When someone passes away, their assets are typically distributed through a legal process known as probate. In North Carolina, understanding which assets go through probate and which do not is essential for estate planning and settlement. This article will delve into the specifics of assets subject to probate and those exempt in North Carolina, shedding light on how different types of property are managed during the estate settlement process.
Assets Subject to Probate
Assets that go through probate in North Carolina are those that are solely owned by the deceased individual and do not have a designated beneficiary. Some common examples of assets subject to probate include:
- Real estate owned solely by the deceased
- Bank accounts in the deceased’s name only
- Investment accounts without designated beneficiaries
- Personal belongings and vehicles solely owned by the deceased
Legal Code Reference: North Carolina General Statutes § 28A
Assets Exempt from Probate
Not all assets are required to go through probate in North Carolina. Some assets are considered non-probate assets and can pass directly to designated beneficiaries outside of the probate process. Examples of assets that typically bypass probate include:
- Life insurance policies with named beneficiaries
- Retirement accounts with designated beneficiaries
- Jointly owned property with rights of survivorship
- Assets held in a living trust
Legal Code Reference: North Carolina General Statutes § 28A-15-2
Handling of Assets During Estate Settlement
During the estate settlement process in North Carolina, assets subject to probate are inventoried, appraised, and eventually distributed to heirs or beneficiaries according to the deceased individual’s will or state intestacy laws if there is no will. Executors or personal representatives are responsible for managing the probate process and ensuring that assets are distributed correctly.
On the other hand, non-probate assets are typically transferred directly to the designated beneficiaries without the need for probate court involvement. This streamlined process can help expedite the distribution of assets and minimize the associated costs and delays.
Final Thoughts on Asset Distribution in North Carolina
Understanding which assets go through probate and which do not is crucial for effective estate planning and settlement in North Carolina. By being aware of the different types of assets and how they are handled during the estate settlement process, individuals can ensure that their assets are distributed according to their wishes in a timely and efficient manner.
Buried in Work’s Additional Resources
Buried in Work provides North Carolina state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.
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