In my last post, I covered the five reasons you likely DO need probate in North Carolina.
But here’s the good news: often times you can save a lot of time and money by avoiding probate altogether.
I’m Ryan Smith, a licensed real estate agent and certified probate expert here in New Hanover County, NC. Today I’m sharing the five most common ways families can legally skip the probate process.
Important Reminder: I’m not an attorney, and nothing I’m sharing today is legal advice. What I’m giving you is educational information based on my experience working with families through probate situations every day.
Here’s what I strongly recommend: Talk to an attorney who specializes in estate and probate law. Even if it’s just one conversation in the beginning, it ensures you’re handling everything correctly from the start. There are some excellent attorneys right here in our area, and if you’d like a recommendation, just reach out to me and I’ll be happy to connect you.
Now let’s talk about those five reasons you might not need probate.
Reason #1: The Property Was Owned Jointly
This is one of the most common ways people avoid probate, and it happens automatically with married couples.
If property was owned by two people together and the paperwork specifically says they own it with “right of survivorship”—then when one owner dies, the other owner automatically becomes the sole owner. No probate required.
Real-World Example
Your parents bought their house together thirty years ago. The deed says “John Smith and Mary Smith” and it includes language like “as tenants by the entirety” or “with right of survivorship.”
When your dad passes away, your mom automatically becomes the sole owner of the house. She doesn’t need to go through probate. She just needs to file your father’s death certificate with the Register of Deeds, and the property records will get updated to show she’s the sole owner.
How This Works with Bank Accounts
This works the same way with jointly owned bank accounts that have the right of survivorship. When one account holder dies, the surviving account holder automatically gets full ownership. They just show the death certificate to the bank, and the bank updates the account to show one owner instead of two.
Important Caveat
Just having two names on a deed or bank account doesn’t automatically mean it has this survivorship feature. The document has to specifically include that language—”with right of survivorship” or “as tenants by the entirety.”
If the deed or account just says two names without that special language, you might still need probate.
If you’re looking at a deed or bank account, check the exact wording. This is one area where I help families all the time—verifying what type of ownership exists on inherited property.
Reason #2: Beneficiaries Were Named on Everything
This is honestly one of the smartest and easiest ways to avoid probate. And I wish more people took advantage of it.
If your loved one properly named beneficiaries on their accounts, those accounts transfer directly to the beneficiaries without any probate at all.
Types of Accounts with Beneficiaries
Life Insurance Policies
These always have a beneficiary. As long as that person is still living, the insurance company just needs a death certificate to write a check directly to the beneficiary. No probate needed.
Retirement Accounts (401(k)s and IRAs)
These also let you name a beneficiary. When the owner of the account passes, that money goes straight to whoever was named.
Bank Accounts (POD – Payable on Death)
You can go to your bank and say “I want this account to be payable on death to my daughter Sarah.” When you pass away, Sarah takes your death certificate to the bank, and they transfer the account to her. No probate needed.
Investment Accounts and Vehicles (TOD – Transfer on Death)
These can also be set up with a Transfer on Death designation. Same concept as POD—the asset goes directly to the named person.
The Critical Detail
Here’s the key to all these beneficiary designations: they need to be current and valid.
If your mother named her ex-husband from twenty years ago and never updated it after their divorce, you’ve got a problem. The money will go to the ex-husband—not to her children—unless the beneficiary designation was updated before she passed away.
This is why it’s so important to review and update beneficiary designations after major life events like divorce, remarriage, or the death of a family member.
Reason #3: Everything Was in a Trust
Some people do more advanced estate planning and create what’s called a living trust or revocable trust.
If your loved one set up a trust and actually put their property into it—which is the important part—then when they pass away, the property in the trust doesn’t go through probate.
How Trusts Work (In Simple Terms)
When someone creates a trust, they’re basically creating a legal container for their property.
- They put their house into the trust by changing the deed
- They put their bank accounts into the trust by retitling them
- They put their investment accounts into the trust
- They name someone—called a trustee—to manage everything if something happens to them
When the person who set up the trust passes away, the trustee just follows the instructions in the trust document and distributes the property to whoever is supposed to get it according to the trust terms.
The court doesn’t need to be involved, and therefore there is no probate.
The Big Mistake People Make
This is where I often see a big problem.
The trust only works for property that was actually put into it before the person died.
It’s not uncommon for someone to take the important step of creating a trust, but they never get around to actually retitling their house or bank accounts into the trust name.
In that situation, those assets outside of the trust still have to go through probate.
So if your loved one had a trust, you need to check whether their property was actually transferred into it. When trusts are properly funded, they’re an excellent way to avoid probate completely.
My recommendation: Speak with an attorney who specializes in estate planning to get this set up correctly. And if you already have a trust, check in with your attorney to ensure everything is still accurate or if changes need to be made.
Reason #4: The Estate Is Small Enough for the Simplified Process
In North Carolina, if someone dies and the total value of their personal property that would normally require probate is $20,000 or less (or $30,000 or less if a surviving spouse is the only heir), you can file what’s called a simple affidavitinstead of going through full probate.
What Is an Affidavit?
An affidavit is basically a sworn statement where you tell the court: “Here’s what the deceased person owned, here’s what it’s worth, and I’m entitled to collect it.”
You file that form with the Clerk of Superior Court in the county where your loved one lived. The Clerk will review it, and if everything looks good, you get permission to collect those assets.
Why This Is Better
This process usually takes weeks instead of months. There’s less paperwork, lower costs, and it’s much simpler than full probate administration.
This is a great option for smaller estates where there’s not a lot of property and no disputes about who gets what.
What Counts Toward the $20,000/$30,000 Limit?
When you’re doing your math to determine if the estate qualifies, include in your calculation only personal property that was in their name alone:
- Bank accounts
- Investment accounts
- Vehicles
- Personal belongings
We’re NOT counting:
- Real estate
- Life insurance with a beneficiary
- Jointly owned accounts
We’re only counting the things that were solely theirs.
Reason #5: There’s Nothing Left That Needs Probate
This is the final scenario where probate isn’t necessary. And it’s actually the ideal situation.
Sometimes when you look at everything the decedent owned, you realize that every single asset transfers outside of probate.
Real-World Example
Your mother lived here in Wilmington. Here’s what she owned:
- Home: Owned jointly with her husband (still living) with right of survivorship
- Checking account: $30,000 set up as POD to you
- 401(k): $60,000 with you and your sister named as beneficiaries
- Life insurance: $100,000 with you and your sister as beneficiaries
- Car: Paid off vehicle
When you add all this up, that’s over $190,000 in assets. But none of it requires probate.
- The house automatically goes to her surviving husband
- The bank account, 401(k), and life insurance all go directly to the named beneficiaries
- Even the car can be transferred using a simpler process for vehicles under a certain value
There’s nothing that needs probate because everything has somewhere to go automatically.
In this situation, some people still choose to file the will with the Clerk’s office just to create a public record, but formal probate isn’t necessary.
Quick Recap: 5 Reasons You Don’t Need Probate in North Carolina
Let’s quickly recap the five reasons you don’t need probate:
- The property was owned jointly with right of survivorship
- Beneficiaries were properly named on all the accounts
- Everything was in a trust that was properly funded
- The estate is small enough to use the simplified affidavit process (under $20,000 or $30,000)
- There’s nothing left that requires probate because everything transfers automatically
If your situation matches any of these, you may be able to avoid probate entirely or use a much simpler process.
Not Sure If You Need Probate?
If you’re like most people, you’re not quite sure whether probate is required in your situation. That’s completely normal—every estate is different, and the rules can be confusing.
Here’s what I recommend:
If you’ve inherited a house or property and you’re not certain whether probate is needed, reach out to me. I work with families navigating these situations every day here in Southeastern, NC, and I can help you figure out the right next steps.
Talk to a probate attorney. Even one conversation early in the process can save you time, money, and stress down the road. If you need a recommendation for an excellent probate attorney in our area, I’m happy to connect you.
Don’t wait. If you do need probate, starting the process early gives you flexibility later. If you don’t need probate, it’s good to know that now so you can move forward confidently.
What to Do Next
Have questions about whether you need probate? Wondering what your options are with inherited property?
Reach out to me. I’m here to help families just like yours navigate the probate process, understand their options, and make informed decisions about inherited real estate.
And make sure to check out my other resources on probate—I’ve covered everything from probate timelines to costs to selling inherited property.