When Can You Skip Probate?

For many families, the word probate brings to mind months of paperwork, court filings, and legal fees. And while it’s true that a full probate process is often required when someone dies in North Carolina, there are several situations where you may be able to skip it entirely — or at least use a much simpler procedure.

Below, we’ll break down when probate is required, when it isn’t, and the tools North Carolina law gives families to make things easier.

What Is Probate, Anyway?

Probate is the legal process of settling someone’s estate after they pass away. It involves proving the will (if there is one), appointing a personal representative, paying debts and taxes, and distributing assets to the rightful heirs or beneficiaries.

If the person who died owned property in their own name, a court-supervised probate is usually required to transfer that property to someone else.

Times When You Might Be Able to Avoid Full Probate

North Carolina law offers several exceptions that let you bypass or simplify probate depending on the size of the estate, the type of property involved, and how assets were owned.

1. Small Estates Under $20,000 ($30,000 if Spouse Survives)

If the total value of the deceased person’s probate estate is $20,000 or less, North Carolina allows heirs to use a simplified procedure called Collection by Affidavit instead of full probate.

• If the surviving spouse is the sole heir, the limit rises to $30,000.

• The process uses a sworn affidavit (filed with the clerk of court) to collect and distribute the estate’s assets without the need for a full estate administration.

This shortcut is often used when someone dies with only a small bank account, a modest vehicle, or personal property in their name.

2. Property Held Jointly With Right of Survivorship

Assets owned jointly with someone else automatically pass to the surviving owner without going through probate.

Common examples include:

• A home owned by spouses as “tenants by the entirety.”

• A joint bank account with right of survivorship.

These assets bypass probate completely because ownership changes by operation of law.

3. Assets With Named Beneficiaries

If an account or policy has a designated beneficiary, it usually transfers directly to that person without probate.

This applies to:

• Life insurance policies

• Retirement accounts (IRA, 401(k))

• Transfer-on-death (TOD) or payable-on-death (POD) bank accounts

The key is that the designation must be in place before death. Without it, those accounts might fall into the probate estate.

4. Assets Held in a Trust

If the deceased person placed assets into a revocable living trust during their lifetime, those assets can be distributed directly by the trustee without court involvement.

Because the trust, not the individual, is the legal owner, there’s no need for probate to transfer ownership. This is one of the most common estate planning strategies to simplify or avoid probate altogether.

Final Thought

Skipping probate can save your family time, money, and stress — but it’s not automatic. Whether you qualify for one of these shortcuts depends on how the estate was structured and what assets are involved.

The best time to plan for a smooth transition is long before probate becomes necessary. Working with an estate planning attorney can help you set up joint ownership, beneficiary designations, or a trust that keeps your loved ones out of court.