Estate Planning

Spousal Year's Allowance to Increase to $20,000

By Gregory Herman-Giddens

The "Years Allowance" for spouses is intended to provide support for a surviving spouse during the year after the death of the deceased spouse, and has priority over creditors claims and other beneficiaries.

The allowance has been $10,000 for many years, which, of course, is a pitifully small amount these days.  However, effective January 1, 2010, the amount will increase to $20,000.

Use of the Year's Allowance is also helpful in avoiding the cost and time of a full probate proceeding in some cases.

Session Law 2009-183, amended North Carolina General Statutes Sections 30-15, 30-26 and 30-29.

Full post as published by North Carolina Estate Planning Blog on July 18, 2009 (boomark / email).