved first.
• Classification mistakes: If a will is silent or there’s no will, misidentifying heirs (e.g., adopted or nonmarital children, or an after-born child) can lead to wrongful distributions.

Helpful Hints

• Map out shares in writing and share a proposed distribution schedule with all recipients before filing the final account—this reduces objections.
• Use receipts, releases, and refunding agreements on every distribution. This protects the estate if a late bill appears.
• For minors, line up a UTMA custodian or guardianship paperwork early so distributions aren’t delayed at closing.
• Retain a modest reserve for last expenses (e.g., tax prep, bank fees) until the clerk approves the final account.
• If an heir is missing, consider paying that share to the clerk rather than holding the estate open.

Talk to a Probate Attorney

If you’re ready to distribute estate funds to children and want to avoid mistakes with shares, minors, or final accounting, 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.