Life & viatical settlements in North Carolina

How life settlements work in North Carolina

Life and viatical settlements in North Carolina are regulated under N.C.G.S. §58-58-205. The North Carolina Department of Insurance licenses both viatical providers and brokers, and requires written disclosures, a 15 days rescission period, and standardized contract forms.

For cancer patients in North Carolina, the most common path is a viatical settlement under IRS §101(g), where proceeds are tax-free at the federal level if you’re certified as terminally or chronically ill. North Carolina conforms to federal tax treatment for these settlements.

Medicaid impact in North Carolina

North Carolina’s Medicaid asset limit is currently $2,000 for individuals (2026). A lump-sum settlement that exceeds this limit can disqualify you from coverage. Specialized trust structures (special needs trusts, pooled trusts) can preserve eligibility but must be established before proceeds arrive.

This is the single most important planning step for North Carolina patients receiving a settlement. We’ll connect you with a North Carolina elder law attorney if you’d like guidance.

What’s different about North Carolina

• Rescission period: 15 days from contract signing to change your mind
• Required disclosures: Buyers must provide written disclosures including alternatives (loan, surrender, ADB rider)
• Privacy: Medical and policy information is HIPAA-protected throughout
• Tax treatment: North Carolina follows federal §101(g) for viatical proceeds

Major North Carolina cities we serve

Statewide. Our licensed specialists work with policies throughout North Carolina, with no in-person meetings required. Documentation, signatures, and notarization can all happen remotely.