If a loved one has passed away and left property or assets behind, you might be wondering: do I actually need to go through probate?
The answer might surprise you—because not every estate requires probate in North Carolina.
I’m Ryan Smith, a licensed real estate agent who specializes in helping families navigate the probate process here in southeastern North Carolina. Today, I’m breaking down the 5 most common situations where probate is typically required, so you can determine your next steps.
Important Reminder: I’m not an attorney and I’m not giving legal advice. I do know some great attorneys here in southeastern NC, and I highly recommend you at least have a conversation with an attorney who specializes in estate and probate law—just to make sure you’re doing everything correctly from the very beginning. If you’d like a recommendation, reach out and I’ll be happy to connect you.
Let’s jump into the 5 most common situations where probate is typically required.
Reason #1: Everything Was Just In The Name of the Deceased
This is the number one reason families end up needing probate.
If your loved one owned things only in their name—just their name, nobody else’s—you’re going to need probate to transfer those things to someone else.
Here’s an example:
Let’s say your father owned a house, and when you look at the deed, it only has his name on it. You cannot sell that house or transfer it to yourself without going through probate. Period.
Or maybe he had a checking account at the bank with $25,000 in it—just his name on the account. If you show up at the bank with his death certificate and say “I’m his son, I need to access this account,” the bank is going to say “I’m sorry, we need to see court paperwork that proves you’re legally authorized to handle his accounts.”
That’s probate.
The same thing happens with:
- Cars titled only in their name
- Investment accounts with only their name
- Savings accounts
- Any asset without joint ownership or beneficiary designation
Here’s what catches people by surprise: Even if the will says “I leave my house to my daughter,” that will doesn’t automatically transfer the property. The will tells us who SHOULD get it, but you still need the court to give you the authority to actually make that transfer happen.
Reason #2: The Person Who Was Supposed to Get the Asset Died First
This situation happens more often than you’d think.
Your loved one had accounts or insurance policies set up so they’d automatically go to someone when they died. But that person died first, and nobody ever updated the paperwork.
Real-world example:
Your aunt had a $50,000 life insurance policy. Twenty years ago, she named her husband as the beneficiary—the person who gets the money when she dies. But her husband passed away five years ago, and she never called the insurance company to change it to name you or your siblings instead.
Now your aunt has passed away. Who gets the life insurance money?
The insurance company can’t give it to her husband because he’s gone. If she didn’t name a backup person—what they call a “contingent beneficiary”—the money doesn’t have anywhere to go. So it becomes part of her estate, and that means you’ll need to go through probate to access it.
This happens with:
- Life insurance policies
- Retirement accounts (401(k)s, IRAs)
- Bank accounts with “payable on death” designations
- Any account with a named beneficiary who predeceased the owner
The lesson here: Beneficiary designations need to be kept up to date. People get divorced, remarried, family members pass away. If the paperwork doesn’t match current reality, it can force the family into probate even though that wasn’t the intention.
Reason #3: There Are Bills That Need to Be Paid
This sometimes surprises people: when someone passes away, their bills don’t just go away.
If they had credit card debt, medical bills from their final illness, a mortgage on their house, a car payment, or taxes owed—all of that still needs to be dealt with. And probate is the legal process for handling it properly.
You might be thinking: “Can’t we just pay the bills from their bank account and be done with it?”
Well, sometimes that’s not so simple. What if there’s not enough money to pay everyone? Who gets paid first? What if creditors are calling and you don’t know if you’re required to pay them?
Probate creates a clear legal process for all of this:
- The court oversees the payment process
- There are rules about which bills get paid in what order
- Creditors have a limited time to make claims
- If they don’t file within that time period, they don’t get paid
Here’s why this is actually good for you: When the estate handles debts properly through probate, those creditors can’t come after you personally later. The estate pays what it legally owes, and you’re protected from personal liability.
Without probate, it can get messy real fast. You might pay the wrong people, or not pay debts in the right order, and that can create legal problems down the road.
Reason #4: The Family Doesn’t Agree or the Bank Won’t Cooperate
Sometimes the reason you need probate has nothing to do with the property itself. It’s because people don’t agree, or because a bank or institution is being difficult.
When Family Members Disagree
Maybe you have siblings and you can’t agree on who should be in charge of handling everything. Maybe someone thinks the will isn’t fair, or they’re questioning whether the will is even valid. Maybe there’s confusion about what your loved one actually wanted.
When there’s conflict like this, probate provides a neutral referee. The court looks at the facts, makes decisions according to the law, and everyone has to follow what the court says. It’s not fun, but it’s sometimes necessary to resolve disputes.
When Banks Demand Court Paperwork
Here’s the other situation, and honestly, this one frustrates families the most.
Even when everyone gets along perfectly, sometimes a bank or financial institution will simply refuse to release funds without official court paperwork.
I’ve seen situations where there’s $12,000 in a bank account, the estate is small, everyone agrees on everything, but the bank says “sorry, we need to see Letters from the court before we’ll release this money.”
When that happens, you’re stuck. Even though technically the estate might qualify for a simpler process, if the bank won’t budge, you end up going through probate anyway.
The reality: Different banks have different policies. Some are reasonable, some are more strict. You won’t know until you try, but when they demand court paperwork, probate is likely your only option.
Reason #5: There’s More Than $20,000 to $30,000 in Assets
North Carolina has a simplified process for really small estates, but there’s a dollar limit.
Here’s how it works:
If the total value of things like bank accounts, investment accounts, and personal property that was only in their name adds up to more than $20,000, you need regular probate. That limit goes up to $30,000, but only if a surviving spouse is the only person inheriting.
What Counts Toward This Limit?
We’re counting:
- Bank accounts in their name only
- Investment accounts without beneficiaries
- Personal property (cars, furniture, jewelry)
- Any asset that was solely in their name
We’re NOT counting:
- Life insurance with a named beneficiary
- Retirement accounts with a beneficiary listed
- Property that was jointly owned
- Payable-on-death accounts with beneficiaries
Example Calculation
Let’s say your mom had:
- Checking account: $18,000
- Savings account: $7,000
- Total: $25,000
That’s over the $20,000 limit, so you’ll need to go through probate.
Or maybe the accounts only total $15,000, but she also had a car worth $8,000. Now you’re at $23,000—over the limit, so probate is required.
This is why it’s important to add everything up carefully. Sometimes families think “oh, it’s just a small estate,” but when you actually calculate the value of all the accounts and property, you’ve exceeded the threshold and regular probate is necessary.
Special Advice If You Inherited a House
Here’s my recommendation: If you’ve inherited a house or property that was only in your loved one’s name, start the probate process now—even if you’re not sure yet whether you want to sell the property, rent it, or live in it.
Here’s why:
The probate process takes time. We’re typically looking at several months minimum here in New Hanover County. If you wait until you’ve decided to sell, and then you start probate, you’re adding months of delay before you can even list the property.
But if you start probate now, by the time you’re ready to sell, you’ll already have the legal authority you need.
Lots of families tell me they’re “just going to wait and see” what they want to do with the property. Unfortunately, six months later they’re ready to sell—or they need to sell—but they have to wait another four months for probate to finish.
Start the process early, and you’ll have flexibility later. This is where I help families navigate the probate real estate process all the time.
Quick Recap: Do You Need Probate?
You need probate in North Carolina if:
- ✓ Property was only in their name with no one else listed
- ✓ The person who was supposed to inherit died first and no backup was named
- ✓ There are bills and debts that need to be paid
- ✓ The family is in disagreement or a bank is demanding court paperwork
- ✓ There’s more than $20,000 to $30,000 in accounts and property
If any of these apply to your situation, probate is probably required.
What’s Next?
The good news: Sometimes you CAN avoid probate. There are situations where the simplified process works, or where probate isn’t needed at all. (I’ll cover those reasons in another post—subscribe so you don’t miss it!)
If you’re in New Hanover County dealing with an inherited house or property and you’re not sure what your next step should be, reach out to me. I can help you understand the process and your options.
And as I mentioned earlier, I definitely recommend having a conversation with an attorney, and I’m happy to recommend one if needed.
Questions about probate or inherited property? Contact me and I’ll point you in the right direction.