DISTRIBUTION OF ASSETS

In North Carolina, the distribution of assets in an estate depends on whether the deceased person (the decedent) left a valid will or not. Here’s how the assets are distributed in both cases:

1. If There Is a Valid Will (Testate Distribution):

When the decedent has a will, the assets are distributed according to the instructions in the will. The executor (appointed by the court or named in the will) will carry out the distribution as directed.

2. If There Is No Will (Intestate Distribution):

If the decedent did not leave a will, the estate is distributed according to North Carolina’s intestate succession laws, which outline the distribution to heirs. Here’s how assets are divided in the case of intestacy:

Spouse’s Share: If the decedent is survived by a spouse and no children: The spouse inherits the entire estate. If the decedent is survived by a spouse and children, the spouse inherits one-third of the estate, while the children inherit the remaining two-thirds equally. If the decedent is survived by a spouse and no surviving descendants (i.e., no children, grandchildren, or great-grandchildren), the spouse inherits the entire estate, as long as there are no surviving parents, siblings, or other relatives of the decedent.

Children’s Share: If the decedent is survived by children but no spouse: The estate is divided equally among the children. If a child has predeceased the decedent, that child’s share typically passes to their own children (the decedent’s grandchildren).

Other Relatives: If there is no surviving spouse or children: The estate passes to the next closest relatives, such as parents, siblings, nieces and nephews, or other more distant family members, following a specific order under North Carolina law. If there are no living relatives: The estate may escheat to the state of North Carolina.

3. Special Considerations:

Assets with Beneficiaries: Some assets, such as life insurance, retirement accounts, or jointly held property (like real estate or bank accounts), may pass outside of the probate process directly to the named beneficiary or co-owner, regardless of whether there is a will.
Debts: Before any distribution of assets, the estate must settle any outstanding debts, taxes, and administrative fees.