In North Carolina, a small estate is defined as an estate with a total value of less than $20,000 (N.C. Gen. Stat. §§ 28A-25-1). However, if the only beneficiary is a surviving spouse, the threshold increases to $30,000.
Key Facts
- Definition: A small estate in North Carolina is one that has a total value of less than $20,000, or $30,000 if the only beneficiary is a surviving spouse.
- Exclusions: Real property, certain retirement accounts, and life insurance policies with named beneficiaries are not included in the calculation of the estate value.
- Probate shortcuts: North Carolina offers probate shortcuts for small estates, such as the Petition for Year’s Allowance, Affidavit for Collection of Personal Property of Decedent, and Summary Administration.
- Petition for Year’s Allowance: This option allows a surviving spouse or minor children to transfer assets from the decedent’s name to their own. The surviving spouse or child may receive personal property from the estate up to a value of $60,000.
- Affidavit for Collection of Personal Property of Decedent: Also known as “Collection by Affidavit,” this process allows a collector (executor, child, or creditor) to administer the estate, pay debts, and distribute remaining personal property to beneficiaries. It has a time limit of 90 days.
- Summary Administration: This simplified process is available if the decedent’s spouse is the sole beneficiary and there is no trust involved. It allows the surviving spouse to transfer all personal property into their own name, but they assume liability for the estate’s debts and liabilities.
- Small Estate Affidavit: North Carolina offers a simple procedure called “small estate administration” or “administration by affidavit” for estates with a value of less than $20,000 (or $30,000 if the surviving spouse is the sole beneficiary). This procedure allows inheritors to skip probate altogether.
Exclusions
When determining the value of an estate, certain assets are excluded, including:
- Real property
- Retirement accounts with named beneficiaries
- Life insurance policies with named beneficiaries
Probate Shortcuts
North Carolina offers several probate shortcuts for small estates, including:
Petition for Year’s Allowance
This option allows a surviving spouse or minor children to transfer assets from the decedent’s name to their own (N.C. Gen. Stat. §§ 28A-25-1). The surviving spouse or child may receive personal property from the estate up to a value of $60,000.
Affidavit for Collection of Personal Property of Decedent
Also known as “Collection by Affidavit,” this process allows a collector (executor, child, or creditor) to administer the estate, pay debts, and distribute remaining personal property to beneficiaries (N.C. Gen. Stat. §§ 28A-25-2). It has a time limit of 90 days.
Summary Administration
This simplified process is available if the decedent’s spouse is the sole beneficiary and there is no trust involved (N.C. Gen. Stat. §§ 28A-28-1). It allows the surviving spouse to transfer all personal property into their own name, but they assume liability for the estate’s debts and liabilities.
Small Estate Affidavit
For estates with a value of less than $20,000 (or $30,000 if the surviving spouse is the sole beneficiary), North Carolina offers a simple procedure called “small estate administration” or “administration by affidavit” (N.C. Gen. Stat. §§ 28A-25-1). This procedure allows inheritors to skip probate altogether.
Sources
- Settling Small Estates – Osborn Gambale Beckley & Budd
- North Carolina Probate: Three Types of Small Estate Filings
- Probate Shortcuts in North Carolina
FAQs
What is considered a small estate in North Carolina?
A small estate in North Carolina is one that has a total value of less than $20,000, or $30,000 if the only beneficiary is a surviving spouse.
What assets are included in the calculation of a small estate?
The value of a small estate includes all personal property, such as bank accounts, vehicles, and jewelry. However, real property, retirement accounts with named beneficiaries, and life insurance policies with named beneficiaries are not included.
What are the probate shortcuts available for small estates in North Carolina?
North Carolina offers three probate shortcuts for small estates: Petition for Year’s Allowance, Affidavit for Collection of Personal Property of Decedent, and Summary Administration.
What is a Petition for Year’s Allowance?
A Petition for Year’s Allowance allows a surviving spouse or minor children to transfer assets from the decedent’s name to their own. The surviving spouse or child may receive personal property from the estate up to a value of $60,000.
What is an Affidavit for Collection of Personal Property of Decedent?
An Affidavit for Collection of Personal Property of Decedent, also known as “Collection by Affidavit,” allows a collector (executor, child, or creditor) to administer the estate, pay debts, and distribute remaining personal property to beneficiaries. It has a time limit of 90 days.
What is Summary Administration?
Summary Administration is a simplified probate process available if the decedent’s spouse is the sole beneficiary and there is no trust involved. It allows the surviving spouse to transfer all personal property into their own name, but they assume liability for the estate’s debts and liabilities.
What is a Small Estate Affidavit?
A Small Estate Affidavit is a simple procedure that allows inheritors to skip probate altogether for estates with a value of less than $20,000 (or $30,000 if the surviving spouse is the sole beneficiary).