Legal Question in Wills and Trusts in North Carolina

If a person dies and has a brokerage account with a transfer on death (TOD) letter, does this asset have to go through probate in North Carolina?


Asked on 7/05/16, 8:40 am

1 Answer from Attorneys

I would have to look at things to be sure but bank accounts and beneficiary-designated assets do not pass through probate.

If you look at the forms (assuming that the estate is in NC), it only asks for things like stocks/bonds/bank accounts without a right of survivorship. By listing a TOD/POD (transfer on death or payable on death) designation, the deceased is naming a survivor. So I would be inclined to exclude BUT to be 100% certain, you should consult a probate attorney who practices in the county where the estate is or will be be probated. If you cannot afford an attorney, then ask the register of wills/clerk of the probate court to opine. If this is somewhere other than North Carolina, you need to check with an attorney or the register of wills/clerk of court as other states may define it differently or may impose an inheritance tax even if its a non-probate asset (NC has no inheritance tax but other states do).

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Answered on 7/05/16, 8:54 am


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