Short Answer

In North Carolina, executor commissions are allowed but not automatic. The Clerk of Superior Court sets a reasonable amount up to 5% of commissionable receipts and disbursements (not distributions to heirs). Commissionable items generally include probate personal property when received and lawful estate expenses; real estate is excluded unless sold to pay debts, and most non-probate assets are excluded unless pulled into the estate to pay claims. Commissions are usually approved with the final account—do not pay yourself before the clerk’s order. Keep detailed time and expense records, invoices/receipts, bank statements, and valuation documents.

Understanding the Problem

In North Carolina, can you be paid for serving as executor, and what records must you keep so the Clerk of Superior Court will approve a reasonable commission? You have opened the estate, published the 90-day creditor notice, and are preparing the inventory while managing bills and reimbursements. This article explains how commissions are calculated and what documentation the clerk will expect when you request approval.

Apply the Law

North Carolina allows executor commissions within a statutory cap, but the amount is discretionary and based on the work and responsibility involved. The commission base typically includes the value of probate personal property when received and lawful expenditures; distributions to beneficiaries are excluded. Real estate usually is not commissionable unless sold to pay debts or legacies, and non-probate assets are excluded unless recovered to pay claims. Commissions are generally approved with the final account by the Clerk of Superior Court.

Key Requirements

• Discretionary, capped commission: The clerk may allow a reasonable commission up to 5% of commissionable receipts and disbursements.
• What counts in the base: Probate personal property when received and lawful expenditures; not distributions to heirs or in-kind transfers.
• Real estate and non-probate assets: Real property is excluded unless sold to pay debts/legacies; joint/POD/TOD/beneficiary-designated assets are excluded unless brought into the estate to satisfy claims.
• Approval timing: Typically allowed at final accounting; interim commissions require clerk approval before payment.
• Documentation: Detailed time logs, vouchers (invoices, receipts, canceled checks), bank statements, and valuation support help establish reasonableness.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-23-3 (Executor commissions) – Clerk may allow a reasonable commission up to 5% of commissionable receipts and disbursements; factors include time, responsibility, trouble, and skill.
• North Carolina Gen. Stat. § 28A-21-2 (Final and annual accounts) – Sets when final and annual accounts are due; commissions typically addressed on accounting.
• North Carolina Gen. Stat. § 28A-15-10 (Recovery of certain assets) – Allows recovery of certain non-probate assets to pay claims, which then affects commissionability.
• North Carolina Gen. Stat. § 28A-23-4 (Attorney PR fees) – Attorney-executors may receive counsel fees beyond commissions for legal services beyond routine administration.

Analysis

Apply the Rule to the Facts: The estate’s commissionable base should include probate personal property received into the estate (for example, cash moved into the estate account and the vehicle’s value when taken into possession). Utilities, insurance for the vacant house, and reimbursements of funeral and legal expenses are generally lawful estate expenditures and typically count as disbursements; distributions to siblings do not. Joint accounts and retirement accounts with beneficiaries are non-probate and excluded unless recovered to pay claims; a savings bond with no beneficiary is probate and typically included when collected. Real estate is not commissionable unless sold and applied to debts or legacies.

Process & Timing

1. Who files: The executor. Where: Clerk of Superior Court in the decedent’s county of domicile in North Carolina. What: Petition for Payment of Personal Representative’s Commissions (with supporting time/expense records), Final Account (AOC‑E‑506) with vouchers, Affidavit of Notice to Creditors (AOC‑E‑307), and beneficiary Receipts (AOC‑E‑521). When: Typically with the final account, which is due within one year of qualification unless extended; interim commissions require prior clerk approval.
2. The clerk audits the account, reviews vouchers, and evaluates reasonableness (time, responsibility, trouble, and skill). Some counties may request additional support; response times vary.
3. If approved, the clerk enters an order allowing commissions, approves the final account, and then issues an order discharging the executor from further liability.

Exceptions & Pitfalls

• 5% is a cap, not a guarantee; poor records or limited effort can reduce the award.
• Never take a commission without a clerk’s order; advancing commissions can lead to removal.
• No commission on distributions to heirs or simple in-kind transfers; real estate is excluded unless sold to pay debts/legacies.
• Some professional-fee payments and investment transactions may be treated as non‑commissionable disbursements; ask the clerk if unclear.
• Co-executors share a single cap; misconduct can forfeit commissions altogether.
• If you are also a beneficiary, consider tax implications before deciding to waive or take a commission.

Talk to a Probate Attorney

If you’re dealing with executor commissions and how to document a reasonable fee, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

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.