S218 - Estates and Trusts Changes. (SL 2023-120)

Overview: Part I of S.L. 2023-120 makes changes related to the yearly allowance for a spouse and child of a decedent as follows:

• The procedure for requesting a year's allowance.
• Eliminating the use of magistrates.
• Funding the surviving spouse's yearly allowance is given priority over pro-rata funding shared with minor children.
• The children's yearly allowance is limited to children under 21, the amount is increased to ten thousand dollars ($10,000), and the priority for who can receive the allowance on behalf of the child(ren) is to be reordered.
• Assets recovered by the personal representative for payment of claims of decedent's creditors or debts of the estate is used to pay the yearly allowance of a spouse and child prior to paying other claims.

Part II of S.L. 2023-120 amends G.S. 31-5.4 to change the treatment of a former spouse in estates by treating the former spouse as having predeceased the testator when the testator did not remove the former spouse from their will unless a contrary intent is expressly included in the will or through subsequent actions such as remarriage or execution of additional documents. G.S. 36C-6-606 is also amended to make technical and conforming changes to align with the proposed language of G.S. 31-5.4.

Sections 1.2 and 1.3 are effective March 1, 2024, and apply to decedents dying on or after that date. Sections 2.1 and 2.2 are effective March 1, 2024, and apply to wills probated on or after that date. Except as otherwise provided, S.L. 2023-120 is effective March 1, 2024.