A BILL TO BE ENTITLED
AN ACT to update and reorganize the general statutes relating to spousal and child's allowance in estates and to amend the general statutes to treat wills and revocable trusts alike in construction, interpretation, and administration when a marriage is dissolved by absolute divorce or annulment after execution of the will or revocable trust, as recommended by the north carolina bar association.
The General Assembly of North Carolina enacts:

part i. changes to yearly allowance in estates
SECTION 1.1.  The following General Statutes are repealed:
(1)	G.S. 30‑16.
(2)	G.S. 30‑21.
(3)	G.S. 30‑23.
(4)	G.S. 30‑25.
(5)	G.S. 30‑28.
(6)	G.S. 30‑29.
(7)	G.S. 30‑31.1.
(8)	G.S. 30‑31.2.
SECTION 1.2.  Article 4 of Chapter 30 of the General Statutes, as amended by Section 1.1 of this act, reads as rewritten:
"Article 4.
"Year's Allowance.
"Part 1. Nature of Allowance.
"§ 30‑15.  When spouse entitled to allowance.
(a)	Every surviving spouse of a decedent, whether or not the surviving spouse has petitioned for an elective share, shall be entitled to receive an allowance having the value of sixty thousand dollars ($60,000) for the surviving spouse's support for one year after the death of the deceased spouse unless the spouse is barred from seeking an allowance under G.S. 31A‑1 or another applicable law. The spouse's allowance shall be in addition to the spouse's share of the decedent's estate if the decedent died intestate but shall be charged against the spouse's share of the decedent's estate if the decedent died testate.
(b)	The right of a surviving spouse to file a claim for an allowance must be exercised during the lifetime of the surviving spouse by (i) the surviving spouse, (ii) the surviving spouse's agent under a durable power of attorney, or (iii), with approval of the court, by the guardian of the surviving spouse's estate or general guardian. A claim for an allowance must be made by filing a verified petition with the clerk of court of the county in which venue would be proper under G.S. 28A‑3‑1. There is no time limitation on bringing a claim for an allowance except that, if a personal representative has been appointed for the decedent's estate, the claim must be made within six months after the issuance of letters testamentary or letters of administration. In addition, if a personal representative has been appointed for the decedent's estate, a copy of the verified petition must be personally delivered or sent by first‑class mail by the petitioner to the personal representative.
(c)	If the surviving spouse dies after the petition is filed but before the claim for an allowance has been fully satisfied, any deficiency judgment existing at the time of the surviving spouse's death shall not expire.
(d)	The spouse's allowance shall be exempt from any lien by judgment or execution against the property of the decedent or any other claim made against or owed by the decedent's estate. The spouse's allowance takes priority over any child's allowance under G.S. 30‑17.
…
"§ 30‑17.  When children entitled to an allowance.
(a)	Every child of a decedent who is under the age of 21 years at the time of the decedent's death, including an adopted child or a child in utero, and every child who is under the age of 21 years at the time of the decedent's death with whom the decedent stood in loco parentis at the time of death, shall be entitled to receive an allowance having a value of ten thousand dollars ($10,000) for the child's support for one year after the death of the decedent. The allowance shall be in addition to the child's share of the decedent's estate regardless of whether the decedent died testate or intestate.
(b)	The right of a child to file a claim for an allowance must be exercised during the lifetime of the child by the person with priority to file on behalf of the child as provided in subsection (c) of this section. A claim for an allowance must be made by filing a verified petition with the clerk of court of the county in which venue would be proper under G.S. 28A‑3‑1. There is no time limitation on bringing a claim for an allowance except that, if a personal representative has been appointed for the decedent's estate, the claim must be made within six months after the issuance of letters testamentary or letters of administration. In addition, if a personal representative has been appointed for the decedent's estate, a copy of the verified petition must be personally delivered or sent by first‑class mail by the petitioner to the personal representative.
(c)	The person entitled to file a petition on behalf of the child for a child's allowance shall be in the following order of priority:
(1)	The general guardian or guardian of the estate of the child, if any.
(2)	The surviving parent of the child if the child resides with the surviving parent.
(3)	The person with whom the child resides.
If the clerk of court determines that no person entitled to file a petition pursuant to this subsection is a fit or suitable individual, the clerk, upon the clerk's own motion, may appoint another individual if the clerk determines that individual better represents the best interests of the child as the representative.
(d)	The child's allowance shall be exempt from any lien by judgment or execution against the property of the decedent or any other claim made against or owed by the decedent's estate except that the spouse's allowance under G.S. 30‑15 shall take priority over any child's allowance. A child's allowance shall only be awarded after the full spouse's allowance under G.S. 30‑15 has been awarded.

"§ 30‑18.  From what property allowance assigned.
An allowance under this Article shall be awarded only out of cash or property, other than real property, of the decedent's estate. In the case of a spouse's allowance, the cash or personal property awarded shall be distributed to the spouse. In the case of a child's allowance, the cash or personal property awarded shall be distributed to the person entitled to file for the allowance on behalf of the child pursuant to G.S. 30‑17.
"Part 2. Assigned by Clerk.
"§ 30‑19.  Property awarded to surviving spouse and children.
The determination of the personal property to be awarded to the surviving spouse and children and the value thereof shall be made by the clerk of court of the county in which venue would be proper under G.S. 28A‑3‑1.
"§ 30‑20.  Procedure for assignment; order of clerk.
(a)	The clerk of court shall first ascertain if the surviving spouse is entitled to an allowance according to the provisions of this Article, and, if so, enter an order setting forth the personal property of the estate to be awarded to the surviving spouse. Once the spouse's allowance has been awarded, the clerk of court shall next ascertain if any children of the decedent are entitled to an allowance according to the provisions of this Article, and, if so, enter an order setting forth the personal property of the estate to be awarded for the child's allowance. If a personal representative has been appointed for the decedent's estate, the clerk of court shall provide a copy of any order awarding an allowance to the personal representative of the decedent's estate.
(b)	If the personal property of the estate is insufficient to satisfy the allowances awarded, the clerk of the superior court shall enter judgment against the decedent's estate for the amount of the deficiency. If a personal representative has been appointed for the decedent's estate, the deficiency shall be satisfied by the personal representative when a sufficiency of such assets shall come into the possession of the personal representative.
(c)	The clerk of court may, on the clerk's own motion, determine that a hearing is necessary to determine whether a year's allowance should be awarded pursuant to the provisions of this Article and, if so, what personal property should be awarded. If the clerk of court makes such a determination, the clerk shall direct the petitioner to commence a contested estate proceeding pursuant to G.S. 30‑23 in order to determine the year's allowance.
…
"§ 30‑21.1.  Reporting of allowances by personal representative.
If the assets awarded as part of a spouse's allowance or a child's allowance are distributed directly to the spouse or the petitioner for the child and never come into the possession of the personal representative, the assets shall not be reported on the inventory for the decedent's estate or on any subsequent accounting.
…
"§ 30‑23.1.  Contested proceeding regarding allowance.
(a)	If no contested estate proceeding under G.S. 30‑20(c) was commenced to determine an award of an allowance under this Article, any person with standing, including the personal representative of the decedent's estate, may bring a proceeding to challenge the award of a spousal allowance or a child's allowance, including, but not limited to, a proceeding to challenge the validity of an award of a year's allowance, a proceeding to challenge the amount of a year's allowance awarded, and a proceeding to challenge the assets awarded as part of a year's allowance. If a contested estate proceeding was commenced under G.S. 30‑20(c), then any person with standing, including the personal representative of the decedent's estate, who was not a party to the contested estate proceeding may bring a proceeding in accordance with this section.
(b)	Any proceeding brought pursuant to this section shall be conducted as an estate proceeding in accordance with the provisions of Article 2 of Chapter 28A of the General Statutes and must be brought within one year of the date the order awarding the year's allowance was entered.
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"Part 3. Additional Year's Allowance.
"§ 30‑27.  Surviving spouse or child may apply for additional allowance.
A surviving spouse or child may file an estate proceeding with the clerk of court seeking an award of additional allowance in excess of the amount allowed to the spouse or child under G.S. 30‑15 or G.S. 30‑17. Any such proceeding must be filed within one year of the date of the decedent's death, except that if a personal representative was appointed for the decedent's estate, any such proceeding must be filed within six months after the issuance of letters testamentary or letters of administration. Any proceeding under this section shall proceed as a contested estate proceeding under Article 2 of Chapter 28A of the General Statutes.
…
"§ 30‑30.  Judgment.
The clerk of court shall hear the matter and determine whether the surviving spouse or child is entitled to some or all of the relief sought and, if the clerk determines that the spouse or child is so entitled, the clerk shall enter judgment against the estate for the amount of the deficiency. If a personal representative has been appointed for the decedent's estate, the deficiency shall be satisfied by the personal representative when a sufficiency of such assets shall come into the possession of the personal representative. Any judgment so rendered shall have the same priority over other debts and claims against the estate as an allowance assigned pursuant to G.S. 30‑15 or G.S. 30‑17.
"§ 30‑31.  Amount of allowance.
In determining the amount of additional allowance to award pursuant to G.S. 30‑27, the clerk of court may assign to the petitioner an amount sufficient for the support of the petitioner and without regard to the dollar limitations set forth in this Article, provided that the following criteria are met:
(1)	The amount allowed is fixed with due consideration for other persons entitled to allowances from the decedent's estate under this Article and the financial condition of the decedent's estate.
(2)	The total value of all allowances does not in any case exceed one‑half of the decedent's annual after‑tax income, averaged over the three calendar years preceding the calendar year of the decedent's death. As used in this subdivision, the term "annual after‑tax income" means income remaining after all applicable deductions against the income, including deductions for federal and State income taxes attributable to the income, are taken.
(3)	Attorneys' fees and costs awarded to the petitioner under G.S. 6‑21 are paid as an administrative expense of the estate.
…."
SECTION 1.3.  G.S. 28A‑15‑10 reads as rewritten:
"§ 28A‑15‑10.  Assets of decedent's estate for limited purposes.
(a)	When needed to satisfy claims against a decedent's estate, assets may be acquired by a personal representative or collector from the following sources:
(1)	Tentative trusts created by the decedent in savings accounts for other persons.
(2)	Gifts causa mortis made by the decedent.
(3)	Joint deposit accounts with right of survivorship created by decedent pursuant to the provisions of G.S. 41‑2.1 or otherwise; and joint tenancies with right of survivorship created by decedent in corporate stocks or other investment securities.
(4)	An interest in a security passing to a beneficiary pursuant to the provisions of Article 4 of Chapter 41 of the General Statutes.
Such assets shall be acquired solely for the purpose of satisfying such claims, however, and shall not be available for distribution to heirs or devisees.
(b)	Where there are not sufficient personal and real assets of the decedent to satisfy all the debts and other claims against the decedent's estate, the personal representative shall have the right to sue for and recover any and all personal property or real property, or interest therein, which the decedent may in any manner have transferred or conveyed with intent to hinder, delay, or defraud the decedent's creditors, and any personal property or real property, or interest therein, so recovered shall constitute assets of the estate in the hands of the personal representative for the payment of debts and other claims against the estate of the decedent. But if the alienee has sold the personal property or real property, or interest therein, so fraudulently acquired by the alienee from the decedent to a bona fide purchaser for value without notice of the fraud, then such personal property or real property, or interest therein, may not be recovered from such bona fide purchaser but the fraudulent alienee shall be liable to the personal representative for the value of the personal property or real property, or interest therein, so acquired and disposed of to a bona fide purchaser. If the whole recovery from the fraudulent alienee shall not be necessary for the payment of the debts and other claims against the estate of the decedent, the surplus shall be returned to such fraudulent alienee or the fraudulent alienee's assigns.
(b1)	Any asset acquired by a personal representative or collector under this section shall first be used to pay the allowances allowed to a spouse and children under Article 4 of Chapter 30 of the General Statutes. After the allowances are fully satisfied, an asset may be used to satisfy other claims against a decedent's estate.
(c)	Where there has been a recovery in an action for wrongful death, the same shall not be applied to the payment of debts and other claims against the estate of decedent or devises, except as to the payment of reasonable burial and funeral expenses and reasonable hospital and medical expenses incident to the injury resulting in death and as limited and provided in G.S. 28A‑18‑2."

part ii. changes to treatment of former spouses in estates and trusts
SECTION 2.1.  G.S. 31‑5.4 reads as rewritten:
"§ 31‑5.4.  Revocation by divorce or annulment; revival.
(a)	Unless a contrary intent is expressly indicated in the will, if the testator's marriage is dissolved by absolute divorce or annulment after the execution of a will, then the testator's former spouse shall be deemed to have predeceased the testator for all purposes related to the construction, interpretation, or administration of that will. This section shall apply to all provisions of the testator's will, including, but not by way of limitation, any provision conferring a general or special power of appointment on the former spouse and any appointment of the former spouse as executor, trustee, conservator, guardian, or any other fiduciary or nonfiduciary position.
(b)	This section shall not apply to a will if the following occur:
(1)	The testator executes a subsequent valid testamentary document that makes express reference to the will, such as by date of the will, and which modifies the will.
(2)	The testator remarries the former spouse prior to the testator's death, unless the remarriage is subsequently dissolved by absolute divorce or annulment.
(c)	As used in this section, the term "former spouse" includes a purported former spouse."
SECTION 2.2.  G.S. 36C‑6‑606 reads as rewritten:
"§ 36C‑6‑606.  Revocation of provisions in revocable trust by divorce or annulment; revival.
(a)	Unless a contrary intent is expressly indicated in the revocable trust, if the settlor's marriage is dissolved by absolute divorce or annulment after the execution of a revocable trust, then the settlor's former spouse shall be deemed to have predeceased the settlor for all purposes related to the construction, interpretation, or administration of that revocable trust. This section shall apply to all provisions of the settlor's revocable trust, including, but not by way of limitation, any provision conferring a general or special power of appointment on the former spouse and any appointment of the former spouse as executor, trustee, conservator, guardian, or any other fiduciary or nonfiduciary position.
(b)	This section shall not apply to a revocable trust if any of the following occur:
(1)	The settlor executes a subsequent valid amendment to the revocable trust, such as by date of the revocable trust, and which modifies the revocable trust.
(2)	The settlor remarries the former spouse prior to the settlor's death, unless the remarriage is subsequently dissolved by absolute divorce or annulment.
(c)	As used in this section, the term "former spouse" includes a purported former spouse."

part iii. Effective date
SECTION 3.1.  Sections 1.2 and 1.3 of this act are effective March 1, 2024, and apply to decedents dying on or after that date. Sections 2.1 and 2.2 of this act are effective March 1, 2024, and apply to wills probated on or after that date. Except as otherwise provided, this act is effective March 1, 2024.