Ep 37 | How is the inheritance distributed probate in NC?

Ep 37 | How is the inheritance distributed in probate in NC

The personal representative is the key figure in the probate process for an estate. The personal representative is called the executor when there is a valid will in place. If there is not a valid will then the personal representative is referred to as the administrator. Either designation, this person holds the fiduciary responsibility for managing and closing out the estate of the decedent throughout the probate process. The personal representative is responsible for taking inventory and managing the real and personal property, and debt accumulated by the estate. Once creditor claims are validated and taxes are assessed of the estate, the executor must make these payments with the often with the funds from the estate. After all debts, taxes, and the cost of the probate administration have been cleared, any remaining assets are to be paid to the estate’s beneficiaries in accordance to the deceased party’s last will and testament. If there is not a will then the assets are distributed in accordance with the Intestate Succession Act (Chapter 29 of the General Statutes). 

WHAT HAPPENS TO ASSETS WHEN SOMEONE DIES WITHOUT A WILL?

In North Carolina if someone passes away without a valid will, then relatives will be verified and will inherit assets and personal property determined by the living children or parents there are.

  • If the decedent is survived only by their spouse, the surviving spouse receives the entirety of the personal property formerly owned by the deceased.
  • If the decedent is survived by the spouse and one child, or that child’s descendants, then the spouse receives the first $30,000 of their personal property. The remainder of the decedent’s personal property is divided evenly among the spouse and the child or child’s descendants. In other words, each inherits half.
  • When the decedent leaves behind a spouse and two or more children or the children of those children. In that situation, the surviving spouse still inherits the first $30,000 of the deceased’s personal property, plus a third of the remaining personal property. The remaining two-thirds of the property is split evenly between the surviving spouse and the two or more children or the descendants of those children — e.g., one-third each if there is a spouse and two children.
  • If both spouse and parents of the decedent are still alive, then the surviving spouse receives the first $50,000 of the deceased’s personal property. The personal property that remains are split evenly between the surviving spouse and the parents of the deceased.
  • If only the parents survive the deceased, their estate is actually divided evenly among them. Both parent will inherit half the deceased party’s property, or it is received completely by only one parent if they are the sole surviving parent.
  • If only the children or their descendants survive the deceased, their entire estate is shared equally among them — for example, one-third of the assets pass to each child if there are three children — is received entirely by one child if they are the only surviving child.

WHAT HAPPENS TO REMAINING PERSONAL PROPERTY?

If there are no none surviving spouses, children, or parents at the time of the decedent’s death, the deceased’s estate, including real estate and personal property, is split evenly between distant family members, which can include parents siblings, grandparents, uncles and aunts, and other relatives.

There are no exact arrangement in North Carolina inheritance law for great-great-grandchildren or relatives born after death.

If a general inheritance of money (those not payable out of a pre-determined fund) is set forth in the will, but there is not enough funds or other personal property within the administered estate to pay all such benefactions, the personal representative will need to prorate the remaining available amount between those recipients [G.S. 28A-15-5]. The personal representative should be sure to obtain receipts from all recipients for the accounting stage of the probate process. [G.S. 28A-22-1]. 

If you need assistance following the guidelines or help streamlining your probate process contact the probate professionals at Estate Pro Service, LLC and sign up for a free consultation.

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