North Carolina General Statutes 28A-15-10. (Effective until March 1, 2024) Assets of decedent’s estate for limited purposes
(a) When needed to satisfy claims against a decedent‘s estate, assets may be acquired by a personal representative or collector from the following sources:
(1) Tentative trusts created by the decedent in savings accounts for other persons.
Terms Used In North Carolina General Statutes 28A-15-10
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Collector: means any person authorized to take possession, custody, or control of the personal property of the decedent for the purpose of executing the duties outlined in N. See North Carolina General Statutes 28A-1-1
- Decedent: A deceased person.
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- Fraud: Intentional deception resulting in injury to another.
- Personal property: All property that is not real property.
- personal property: shall include moneys, goods, chattels, choses in action and evidences of debt, including all things capable of ownership, not descendable to heirs at law. See North Carolina General Statutes 12-3
- Personal representative: includes both an executor and an administrator, but does not include a collector. See North Carolina General Statutes 28A-1-1
- property: shall include all property, both real and personal. See North Carolina General Statutes 12-3
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Right of survivorship: The ownership rights that result in the acquisition of title to property by reason of having survived other co-owners.
(2) Gifts causa mortis made by the decedent.
(3) Joint deposit accounts with right of survivorship created by decedent pursuant to the provisions of N.C. Gen. Stat. § 41-2.1 or otherwise; and joint tenancies with right of survivorship created by decedent in corporate stocks or other investment securities.
(4) An interest in a security passing to a beneficiary pursuant to the provisions of Article 4 of Chapter 41 of the N.C. Gen. Stat..
Such assets shall be acquired solely for the purpose of satisfying such claims, however, and shall not be available for distribution to heirs or devisees.
(b) Where there are not sufficient personal and real assets of the decedent to satisfy all the debts and other claims against the decedent’s estate, the personal representative shall have the right to sue for and recover any and all personal property or real property, or interest therein, which the decedent may in any manner have transferred or conveyed with intent to hinder, delay, or defraud the decedent’s creditors, and any personal property or real property, or interest therein, so recovered shall constitute assets of the estate in the hands of the personal representative for the payment of debts and other claims against the estate of the decedent. But if the alienee has sold the personal property or real property, or interest therein, so fraudulently acquired by the alienee from the decedent to a bona fide purchaser for value without notice of the fraud, then such personal property or real property, or interest therein, may not be recovered from such bona fide purchaser but the fraudulent alienee shall be liable to the personal representative for the value of the personal property or real property, or interest therein, so acquired and disposed of to a bona fide purchaser. If the whole recovery from the fraudulent alienee shall not be necessary for the payment of the debts and other claims against the estate of the decedent, the surplus shall be returned to such fraudulent alienee or the fraudulent alienee’s assigns.
(c) Where there has been a recovery in an action for wrongful death, the same shall not be applied to the payment of debts and other claims against the estate of decedent or devises, except as to the payment of reasonable burial and funeral expenses and reasonable hospital and medical expenses incident to the injury resulting in death and as limited and provided in N.C. Gen. Stat. § 28-18-2 [N.C. Gen. Stat. § 28A-18-2]. (1973, c. 1329, s. 3; 2005-411, s. 2; 2011-344, s. 4.)
§ 28A-15-10. (Effective March 1, 2024) Assets of decedent’s estate for limited purposes.
(a) When needed to satisfy claims against a decedent’s estate, assets may be acquired by a personal representative or collector from the following sources:
(1) Tentative trusts created by the decedent in savings accounts for other persons.
(2) Gifts causa mortis made by the decedent.
(3) Joint deposit accounts with right of survivorship created by decedent pursuant to the provisions of N.C. Gen. Stat. § 41-2.1 or otherwise; and joint tenancies with right of survivorship created by decedent in corporate stocks or other investment securities.
(4) An interest in a security passing to a beneficiary pursuant to the provisions of Article 4 of Chapter 41 of the N.C. Gen. Stat..
Such assets shall be acquired solely for the purpose of satisfying such claims, however, and shall not be available for distribution to heirs or devisees.
(b) Where there are not sufficient personal and real assets of the decedent to satisfy all the debts and other claims against the decedent’s estate, the personal representative shall have the right to sue for and recover any and all personal property or real property, or interest therein, which the decedent may in any manner have transferred or conveyed with intent to hinder, delay, or defraud the decedent’s creditors, and any personal property or real property, or interest therein, so recovered shall constitute assets of the estate in the hands of the personal representative for the payment of debts and other claims against the estate of the decedent. But if the alienee has sold the personal property or real property, or interest therein, so fraudulently acquired by the alienee from the decedent to a bona fide purchaser for value without notice of the fraud, then such personal property or real property, or interest therein, may not be recovered from such bona fide purchaser but the fraudulent alienee shall be liable to the personal representative for the value of the personal property or real property, or interest therein, so acquired and disposed of to a bona fide purchaser. If the whole recovery from the fraudulent alienee shall not be necessary for the payment of the debts and other claims against the estate of the decedent, the surplus shall be returned to such fraudulent alienee or the fraudulent alienee’s assigns.
(b1) Any asset acquired by a personal representative or collector under this section shall first be used to pay the allowances allowed to a spouse and children under Article 4 of Chapter 30 of the N.C. Gen. Stat.. After the allowances are fully satisfied, an asset may be used to satisfy other claims against a decedent’s estate.
(c) Where there has been a recovery in an action for wrongful death, the same shall not be applied to the payment of debts and other claims against the estate of decedent or devises, except as to the payment of reasonable burial and funeral expenses and reasonable hospital and medical expenses incident to the injury resulting in death and as limited and provided in N.C. Gen. Stat. § 28A-18-2. (1973, c. 1329, s. 3; 2005-411, s. 2; 2011-344, s. 4; 2023-120, s. 1.3.)