What is intestacy?
Definition
Intestacy is the legal condition of dying without a valid will, which causes a person's estate, including any business interests, to be distributed according to the state's default inheritance rules rather than the decedent's wishes.
In North Carolina, intestacy is governed by N.C. Gen. Stat. Chapter 29 (the Intestate Succession Act), which establishes a fixed hierarchy of heirs, beginning with a surviving spouse and children, then more distant relatives.
A common misconception is that a surviving spouse automatically inherits everything under intestacy. In North Carolina, if the decedent also has surviving children, the estate is divided between the spouse and children according to a statutory formula, which can create significant complications for a family-owned business.
Key details
Governing statute: N.C. Gen. Stat. Chapter 29 (Intestate Succession Act)
Default distribution: Spouse and children share the estate under a statutory formula; stepchildren and unmarried partners receive nothing under intestacy
Business impact: An LLC or corporation interest passes through probate under intestacy rules, potentially transferring control to multiple heirs who did not participate in the business
Probate requirement: Intestate estates must go through probate in the county where the decedent resided, administered by the Clerk of Superior Court
NC estate tax: North Carolina does not impose a state estate tax (repealed in 2013), but federal estate tax may apply to larger estates
According to N.C. Gen. Stat. Chapter 29, as of 2025.
Related pages
See the full guide: Business Succession Planning in Raleigh, NC
Deep dive: What Happens to a North Carolina Business When the Owner Dies Without a Succession Plan
Related reading: How probate actually works in North Carolina
