Short Answer

In North Carolina, a personal representative may ask the Clerk of Superior Court to approve abandoning an estate’s right to pursue an asset if, acting reasonably and in good faith, the asset is valueless or so burdensome that recovery would not benefit the estate. You file a verified petition in the estate file, serve interested persons, and request an order authorizing the abandonment before closing the estate.

Understanding the Problem

You are administering a North Carolina estate (probate). After paying costs and a surviving spouse’s allowance, the only remaining item is a small “Part Two” investment account that passes to the decedent’s children. You believe the funds are likely gone and that chasing them would cost more than the account is worth. You want to know if, and how, you can ask the Clerk of Superior Court to let you abandon recovery of that minor asset.

Apply the Law

Under North Carolina law, a personal representative has authority to manage estate assets and, when acting reasonably and in good faith, to abandon rights in property that is valueless or of no benefit to the estate. When the decision could affect beneficiaries (especially minors) or might later be questioned, the prudent course is to seek an order from the Clerk of Superior Court in the county where the estate is administered, documenting why recovery is not in the estate’s best interest. Orders of the clerk in estate proceedings may be appealed within a short time, so build that into your timeline.

Key Requirements

• Valueless or burdensome asset: Show that the asset or claim is worth little or nothing, or that recovery costs would exceed the benefit to the estate.
• Reasonable, good‑faith judgment: Demonstrate you investigated value and collection prospects and exercised sound business judgment.
• Clerk approval sought: File a verified petition in the estate file requesting an order authorizing abandonment before final accounting.
• Notice to interested persons: Serve heirs/devisees and anyone whose interest is affected (minors via a parent/guardian or guardian ad litem, as appropriate).
• Timing: Obtain the order before filing the final account and seeking discharge.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-13-3 (Powers of personal representative) – Includes authority to abandon or relinquish rights in property that is valueless or of no benefit to the estate.
• North Carolina Gen. Stat. § 28A-15-12 (Actions to recover property of decedent) – Authorizes recovery actions; informs the cost‑benefit analysis for deciding not to pursue a small claim.
• North Carolina Gen. Stat. § 28A-2-1 (Clerk’s jurisdiction in estates) – Confers original jurisdiction on the Clerk of Superior Court over estate administration matters.
• North Carolina Gen. Stat. § 1-301.3 (Appeals from orders of the clerk) – Sets the 10‑day window to appeal a clerk’s order.

Analysis

Apply the Rule to the Facts: Here, the remaining item is a small, Part Two account that passes to the decedent’s children. Because you believe collection costs will exceed any recovery and the funds may no longer exist, the asset is “of no benefit” to the estate. Acting reasonably and in good faith, you can ask the clerk to approve abandonment and document your cost‑benefit analysis for the record before closing the estate.

Process & Timing

1. Who files: Personal representative. Where: Clerk of Superior Court in the North Carolina county where the estate is pending. What: Verified petition for order authorizing abandonment of a valueless/burdensome asset; request issuance of an Estates Proceeding Summons (AOC‑E‑102). When: Before submitting the final account and seeking discharge.
2. Serve interested persons with the Estates Proceeding Summons and petition (minors via a parent/guardian or guardian ad litem). The clerk sets a hearing. Bring evidence: account statements (if any), correspondence, collection estimates, and a short cost‑benefit analysis.
3. Hearing and order. If the clerk finds abandonment is in the estate’s best interest, the clerk issues an order authorizing the personal representative to forego recovery. File the order in the estate file and reflect the decision in the final account.

Exceptions & Pitfalls

• If valid creditor claims remain unpaid, be cautious—abandonment should not prejudice creditors; document why recovery is impractical.
• When minors are interested persons, ensure proper representation; the clerk may require a guardian ad litem if a parent’s interests conflict.
• Do not rely on assumptions. Make a record of efforts to verify value and collectability; unsupported beliefs risk objections to your final account.
• Consider alternatives: if the account is a custodial (UTMA) account, a separate UTMA accounting proceeding against the custodian may exist, but only pursue it if the likely benefit exceeds costs.

Talk to a Probate Attorney

If you’re dealing with whether to pursue or abandon a small, hard‑to‑collect estate asset, 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.