Understanding the North Carolina Inheritance Laws: What You Need to Know
One of the most important decisions you can make for your family is creating an estate plan. Without one, you risk leaving your loved ones to navigate the often complicated and time-consuming process of intestacy—dying without a will. In North Carolina, the state has specific laws that determine how your assets are distributed if you pass away without having an estate plan in place. While these laws are designed to provide a structure, they may not always align with your wishes.
At Cline Donaldson Law Firm, we believe it’s crucial to understand North Carolina’s inheritance laws so that you can make informed decisions about your estate plan. In this blog, we’ll provide an overview of how intestacy works in North Carolina, the rights of your spouse, children, and other relatives, and why having a will is so important to avoid unintended consequences.
What Happens if You Die Without a Will in North Carolina?
When someone passes away without a will, they are said to have died intestate, meaning there is no legally designated plan for how their estate will be distributed. In this case, North Carolina’s laws of intestate succession come into play, and the court will follow a set order to distribute the deceased person’s property.
While the state’s rules may work well for some families, they may not reflect the intentions of the deceased. This is why creating a will is so important, as it allows you to choose who inherits your assets rather than leaving it to the state’s default laws.
Who Inherits Under North Carolina Intestate Succession Laws?
1. Spouse’s Rights
- If the decedent was married and had no children, the spouse inherits the entire estate.
- If the decedent was married and has children, the spouse will inherit a portion of the estate. Specifically:
- The surviving spouse is entitled to one-third of the estate if the decedent had children.
If there is real property (land or a house), the surviving spouse receives a life estate in one-third of the real property, while the children receive the remainder.
2. Children’s Rights
If the decedent has children but no surviving spouse, the entire estate will be divided equally among the children. If the decedent had multiple children, each child will receive an equal share of the estate, regardless of their age or relationship with the deceased.
If there are minor children involved, the court may appoint a guardian to manage their inheritance until they reach the age of 18. However, without a will specifying your wishes, the court will determine how the children’s inheritance is handled.
3. Parents' Rights
If the decedent had no spouse or children, the estate will be divided equally between the parents of the deceased. If only one parent is alive, that parent will inherit the entire estate.
4. Siblings and Other Relatives
If the decedent has no spouse, children, or parents, the estate will be divided among siblings. If there are no siblings, the estate may be passed on to more distant relatives such as nieces, nephews, or even grandparents, following the order set forth in North Carolina’s laws.
What Happens to Specific Assets Under Intestate Succession?
North Carolina intestate succession laws apply to most assets the deceased person owned. However, certain assets may pass outside of the probate process, such as:
- Jointly owned property: If property was held jointly with rights of survivorship, it will pass directly to the surviving joint owner, regardless of the intestate laws.
- Life insurance policies, retirement accounts, and other beneficiary-designated assets: These assets pass according to the beneficiary designations, not the laws of intestacy. For example, if you named a beneficiary for your life insurance policy, that person will receive the policy’s benefits, regardless of your will or lack thereof.
Why Is Having a Will So Important?
While North Carolina’s intestate succession laws provide a default plan for distributing your estate, they are not customized to your unique situation. By creating a will, you gain control over who inherits your assets, how they are distributed, and how your wishes are carried out.
Here are some important reasons to have a will:
- Choose your beneficiaries: You can designate exactly who will receive your property, whether it’s family members, friends, or charitable organizations.
- Appoint a guardian for minor children: If you have children, a will allows you to choose a guardian for them in the event of your passing, ensuring they are cared for by someone you trust.
- Minimize family disputes: By clearly outlining your wishes in a will, you can reduce the likelihood of disagreements among family members over the distribution of your estate.
- Control the distribution of your estate: With a will, you can specify particular assets or amounts for specific beneficiaries, making sure your wishes are fulfilled in a way that the intestate laws may not provide for.
What If You Want to Change Your Will?
North Carolina law allows you to change your will at any time, as long as you are of sound mind. If you experience a significant life change—such as marriage, divorce, the birth of a child, or the death of a loved one—it’s a good idea to review and update your will to ensure that it reflects your current wishes.
How Cline Donaldson Law Firm Can Help
Understanding the intricacies of North Carolina’s inheritance laws is crucial for ensuring that your estate is distributed according to your wishes. Whether you are planning for the future or dealing with the aftermath of a loved one’s passing, our team at Cline Donaldson Law Firm can help you navigate the complexities of intestate succession and estate planning.
We offer tailored guidance to create a will that provides peace of mind for you and your family. Our experienced estate planning attorneys can help you understand your options, protect your assets, and ensure your wishes are honored.
Don’t leave your estate to chance. Contact us today to schedule a consultation and learn how we can assist you in creating an estate plan that ensures your legacy is protected.
About the Author
Scott Donaldson
As one of the founders of Cline Donaldson PLLC, Scott Donaldson leverages his background in law enforcement to provide exceptional representation across core practice areas, including personal injury law and estate planning. Before founding his Wilmington-based firm in 2023, Mr. Donaldson honed his understanding of the law as a Lieutenant in the esteemed New York City Sheriff’s Office.
He subsequently graduated cum laude from Campbell University’s Norman Adrian Wiggins School of Law, earning the Law School Book Award for demonstrating exceptional mastery of complex legal subjects. With an extensive legal background, Mr. Donaldson brings authoritative experience and insight when navigating each client case. He remains dedicated to upholding the highest legal standards and achieving optimal outcomes for all he represents.
