What Does Dying Intestate In North Carolina Mean?
A common question we receive at Schulz Stephenson Law is: What happens if I pass away without a will in North Carolina?
When someone dies without a will, known as dying “intestate,” North Carolina law determines what happens to their estate. In this article, we’ll explore how state law distributes property when someone dies intestate and why having a will is crucial to ensuring your loved ones are protected.
Intestate Succession in North Carolina
North Carolina law dictates how assets are distributed when someone passes without a will. It’s important to note that intestate succession only applies to assets that go through probate, excluding items like retirement accounts, payable-on-death accounts, or jointly owned real estate with a spouse.
Here’s how the law divides property:
If You Have No Children
- No spouse or children, living parents: Your estate is divided equally between your parents. If only one parent is alive, they inherit everything.
- Spouse and parents, no children: Your spouse receives the first $60,000, and the remainder is split between your spouse and parent(s).
- Spouse, no children or living parents: Your spouse inherits everything.
- No spouse, children, or parents, but siblings: Your siblings inherit everything equally.
- No living relatives: If no family members can be found, your assets go to the State of North Carolina.
If You Have Children
- Spouse and one child: Your spouse receives the first $60,000, half of the remaining personal property, and half of the real estate. The child receives the other half.
- Spouse and two or more children: Your spouse receives the first $60,000, one-third of the remaining personal property, and one-third of the real estate. The children divide the rest equally.
- No spouse, but children: Your estate is divided equally among your children or their descendants.
While this may seem straightforward, it can create challenges, especially for families with unique circumstances such as stepchildren, foster children, or unmarried partners. Without a will, these individuals may be left out of any inheritance.
Why Having a Will Matters
Ensure Sentimental Assets Are Handled Appropriately
One potential issue with dying intestate is the distribution of items with sentimental value. For example, if you own a cherished classic car and have multiple children, who gets the car? Without a will, the car might be sold, and the proceeds divided according to state law. This can create unnecessary emotional turmoil for your family.
Protect Unmarried Partners
Unmarried partners are not entitled to inherit under North Carolina’s intestate succession laws. This can leave long-term partners without any rights to shared assets. Many couples choose not to marry for personal or financial reasons, but if you want to leave something to your partner, a will is essential.
Additionally, a will allows you to leave assets to friends, charities, or other entities that may not be recognized under intestate laws.
Our Estate Planning Team is Here to Help
Creating a will is not just for those with large estates—it’s about ensuring that your wishes are honored and your loved ones are protected. At Schulz Stephenson Law, we have the expertise to guide you through the estate planning process and help you craft a will that meets your needs.
Contact us today to schedule a consultation and take the first step in securing your family’s future.