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NC AOC-E-850 2016 4.8 Satisfied (152 Votes)
NC AOC-E-850 2012 4.2 Satisfied (85 Votes)
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In short, the debt incurred belongs to a person's estate. If a person dies with enough assets to cover their debts, creditors will be paid first. After creditors are paid, beneficiaries will receive what is left over.
What Assets Skip Probate Entirely Property in a revocable trust, Real estate owned as joint tenants with a right of survivorship or tenancy by the entirety, Life insurance policies and retirement accounts with a designated beneficiary, Bank accounts with payable on death (POD) or transfer on death (TOD) clause.
Living Trusts In North Carolina, you can make a living trust to avoid probate for virtually any asset you own\u2014real estate, bank accounts, vehicles, and so on. You need to create a trust document (it's similar to a will), naming someone to take over as trustee after your death (called a successor trustee).
The executor must pay all debts owed by the estate, from the estate's funds. The executor may sell property to pay debts.
In North Carolina, creditors have at most 3 years from the date of death to file claims against the estate.
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The executor can sell property without getting all of the beneficiaries to approve. However, notice will be sent to all the beneficiaries so that they know of the sale but they don't have to approve of the sale.
What this means to you is that the heirs must be a party to the Listing Agreement and Purchase Agreement in order to have valid agreements. Without having the heirs sign the agreement, any heir can come in at any time and kill the deal.
Notices to creditors must be published once a week for four (4) consecutive weeks and should state that claims must be filed by a date certain, which date is at least three (3) months from the date of first publication of the notice.
In North Carolina, the statute of limitations for debt is three years from the last activity on your account. That is how much time a debt collector has to file a lawsuit to recover the debt through the court system,. It's one of the shortest such limits in the country.
If no one has initiated a probate proceeding, the person who files the affidavit collects the personal property, pays debts of the estate, and distributes what's left to the people who inherit it.

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