A BILL TO BE ENTITLED
AN ACT to implement the recommendations of the general statutes commission to modify the slayer statute due to the need to account for property held in a joint tenancy in unequal shares, to clarify the provisions for filing certified copies of probated wills in other counties where a decedent has real property, to delete the statutory forms for judgment debtors claiming exemptions under G.S. 1C‑1601 because the Administrative Office of the Courts already has widely used forms for that purpose, and to resolve an apparent conflict between rule 8 of the north carolina rules of civil procedure, dealing with the content of pleadings, and G.S. 7a‑243, dealing with the proper trial court division, as recommended by the general statutes commission.
The General Assembly of North Carolina enacts:

part 1. Modification of slayer statute
SECTION 1.1.  G.S. 31A‑6 reads as rewritten:
"§ 31A‑6.  Survivorship property.
(a)	Where the slayer and the decedent hold property with right of survivorship as joint tenants, joint owners, joint obligees or otherwise, the following apply:
(1)	The decedent's share passes immediately upon the decedent's death to the decedent's estate.
(2)	The slayer's share shall be held by the slayer for life and at the slayer's death shall pass to the decedent's estate.
(b)	Where three or more persons, including the slayer and the decedent, hold property with right of survivorship as joint tenants, joint owners, joint obligees or otherwise, the following apply:
(1)	The decedent's share is converted effective upon the decedent's death to that of a tenant in common and passes to the decedent's estate.
(2)	The remaining persons, including the slayer, continue to hold their shares with right of survivorship.
(3)	If the slayer becomes the final survivor, upon the slayer's death, the slayer's share, which includes the other shares that passed to the slayer as the final survivor, shall pass to the decedent's estate.
(c)	During the slayer's lifetime, the slayer shall have the right to the income from the slayer's share, subject to the rights of the slayer's creditors.
(d)	Nothing in this section prohibits a partitioning of the property pursuant to Chapter 46 of the General Statutes or severing the joint tenancy in any manner provided by law. Any share taken by the slayer by reason of partition or severance shall be subject to subdivision (b)(3) of this section."
SECTION 1.2.  This Part becomes effective October 1, 2014, and applies to property subject to Article 3 of Chapter 31A of the General Statutes as to decedents dying on or after that date.

part ii. clarify the provisions for filing certified copies of probated wills in other counties where a decedent has real property
SECTION 2.1.  G.S. 28A‑2A‑13 reads as rewritten:
"§ 28A‑2A‑13.  Wills filed in clerk's office; certified copies filed for real property in other counties.
(a)	All original probated wills shall remain in the office of the clerk of superior court, among the public records of the court where the wills were probated.
(b)	If a probated will devises real property outside the county where  the will was probated, a copy of the will and a copy of the certificate of probate of the will, certified under the hand and seal of the clerk of the superior court of the county where the will was probated, may be filed in the office of the clerk of the superior court of any other county in this State in which the real property is situated. The filing of the probated will in the county where the real property is situated shall have the same effect for purposes of G.S. 31‑39(c) as to the priorities of claims against the real property as if the will had originally been probated  in that county and as if the clerk of superior court of that county had jurisdiction to probate the will."
SECTION 2.2. G.S. 31‑39(c) reads as rewritten:
"(c)	A will duly probated in one county of this State is not effective to pass title to an interest in real property located in any other county of this State as against lien creditors or purchasers for valuable consideration from the intestate heirs at law of a decedent unless a certified copy of the will and a certified copy of the certificate of probate of the will are filed in the office of the clerk of superior court in the county where the real property lies within the time limitation set forth in subsection (b) of this section."
SECTION 2.3.  This Part becomes effective October 1, 2014, and applies to estates of decedents dying before, on, or after that date.

part III. delete statutory forms in G.S. 1C‑1603
SECTION 3.1.  G.S. 1C‑1603 reads as rewritten:
"§ 1C‑1603.  Procedure for setting aside exempt property.
(a)	Motion or Petition; Notice. –
(1)	After judgment has been entered against a judgment debtor, that person's exempt property may be designated by motion.
(2)	Repealed by Session Laws 1981 (Regular Session, 1982), c. 1224, s. 10.
(3)	The clerk or district court judge may determine that particular property is not exempt even though there has been no proceeding to designate the exemption.
(4)	After judgment, except as provided in subdivision (3) of this subsection or when exemptions have already been designated, the clerk may not issue an execution or writ of possession unless notice from the court has been served upon the judgment debtor advising the debtor of the debtor's rights. The judgment creditor must cause the notice, which must be accompanied by the form for the statement by the debtor under subsection (c1) of this section, to be served on the debtor as provided in G.S. 1A‑1, Rule 4(j)(1). If the judgment debtor cannot be served as provided under G.S. 1A‑1, Rule 4(j)(1), the judgment creditor may serve the judgment debtor by mailing a copy of the notice to the judgment debtor at the debtor's last known address. Proof of service by certified or registered mail or personal service is as provided in G.S. 1A‑1, Rule 4. The judgment creditor may prove service by mailing to last known address by filing a certificate that the notice was served indicating the circumstances warranting the use of such service and the date and address of service.
(5)	The Administrative Office of the Courts must provide a form for the notice from the court required by subdivision (4) of this subsection. The notice must inform the debtor that:
a.	The judgment debtor has the right to retain certain property free from collection efforts by the judgment creditor.
b.	To preserve that right, the judgment debtor is required to respond to the notice by filing a motion or petition to claim exempt property, including a schedule of assets that are claimed as exempt, no later than 20 days after the debtor receives the notice, and that the judgment debtor must also mail or take a copy to the judgment creditor at the address provided in the notice.
c.	The judgment debtor has the option to request a hearing to claim exemptions rather than filing a schedule of assets.
d.	The judgment debtor may have exemptions under State and federal law that are in addition to those listed on the form for the debtor's statement that is included with the notice.
e.	There is a procedure for challenging an attachment or levy on the judgment debtor's property.
f.	The judgment debtor may wish to consider hiring an attorney.
g.	Failure to respond within the required time results in the loss of statutory rights.
													
(b)	Contents of Motion or Petition. – The motion or petition must:
(1)	Name the judgment debtor;
(2)	Name the judgment creditors of the debtor insofar as they are known to the movant;
(3)	If it is a motion to modify a previously allocated exemption, describe the change of condition (if the movant received notice of the exemption hearing) and the modification desired.
(c)	Statement by the Debtor. – When proceedings are instituted, the judgment debtor must file with the court a schedule of:
(1)	The debtor's assets, including their location;
	(3)	The property that the debtor desires designated as exempt.
																																																																																																																																																																																				
(c1)	Form for Debtor's Statement. – The Administrative Office of the Courts must provide a form for the schedule required under subsection (c) of this section.(d)	Notice to Persons Affected. – If the judgment debtor moves to designate exemptions, a copy of the motion and schedule must be served on the judgment creditor as provided in G.S. 1A‑1, Rule 5.
(e)	Procedure for Setting Aside Exempt Property. –
(1)	When served with the notice under subdivision (a)(4) of this section, the judgment debtor may either file a motion to designate exemptions with a schedule of assets or may request, in writing, a hearing before the clerk to claim exemptions.
(2)	If the judgment debtor does not file a motion to designate exemptions with a schedule of assets within 20 days after notice of the debtor's rights was served in accordance with subdivision (a)(4) of this section, or if the debtor does not request a hearing before the clerk within 20 days after service of the notice of rights and appear at the requested hearing, the judgment debtor has waived the exemptions provided in this Article and in Sections 1 and 2 of Article X of the North Carolina Constitution. Upon request of the judgment creditor, the clerk must issue a writ of execution or writ of possession.
(3)	If the judgment debtor moves to designate exemptions by filing a motion and schedule of assets, the judgment creditor must be served as provided in subsection (d) of this section.
(4)	If the judgment debtor requests a hearing before the clerk to claim exemptions, the clerk must set a hearing date and give notice of the hearing to the judgment debtor and judgment creditor. At the hearing, the judgment debtor may claim the debtor's exemptions.
(5)	The judgment creditor has 10 days from the date served with a motion and schedule of assets or from the date of a hearing to claim exemptions to file an objection to the judgment debtor's schedule of exemptions.
(6)	If the judgment creditor files no objection to the schedule filed by the judgment debtor or claimed at the requested hearing, the clerk must enter an order designating the property allowed by law and scheduled by the judgment debtor as exempt property. Upon request of the judgment creditor, the clerk must issue an execution or writ of possession except for exempt property.
(7)	If the judgment creditor objects to the schedule filed or claimed by the judgment debtor, the clerk must place the motion for hearing by the district court judge, without a jury, at the next civil session.
(8)	The district court judge must determine the value of the property. The district court judge or the clerk, upon order of the judge, may appoint a qualified person to examine the property and report its value to the judge. Compensation of that person must be advanced by the person requesting the valuation and is a court cost having priority over the claims.
(9)	The district court judge must enter an order designating exempt property. Supplemental reports and orders may be filed and entered as necessary to implement the order.
(10)	Where the order designating exemptions indicates excess value in exempt property, the clerk, in an execution, may order the sale of property having excess value and appropriate distribution of the proceeds.
(11)	The clerk or district court judge may permit a particular item of property having value in excess of the allowable exemption to be retained by the judgment debtor upon the debtor's making available to judgment creditors money or property not otherwise available to them in an amount equivalent to the excess value. Priorities of judgment creditors are the same in the substituted property as they were in the original property.
(12)	Appeal from a designation of exempt property by the clerk is to the district court judge. A party has 10 days from the date of entry of an order to appeal. Appeal from a designation of exempt property by a district court judge is to the Court of Appeals. Decisions of the Court of Appeals with regard to questions of valuation of property are final as provided in G.S. 7A‑28. Other questions may be appealed as provided in G.S. 7A‑30 and 7A‑31.
(f)	Notation of Order on Judgment Docket. – A notation of the order setting aside exempt property must be entered by the clerk of court on the judgment docket opposite the judgment that was the subject of the enforcement proceeding. If real property located in a county other than the county in which the judgment was rendered is designated as exempt and the judgment has already been docketed in that county, the clerk must send a notice of the designation of exempt property to the county where the property is located. The clerk of the county where the land is located must enter a notation of the designation of exempt property on the judgment docket. If a judgment is docketed in a county where real property is located after that real property has been designated as exempt, the transcript of judgment must indicate that the exemptions have been designated. The clerk in the county receiving the transcript must enter the notation of designation of exempt property as well as docket the judgment.
(g)	Modification. – The judgment debtor's exemption may be modified by motion in the original exemption proceeding by anyone who did not receive notice of the exemption hearing. Also, the debtor's exemption may be modified upon a change of circumstances, by motion in the original exemption proceeding, made by the debtor or anyone interested. A substantial change in value may constitute changed circumstances. Modification may include the substitution of different property for the exempt property.
(h)	Repealed by Session Laws 1981 (Regular Session, 1982), c. 1224, s. 14."
SECTION 3.2.  This Part becomes effective October 1, 2014. This Part does not affect any debtor's statements filed before that date.

part iv. Resolution of conflict between rule 8 of the north carolina rules of civil procedure and G.S. 7a‑243
SECTION 4.1.  G.S. 1A‑1, Rule 8(a), reads as rewritten:
"(a)	Claims for relief. – A pleading which sets forth a claim for relief, whether an original claim, counterclaim, crossclaim, or third‑party claim shall contain
(1)	A short and plain statement of the claim sufficiently particular to give the court and the parties notice of the transactions, occurrences, or series of transactions or occurrences, intended to be proved showing that the pleader is entitled to relief, and
(2)	A demand for judgment for the relief to which he deems himself entitled. Relief in the alternative or of several different types may be demanded. In all negligence actions, and in all claims for punitive damages in any civil action, wherein the matter in controversy exceeds the sum or value of ten thousand dollars ($10,000), the pleading shall not state the demand for monetary relief, but shall state that the relief demanded is for damages incurred or to be incurred in excess of ten thousand dollars ($10,000) and shall also state the proper trial court division under G.S. 7A‑243. If the amount in controversy is between ten thousand dollars ($10,000) and twenty‑five thousand dollars ($25,000), the pleading may state either trial division. However, at any time after service of the claim for relief, any party may request of the claimant a written statement of the monetary relief sought, and the claimant shall, within 30 days after such service, provide such statement, which shall not be filed with the clerk until the action has been called for trial or entry of default entered. Such statement may be amended in the manner and at times as provided by Rule 15."
SECTION 4.2.  G.S. 1A‑1, Rule 8(a), as amended by Section 4.1 of this act, reads as rewritten:
"(a)	Claims for relief. – A pleading which sets forth a claim for relief, whether an original claim, counterclaim, crossclaim, or third‑party claim shall contain
(1)	A short and plain statement of the claim sufficiently particular to give the court and the parties notice of the transactions, occurrences, or series of transactions or occurrences, intended to be proved showing that the pleader is entitled to relief, and
(2)	A demand for judgment for the relief to which he deems himself entitled. Relief in the alternative or of several different types may be demanded. In all negligence actions, and in all claims for punitive damages in any civil action, wherein the matter in controversy exceeds the sum or value of ten thousand dollars ($10,000), the pleading shall not state the demand for monetary relief, but shall state that the relief demanded is for damages incurred or to be incurred in excess of ten thousand dollars ($10,000) and shall also state the proper trial court division under G.S. 7A‑243. However, at any time after service of the claim for relief, any party may request of the claimant a written statement of the monetary relief sought, and the claimant shall, within 30 days after such service, provide such statement, which shall not be filed with the clerk until the action has been called for trial or entry of default entered. Such statement may be amended in the manner and at times as provided by Rule 15."
SECTION 4.3.  Section 4.1 of this act becomes effective October 1, 2014, and applies to pleadings filed on or after that date. Section 4.2 of this act becomes effective July 1, 2015, and applies to pleadings filed on or after that date.

part v. effective date
SECTION 5.1.  Except as otherwise provided, this act is effective when it becomes law.