Probate Q&A Series

Can I file a creditor’s claim or remove the executor for failing to perform fiduciary duties? – North Carolina

Short Answer

Yes. In North Carolina, you may present a written creditor’s claim to the personal representative (executor) by the deadline in the published notice to creditors. If the executor misses required filings, mishandles assets, or violates fiduciary duties, any interested person can ask the Clerk of Superior Court to compel compliance and, if needed, remove the executor after a hearing. Honest inventory mistakes can be corrected, but ongoing default or mismanagement can lead to removal.

Understanding the Problem

You want to know if you can file a creditor’s claim or seek removal of your sister as executor in North Carolina probate. The single decision here is whether to assert a claim and/or ask the Clerk of Superior Court to step in because the executor filed inventories with errors, undervalued or mishandled vehicles, and may be missing deadlines for your parents’ estates.

Apply the Law

Under North Carolina probate law, a creditor must submit a written claim to the personal representative by the bar date in the published (and, if applicable, mailed) notice to creditors. The claim identifies the amount, the basis, and your address. The Clerk oversees estate administration. If the executor fails to file required inventories or accounts, mishandles assets, or otherwise violates fiduciary duties, the Clerk can order compliance and may remove the executor after a hearing. Inventories can be corrected with a supplemental filing, and executors may sell personal property (like vehicles) without a court order, but they must act prudently and account for results.

Key Requirements

  • Timely creditor’s claim: Present a written claim to the executor by the published bar date; include the amount, basis, and your contact information.
  • Executor’s core duties: Gather, protect, correctly list, and value assets; publish notice to creditors; pay valid claims; and file inventories and accounts on time.
  • Fixing inventory errors: Use a supplemental inventory to correct listings or values; vehicles should be listed with identifying details and valued at date-of-death fair market value.
  • Sales of personal property: The executor may sell estate personal property (including vehicles) without a court order but must act prudently and report sales in the next account.
  • Removal for cause: The Clerk may remove an executor for violating fiduciary duties, failing to file required reports, or misconduct, after notice and a hearing.

What the Statutes Say

Analysis

Apply the Rule to the Facts: You may present a creditor’s claim if you have out-of-pocket costs (for example, reasonable storage costs for the vehicle) or another debt owed by either estate, but you must do so by the bar date in the published notice to creditors. The executor’s inventory errors (mislabeling real estate that passes outside probate; omitting a vehicle; inconsistent vehicle values) should be corrected via a supplemental inventory. The car sale at a lower price than inventory value is not automatically a breach, but the executor must act prudently and account for the sale. Continued missed filings or failure to preserve or timely deal with the stored vehicle—especially if depreciation results from inaction—can justify a petition to compel compliance and, if necessary, a petition to remove the executor.

Process & Timing

  1. Who files: You, as a creditor or interested person. Where: Deliver the written claim to the personal representative; keep a copy and consider filing a copy in the estate file with the Clerk of Superior Court where the estate is pending. What: A written claim stating the amount, basis, and your address. When: By the bar date set in the published notice to creditors; if you receive personal notice, your deadline may be the later individual date in that notice.
  2. If the claim is denied or ignored: Start an action to enforce the claim or file an estate proceeding for allowance of the claim in the Clerk’s office of the county where the estate is pending; timing after rejection is controlled by statute and can be short.
  3. To address fiduciary defaults: File a verified petition with the Clerk of Superior Court (estate proceeding) to compel a supplemental inventory, compel an account, or remove the executor. Use an Estate Proceedings Summons (AOC-E-102) for service. The Clerk may issue orders to file within a set period (often 20 days) and can remove the executor after a hearing if violations persist. A removed executor must file a final account and turn over assets to a successor.

Exceptions & Pitfalls

  • Honest inventory mistakes can be fixed with a supplemental filing; deliberate misstatements or prolonged inaction can support removal.
  • Real estate often passes outside probate; listing it as a probate asset is a common error. Correct classification helps avoid delays and fees.
  • Low sale price alone is not proof of breach; the executor can sell personal property privately but must act prudently and document the sale in the next account.
  • Claims based on secured interests or covered by insurance may follow different rules; confirm the correct procedure before filing.
  • If you receive personal notice as a creditor, your deadline may differ from the published date; rely on the latest applicable deadline.

Conclusion

In North Carolina, you can file a creditor’s claim by delivering a written claim to the personal representative before the bar date in the notice to creditors. If the executor fails to file accurate inventories or accounts, mishandles assets, or otherwise violates fiduciary duties, you can petition the Clerk of Superior Court to compel filings and, if needed, remove the executor after a hearing. Next step: file your written claim with the executor by the notice’s deadline and, if problems persist, file a verified petition with the Clerk to compel compliance or seek removal.

Talk to a Probate Attorney

If you’re facing inventory errors, missed deadlines, or potential executor misconduct in a North Carolina estate, our firm can help you understand your options and timelines. Call us today to discuss your next steps.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.