§ 7A-111. Receipt and disbursement of insurance and other moneys for minors and incapacitated adults. - North Carolina Statutes

§ 7A‑111.  Receipt and disbursement of insuranceand other moneys for minors and incapacitated adults.

(a)        When a minor under 18 years of age is named beneficiary in apolicy or policies of insurance, and the insured dies prior to the majority ofsuch minor, and the proceeds of each individual policy do not exceed twenty‑fivethousand dollars ($25,000) such proceeds may be paid to and, if paid, shall bereceived by the public guardian or clerk of the superior court of the countywherein the beneficiary is domiciled. The receipt of the public guardian orclerk shall be a full and complete discharge of the insurer issuing the policyor policies to the extent of the amount paid to such public guardian or clerk.

Any person having in his possession twenty‑five thousand dollars($25,000) or less for any minor under 18 years of age for whom there is noguardian, may pay such moneys into the office of the public guardian, if any,or the office of the clerk of superior court of the county of the recipient'sdomicile. The receipt of the public guardian or clerk shall constitute a validrelease of the payor's obligation to the extent of the sum delivered to theclerk.

The clerk is authorized under this section to receive, to administerand to disburse the monies held in such sum or sums and at such time or timesas in his judgment is in the best interest of the child, except that the clerkmust first determine that the parents or other persons responsible for thechild's support and maintenance are financially unable to provide thenecessities for such child, and also that the child is in need of maintenanceand support or other necessities, including, when appropriate, education. Theclerk shall require receipts or paid vouchers showing that the monies disbursedunder this section were used for the exclusive use and benefit of the child.

(b)        When an adult who is mentally incapable on account ofsickness, old age, disease or other infirmity to manage his own affairs isnamed beneficiary in a policy or policies of insurance, and the insured diesduring the incapacity of such adult, and the proceeds of each individual policydo not exceed five thousand dollars ($5,000) such proceeds may be paid to and,if paid, shall be received by the public guardian or clerk of the superior courtof the county wherein the beneficiary is domiciled. A certificate of mentalincapacity, signed by a physician or reputable person who has had anopportunity to observe the mental condition of an adult beneficiary, filed withthe clerk, is prima facie evidence of the mental incapacity of such adult, andauthorizes the clerk to receive and administer funds under this section. Thereceipt of the public guardian or clerk shall be a full and complete dischargeof the insurer issuing the policy or policies to the extent of the amount paidto such public guardian or clerk.

Any person having in his possession five thousand dollars ($5,000) orless for any incapacitated adult for whom there is no guardian, may pay suchmonies into the office of the public guardian, if any, or the office of theclerk of superior court of the county of the recipient's domicile. The clerk'sreceipt shall constitute a valid release of the payor's obligation to theextent of the sum delivered to the clerk.

The clerk is authorized to receive, to administer and, upon a findingof fact that it is in the best interest of the incapacitated adult, to disbursefunds directly to a creditor, a relative or to some discreet and solventneighbor or friend for the purpose of handling the property and affairs of theincapacitated adult. The clerk shall require receipts or paid vouchers showingthat the monies disbursed under this section were used for the exclusive useand benefit of the incapacitated adult.

(c)        Any monies paid to the clerk of the superior court undersubsection (a) of this section shall also include the name, last known address,social security number or taxpayer identification number of the beneficiary orpayee, and the name and address of the nearest relative of the beneficiary orpayee.

(d)        The determination of incapacity authorized in subsection (b)of this section is separate and distinct from the procedure for thedetermination of incompetency provided in Chapter 35A. (1899, c. 82; Rev., s. 924; 1911, c. 29, s. 1; 1919, c. 91; C.S., s.962; Ex. Sess., 1924, c. 1, s. 1; 1927, c. 76; 1929, c. 15; 1933, c. 363; 1937,c. 201; 1945, c. 160, ss. 1, 2; 1949, c. 188; 1953, c. 101; 1959, c. 794, ss.1, 2; 1961, c. 377; 1971, c. 363, s. 8; c. 1231, s. 1; 1983, c. 65, s. 3; 1987,c. 29; c. 550, s. 14.)