Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration
Everything you need to know about North Carolina Form AOC-E-850, including helpful tips, fast facts & deadlines, how to fill it out, where to submit it and other related NC probate forms.
About Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration
There are all sorts of forms executors, beneficiaries, and probate court clerks have to fill out and correspond with during probate and estate settlement, including affidavits, letters, petitions, summons, orders, and notices.
Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration is a commonly used form within North Carolina. Here’s an overview of what the form is and means, including a breakdown of the situations when (or why) you may need to use it:
View Form AOC-E-850
NC Form AOC-E-850, which may also referred to as Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration, is a probate form in North Carolina. It is used by executors, personal representatives, trustees, guardians & other related parties during the probate & estate settlement process.
Atticus Fast Facts About Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration
Sometimes it’s tough to find a quick summary— here’s the important details you should know about Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration:
This form pertains to the State of North Carolina
The official North Carolina source for this form is here.
Government forms are not typically updated often, though when they are, it often happens rather quietly. While Atticus works hard to keep this information about ’s Form AOC-E-850 - Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration up to date, certain details can change from time-to-time with little or no communication.
How to file Form AOC-E-850
Step 1 - Download the correct North Carolina form based on the name and ID if applicable
Double check that you have both the correct form name and the correct form ID. Some North Carolina probate forms can look remarkably similar, so it’s best to double, even triple-check that you’re using the right one! Keep in mind that not all States have a standardized Form ID system for their probate forms.
Step 2 - Complete the Document
Fill out all relevant fields in Form AOC-E-850, take a break, and then review. Probate and estate settlement processes in NC are long enough to begin with, and making a silly error can push your timeline even farther back. No thank you!
Note: If you don’t currently know all of the answers and are accessing Form AOC-E-850 online, be sure to avoid closing the browser tab and potentially losing all your progress (or use a platform like Atticus to help avoid making mistakes).
Step 3 - Have Form AOC-E-850 witnessed or notarized (if required)
Some States and situations require particular forms to be notarized. If you have been instructed to get the document notarized or see it in writing on the document, then make sure to hire a local notary. There are max notary fees in the United States that are defined and set by local law. Take a look at our full guide to notary fees to make sure you aren’t overpaying or getting ripped off.
Step 4 - Submit Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration to the relevant office
This is most often the local probate court where the decedent (person who passed away) is domiciled (permanently resides) or the institution involved with this particular form (e.g. a bank). Some offices allow you to submit forms online, other’s don’t, and we while we generally recommend going in-person to expedite the process, sometimes that simply isn’t an option.
It’s also a generally good idea to establish a positive working relationship with any probate clerk (unfortunately there’s enough people & process out there making things more difficult and unnecessarily confusing for them), so a best practice is to simply ask the probate clerk proactively exactly how and where they’d prefer you to submit all forms.
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When Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration is due
Different probate forms or processes can require different deadlines or response times for completing the appropriate form.
While some steps in the process are bound to specific deadlines (like petitioning for probate, having to submit an inventory of assets, or filing applicable notices to creditors and beneficiaries), many probate forms or processes are not tied to a specific deadline since the scope of work can vary based on situational factors or requirements involved.
Either way, there are a bunch of practical reasons why personal representatives should work to complete each step as thoroughly and quickly as possible when completing probate in North Carolina.
5 reasons you should submit AOC-E-850 as quickly as possible:
The sooner you begin, the faster North Carolina can allow heirs and beneficiaries to get their share of assets subject to probate. Acting promptly can also decrease the costs & overall mental fatigue through an otherwise burdensome process.
Helpful Context: What’s the Difference Between Probate and Non-Probate Assets?In general, creditors of an estate usually have around 3-6 months from the time you file notice to creditors to file any claims for debt against the deceased’s assets. If they don’t, then that debt is forfeited (and more importantly, the executor won’t be held personally responsible). So doing this sooner means you have a better idea of who is owed what and ensures you won’t get a surprise collector months later.
Not filing a will within 30 days (on average) could mean that the probate process proceeds according to intestate laws (laws that govern what happens to someone's stuff without a will) or is subject to unnecessary supervision by the probate court. And if you aren't directly related to the deceased (a.k.a. next of kin), this could also mean you lose your inheritance.
It’s important to file any necessary state tax returns on behalf of the deceased or estate by the following tax season in North Carolina. If you don’t, you could owe penalties and interest. This also includes any necessary federal tax returns such as Forms 1040, 1041, or even a Form 706 estate tax return.
If a house in the State of North Carolina is left empty (or abandoned) for a while, insurance can get dicey. For example, if the house burns down and no one has been there for a year, an insurance company may get out of paying your claim.
If you’re not using Atticus to get specific forms, deadlines, and timelines for North Carolina probate, then try and stay as organized as possible, pay close attention to the dates mentioned in any correspondence you have with the State’s government officials, call the local North Carolina probate clerk or court for exact answers regarding Form AOC-E-850, and when in doubt— consult a qualified trust & estates lawyer for that area.
How to Download, Open, and Edit Form AOC-E-850 Online
Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration is one of the many probate court forms available for download through Atticus.
It may also be available through some North Carolina probate court sites, such as . In order to access the latest version, be updated with any revisions, and get full instructions on how to complete each form, check out the Atticus Probate & Estate Settlement software or consider hiring a qualified legal expert locally within North Carolina.
While Atticus automatically provides the latest forms, be sure to choose the correct version of Form AOC-E-850 - Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration f using any other site or resource in order to avoid having to re-complete the form process and/or make another trip to the North Carolina probate court office.
Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration is a .pdf, so opening it should be as simple as clicking “View Form” from within the Atticus app or by clicking the appropriate link found on any North Carolina-provided government platform. Once you’ve opened the form, you should be able to directly edit the form before saving or printing.
View Form AOC-E-850
NC Form AOC-E-850, which may also referred to as Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration, is a probate form in North Carolina. It is used by executors, personal representatives, trustees, guardians & other related parties during the probate & estate settlement process.
Did you know?
Form AOC-E-850 - Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration is a probate form in North Carolina.
North Carolina has multiple types of probate and the necessary forms depend on the unique aspects of each estate, such as type and value of assets, whether there was a valid will, who is serving as the personal representative or executor, and even whether or not they also live in North Carolina.
During probate, all personal representatives and executives in are required to submit a detailed inventory of assets that must separate non-probate assets from probate assets.
Probate in North Carolina, especially without guidance, can take years to finish and cost upwards of $14,000.
Frequently Asked Questions about Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration
What is probate, exactly?
Probate is the government’s way of making sure that when a person dies, the right stuff goes to the right people (including the taxes the government wants).
All of that stuff is collectively known as someone’s “estate”, and it’s the job of the executor or personal representative to fill out all the forms and complete all the required steps to formally dissolve the estate.
To get instant clarity on the entire probate process and get an idea of the steps, timeline, and best practices, read the Atticus Beginner’s Guide to Probate.
Where can I get help with Probate?
The best place? Create an account in Atticus to start getting estate-specific advice.
You may need a lawyer, you may not, and paying for one when you didn’t need it really hurts. Atticus makes sure you make the best decisions (plus you can write it off as an executor expense).
We’ve also created a list of other probate services. Be sure to check it out!
What does a NC executor or personal representative have to do?
An executor is named in someone’s will, and if the deceased didn’t have a will, then the spouse or other close family relative usually steps up to fulfill the role. If no one wants to do it, then a judge will appoint someone.
The executor is responsible for the complete management of the probate process, including major responsibilities such as:
Creating an inventory of all probate assets.
Filling out all necessary forms
Paying off all estate debts and taxes
Submitting reports to the court and beneficiaries as requested
And much more. This process often stretches longer than a year.
For an idea of what separates executors who succeed from those who make this way harder than it should be, visit our article, Executors of an Estate:
What they do & secrets to succeeding.
The Exact Text on Form AOC-E-850
Here’s the text, verbatim, that is found on North Carolina Form AOC-E-850 - Estate Procedures For Executors, Administrators, Collectors By Affidavit, And Summary Administration. You can use this to get an idea of the context of the form and what type of information is needed.
AOC-E-850, April 2016 Estate Procedures for Executors, Administrators, Collectors By Affidavit, and Summary Administration IMPORTANT NOTES TheClerkofSuperiorCourtinall100countiesservesasthejudgeof probateandcannot practice law or give legal advice. Therefore, you shouldnotasktheclerkortheclerk’sstafftoprepareyouraccountsor toadviseyouonthecompletionofformsoranylegalissue. Ifyou need advice,you should consult an attorney,especiallyregarding disbursementofanyfunds,anyquestionsabouthandlinginsolventestates, orconcerningfederalandstatetaxespayablebytheestate. Youmustkeepaccuraterecordsandfileaccurateaccounts. CourtcostsandfeesmustbepaidtotheClerkofSuperiorCourt. Youwillbeinformedabouttheamountsbytheclerk’soffice. Publishedby NorthCarolinaAdministrativeOfficeoftheCourts JudgeMarionR.Warren,Director P.O.Box2448 Raleigh,NC27602 April2016 For copies of this pamphlet and other forms, please contact your local Clerk of Superior Court or obtain this pamphlet online at: www.nccourts.org/Forms/Documents/735.pdf REGULAR ADMINISTRATION OF AN ESTATE 1. Will, Letters, Executor, Administrator, Personal Representative (a) When aperson dieswithawill,thepersonissaid tohavedied“testate.” When aperson dieswithoutawill,thepersonhasdied“intestate.” (b) Whenapersonhasdied,asearchshouldbemadetoseeifthat person(thedecedent)leftawill.Asearchshouldalsobemadeto determineifthedecedenthadasafedepositbox,sincethewilland othervaluablepapersoritemsmaybeinthesafedepositbox.Ifawill isdiscoveredinthesafedepositbox,itmustbefiledwiththeClerk ofSuperiorCourt.[G.S.28A-15-13(d)].Ifthereisawill,theClerkof SuperiorCourt,uponapplication[Application For Probate And Letters, AOC-E-201],issues“letters”tothepersonwhoqualifiesasexecutor ofthewill.“LettersTestamentary”[Letters,AOC-E-403]aretheofficial writtenauthorizationforapersontocarryouttheresponsibilitiesof executorofawill. (c) Ifthedecedentdiesintestate,thatis,withoutleavingawill,“letters” areissuedbytheClerkofSuperiorCourt,uponapplication,[Application For Letters Of Administration,AOC-E-202]tothepersonwhoqualifies asadministratoroftheestate.“Letters”[AOC-E-403]aretheofficial writtenauthorizationforapersontocarryouttheresponsibilitiesof administratorofanestate.[G.S.28A-4-1(b)]. (d) Theterm“personalrepresentative”isusedtorefertoeitheran executororanadministrator.Thispersonhasafiduciarydutytoactin bestinterestsoftheestate. 2. Qualification as Personal Representative (a) Application to Qualify [Application For Probate And Letters, AOC-E-201, or Application For Letters Of Administration, AOC-E-202] Apersonwhoseekstoqualifyasapersonalrepresentativemustapply totheClerkofSuperiorCourtonaformprovidedbytheclerk’soffice. Theformcallsforapreliminaryinventoryofallassetsofthedecedent as of the date of death.Therefore,theapplicantwillneedtohavea generalknowledgeofthedecedent’srealestate,bankaccounts,stocks, bonds,motorvehicles,andotherpersonalproperty,andanestimated valueoftheseassets,tocompletetheapplication.Theinstructionsfor thatformassistyouincompletingtheform.[G.S.28A-6-1(a)]. Estate Procedures | April 2016 1 (b) Qualified Persons Ifthedecedentdidnotnameanexecutorinthewillordiesintestate (withoutawill),theClerkofSuperiorCourtwillgrantlettersof administrationtoaperson(s)whoappliesandisqualifiedtoserve,in thefollowingorder: (1) Thesurvivingspouseofthedecedent; (2) Anyonewhoistoreceivepropertyasindicatedbythewillofthe decedent; (3) Anyonewhoisentitledtoreceivepropertyofthedecedentbylaw intheabsenceofawill; (4) Anynextofkin; (5) Anycreditortowhomthedecedentbecameobligatedpriortodeath; (6) Anypersonofgoodcharacterresidinginthecountywhoapplies with the Clerk of Superior Court. (c) Disqualified persons Nopersonmayserveasapersonalrepresentativewho: (1) Isunder18yearsofage; (2) Hasbeenadjudgedincompetentbythecourtandremainsunder suchdisability; (3) Isaconvictedfelonwhosecitizenshiphasnotbeenrestored; (4) Isanonresidentofthisstatewhohasnotappointedaresidentof thestatetoacceptserviceofprocessinallactionsorproceedings withrespecttotheestate; (5) Isacorporationnotauthorizedtoactasapersonalrepresentative inthisstate; (6) Hascommittedactswhichbylawconstituteaforfeitureofthe righttoserve; (7) Isilliterate; 2 Estate Procedures | April 2016 (8) IsapersonwhomtheClerkofSuperiorCourtfindsotherwise unsuitable; (9) Waspreviouslydesignatedasexecutoroftheestatebuthas renouncedthatofficeorotherwisechosenottocarryoutthe dutiesofthepersonalrepresentative.[G.S.28A-4-2]. (d) Oath/Affirmation [Oath/Affirmation, AOC-E-400] Apersonqualifyingaspersonalrepresentativemusttakeanoathor makeanaffirmationtocarryoutthedutiesfaithfullyandhonestly.[G.S. 28A - 7 - 1]. (e) Bond [Bond, AOC-E-401] Generally, an executorofawillwhoisaNorthCarolinaresidentisnot requiredtofurnishabondbeforebeingauthorizedtoactasexecutor, unlessthewillexpresslyrequiresthatbondbefurnished.However, thereareexceptions,andtheClerkofSuperiorCourtalwayshasthe discretiontorequireabond.Anadministratorofanestateisrequired tofurnishabondunlessalltheheirsare18yearsofageorolder, ofsoundmindandhavefiledwrittenwaivers[Waivers Of Personal Representative’s Bond, AOC-E-404]ofthebondrequirement.However, nobondisrequiredofanadministratoriftheadministratoristhesole heir.Ifthesolepurposeoftheappointmentistobringawrongfuldeath lawsuit,abondisnotrequireduntilimmediatelypriortothereceiptof thewrongfuldeathfunds.[G.S.28A-8-1].Bond is required (and cannot be waived) when an administrator is not a North Carolina resident. [See G.S.28A-8-1(b)(6)]. 3. Authority of Personal Representative Apersonalrepresentativeisauthorizedtocollectassets,payclaims, andmakealldisbursementsnecessarytosettleanestateandto distributetheassetsinanorderly,accurate,andtimelymanner.Before thepersonalrepresentativecansellanyrealpropertyofthedecedent’s estatetogeneratecashwithwhichtopaydebtsoftheestate,the personalrepresentativemustpetitiontheClerkofSuperiorCourtfor permissiontosellsuchrealestate.However,theclerk’sapprovalis notneededifthewillexpresslydirectstheexecutortosellthereal property.[G.S.28A-13-3,G.S.28A-15-1,G.S.28A-17-1]. Estate Procedures | April 2016 3 4. Notice to Creditors [Affidavit Of Notice To Creditors, AOC-E-307] Exceptforestatesopenedsolelyforpurposesofawrongfuldeath action,afterlettersareissued,apersonalrepresentativemust causeanoticeforcreditor’sclaimsagainsttheestatetobeplaced inanewspaper“qualifiedtopublishlegaladvertisements”whichis publishedinthecountywheretheestateisbeingadministered.Ifthere isnoqualifiednewspaperprintedinthecounty,then: (i) thenoticemustbepublishedinanewspaperofgeneralcirculation inthecountyandpostedatthecourthouse,or (ii) acopyofthenoticemustbepostedatthecourthouseandinfour otherpublicplacesinthecounty. Noticestocreditorsmustbepublishedonceaweekforfour(4) consecutiveweeksandshouldstatethatclaimsmustbefiledbya datecertain,whichdateisatleastthree(3)monthsfromthedateof firstpublicationofthenotice.Postednoticesmuststatethatclaims mustbefiledbyadatecertain,whichdateisatleastthree(3)months fromthedateoffirstpostingofthenotice.Withinseventy-five(75) daysafterthegrantingoflettersandpriortofilingproofofpublication and/orpostingwiththeClerkofSuperiorCourt’soffice,thepersonal representativemustalsopersonallydeliverorsendbyfirstclassmaila noticeabouthow,when,andwheretofileclaimsagainsttheestateto allcreditors(includingtheDepartmentofHealthandHumanServices, DivisionofMedicalAssistance,ifatthetimeofthedecedent’sdeath thedecedentwasreceivingMedicaid)whoareactuallyknownorcan bediscovereduponreasonableinvestigation.However,nonoticeneed bedeliveredormailedwithrespecttoanyclaimthatthepersonal representativealreadyrecognizesasvalidandhasorwillpaythe claim.Followingpublication,acopyofthenotice,anaffidavitfrom thenewspaperattestingtopublication,and,asapplicable,anaffidavit fromthepersonalrepresentativeattestingthatheorshehasmailedor personallydelivered the notice,mustbefiledwiththeClerkofSuperior Court.[G.S.28A-14-1,G.S.28A-14-2]. 5. Filing an Inventory [Inventory For Decedent’s Estate, AOC-E-505] Withinthree(3)monthsfromthedateofqualification,thepersonal representativemustfilewiththeClerkofSuperiorCourt’sofficean accurateinventoryoftheestate,givingdescriptionsandvaluesofall realandpersonalpropertyofthedecedentas of the date of death. Thepersonalrepresentativeshouldobtaincopiesofsignaturecards anddepositcontractsassociatedwithanyjointaccountsfromthe depositoryfinancialinstitutionandsubmitthemwiththeinventory. . 4 Estate Procedures | April 2016 Clerksmayrequiresupportingdocumentationfortheinformation providedontheinventory.Propertydiscoveredafteraninventoryhas beenfiledmustbereportedonasupplementalinventory.[G.S.28A-20- 1,G.S.28A-20-3].Incomeoftheestate,propertyacquiredbytheestate afterthedecedent’sdeath,orassetconversions(e.g.saleofrealestate orstock,foreclosureofdeedoftrust,etc.)mustbereportedonthe nextaccounting.[G.S.28A-21-1]. 6. Year’s Allowance [Application And Assignment Year’s Allowance, AOC-E-100] Anapplicationforayear’sallowanceforthesurvivingspouseand / or dependentchild(ren)maybefiledwiththeclerkatanytimewithin one(1)yearofthedecedent’sdeath.Theclerkormagistratewill holdahearingontheapplication.Theallowancewillbeenteredon theapplicationformbytheclerkormagistrate.Theallowancewillbe fromcashorpersonalpropertyoracombinationofboth,butdoesnot includerealestate.Theallowanceshouldbepaidasapriorityclaim beforeanyotherclaimsagainsttheestatearepaid.Theamountofthe spousalallowanceis$20,000forasurvivingspouseifthedecedent diedonorbeforeDecember31,2013,and$30,000forasurviving spouseifthedecedentdiedonorafterJanuary1,2014.Anallowance of $5,000 may also be available for each surviving child of the decedent. [G.S.30-15,G.S.30-17]. 7A. Real Property – Rents, Expenses Unlessrealpropertyiswilleddirectlytotheestate,titletotheland generallyvestsintheheirsandpassesoutsidetheadministeredestate. Accordingly,rentsfromthosepropertiesarenotincometotheestate andestatefundsmaynotbeusedtopayrealestateexpenses,suchas mortgages,taxes,insuranceorutilities. Ifrealpropertynotwilledtotheestateisneededtopayclaims,itcan bebroughtintotheestatebyfilingaspecialproceedingbeforethe Clerk.[G.S.28A-17-2]. 7B. Encumbered/Mortgaged Property Whenitemsofrealorpersonalpropertyarespecificallywilledtoan heir,thatheirtakesthepropertysubjecttoanyencumbrancesthereon, andwithoutarighttohaveassetsoftheestatedischargethesecured obligation.[G.S.28A-15-3].Thisdoesnotlimittheremediesofa Estate Procedures | April 2016 5 securedcreditoragainsttheheirortheestateiftheheirorestatefails tomakepaymentontheencumbrances. Ifitemsofrealorpersonalpropertyareassetsof(titledto)the administeredestateandsubjecttoencumbrances,thepersonal representativemaypaytheencumbrance,ifthatisinthebestinterests oftheestate.However,paymentoftheencumbrancemustbetaken intoaccountincalculatingthedivisionoftheestateanddoesnot increasetheshareofthedistributeeofthatasset.[G.S.28A-15-4]. 8. Claims Allclaimsagainstthedecedent’sestatewhicharosebeforethedeathof thedecedent,otherthantaxesandclaimscoveredbyinsurance,must bepresentedtothepersonalrepresentativebythedatespecifiedinthe noticetocreditors,orforeverbebarred.[G.S.28A-19-3]. (a) Insufficient Funds To Pay All Claims Inordertodetermineiftherewillbesufficientfundswithwhichtopay claims,thepersonalrepresentativeshouldnotpayanyclaimsuntilafter thetimeforfilingclaimshasexpired. Iftheestateisnotsufficienttopayallofthecreditorsineveryclass,the personalrepresentativeshouldpayinfullthoseclassesofcreditorsfor whichthereissufficientmoney,startingwiththoseatthetopofthe prioritylistaslistedinparagraph8(b).Thenthepersonalrepresentative shoulddistributetheremainingmoneyproportionallyamongeach creditorofthenexthighestclass.[G.S.28A-19-6]. (b) Order Of Priority Of Claims Afterpaymentofthecostsandexpensesofadministration,including the year’s allowance,thepersonalrepresentativemustpayclaims againsttheestateinthefollowingorder:[G.S.28A-19-6]. (1) Claimswhichbylawhaveaspecificlienonpropertyuptothe amountofthevalueofsuchproperty. (2)FuneralExpenses.Fortheestatesofdecedentsdyingonorafter 10 / 1 / 09,funeralexpensesofupto$3,500.Fortheestatesof decedentsdyingonorafter10 / 1 / 09,thefuneralexpensepriority isimmediatelyfollowedbyanewpriorityofupto$1,500forcosts associatedwiththepurchaseofaburialsiteandgravestone.The 6 Estate Procedures | April 2016 balanceoffuneralexpenses,abovethelevelofthepreferencesset inthisparagraph,hasnopreference,andshouldbepaidasallother claimsin#8below. (3) Alldues,taxes,andotherclaimswithpreferenceunderfederallaw. (4) Alldues,taxes,andotherclaimswithpreferenceunderthelawsof theStateofNorthCarolinaorunderthelawsoflocalgovernments in North Carolina. (5) JudgmentsofanycourtofcompetentjurisdictionwithintheState ofNorthCarolina,docketedandinforce,totheextenttowhich thejudgmentswereliensonthepropertyofthedecedentatthe timeofdeath,andMedicaidclaimsfiledunderG.S.108A-70.5. (6) Wagesdueanyemployeeofthedecedentforaperiodofnot morethantwelve(12)monthsimmediatelyprecedingthedeath ofthedecedent;thecostofanymedicalservicesreceivedduring thetwelve(12)monthsprecedingthedeathofthedecedent;and thecostofnecessarydrugsandallothermedicalsuppliesincurred duringthelastillnessofthedecedent(nottoexceed12months). (7a) Aclaimforequitabledistribution. (7b) FarmoperationexpensesthroughharvestunderG.S.28A-13-4. (8) Allotherclaims(forexample,creditcarddebt). 9. Filing Individual and Estate Tax Returns Dependingonthevalueofthedecedent’sgrossestatecombinedwith adjusted taxable gifts and any specific exemption,and dependingon the dateonwhichthedecedentdied,stateandfederaltaxesmaybedue andstateandfederalfiduciaryincometaxreturnsmayalsoberequired. Followingqualification,thepersonalrepresentativeshouldpromptly contactstateandfederaltaxofficesorataxprofessionaltodetermine whattaxinformation,ifany,shouldbefiledwiththoseoffices.Relevant taxformsusedinsettlementoftheestatemaybeobtainedfromthe NorthCarolinaDepartmentofRevenueat1-877-252-3052.Ifestate taxreturnsarefiled,thepersonalrepresentativeshouldobtainclosing lettersfromthetaxingauthoritiesandfilecopieswiththeclerk. Estate Procedures | April 2016 7 IfnoStateestateorinheritancetaxesaredue,thepersonal representativeshouldprovidetheclerkofcourtwithacertificationthat noestateorinheritancetaxreturnswererequiredtobefiled[Estate Tax Certification (For Decedents Dying On Or After 1/1/99),AOC-E-212, or Inheritance And Estate Tax Certification(fordecedentsdyingprior to1/1/99),AOC-E-207].IntheeventthatStateestatetaxesweredue, thepersonalrepresentativemustprovidetheclerkofcourtwitha certificatefurnishedbytheNorthCarolinaSecretaryofRevenue,stating theestatetaxliabilityhasbeensatisfiedinfull. 10. Commissions Thepersonalrepresentativemayreceiveacommissionforhandling theestate.Ifthewilldoesnotestablishtheamountormethodof compensation,orifthereisnowill,theClerkofSuperiorCourtmay, inhisorherdiscretion,allowacommissionofup tofivepercent(5%) oftheestatereceiptsanddisbursements.Theclerkwillconsiderthe time,responsibility,trouble,andskillinvolvedinthemanagementof theestate.Commissionstopersonalrepresentativesareaccountedfor ascostsandexpensesofadministration.Thepersonalrepresentative shouldpetitiontheclerkforapprovalofacommissionbeforemaking distribution.[G.S.28A-23-3]. 11. Attorney’s Fees Thepersonalrepresentativemaychoosetohireanattorneyto representtheestate.However,thefundsoftheestatemaynotbe usedtopaytheattorney’sfeesunlesstheclerkfindsthatthefeeis reasonable.Unlesstheattorney’sservicesarebeyondthenormalscope ofestateadministration,theattorney’sfeesallowedmayreducethe amountofthepersonalrepresentative’scommission.Not all attorney’s fees may be approved by the clerk and if not allowed, the personal representative will be personally responsible for the attorney’s fees. 12. Distribution of Assets Afterpayingthecostsofadministration,taxes,andothervalidclaims againsttheestate,thepersonalrepresentativemustdistributethe remainingassetsoftheestateinaccordancewiththewill,or,ifnone, inaccordancewiththeIntestateSuccessionAct(Chapter29ofthe GeneralStatutes). Ifgeneralbequestsofmoney(thosenotpayableoutofaspecified 8 Estate Procedures | April 2016 fund)aresetforthinthewill,yetthereisnotenoughcashorother personalpropertywithintheadministeredestatetopayallsuch bequests,thepersonalrepresentativeshouldproratetheamount availableamongallsimilarly-situatedrecipientsofgeneralbequests [G.S.28A-15-5].Thepersonalrepresentativeshouldobtainreceipts fromalldistributees.[G.S.28A-22-1]. 13. Accounting: (a) Inventory Seepage4,paragraph5,“FilinganInventory.” (b) Final Accounting Thepersonalrepresentativemayfileafinalaccountingafterthedate specifiedinthenoticetocreditorsifallclaimshavebeenpaidor otherwisesatisfied.[G.S.28A-21-2(b)].Thepersonalrepresentative mustfileafinalaccountingwithinoneyearofthedateonwhichheor shequalifiedtoserve,unlesstheClerkofSuperiorCourthasgrantedan extensionoftimeforgoodcause.[G.S.28A-21-2(a)].Ifanextensionhas beengranted,anannualaccountingmustbefiledwithinoneyearof thedateofqualification. (c) Annual Accounting Thepersonalrepresentativemustfileanannualaccountingno laterthanoneyearfromthedateonwhichheorshequalifiedto serve.Iftheestateisnotfinalizedwithinoneyear,thenthepersonal representativemustfilearequestfortheestatetoremainopenand fileanannualaccount.Anannualaccountingmustbefiledeveryyear thereafteruntilthefinalaccountingisfiled.[G.S.28A-21-1]. (d) Proof Allaccountingsmustbeaccompaniedbycancelledorimagedchecks orotherproofsatisfactorytotheclerkforalldisbursementsand distributionsandforallbalancesheldorinvested.(Example:detailed bankstatementsshowingbalanceheld.)[G.S.28A-21-1]. (e) Contents of Accountings AccountingsfiledwiththeClerkofSuperiorCourtmustbesignedunder oathandcontain: (1) Theperiodwhichtheaccountcoversandwhetheritisanannual Estate Procedures | April 2016 9 accountingorfinalaccounting; (2) The amount and value of the property of the estate accordingto the inventoryandappraisal,oraccordingtothepreviousaccounting; themannerandnatureofanyinvestments;theamountofincome andadditionalpropertyreceivedduringtheaccountingperiod;and allgainsorlossesfromthesaleofanypropertyorotherwise; (3) Allpayments,charges,losses,anddistributions; (4) Thepropertyonhandconstitutingthebalanceoftheestate,ifany; (5) Anyotherfactsandinformationdeterminedbytheclerkstobe necessarytoanunderstandingoftheaccount.[G.S.28A-21-3,G.S. 28A-21-1]. (f) Accounting for Wrongful Death Proceeds Afterthecompletionofawrongfuldeathlawsuit,thepersonal representativemust be bonded before receiving the wrongful death proceedsandmustfileaseparateaccountingconcerningthewrongful deathproceeds.[In re Estate of Parish,143N.C.App.244(2001)]. UnderG.S.28A-18-2,theproceedsmayonlybeusedtopaycertain designatedexpenses,andthe balance can only be distributed to heirs of the decedent under the Intestate Succession Act (Chapter 29 of the General Statutes), regardless of whether or not there is a will. Theauthorizedexpensesare: Reasonableandnecessaryexpensesofbringingthesuit,and attorneyfees Burialexpensesofthedeceased Medicarereimbursement[Cox v. Shalala,112F.3d151(4thCir. 1997).] Reasonablehospitalandmedicalexpenses(notexceeding$4,500) incurredasaresultoftheinjuryresultingindeath.(Note: The amountappliedtohospitalandmedicalexpensesmaynotexceed 50%ofthetotalrecovery,lessattorneyfees.)(Note:Thisamountis separateandinadditiontoanyMedicaidreimbursement.) 14. Discharge of the Personal Representative WhentheClerkofSuperiorCourtapprovesthefinalaccount,theclerk willenteranorderdischargingthepersonalrepresentativefromfurther liabilityintheestate.[G.S.28A-23-1]. 10 Estate Procedures | April 2016 15. Removal, Contempt, Jail Ifthepersonalrepresentativefailstoaccountasrequired,orifheor sherendersanunsatisfactoryaccount,theClerkofSuperiorCourtmay issueanorderforthepersonalrepresentativetoappearandshow causeastowhyheorshefailedtofileaninventoryoraccount.If, within20daysafterserviceofsuchanorder,heorshedoesnotmake therequiredfiling,theclerkmayhavethesheriffservethepersonal representativewithanorderofcontemptandcommitment,andthe sheriffwillplacethepersonalrepresentativeinthecountyjailuntil heorshecomplieswiththeorder.Thepersonalrepresentativeshall bepersonallyliableforallcostsassociatedwithsuchproceedings. Theclerkmayalsoremovethepersonalrepresentativeandappoint someoneelsetocompletetheadministrationoftheestate. [G.S.28A-21-4,G.S.28A-9-1]. SMALL ESTATES – COLLECTION BY AFFIDAVIT Ifnoapplicationforappointmentofapersonalrepresentativeispendingorhas beengranted,thefollowingsimplifiedproceduremaybeusedafterthirty(30) daysfromthedecedent’sdeath: Estate Procedures | April 2016 11 ifthedecedentdiedon or before 9/30/09, and ifthevalueofthe decedent’spersonal property,lessliensand encumbrances,doesnot exceed$10,000 [$20,000 if the surviving spouse is the collector and the sole heir or devisee] (regardlessofthevalue of any real property). ifthedecedentdiedon orafter10/1/09, and ifthevalueofthe decedent’spersonal property,lessliensand encumbrances,doesnot exceed$20,000 [$30,000 if the surviving spouse is the collector and the sole heir or devisee] (regardlessofthevalue of any real property). ifthedecedentdiedon orafter1/1/12, and ifthevalueofthe decedent’spersonal property,lessliens, encumbrances,and spousal allowance,does notexceed$20,000 [$30,000 if the surviving spouse is the collector and the sole heir or devisee](regardlessof thevalueofanyreal property). [G.S. 28A-25-1]: 1. Affidavit for Collection [Affidavit For Collection Of Personal Property Of Decedent, AOC-E-203] Anexecutor,heir,orcreditorofthedecedent,orthepublic administratorofthecounty,mayfileanaffidavitwiththeClerkof SuperiorCourtonaformprovidedbytheclerk’soffice,requesting authorizationtoproceedwithcollectionandadministrationofthe estate.[G.S.28A-25-1(a),G.S.28A-25-1.1(a)].NOTE:Ifasaleofreal estatebytheheirsisforeseeablynecessaryordesirable,aformal administrationwithnoticetocreditorsmaybenecessary. 2. Distribution of Assets and Payment of Claims UponfilingtheaffidavitwiththeClerkofSuperiorCourt,theperson makingtheaffidavitisauthorizedtoproceedwithcollectionofthe decedent’spersonalpropertyandwithdistributionofthepropertyin thefollowingorderofpriority: (1) Paymentoftheyear’sallowanceofthesurvivingspouseand child(ren),ifany; (2) Paymentofdebtsandclaimsagainsttheestateintheorderset outinparagraph8(b)ofthesectionofthispamphletdealingwith RegularAdministrationOfAnEstate; 12 Estate Procedures | April 2016 (3) Distributionoftheremainderofthepersonalproperty,ifany,to thepersonsentitledtoitbythewill,or,ifnowillexists,tothe personsspecifiedbytheIntestateSuccessionAct(Chapter29of theGeneralStatutes).[G.S.28A-25-3(a)(1)]. 3. Closing Affidavit [Affidavit Of Collection, Disbursement And Distribu- tion, AOC-E-204] Afterthedistributionhasbeencompleted,anaffidavitmustbefiled withtheClerkofSuperiorCourtshowingcollection,disbursement anddistributionofthepersonalproperty.Thisclosingaffidavitmust befiledwithinninety(90)daysafterthedateoffilingofthequalifying affidavit,unlesstheclerkhasgrantedanextensionoftime. [G.S.28A-25-3(a)(2)]. SUMMARY ADMINISTRATION Thesurvivingspouseofadecedentwhodiedwithorwithoutawillmaypetition the Clerk of Superior Court for an order of summary administrationif the spouse isthesoleheirordeviseeofthedecedent.Anorderofsummaryadministration willpermitthespousetoproceedwiththecollectionanddistributionofthe decedent’spropertywithouttheformalityofregularadministration.Byobtain- ingtheorder,thesurviving spouse assumes all liabilitiesofthedecedenttothe extentofthevalueofthepropertyreceived.NOTE:Feesarecollectedwhen thepetitionisfiled.Ifasaleofrealestatebythesurvivingspouseisforeseeably necessaryordesirable,aformaladministrationwithnoticetocreditorsmaybe necessary.[Article28ofChapter28AoftheGeneralStatutes]. Estate Procedures | April 2016 13 Will probated Lock box searched Estate bank account opened Bank No. Signature cards on bank accounts of decedent delivered to clerk Application for spouse’s and child(ren)’s allowance(s) filed Motor vehicle titles transferred Stock certificates and other titles transferred Insurance, retirement, IRA funds, etc., if payable to the estate, collected Notice to creditors published and mailed, and affidavits of publication and mailing filed Funeral expenses, medical expenses and other claims paid Court’s approval, if required, obtained to sell real property to create assets with which to pay claims Federal and State Income tax returns filed for decedent and for the estate Estate tax certification (AOC-E-212 or 207) filed with the Clerk; or Federal and State estate tax returns filed, closing letter received and a copy filed with the clerk Remaining assets distributed to heirs and receipts obtained Accounting of wrongful death proceeds filed Notice of Discharge sent by principal to bonding company, if applicable Other: IMPORTANT INFORMATION, DATES AND CHECKLIST Name Of Decedent File No. Name Of Executor-Administrator Name Of Attorney Bond $ Date Inventory Due Date Final Account Due Social Security Number Date Of Death Date Qualified Telephone No. Name Of Surety (Bonding Company, etc.) Date Inventory FiledDate Of Annual Account(s) Date Final Account Filed 14 Estate Procedures | April 2016 NOTES Estate Procedures | April 2016 15 901 Corporate Center Drive Raleigh, N.C. 27607 919 890-1000 www.nccourts.org PREPARED BY
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Losing a loved one isn't just hard emotionally, it also means filling out a ton of forms & paperwork. Here's what to do next.
Ben Hopf
