What does it mean when the assets of someone who has died goes through probate?

Below is a simplified version of the first 90 days of the probate process….

In North Carolina, the Clerk of Superior Court (the “Clerk of Court”) is the basically the Probate Judge and is responsible for overseeing most all estate matters.

Appointment:
If a resident of North Carolina dies with a Will (i.e. the person dies “Testate”), then the person named in the Will as Personal Representative is given priority by the Clerk of Court to serve. However, if that person dies without having executed a Will (i.e. the person dies “Intestate”) or if the Will does not name a Personal Representative, then under North Carolina law, priority of who will serve as the Personal Representative is given in the following order:
1. The surviving spouse of the decedent;
2. Any devisee of the testator;
3. Any heir of the decedent;
4. Any next of kin;
5. Any creditor of the decedent;
6. Any person of good character residing in the county who applies; and
7. Any other person of good character who applies.

Letters:
Once the Personal Representative is appointed by the Clerk of Court in the county in which the decedent was a resident, then the Clerk of Court will issue Letters Testamentary (for the decedent who died with a Will) or Letters of Administration (for the decedent who died without a Will). The “Letters” are the ‘golden ticket’ for the Personal Representative to act on behalf of the Estate. In other words, the Letters provide the proper authority for the Personal Representative to act for the Estate.

Assets:
The Personal Representative (“Executor” for the estate of a decedent who died with a Will and “Administrator” for the estate of a decedent who died without a Will) is responsible for handling all of the assets that were solely in the decedent’s name at death. For example, if the decedent owned a bank account and the signature card shows that this account was only owned by the decedent, then the Personal Representative must provide proper information about this account to the Clerk of Court. However, if the decedent was the owner on a bank account with another individual and that particular individual is still living, then it is likely that this account was owned ‘joint with rights of survivorship’ – meaning that it passes to the survivor on the account. However, the Personal Representative has the authority to go after this account in the event it is needed to satisfy the valid debts of the decedent.

Notice to Creditors:
Once appointed, the Personal Representative is required to publish a notice to all creditors. Such notice is to make the creditors aware that if they have a claim against the decedent, then they have three months from the date of the first publication to present such claims. This notice must be published for four consecutive weeks in a newspaper qualified to publish legal advertisements, if any such newspaper is published in the county. Within 75 days after the granting of letters, the Personal Representative is required to personally deliver or send by first class mail to the last known address, a copy of the notice to creditors to all persons, firms, and corporations having unsatisfied claims against the decedent who are actually known or can be reasonably ascertained by the Personal Representative. Those claims that are filed after the three month period of time are barred.

90-Day Inventory:
Within 90 days after the issuance of Letters, the Personal Representative must file an inventory for the estate showing the assets that the decedent owned at his or her death and the value of such assets. Along with the inventory, the Personal Representative must also provide proof that the notice to creditors has run.