GSC Unif. Community Prop. Disp. at Death Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 122

Short Title: GSC Unif. Community Prop. Disp. at Death Act. (Public)
Sponsors: Senator Galey (Primary Sponsor).
Referred to: Rules and Operations of the Senate
February 24, 2025
*S122-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ENACT THE UNIFORM COMMUNITY PR OPERTY DISPOSITION A T 2
DEATH ACT, AS RECOMMENDED BY THE GENERAL STATUTES COMMISSION. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Chapter 31C of the General Statutes is repealed. 5
SECTION 2. Chapter 30 of the General Statutes is amended by adding a new Article 6
to read: 7
"Article 5. 8
"Uniform Community Property Disposition at Death Act. 9
"§ 30-41. Title. 10
This Article may be cited as the Uniform Community Property Disposition at Death Act. 11
"§ 30-42. Definitions. 12
In this Article, the following definitions apply: 13
(1) Community-property spouse. – An individual in a marriage or other 14
relationship that satisfies all of the following: 15
a. Community property could be acquired under the relationship. 16
b. The relationship remains in existence at the time of death of either 17
party to the relationship. 18
(2) Electronic. – Relating to technology having electrical, digital, magnetic, 19
wireless, optical, electromagnetic, or similar capabilities. 20
(3) Jurisdiction. – The United States, a state, a foreign country, or a political 21
subdivision of a foreign country. 22
(4) Partition. – Voluntarily divide property to which this Article otherwise would 23
apply. 24
(5) Person. – Defined in G.S. 28A-1-1. 25
(6) Personal representative. – Defined in G.S. 28A-1-1. 26
(7) Property. – Defined in G.S. 32C-1-102. 27
(8) Reclassify. – To change the characterization or treatment of community 28
property to property owned separately by community-property spouses. 29
(9) Record. – Information inscribed on a tangible medium or stored in an 30
electronic or other medium and retrievable in perceivable form. 31
(10) Sign. – With present intent to authenticate or adopt a record, to do either of 32
the following: 33
a. Execute or adopt a tangible symbol. 34
b. Attach to or logically associate with the record an electronic symbol, 35
sound, or process. 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 122-First Edition
(11) State. – Consists of the following: 1
a. A state of the United States, the District of Columbia, Puerto Rico, the 2
United States Virgin Islands, or any o ther territory or insular 3
possession subject to the jurisdiction of the United States. 4
b. An Indian tribe or band or Alaskan native village that is recognized by 5
federal law or formally acknowledged by an entity listed in 6
sub-subdivision a. of this subdivision. 7
"§ 30-43. Included and excluded property. 8
(a) Subject to subsection (b) of this section, this Article applies to all of the following 9
property of a community-property spouse, without regard to how the property is titled or held: 10
(1) If a decedent was domiciled in this State at the time of death, all of the 11
following property: 12
a. All or a proportionate part of each item of personal property, wherever 13
located, that was community property under the law of the jurisdiction 14
where the decedent or the surviving community -property spouse was 15
domiciled either when the community property was acquired or, after 16
acquisition, became community property. 17
b. Income, rent, profit, appreciation, or other increase derived from or 18
traceable to property de scribed in sub -subdivision a. of this 19
subdivision. 20
c. Personal property traceable to property described in sub-subdivision a. 21
or b. of this subdivision. 22
(2) Regardless of whether a decedent was domiciled in this State at the time of 23
death, all of the following property: 24
a. All or a proportionate part of each item of real property located in this 25
State traceable to community property or acquired with community 26
property under the law of the jurisdiction where the decedent or the 27
surviving community-property spouse was domiciled either when the 28
community property was acquired or, after acquisition, became 29
community property. 30
b. Income, rent, profit, appreciation, or other increase, derived from or 31
traceable to property described in sub -subdivision a. of this 32
subdivision. 33
(b) If community-property spouses acquired community property by complying with the 34
law of a jurisdiction that allows for creation of community property by transfer of property to a 35
trust, this Article applies to the property only to the extent the property is held in the trust or 36
characterized as community property by the terms of the trust or the law of the jurisdiction under 37
which the trust was created. 38
(c) This Article does not apply to the following property: 39
(1) Property that community-property spouses have partitioned or reclassified. 40
(2) Property that is the subject of a waiver of rights granted by this Article. 41
"§ 30-44. Form of partition, reclassification, or waiver. 42
(a) Community-property spouses domiciled in this State may partition or reclassify 43
property to which this Article otherwise would apply. The partition or reclassification must be in 44
a record signed by both community-property spouses. Unless both community-property spouses 45
agree otherwise, partition of community property is presumed to result in each spouse owning a 46
one-half separate property interest in each item of property addressed in the record. 47
(b) A community-property spouse domiciled in this State may waive a right granted by 48
this Article only by complying with the la w of this State, including this State 's choice-of-law 49
rules, applicable to waiver of a spousal property right. 50
"§ 30-45. Community property presumption. 51
General Assembly Of North Carolina Session 2025
Senate Bill 122-First Edition Page 3
This Article is presumed to apply to all property acquired by a community -property spouse 1
when domiciled in a jurisdiction where property acquired by the community-property spouse was 2
presumed to be community property under the law of that jurisdiction. This presumption may be 3
rebutted by a preponderance of the evidence. 4
"§ 30-46. Disposition of property at death. 5
(a) One-half of the property to which this Article applies belongs to the surviving 6
community-property spouse of a decedent and is not subject to disposition by the decedent at 7
death. 8
(b) One-half of the property to which this Article applies bel ongs to the decedent and is 9
subject to disposition by the decedent at death. 10
(c) The property that belongs to the decedent under subsection (b) of this section is not 11
subject to the surviving community-property spouse's right to petition for an elective share under 12
Article 1A of this Chapter or the surviving community-property spouse's right to elect a life estate 13
under Article 8 of Chapter 29 of the General Statutes. 14
(d) This section does not apply to property transferred by right of survivorship or under 15
a revocable trust or other nonprobate transfer. 16
(e) This section does not limit the right of a surviving community-property spouse to the 17
year's allowance under Article 4 of this Chapter or the property exemptions under Article X of 18
the North Carolina Constitution and Article 16 of Chapter 1C of the General Statutes. 19
(f) If at death a decedent purports to transfer to a third person property that, under this 20
section, belongs to the surviving community-property spouse and transfers other property to the 21
surviving community-property spouse, this section does not limit the authority of the court under 22
other laws of this State to require that the community -property spouse elect between retaining 23
the property transferred to the community-property spouse or asserting rights under this Article. 24
"§ 30-47. Other remedies available at death. 25
(a) At the death of a community -property spouse, the surviving community -property 26
spouse or a personal representative, heir, or nonprobate transferee of the decedent may assert a 27
right based on either of the following acts: 28
(1) An act of the surviving community -property spouse or decedent during the 29
marriage or other relationship under which community property then could be 30
acquired. 31
(2) An act of the decedent that takes effect at the death of the decedent. 32
(b) In determining a right under subsection (a) of this section and corresponding remedy, 33
the court shall apply equitable principles and may consider the community property law of the 34
jurisdiction where the decedent or survivi ng community-property spouse was domiciled when 35
the property was acquired or enhanced. 36
"§ 30-48. Right of surviving community-property spouse. 37
(a) The surviving community-property spouse of a decedent may assert a claim for relief 38
with respect to a right under this Article in accordance with the following: 39
(1) With respect to a claim for relief asserting a right in or to property, the 40
surviving community-property spouse must do either of the following: 41
a. Within one year of the decedent 's date of death, co mmence a civil 42
action in superior court against an heir, devisee, or nonprobate 43
transferee that is in possession of the property. 44
b. Within six months after the issuance of letters testamentary or letters 45
of administration in connection with the decedent's testate or intestate 46
proceeding, file a petition with the clerk of superior court or 47
commence a civil action in superior court in the county in which the 48
primary administration of the decedent's estate lies. A petition with the 49
clerk of superior court sha ll be filed as an estate proceeding, and the 50
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 122-First Edition
proceeding shall be conducted in accordance with the procedures of 1
Article 2 of Chapter 28A of the General Statutes. 2
(2) With respect to a claim for relief other than a claim under subdivision (a)(1) 3
of this section, the surviving community-property spouse must do either of the 4
following: 5
a. If a personal representative of the decedent 's estate is not appointed, 6
commence a civil action in superior court within one year of the 7
decedent's date of death. 8
b. Satisfy the procedural requirements of sub-subdivision (a)(1)b. of this 9
section. 10
(3) The incapacity of the surviving spouse does not toll the time for commencing 11
an action or filing a petition as provided in this section. 12
(b) Unless a timely demand is made under s ub-subdivision (a)(1)b. or (a)(2)b. of this 13
section, the personal representative may distribute the assets of the decedent 's estate without 14
personal liability for a community-property spouse's claim under this Article. 15
"§ 30-49. Right of heir, devisee, or nonprobate transferee. 16
An heir, devisee, or nonprobate transferee of a deceased community -property spouse may 17
assert a claim for relief with respect to a right under this Article in accordance with the following: 18
(1) With respect to a claim asserting a right in or to property, the heir, devisee, or 19
nonprobate transferee must do either of the following: 20
a. Within one year of the decedent 's date of death, commence a civil 21
action in superior court against the surviving community -property 22
spouse who is in possession of the property. 23
b. Satisfy the procedural requirements of G.S. 30-48(a)(1)b. 24
(2) With respect to a claim for relief other than a claim under subdivision (1) of 25
this section, the heir, devisee, or nonprobate transferee must do either of the 26
following: 27
a. If a personal representative of the decedent 's estate is not appointed, 28
commence a civil action in superior court within one year of the 29
decedent's date of death. 30
b. Satisfy the procedural requirements of G.S. 30-48(a)(1)b. 31
(3) The incapacity of the heir, devisee, or nonprobate transferee does not toll the 32
time for commencing an action or filing a petition as provided in this section. 33
"§ 30-50. Protection of third person. 34
(a) With respect to property to which this Article applies, a person is not liable under this 35
Article if all of the following apply: 36
(1) The person transacts in good faith and for value with either of the following: 37
a. A community-property spouse. 38
b. After the death of the decedent, a surviving community -property 39
spouse, personal representative, heir, devisee, or nonprobate transferee 40
of the decedent. 41
(2) The person does not know or have reason to know that the other party to the 42
transaction is exceeding or improperly exercising the party's authority. 43
(b) Good faith under subdivision (a)(1) of this section does not require the person to 44
inquire into the extent or propriety of the exercise of authority by the other party to the 45
transaction. 46
(c) With respect to real property to which this Article applies, a lien creditor or a 47
purchaser for value of the property is not liable under this Article unless, before the lien was 48
acquired or the purchase was made, the community-property spouses gave notice in a registered 49
instrument of their intention for this Article to apply to the property. Priority among this 50
registered instrument and other registered instruments is governed by G.S. 47-18. 51
General Assembly Of North Carolina Session 2025
Senate Bill 122-First Edition Page 5
"§ 30-51. Principles of law and equity. 1
The principles of law and equity supple ment this Article except to the extent inconsistent 2
with this Article. 3
"§ 30-52. Uniformity of application and construction. 4
In applying and construing this Article, a court shall consider the promotion of uniformity of 5
the law among jurisdictions that en act the Uniform Community Property Disposition at Death 6
Act." 7
SECTION 3. G.S. 28A-2-4 reads as rewritten: 8
"§ 28A-2-4. Subject matter jurisdiction of the clerk of superior court in estate proceedings. 9
(a) The clerks of superior court of this State, as ex officio judges of probate, shall have 10
original jurisdiction of estate proceedings. Except as provided in subdivision (4) of this 11
subsection, the jurisdiction of the clerk of superior court is exclusive. Estate proceedings include, 12
but are not limited to, the following: 13
… 14
(4) Proceedings to ascertain heirs or devisees, to approve settlement agreements 15
pursuant to G.S. 28A-2-10, to determine questions of construction of wills, to 16
determine priority among creditors, to determine whether a person is in 17
possession of property belonging to an estate, to order the recovery of property 18
of the estate in possession of third parties, to determine a claim for relief 19
regarding the disposition of community property at death as provided in 20
Article 5 of Chapter 30 of the General Statutes, and to determine the existence 21
or nonexistence of any immunity, power, privilege, duty, or right. Any party 22
or the clerk of superior court may file a notice of transfer of a proceeding 23
pursuant to this subdivision to the Superior Court Divi sion of the General 24
Court of Justice as provided in G.S. 28A-2-6(h). In the absence of a transfer 25
to superior court, Article 26 of Chapter 1 of the General Statutes shall apply 26
applies to an estate proceeding pending before the clerk of superior court to 27
the extent consistent with this Article. 28
(b) Nothing in this section shall affect affects the right of a person to file an action in the 29
Superior Court Division of the General Court of Justice for declaratory relief under Article 26 of 30
Chapter 1 of the Gen eral Statutes. In the event that either the petitioner or the respondent in an 31
estate proceeding requests declaratory relief under Article 26 of Chapter 1 of the General 32
Statutes, either party may move for a transfer of the proceeding to the Superior Court Division 33
of the General Court of Justice as provided in Article 21 of Chapter 7A of the General Statutes. 34
In the absence of a removal to superior court, Article 26 of Chapter 1 of the General Statutes 35
shall apply applies to an estate proceeding to the extent consistent with this Article. 36
(c) Without otherwise limiting the jurisdiction of the Superior Court Division of the 37
General Court of Justice, the clerk of superior court shall does not have jurisdiction under 38
subsection (a) or (b) of this section or G.S. 28A-2-5 of the following: 39
… 40
(4) Proceeding Proceedings to determine proper county of venue as provided in 41
G.S. 28A-3-2. 42
…." 43
SECTION 4. If a provision of this act or its application to a person or circumstance 44
is held invalid, the invalidity does not af fect another provision or application that can be given 45
effect without the invalid provision. 46
SECTION 5. The Revisor of Statutes shall cause to be printed, as annotations to the 47
published General Statutes, all relevant portions of the Official Comments to the Uniform 48
Community Property Disposition at Death Act and all explanatory comments of the drafters of 49
this act as the Revisor may deem appropriate. 50
General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 122-First Edition
SECTION 6. If a right with respect to property to which this act applies is acquired, 1
extinguished, or barred on the expiration of a limitation period that began to run under another 2
statute before the effective date of this act, that statute continues to apply to the right even if the 3
statute has been repealed or superseded by this act. 4
SECTION 7. This act becomes effective January 1, 2026. Except as provided in 5
Section 6 of this act, this act applies to a judicial proceeding commenced on or after that date, 6
regardless of the date of death of the decedent. 7