30.1-07 Exempt Property and Allowances - North Dakota Statutes

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CHAPTER 30.1-07EXEMPT PROPERTY AND ALLOWANCES30.1-07-00.1. (2-401) Applicable law. This chapter applies to the estate of a decedentwho dies domiciled in this state.The rights to homestead allowance, exempt property, andfamily allowance for a decedent who dies not domiciled in this state are governed by the law of
the decedent's domicile at death.30.1-07-01. (2-403) Exempt property. In addition to the homestead defined in section47-18-01, the decedent's surviving spouse is entitled from the estate to a value, not exceeding
fifteen thousand dollars in excess of any security interests therein, in household furniture,
automobiles, furnishings, appliances, and personal effects. If there is no surviving spouse, the
decedent's minor children, whom the decedent was obligated to support and children who were
in fact being supported by the decedent, are entitled jointly to the same value. If encumbered
chattels are selected and the value in excess of security interests, plus that of other exempt
property, is less than fifteen thousand dollars, or if there is not fifteen thousand dollars worth of
exempt property in the estate, the spouse or such children are entitled to other assets of the
estate, if any, to the extent necessary to make up the fifteen thousand dollar value. Rights to
exempt property and assets needed to make up a deficiency of exempt property have priority
over all claims against the estate, but the right to any assets to make up a deficiency of exempt
property abates as necessary to permit earlier payment of the homestead allowance and family
allowance. These rights are in addition to any benefit or share passing to the surviving spouse or
children by the decedent's will, unless otherwise provided, by intestate succession, or by way of
elective share.30.1-07-02. (2-404) Family allowance.1.In addition to the right to homestead allowance and exempt property, the decedent's
surviving spouse and minor children whom the decedent was obligated to support
and children who were in fact being supported by the decedent are entitled to a
reasonable allowance in money out of the estate for their maintenance during the
period of administration, which allowance may not continue for longer than one year
if the estate is inadequate to discharge allowed claims. The allowance may be paid
as a lump sum or in periodic installments. It is payable to the surviving spouse, if
living, for the use of the surviving spouse and minor and dependent children;
otherwise to the children, or persons having their care and custody. If a minor child
or dependent child is not living with the surviving spouse, the allowance may be
made partially to the child or the child's guardian or other person having the child's
care and custody, and partially to the spouse, as their needs may appear. The
family allowance is exempt from and has priority over all claims except the
homestead allowance.2.The family allowance is not chargeable against any benefit or share passing to the
surviving spouse or children by the will of the decedent, unless otherwise provided,
by intestate succession or by way of elective share.The death of any personentitled to family allowance terminates the right to allowances not yet paid.30.1-07-03. (2-405) Source, determination, and documentation.1.If the estate is otherwise sufficient, property specifically devised may not be used to
satisfy rights to exempt property. Subject to this restriction, the surviving spouse,
guardians of minor children, or children who are adults may select property of the
estate as exempt property. The personal representative may make those selections
if the surviving spouse, the children, or the guardians of the minor children are
unable or fail to do so within a reasonable time, or there is no guardian of a minor
child.The personal representative may execute an instrument or deed ofdistribution to establish the ownership of property taken as exempt property. The
personal representative may determine the family allowance in a lump sum notPage No. 1exceeding twenty-seven thousand dollars or periodic installments not exceeding two
thousand two hundred fifty dollars per month for one year and may disburse funds of
the estate in payment of the family allowance. The personal representative or any
interested person aggrieved by any selection, determination, payment, proposed
payment, or failure to act under this section may petition the court for appropriate
relief, which may include a family allowance other than that which the personal
representative determined or could have determined.2.If the right to an elective share is exercised on behalf of a surviving spouse who is an
incapacitated person, the personal representative may add any unexpended
portions payable under the homestead allowance, exempt property, and family
allowance to the trust established under subsection 2 of section 30.1-05-06.Page No. 2Document Outlinechapter 30.1-07 exempt property and allowances