What Assets Go Through Probate in NC? Complete List

Most People Are Surprised by What Does and Doesn’t Go Through Probate

One of the most common misconceptions about estate administration is that everything the deceased owned goes through probate court. For many estates, the opposite is closer to true: a large portion of the assets never touch probate at all.

This distinction, between probate and non-probate assets, has enormous practical consequences. Probate assets are tied up in the court process for months, subject to creditor claims, and distributed only after court approval. Non-probate assets transfer directly to beneficiaries within days or weeks, largely outside the reach of creditors and without court involvement.

As an executor in North Carolina, you need to identify every asset and classify it correctly from day one. Get this wrong and you’ll either delay distributions unnecessarily or mishandle assets in a way that exposes the estate to legal liability.

Afterpath’s task management system helps you build the complete asset inventory from the moment you open your case. Pathfinder explains how each asset type is classified and handled under NC law, so you’re not guessing.

The Core Rule: What Makes Something a Probate Asset?

An asset goes through probate if it:

1. Was owned solely by the deceased (no joint owner, no named beneficiary, not held in a trust)
2. Has no legal mechanism to transfer ownership outside of court

If both conditions are true, the asset is probate property. It must be included in the estate inventory, is subject to creditor claims, and requires the probate process to transfer to beneficiaries.

Probate Assets: The Complete List

Solely-Owned Real Property

Real estate (land, houses, condos, rental properties, commercial buildings) owned in the deceased’s name alone is a probate asset. It requires the probate process to transfer title to a new owner.

This is typically the largest probate asset in a North Carolina estate. Even modest homes represent significant value, and they cannot be sold, transferred, or refinanced until the probate process resolves who legally owns them.

What makes real property a probate asset:

• The deed shows only the deceased’s name
• The property is not held in a trust
• There is no “transfer on death” deed (which NC does allow under NCGS § 31-51 through § 31-78)

Solely-Owned Bank Accounts (No POD Designation)

A checking or savings account titled in the deceased’s name alone, with no “payable on death” (POD) beneficiary named, is a probate asset. The funds are frozen upon notification of death and remain inaccessible until the executor or administrator presents Letters Testamentary or Letters of Administration to the bank.

Key detail: The same bank account with a POD beneficiary named is a non-probate asset. The difference between probate and non-probate for a bank account is simply whether a beneficiary was designated.

Solely-Owned Investment and Brokerage Accounts (No TOD Designation)

Investment accounts, brokerage accounts, stocks, bonds, and mutual funds titled in the deceased’s name alone with no “transfer on death” (TOD) designation are probate assets.

Like bank accounts, these are often straightforward to liquidate once the executor has Letters Testamentary, but they must go through the full probate process before distribution.

Personal Property

All tangible personal property owned solely by the deceased is a probate asset:

• Household furniture and furnishings
• Jewelry, clothing, and personal items
• Art, collectibles, antiques
• Tools and equipment
• Inventory of any sole proprietorship
• Vehicles (separately addressed below)

Personal property must be inventoried, appraised (for significant items), and distributed through the estate.

Vehicles

Vehicles titled in the deceased’s name alone are probate assets in North Carolina. The NC Division of Motor Vehicles requires proper probate authority (or a properly completed NC Affidavit for Collection of Personal Property for small estates under NC’s small estate threshold) before transferring a vehicle title.

For straightforward vehicle transfers, see our guide on transferring a car after death in NC.

Retirement Accounts with No Named Beneficiary

This is one of the most costly mistakes in estate planning. A 401(k), IRA, or other retirement account with no named beneficiary (or where the estate is named as beneficiary) becomes a probate asset.

When a retirement account goes through probate, it:

• Loses the protection from creditor claims that non-probate assets have
• May trigger accelerated income tax distribution requirements
• Takes months rather than weeks to reach beneficiaries

Properly designated retirement accounts with named beneficiaries avoid all of this. But if the beneficiary field was left blank or the named beneficiary predeceased the account holder, the account becomes part of the probate estate.

Life Insurance Payable to “The Estate”

Life insurance policies where the named beneficiary is “the estate of [deceased]” rather than a specific person are probate assets. The death benefit flows into the estate, where it becomes available to pay debts and is subject to the full probate process.

This is typically a mistake. Life insurance is designed to be a non-probate asset, transferring directly to a named beneficiary. But if no individual is named (or if the named beneficiary predeceased the insured and was never updated), the proceeds fall into the estate.

Business Interests (Sole Proprietorships and Certain Entity Interests)

If the deceased owned a business as a sole proprietor, the business assets are part of the probate estate. The executor has authority to continue operating, wind down, or sell the business during estate administration.

Business interests in partnerships, LLCs, or corporations are more complex and depend on the governing agreements of the entity. Some business interests have built-in transfer mechanisms; others become probate assets.

Debt Owed to the Deceased

If someone owed the deceased money (a promissory note, a personal loan, a settlement owed), that debt is an estate asset and goes through probate. The executor has the authority to collect on those debts and include the proceeds in the estate.

Non-Probate Assets: What Passes Outside of Court

Jointly-Owned Real Property (With Right of Survivorship)

Real property owned as “joint tenants with right of survivorship” or as “tenancy by the entirety” (the form available to married couples in NC) passes automatically to the surviving owner(s) at death. No probate. No court involvement. The surviving owner simply records the death certificate with the county register of deeds to update title.

Critical distinction: “Tenants in common” is different. If property is owned as tenants in common, the deceased’s share does go through probate. The language on the deed matters enormously.

Bank Accounts with POD Designations

A bank account with a named “payable on death” (POD) beneficiary passes directly to that beneficiary at death. The beneficiary presents a death certificate to the bank and receives the funds within days or weeks. The executor has no involvement.

Practical note: POD designations override the will. If the will says “I leave everything to my son John” but a bank account names “daughter Mary” as POD beneficiary, Mary receives that account regardless of what the will says.

Investment Accounts with TOD Designations

Brokerage accounts, stocks, and investment accounts with “transfer on death” (TOD) beneficiary designations work the same way as POD bank accounts. The named beneficiary contacts the brokerage with a death certificate and receives the assets directly.

Retirement Accounts with Named Beneficiaries

A 401(k), IRA, Roth IRA, pension, or other retirement account with a living, named beneficiary is a non-probate asset. This is perhaps the most commonly used non-probate transfer mechanism in NC estates.

The beneficiary contacts the account custodian, provides a death certificate, and receives the funds according to the plan’s distribution rules. Income tax may still be owed on distributions, but the probate process is bypassed entirely.

Retirement accounts are often the largest single asset in a modern estate, which means for many families, the majority of the estate value never goes through probate at all.

Life Insurance with Named Beneficiaries

Life insurance with a living named beneficiary (not “the estate”) is a non-probate asset. The beneficiary contacts the insurance company, files a claim with a death certificate, and receives the death benefit directly.

Life insurance proceeds paid to named individuals are also generally protected from the deceased’s creditors, which is one of the key benefits of keeping insurance out of the probate estate.

Assets Held in a Revocable Living Trust

Assets properly titled in a revocable living trust bypass probate entirely. The successor trustee takes over management of the trust assets at the grantor’s death, following the trust’s instructions.

For this to work, the assets must actually be transferred into the trust during the grantor’s lifetime. A trust that exists on paper but holds no assets (because nothing was actually re-titled into the trust’s name) provides no probate avoidance benefit.

Real Property with a Transfer on Death Deed

North Carolina recognizes “transfer on death” (TOD) deeds under NCGS § 31-51 through § 31-78, which became effective in NC in 2012. A properly executed TOD deed allows real property to pass to a named beneficiary at death without probate.

This is a powerful estate planning tool for avoiding probate on a home, though it requires advance planning.

Vehicles with Beneficiary Designations (Small Estate Affidavit)

For estates that qualify as “small estates” under NC law (currently estates under $60,000 in personal property net value), NC’s small estate affidavit process under NCGS § 28A-25-1 allows vehicle and other personal property transfers without full probate administration. See our guide on NC’s small estate affidavit for details.

How to Identify Asset Types in Practice

As executor, here’s how to classify each asset you encounter:

Step 1: For every bank account and investment account Call the institution and ask: “Is there a payable on death or transfer on death designation on this account?” Also check the account documents the deceased kept. If yes, it’s non-probate and the beneficiary handles it. If no, it’s a probate asset.

Step 2: For every retirement account and life insurance policy Request a copy of the beneficiary designation from the custodian or insurer. If a living individual is named, it’s non-probate. If “the estate” is named or no beneficiary exists, it’s probate.

Step 3: For real property Pull the deed from the county register of deeds (available online in most NC counties). Review the ownership language carefully. “Joint tenants with right of survivorship” or “tenancy by the entirety” means non-probate. “Tenants in common” or a sole name means probate (unless a TOD deed exists).

Step 4: For all other assets Was it held in a trust? If yes, non-probate. Was it solely in the deceased’s name with no special designation? If yes, probate.

The Tax Distinction: Non-Probate Doesn’t Mean Non-Taxable

One important clarification: bypassing probate does not mean bypassing estate taxes (for large estates subject to federal estate tax). Even non-probate assets like life insurance and retirement accounts are included in the “gross estate” for federal estate tax purposes.

For most NC estates, this distinction doesn’t matter practically because the federal estate tax exemption is over $13 million per person (as of 2025), and NC has no state estate tax. But for high-value estates, tax planning and probate planning are separate considerations.

Why This Distinction Matters for Creditors

Creditors of the deceased can file claims against the probate estate during the 90-day notice period required by NC law. They generally cannot reach non-probate assets.

This means:

• Life insurance paid to named beneficiaries is generally protected from the deceased’s debts
• Retirement accounts paid to named beneficiaries are generally protected
• Joint tenancy property that passes to the survivor is generally protected

This creditor protection is one of the primary practical benefits of non-probate transfers. For detailed guidance on handling creditors during probate, see our guide on dealing with creditors during NC probate.

How Afterpath Helps You Classify and Manage Every Asset

Building the correct asset inventory is one of the first and most consequential tasks in estate administration. Getting it right determines how long the process takes, which assets are exposed to creditor claims, and whether beneficiaries receive their inheritances promptly.

Afterpath’s task management guides you through a systematic asset inventory, with clear instructions for identifying probate vs. non-probate classification for each asset type.

Pathfinder answers specific questions about unusual assets: cryptocurrency, business interests, foreign accounts, or assets with complex ownership structures.

Document vault stores account statements, policy documents, deeds, and beneficiary designations in one organized location so you have everything needed for the 90-day inventory filing required by NC law.

NC compliance engine generates the correct inventory form (AOC-E-505) for your county, pre-formatted for the types of assets you’ve identified.

Frequently Asked Questions

Q: If an account has both joint ownership and a POD designation, which controls?

A: The joint ownership controls during the owners’ lifetimes. When one owner dies, the surviving joint owner takes full ownership (through survivorship). The POD designation would apply only if all joint owners die simultaneously.

Q: Does a will override a beneficiary designation on a retirement account?

A: No. Beneficiary designations on retirement accounts, life insurance, and financial accounts override the will. If the will says “everything to my daughter” but the 401(k) names “my ex-spouse” as beneficiary, the ex-spouse receives the 401(k). This is one of the most common and costly estate planning mistakes.

Q: Are there assets that are both subject to estate tax and bypass probate?

A: Yes. Non-probate assets like life insurance and retirement accounts are included in the “gross estate” for federal estate tax purposes even though they don’t go through probate court. Avoiding probate and minimizing estate taxes are separate planning goals.

Q: Can the executor reach non-probate assets to pay the estate’s debts?

A: Generally no. Non-probate assets that have passed to named beneficiaries are largely protected from estate creditors. However, there are exceptions for certain types of creditors (like the IRS for tax obligations) and for situations involving fraudulent transfers. If the probate estate is insolvent, the executor should consult an attorney before attempting to reach non-probate assets.

Q: How does Afterpath help identify all the assets in an estate?

A: Afterpath’s task management walks you through a systematic asset search, covering every common asset type. Pathfinder helps classify unusual assets and explains NC’s rules for each type. The document vault organizes all account statements, deeds, and policies so nothing is missed. The NC compliance engine generates the correct inventory form for your county with all identified assets properly categorized.

Closing: Know What’s In the Estate Before You Do Anything Else

Before paying a single debt, contacting a single creditor, or distributing anything to any beneficiary, identify every asset and classify it correctly. This single step saves time, prevents costly errors, and ensures every beneficiary receives what they’re entitled to.

Most NC estates have a mix of probate and non-probate assets. The split varies enormously. Some estates are almost entirely non-probate (good planning). Others are almost entirely probate (no beneficiary designations, no joint ownership, everything in one name). Where your estate falls determines how much probate work lies ahead.

Ready to build your complete asset inventory?

Afterpath guides you through every asset type, generates your NC inventory form, and keeps everything organized from opening to closing. Your first assessment is free.

Start Your Asset Inventory →