Short Answer

In North Carolina, a creditor must present a written claim that states the amount, the basis of the claim, and the claimant’s contact details. The personal representative may require a sworn affidavit and supporting documents. An unwritten “loan” must be proven with competent, objective evidence (for example, bank transfers, checks, texts/emails, or third-party witnesses). The Dead Man’s Statute often blocks an interested claimant from testifying about private oral conversations with the decedent; without independent proof, the claim can be rejected, and the claimant has three months after written rejection to sue.

Understanding the Problem

You’re serving as an executor in North Carolina and must decide whether to allow or deny a relative’s claim that the decedent borrowed money without a written agreement. The decision turns on what evidence the claimant provides and whether it is admissible and credible under North Carolina probate rules.

Apply the Law

North Carolina requires creditors to submit claims in writing and allows the personal representative to demand sworn verification and documentation. If a claim is disputed, the personal representative may reject it in writing. After a written rejection, the claimant must bring a civil action within three months or the claim is barred. Because this claim relies on an oral understanding, the Dead Man’s Statute may prevent the claimant from testifying about private oral communications with the decedent, so independent, objective proof is crucial. The estate claim window is controlled by the published notice to creditors and any personal notices sent; late claims are barred by statute.

Key Requirements

• Proper written claim: The claim must state the amount, the basis (e.g., alleged loan), and the claimant’s name and address, and be delivered to the personal representative or filed with the Clerk.
• Verification on request: The personal representative may require a sworn affidavit confirming the debt is due, payments/offsets, and supporting records.
• Competent proof of a loan: Evidence such as bank statements, canceled checks, transfers, emails/texts, ledgers, or third-party witnesses showing a loan and intent to repay—not a gift—carries weight.
• Dead Man’s Statute limits: An interested claimant generally cannot testify about private oral communications with the decedent; independent documents or disinterested witnesses are needed.
• Rejection and suit deadline: If the personal representative issues a clear written rejection, the claimant has three months to file a civil action or the claim is barred.

What the Statutes Say

• N.C. Gen. Stat. § 28A-19-1 (Presenting claims) – A claim must be in writing and state the amount, basis, and claimant’s contact information; delivery rules are specified.
• N.C. Gen. Stat. § 28A-19-2 (Verification of claims) – The personal representative may require a sworn affidavit and disclosure of payments or offsets.
• N.C. Gen. Stat. § 28A-19-16 (Action on rejected claim) – After written rejection, a claimant must sue within three months or the claim is barred.
• N.C. Gen. Stat. § 8C-1, Rule 601 (Dead Man’s Statute) – Generally bars an interested witness from testifying to private oral communications with the decedent.

Analysis

Apply the Rule to the Facts: The relative’s undocumented “loan” is a disputed, unsecured claim. Ask for a sworn verification and objective proof (transfers to the decedent, dates, purpose, and repayment terms). If the relative relies on private conversations with the decedent, the Dead Man’s Statute may block that testimony. If they cannot supply competent, independent evidence and the claim was timely presented, you may issue a clear written rejection; the claimant then has three months to file a civil action or the claim is barred.

Process & Timing

1. Who files: The claimant. Where: Deliver a written claim to the personal representative or file it with the Clerk of Superior Court in the county where the estate is pending. What: A written notice stating the amount, basis, and claimant’s contact details; the personal representative may demand a sworn affidavit with supporting records. When: By the deadline in the published notice to creditors or the later date in any personal notice.
2. Review and decision: The personal representative evaluates timeliness and proof. If proof is lacking, send a clear written rejection (keep proof of delivery). Parties may also agree to refer the dispute to disinterested persons for a faster, private resolution.
3. If rejected: The claimant must commence a civil action within three months after receiving written rejection. If no suit is filed on time, the claim is barred and the estate proceeds without paying it.

Exceptions & Pitfalls

• Late or improperly presented claims: Claims filed after the estate’s creditor deadline (or more than 90 days after personal notice when that is later) are barred.
• Dead Man’s Statute trap: An interested claimant’s testimony about private oral conversations with the decedent is generally inadmissible; insist on documents or disinterested witnesses.
• Ambiguous rejection letters: To start the three-month clock, the rejection should be absolute and unequivocal; keep proof of mailing or delivery.
• Verification ignored: If the claimant will not provide a sworn affidavit or records when requested, that weighs against allowance and supports rejection.
• Wrong forum after rejection: The Clerk does not try rejected claims; the claimant must file a civil action in court.
• Claims arising after death: Some post-death claims have different presentment windows; verify the trigger date before deciding timeliness.

Talk to a Probate Attorney

If you’re dealing with a disputed, unwritten loan claim against an 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.