The Value of Probate in North Carolina

By: David C. Neumann

Probate administration costs in North Carolina are limited to a maximum of $3,000 no matter how large the estate.  Only certain personal properties are even included in calculating these costs.  Real estate, properties with specified beneficiaries, properties with rights of survivorship, and much more are exempt from probate.  Other states can have very high probate costs, so this is why there is so much information out there about avoiding probate.

So, even with the low costs of probate in North Carolina, why should you not try to avoid probate?  For some clients the typical methods used to avoid probate are valuable, but for other reasons.  Trusts, life insurance, charitable giving, gift planning, and other estate planning tools can be valuable regardless of probate considerations.  However, if  probate avoidance is your only reason for using one of these methods, the costs of the method may far outweigh any benefit gained.

Probating an estate also has a very important benefit.  If creditors do not respond to the published notices required by law in the 90 days allowed, then these creditors are precluded from coming back against the estate, beneficiaries, or the executor once the estate is closed.  For those who survive you, this is extremely valuable.