NC Probate Process - North Carolina Laws

Probate Process (applies to NC Only)

What is a Probate Court?
Probate courts are responsible for the proper administration of estates.

When a person dies, with or without a valid Last Will & Testament, their estate (personal property and real estate) must first be used to pay off debts (creditors and taxes). After all debts are paid, the remaining assets are distributed as laid out in the Will. If the person died without a Will, their assets are distributed among their relatives according to North Carolina Intestate Succession law.

In North Carolina, the Clerk of Superior Court serves as the Judge of Probate Court. The Clerk's role is to:

Determine the validity of a Will
Appoint a Personal Representative of the estate
Oversee the marshalling (securing) and proper preservation of estate assets
Oversee the payment of the proper creditors of the estate
Oversee the payment of taxes to which the estate is subject
Oversee the final and proper distribution of the "net" estate
Oversee any other matters related to the probate of an estate that require a judicial hearing

What is a Personal Representative?
A Personal Representative is responsible for the proper administration and distribution of an estate. Appointed by the Probate Court, a Personal Representative is accountable to the Court and must demonstrate that they properly and fully discharged their responsibilities. These responsibilities include the following:

Securing, maintaining and preserving the assets of the estate
Preparing and filing an inventory of the estate's assets
Paying the debts and liabilities of the estate
Preparing and filing tax returns for the estate and paying the taxes owed by the estate (using estate money to do so)
Preparing and filing a final accounting of estate assets, liabilities, income and losses
Submitting a proposed final distribution of the estate so the Court can review and approve it
Distributing the "net estate" in accordance with the court-approved final distribution plan

Personal Representatives are usually entitled to reasonable compensation for their services. However, the Probate Court must review and approve the payment of such compensation.

The Personal Representative must take an Oath of Office and may have to post a bond to protect the estate assets from fraud or improper administration. Additionally, the Personal Representative must file yearly accountings, showing all property received and all property distributed. These accountings are carefully audited by the Estates Division, and receipts, canceled checks, statements, and payment vouchers must be exhibited for audit.