The below article is meant for informational purposes regarding the probate process in North Carolina. Rockpoint Probate Funding DOES NOT provide funding services for estates based in North Carolina.
The North Carolina Probate Process
If your loved one died in North Carolina with a will, distributing their assets to the rightful heirs will be easier than it would have been had they died without a will. Still, the North Carolina probate process can throw families for a loop and add to their stress levels.
Is your family confused about how the probate process works in North Carolina? Gain a better understanding of it below to ensure your family can respect a loved one’s last wishes.
Does North Carolina Require Probate?
Yes, North Carolina does require families to go through the probate process in many instances. The North Carolina General Statutes outline the laws regarding this process, starting with Chapter 28A.
The only time your family might not have to navigate its way through the North Carolina probate process is when a loved one dies and leaves behind assets valued at under $20,000. Your family can fill out a small estate affidavit in this case to skip the process and start distributing a loved one’s assets sooner.
How Does the Probate Process Work in North Carolina?
If your loved one’s estate is worth well over $20,000 or includes real estate listed in your loved one’s name, you’ll usually have no choice but to go through the North Carolina probate process. Many families have 60 days to start this process under NC law. Here are the steps involved:
- Find the original copy of a loved one’s will and have the appointed executor present it to a local probate court with a death certificate.
- Figure out how much executor compensation a person should receive for executing a loved one’s will, if any.
- Begin notifying heirs, creditors, financial institutions, etc., about a loved one’s death.
- Make a list of a loved one’s assets and appraise as many of them as possible.
- Give creditors 90 days to file claims against a loved one’s estate and pay off outstanding debts.
- Start distributing a loved one’s assets.
- Close a loved one’s estate.
Some parts of this process, such as presenting a loved one’s will to a probate court, will finish quickly. Others, like having a loved one’s assets appraised, can take time and slow down the process.
How Long Does the North Carolina Probate Process Take?
The time it takes for the North Carolina probate process to conclude depends on many factors. For example, the size of your loved one’s estate and any family disputes that should arise during the process can impact its length. The amount of debt your loved one had could also cause unexpected delays.
Under normal circumstances, the probate process in North Carolina can take anywhere from six to 12 months. However, in more complex cases, your family might spend 18 months, if not longer, ironing out different details during probate.
Common Misconceptions About the North Carolina Probate Process
One common misconception about the probate process in North Carolina is that it is a lengthy and overly complicated affair that must be fully completed before any assets can be accessed. While it is true that certain steps within probate can take time, there are mechanisms available that allow heirs to gain access to immediate funds. For instance, in simpler cases, heirs may receive interim distributions of property while the entire process is still underway, alleviating some of the financial burden during the probate timeline.
Another myth is that everyone needs to go through probate regardless of the size of the estate. In North Carolina, there are certain thresholds that determine whether probate is necessary. For estates valued under $20,000, families may opt to use a small estate affidavit instead, significantly streamlining the process and reducing expenses, thus helping to keep more assets available for the beneficiaries.
The Role of Executors in the North Carolina Probate Process
In North Carolina, the executor plays a crucial role in managing the probate process, responsible for ensuring that the deceased’s last wishes are fulfilled according to their will. Their duties include gathering the deceased’s assets, paying off any debts or claims against the estate, and ultimately distributing the remaining assets to beneficiaries. This position requires careful attention to detail and transparency to maintain trust among all parties involved.
Furthermore, the executor serves as the official representative of the estate in probate court proceedings. This role involves submitting necessary documents, such as the will and petitions for probate, and dealing with various legal complexities that may arise throughout the process. An effective executor must navigate these responsibilities diligently to ensure a smooth transition of assets and to minimize conflict among heirs.
Understanding the Fees Associated with Probate in North Carolina
Probate in North Carolina can incur various fees that families should be aware of as they prepare to navigate the process. Typically, these fees can include court costs, executor fees, and attorney fees, which can fluctuate based on the complexity of the estate and the legal services required. Knowing these potential charges can help families budget appropriately and avoid surprises as they manage their loved one’s estate.
It’s important for heirs and executors to discuss and clarify these fees upfront with professionals involved in the probate process. Some fees are set by law, while others may be negotiated based on the services provided. This communication can ensure that all parties understand the costs associated with probate and help in making informed financial decisions throughout the process.
How Can I Avoid the Probate Process in North Carolina?
You can potentially avoid the probate process in North Carolina by filing a small estate affidavit with your local probate court in the event that your loved one’s assets aren’t worth over $20,000. You can also do this if your loved one happened to create a living trust while they were working through estate planning.
A living trust may enable your family to skip some or even all of the probate process in North Carolina since it’ll automatically transfer ownership of certain assets from your loved one to the rightful heirs. Bank accounts, retirement plans, and life insurance policies can all be included in living trusts.
What If a Loved One Dies in North Carolina Without a Will?
If your loved one didn’t create a will before their death, North Carolina’s intestate succession laws will help distribute their assets. These laws provide clear guidelines for how a person’s assets should be distributed to the next of kin. The state will utilize this distribution structure:
- Spouse
- Children
- Parents
- Siblings
Is There an Estate or Inheritance Tax in North Carolina?
No, there isn’t an estate or inheritance tax in North Carolina at this time. However, if your loved one owned assets in other states, your family might have to pay estate or inheritance taxes on them. You may also face a federal estate tax if your loved one’s estate is worth over $13,610,000.
Is It Possible for Me To Access an Inheritance Before the North Carolina Probate Process Ends?
Unfortunately, Rockpoint Probate Funding is unable to offer inheritance advances in North Carolina at this time, but we are able to fund cases for estates based in several other Eastern seaboard states. It’s an effective way to land the financial assistance you need while waiting for an inheritance.
Give Us a Call To Discover More About Probate Cash Advances
Could a probate cash advance benefit you? Rockpoint Probate Funding can make the probate process less stressful for families like yours who need it. Call us at (888) 263-8588 to schedule a consultation with one of our experienced representatives.
