North Carolina

To the best of our knowledge, the information provided below is current and accurate. Always be sure to consult with a jurisdictional authority before using this information to educate or counsel your clients.

State Estate or Inheritance Taxes

North Carolina has no state estate or inheritance tax.

Small Estate Probate

Every state offers a fast track or shortcut for the probate of "small estates." Some assert that probate court is the proper forum for passing a small estate to the heirs, the idea being that if an estate is not valued over a certain minimum threshold, it is too small for serious estate planning.

To be sure, when a state's small estate probate threshold is extremely low, using this shortcut to settle an estate that qualifies may be the obvious choice. However, the small estate probate threshold in some states is substantial, in which case serious issues should be considered before you allow a client to go to the default system of the state court. When small estate probate is appropriate and what the client desires, refer to the following information.

North Carolina offers two probate shortcuts for "small estates." This makes it easier for survivors to transfer property left by a person who has died. You may be able to transfer a large amount of property using a probate shortcut -- saving time, money, and hassle.

Here are the ways you can skip or speed up probate. (If the affidavit procedure is used, there's no need to use the simplified probate procedure.)

Claiming Property With an Affidavit

North Carolina offers a procedure that allows inheritors to skip probate altogether when the value of all the assets left behind is less than a certain amount. All an inheritor has to do is prepare a short document, stating that he or she is entitled to a certain asset. This document, signed under oath, is called an affidavit. You can get a fill-in-the-blanks affidavit form from the local probate (superior) court. You must file the completed affidavit with the court.

When the person or institution holding the property -- for example, a bank where the deceased person had an account -- gets the affidavit and a copy of the death certificate, it releases the asset. You can use an affidavit to claim personal property (that's anything but real estate) if the value of the deceased person's personal property, less liens and encumbrances, is $20,000 or less ($30,000, not counting spousal allowance, if the surviving spouse is the sole heir). There is a 30-day waiting period. N.C. Gen. Stat. § § 28A-25-1 and following.

The affidavit must state:

• the inheritor's name, address, and relationship to the deceased person

• the deceased person's name, address, and date and time of death

• that the deceased person died more than 30 days ago

• that the value of the personal property is $20,000 or less

• that the deceased person's will was admitted to probate

• the names and addresses of people entitled to inherit property, and

• a description of any real property the deceased person owned.

The executor attaches a copy of the will to the affidavit.

Simplified Probate Procedure

If the surviving spouse inherits everything, a summary probate procedure is available. However, if the property passes through trust, this option is not available. N.C. Gen. Stat. § 28A-28-1 and following.

The petition must state:

• the spouse's name and address

• that he or she is the surviving spouse and the sole inheritor

• the deceased person's name and address

• the date and place of death

• the date and place of marriage

• a description of any real property the deceased person owned

• a description of all personal property, its location, and its approximate value as best as the surviving spouse can determine

• the name and address of the executor named in the will

• that the surviving spouse mailed a copy of the petition to the executor

• that the surviving spouse assumes all debts of the deceased person that were not otherwise discharged by death, and

• that the surviving spouse admitted the will to probate

The spouse also pays a filing fee when submitting the petition to the court clerk.