Short Answer

Generally, no. In North Carolina, title to a decedent’s real property passes directly to the heirs or devisees at death, so post‑death expenses like property taxes are usually their responsibility, not the estate’s. A personal representative should use estate funds only for estate assets or court‑authorized purposes. If estate money was used by mistake, fix it by reimbursing the estate or treating the payment as a distribution to the heirs and document it on the next account for the Clerk’s approval.

Understanding the Problem

You are the personal representative in North Carolina and must file an annual accounting. During the period, estate funds were used to pay real property taxes on a house that passed at death to three heirs (including you). You want to know whether those taxes could properly be paid from the estate, and, if not, how to correct the accounting before filing.

Apply the Law

Under North Carolina law, real property typically vests in the heirs or devisees at death and is not part of the probate estate unless the will or a court order brings it under the personal representative’s possession and control. A personal representative’s spending authority is tied to administering estate assets and paying expenses incident to assets in the representative’s possession, custody, or control. Routine post‑death costs of real property that passed outside the estate—such as ongoing property taxes—are ordinarily borne by the heirs or devisees. If estate funds were used in error, the accounting should be corrected either by reimbursing the estate or by treating the payment as a distribution to the affected heirs, with written receipts.

Key Requirements

• Real property passes outside the estate: At death, title to the home vests in the heirs/devisees; ongoing expenses typically fall on them.
• PR spending must relate to estate assets: Use estate funds for debts, costs, and taxes tied to assets the PR holds or controls, or when authorized by statute, will, or court order.
• Control requires authority: If needed to administer, the PR can seek a Clerk’s order to take possession/control of real property; otherwise, the PR should not fund its upkeep.
• Fix mistaken disbursements: Either repay the estate or record the payment as a proportionate distribution to the heirs, supported by signed receipts/affidavits.
• Transparent accounting: Reflect the correction on the annual account and be ready to provide supporting documentation to the Clerk of Superior Court.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-15-2 (When property vests) – Real property generally vests in heirs/devisees at death.
• North Carolina Gen. Stat. § 28A-13-3 (Powers of personal representative) – PR may control real property if in the estate’s best interest and may pay taxes/expenses incident to assets in PR’s possession or control.
• North Carolina Gen. Stat. § 28A-13-10 (Liability; chargeable items) – PR is chargeable for property that comes into possession and liable for losses from improper acts.
• North Carolina Gen. Stat. § 28A-21-1 (Accounts) – Annual and final account filings with the Clerk are required.

Analysis

Apply the Rule to the Facts: The house passed directly to three heirs, so ongoing property taxes are theirs, not the estate’s, absent a will provision or Clerk’s order placing the property under the PR’s control. Because estate funds were used, correct the error by either (1) reimbursing the estate account, or (2) recording the tax payment as a distribution to the three heirs in their respective shares, supported by their signed receipts/affidavits. Then show the correction on the annual account for the Clerk’s review.

Process & Timing

1. Who files: Personal representative. Where: Clerk of Superior Court (Estates Division) in the county of administration. What: Annual/Final Account (AOC‑E‑506) with a schedule showing either reimbursement to the estate or a distribution entry to each heir, plus signed receipts/affidavits. When: File the annual account within one year of qualification and annually thereafter until the final account is approved.
2. Before filing, deposit any reimbursement back into the estate account and update the estate ledger. If treating as a distribution, obtain each heir’s signed receipt/affidavit acknowledging the amount and purpose. Expect the Clerk to request clarification if documents are incomplete.
3. After review, the Clerk typically enters an order approving the account (or directs amendments). Keep all supporting records for the next filing or final account.

Exceptions & Pitfalls

• If the will vests title in the PR or the Clerk authorizes possession/control of the real property, paying necessary property expenses (including taxes) to preserve the asset can be an estate expense.
• Do not commingle funds. Keep a clear paper trail for the withdrawal, reimbursement, or distribution, with bank records and signed receipts.
• Because you are also an heir, avoid self‑dealing concerns by distributing proportionally, getting written acknowledgments from all heirs, and fully disclosing on the account.
• If the estate may be insolvent, correct the error promptly; improper payments can lead to a surcharge against the PR if creditors are harmed.

Talk to a Probate Attorney

If you’re dealing with a mistaken estate disbursement or need to correct an accounting entry tied to real property expenses, our firm can help you understand your options and timelines. Call us today to discuss your situation.

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.