Being an executor of someone’s estate is one of the most significant things someone can request of you before their passing. As the executor, you’ll need to account for the decedent’s personal assets and determine their value. You will also have other duties, such as distributing assets, ensuring creditors are paid, filing taxes, and preparing filings for the court’s review.
One of the forms you’ll fill out during this process is an estate inventory, known as North Carolina form AOC-E-505.
When Does The AOC-E-505 Need To Be Filed?
When someone passes away and you have been named the executor of their estate, you have three months from being qualified as executor to file the AOC-E-505 form with the court.
During that time, you’ll fill out the summary of all assets owned or partially owned by the decedent at the time of their death. The inventory provides values for each item owned at fair market value.
What Is In The Estate Inventory Form?
You'll need to accurately complete the three sections below in the AOC-E-505 form.
Part 1: Property Of The Estate
In the Property of the Estate section, you’ll need to fill in details of the property you have obtained control over as executor and is currently available to pay creditors. Other entities should not control property in this section - for example, properties with designated beneficiaries or jointly owned accounts or property.
The subsections in part 1 include:
- Accounts in the sole name of decedent section: This part is dedicated to details of bank accounts with no joint owner and no payable-on-death instructions. When filling this part, ensure you attach a bank statement or any other proof of the account's balance that you gain control over.
- Joint accounts without a right of survivorship: Although they are rare, they do exist. A right of survivorship implies that the survivor of the two owners assumes the account ownership outright when one of the owners dies. When dealing with a joint account without a right of survivorship, you must determine and include the deceased’s share of that joint account in the estate.
- Stocks and bonds owned without a right of survivorship: When filling out this section, only include accounts that don't have designated beneficiaries or those that don't have additional owners with a right of survivorship. Ensure you attach adequate proof of the value and ownership of the account
- Cash and undeposited checks on hand: This part requires you to fill in all details about the decedent's cash found around their residence and on their person. You should also fill in details about any checks that had not been deposited at the time of their death.
- All other personal property: This category is dedicated to the decedent's business interests, tools, personal effects, vehicles, and any other item that is not real estate - real estate is covered in the section below.
- Real Estate Willed To The Estate, Directed By The Will To Be Sold, And Sold: This section will contain details on any real estate that the will states should be sold instead of being willed to a beneficiary.
Part 2: Property Which Can Be Added To The Estate If Needed To Pay Claims
Property in this section is for items that may have rights of survivorship or named beneficiaries, but may need to be sold to meet creditor requirements after running out of assets in the section above.
- Joint Accounts with Right of Survivorship: Under this section, fill in details of joint accounts with a right of survivorship. Make sure you append a signature card from the bank with a right of survivorship clearly stated. If the signature card is lost, use an alternate letter from the bank. You should also attach bank statements and any other evidence to prove the balance of the account.
- Stocks/Bonds/Securities Jointly Owned With Right Of Survivorship Or Registered In Beneficiary Form And Automatically Transferable On Death: When filling out this section, ensure you attach enough proof showing how the account is registered as well as the current balance.
- Other personal property recoverable (G.S. 28A-15-10): This part covers tentative trusts in savings accounts for other persons or Totten Trusts. It also includes details about "gifts causa mortis" (gifts made in anticipation of death). You can use these gifts to pay off creditors if you establish that the decedent gave out too much that you can't settle their estate. You should also include details of other jointly maintained bank accounts and accounts registered on the death form and aren't captured in previous categories.
- Real Estate Except Entireties Property, Life Estate And Real Estate Willed To Estate: This section gathers fractional interests in co-owned property or individually owned real estate.
Part 3: Claims For Wrongful Death
If there is a potential claim for a wrongful death suit, this section should be filled out with relevant information about the attorney filing the action and the court or jurisdiction where the action is being filed.
Our Wilmington Estate Planning Team Can Help
Whether you’re in the process of administering an estate or planning for the future with your loved ones, David Anderson and his team of estate planning professionals can help. Call us today or contact us here online to schedule a consultation today!