Friday, January 25, 2013

North Carolina Deceased Debt Probate Law

North Carolina uses a standard probate process to settle a person's estate when she passes away. The probate process is designed to ensure all assets are accounted for and valued, all debts are paid in full and the wishes of the decedent are carried out according to the terms she set down in her will. If there was no will left, the state of North Carolina distributes remaining assets according to state law.

Probate Case

    A probate court case is used to help transfer ownership, titles and deeds to real or personal property legally. Probate is not needed when a decedent did not own real property; however, it can be useful if a lot of debt is left outstanding because the probate process limits how long a creditor can make a claim on the estate.

Administrator Duties

    An estate executor or personal administrator is responsible for handling the paperwork and legal steps of closing an estate. Part of an executor's responsibilities in North Carolina include notifying all creditors of the decedent's passing, creating an inventory of real and personal property or assets including current market values, submitting asset and debt lists to the court, paying off debts with the assets and distributing remaining assets according to the decedent's will or the terms of North Carolina laws.

Creditor Notification and Deadline

    Estate administrators publish a death notification in local newspapers as part of their first duties, then they send death notifications by mail to all outstanding creditors. In North Carolina all creditors must stake their claims against the estate within three months of receiving the death notification.

Estate Debt Payments

    After the three month waiting period has passed and all estate assets have been inventoried, the estate executor then uses any or all of the assets to pay off the outstanding debts. The estate must pay debts incurred from death as well as previously held debt from when the decedent was alive. Funeral expenses and court costs, for example, must be paid from the assets of the estate along with credit card debts, personal loans and any other valid debt claims.

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