Many Raleigh estate planning attorneys have their clients use wills to pass their assets onward to their heirs after their death. Wills are a great tool, but assets subject to them are required to go through the probate process after the individual passes away.
As the owner of a Raleigh estate planning law firm, the next question my clients ask me is: What is the probate process? That’s a great question! Very simply, it is the legal process in which the decedent’s representative deals with the deceased’s heirs and creditors.
Things that are involved in the North Carolina probate process:
- Appointing the Executor: The first step in the probate process is the opening of the estate. The clerk of court must approve an application for someone to be named an executor (or personal representative) of the estate. This is typically done by filing paperwork such as a death certificate, an application to be named the executor and the original will (if one is available or in existence).
- Marshalling the Assets and Finding the Creditors and Heirs: Once an executor is named, that person is given the authority to find and gather the decedent’s assets as well as determine who are the heirs and the creditors of the estate. The creditors must be given the proper time and notice to file any claims that they may have had against the decedent in order to be properly considered for payment.
- Filing the Inventory: Once the executor has determined what assets the decedent owned, he or she must file an inventory with the clerk of court’s office of what is in the estate. Keep in mind, however, that not everything the decedent owned will go through probate. A lot of things (like life insurance and investments) may pass outside of the estate and never be subject to it if the decedent had a good estate planning adviser to help when he or she was doing their own estate planning!
- Paying Taxes and Probate Fees: Contrary to popular belief, very few people will ever pay any kind of estate or inheritance taxes in North Carolina. The recent tax bill passed by Congress makes it even less likely unless the decedent is worth over $11 million individually (or $22 million as a couple) at the time of death. North Carolina does have probate fees, but they are usually relatively minimal.
- Paying the Creditors and Distributing the Assets: The executor is in charge of paying off any legitimate claims filed against the estate at this point with items or money that are a part of the estate. Whatever is left after the creditors are paid is then distributed to the heirs. Once all of the money and assets in the estate has been distributed, the executor files a Final Accounting with the clerk of court’s office and closes out the estate.
This is a very simple explanation of the North Carolina probate process. However, there are many factors that can affect this process. If you have questions about the probate process or how to prepare for it, give me a call today at (919) 740-1264.