Short Answer

In North Carolina, a personal representative who wants court approval to stop pursuing a small, burdensome asset should file an estate proceeding and give formal notice to all interested persons. That typically includes the children who would receive the account (or their guardians if they are minors), the surviving spouse, other heirs or devisees whose shares may be affected, and any known creditors if the estate is or may be insolvent. Notice is given by serving an Estate Proceeding Summons and petition under the Rules of Civil Procedure.

Understanding the Problem

You are the personal representative in North Carolina deciding whether you can notify the right people and obtain court approval to not pursue a small investment account because the cost and risk of recovery likely exceed its value. Here, the only remaining asset is a small account naming the decedent’s children, not the surviving spouse.

Apply the Law

North Carolina law lets the Clerk of Superior Court oversee estate proceedings involving administration decisions, including whether a personal representative may lawfully forgo pursuing a low-value or burdensome asset. The personal representative starts an estate proceeding, joins all interested persons as respondents, and serves them under Rule 4. If any interested person is a minor, the court ensures proper representation before issuing an order. The Clerk may decide the matter without a hearing if uncontested or hold a hearing if there are objections.

Key Requirements

• Act in the estate’s best interest: Show why pursuing the asset is uneconomical or impractical compared to likely recovery.
• Open an estate proceeding: File a verified petition with the Clerk of Superior Court where the estate is administered, requesting authority to forgo pursuit.
• Join and serve interested persons: Include and serve the children designated for the account (or their guardians), the surviving spouse, and any heirs/devisees whose shares might change; add creditors if the estate is or may be insolvent.
• Proper representation for minors/incapacitated: Ensure parents/guardians are served or a guardian ad litem is appointed when required.
• Document the decision: Reflect the court’s authorization and the rationale in the final account; consider serving permissive notice of the final account to bind parties who do not object.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-2-6 (Estate proceedings; procedure; service) – How to begin an estate proceeding, join parties, and serve respondents.
• North Carolina Gen. Stat. § 28A-2-4 (Clerk’s subject-matter jurisdiction) – Clerk authority over estate-administration issues.
• North Carolina Gen. Stat. § 28A-13-2 (Duties of personal representative) – Duty to administer prudently and expeditiously in the estate’s best interest.
• North Carolina Gen. Stat. § 28A-21-6 (Permissive notice of final accounts) – Option to serve the final account so parties are bound if they do not object.

Analysis

Apply the Rule to the Facts: Because the only remaining asset benefits the children and not the spouse, the children (or their guardians, if minors) are key “interested persons” who must be joined and served. The surviving spouse and any other heirs or devisees should also be joined because your decision affects the estate’s accounting and potential shares. If the estate is or could be insolvent, notify known creditors because forgoing recovery can affect claim payment priority. Your petition should explain that likely recovery costs exceed the asset’s value and ask the Clerk to authorize nonpursuit.

Process & Timing

1. Who files: Personal representative. Where: Clerk of Superior Court in the North Carolina county where the estate is administered. What: Verified petition for authorization to forgo pursuing a small/burdensome asset; request issuance of an Estate Proceeding Summons (AOC-E-102). When: File before submitting the final account; after filing, serve all respondents under Rule 4. Respondents typically have 20 days to respond.
2. The Clerk may enter an order without a hearing if uncontested; if anyone objects, the Clerk schedules a hearing. Timing varies by county; allow several weeks for service and the court’s calendar.
3. Upon approval, retain the order in the estate file, reflect the decision and rationale in the final account, and consider serving permissive notice of the final account so parties are bound if they do not object within 30 days.

Exceptions & Pitfalls

• Insolvent estates: If the estate cannot pay claims, creditors are interested persons; include and serve them.
• Minors or incapacitated beneficiaries: Ensure proper service on parents/guardians or the appointment of a guardian ad litem when required.
• Failure to join all interested persons: Missing a necessary party can delay or undermine the order; join all whose rights or shares may be affected.
• Documentation gaps: If you forgo pursuit without court approval or without explaining the cost-benefit in your accounting, you increase the risk of objections.

Talk to a Probate Attorney

If you’re weighing whether to seek court approval to stop chasing a small, burdensome 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.