What should an administration agreement include when two people are appointed? – North Carolina

Short Answer

In North Carolina, when two people are appointed to serve together as personal representatives (often called co-administrators), the written administration agreement should clearly allocate which co-administrator will handle certain listed day-to-day powers (like opening the estate bank account, keeping records, paying bills, and filing returns). Each co-administrator must sign the agreement, and it must be filed with and approved by the Clerk of Superior Court in the county where the estate is opened. The agreement can streamline administration, but it does not eliminate either co-administrator’s legal responsibilities or bond liability.

Understanding the Problem

When a North Carolina estate has two appointed administrators, the key decision is whether there should be a written agreement that assigns specific administrative powers to one or both co-administrators so the estate can function smoothly. The agreement matters most when routine tasks must happen quickly, such as handling estate bank accounts, writing checks, maintaining records, and paying approved expenses. The agreement also matters because the Clerk of Superior Court oversees estate administration and may require the agreement to be filed and approved as part of the qualification process.

Apply the Law

North Carolina allows the Clerk of Superior Court (the probate court official) to appoint two or more people to serve together as the estate’s personal representatives. If there are joint personal representatives and the will does not already control how they act (or there is no will), North Carolina law allows the joint personal representatives to sign a written agreement that designates which one or more of them will exercise certain specific powers. The agreement must be signed by each personal representative and filed with, and approved by, the Clerk in the county where they qualified. Importantly, even with an agreement, a personal representative generally cannot use the agreement to avoid responsibility for proper administration or liability on the bond.

Key Requirements

Limit the agreement to the powers the statute allows to be allocated: The agreement should assign only the specific administrative powers that North Carolina law permits joint personal representatives to designate to one or more of them (for example, banking, recordkeeping, paying claims and expenses, and similar operational tasks).
Signatures and clerk approval: Each co-administrator must sign, and the agreement must be filed with and approved by the Clerk of Superior Court where the estate is opened.
Clear division of responsibility without pretending to eliminate liability: The agreement should state who will do what, but it should not claim that one co-administrator is “off the hook.” North Carolina law generally does not allow the agreement to relieve a personal representative from bond liability or other legal responsibility.

What the Statutes Say

N.C. Gen. Stat. Chapter 28A (Decedents’ Estates) – North Carolina’s main probate and estate administration statutes, including rules for personal representatives and how joint personal representatives may act.

Analysis

Apply the Rule to the Facts: The facts describe an imminent filing to qualify as estate administrator and a need for an agreement naming two people as co-administrators. Under North Carolina practice, the agreement should (1) identify both co-administrators, (2) allocate the specific powers that can be delegated by written agreement (such as banking, recordkeeping, paying expenses, and handling claims), and (3) be signed by both and submitted to the Clerk for approval in the county where the estate is opened. Even if one co-administrator handles most tasks, the agreement should avoid language suggesting the other has no responsibility.

Process & Timing

Who files: The proposed co-administrators (or counsel on their behalf). Where: The Estates Division of the Clerk of Superior Court in the North Carolina county where the estate is opened (typically where the decedent lived at death). What: The qualification paperwork (application, oath, and bond if required) plus the co-administrator written agreement allocating powers. When: Typically at qualification or as soon as the Clerk requests it, because the Clerk must approve the agreement to make it effective for allocating powers.
Clerk review and approval: The Clerk (or an Assistant Clerk) reviews the agreement to confirm it only allocates powers that can be allocated by statute and that both co-administrators signed it. Approval practices can vary by county, so the agreement should include a clear signature block or approval line for the Clerk.
Use the agreement to run the estate: After approval, the co-administrators should follow the allocation in the agreement for day-to-day tasks (like opening the estate account and keeping the ledger), while remembering that other actions may still require both co-administrators (or a majority if there are more than two) unless the will or statute provides otherwise.

Exceptions & Pitfalls

The will may control instead: If there is a will and it expressly says how co-personal representatives must act, those instructions can control and may limit what an agreement can change.
Overbroad delegation language: A common mistake is drafting an agreement that tries to give one co-administrator “full authority” for everything. The safer approach is to allocate only the specific powers that North Carolina law allows to be designated by agreement and leave other decisions to joint action as required.
Trying to waive responsibility: Another common mistake is adding language that one co-administrator has no liability or no bond exposure. North Carolina law generally does not allow an agreement to eliminate a personal representative’s legal responsibility or bond liability.
Not filing it with the Clerk: An agreement that is signed but not filed and approved can create confusion with banks, heirs, and vendors, and it may not accomplish the intended allocation of authority.
Nonprobate assets confusion: Co-administrators often assume every asset must be handled through the estate. Some assets pass outside probate (for example, certain beneficiary-designated accounts), and mixing those assets into the estate account can create accounting problems. A clean agreement helps define who gathers information and who maintains the inventory and accounting records.

Conclusion

In North Carolina, when two people are appointed as co-administrators (joint personal representatives), a written administration agreement should identify both fiduciaries, allocate only the specific powers that state law allows to be designated (such as banking, recordkeeping, paying expenses, and handling claims), and avoid language that claims to eliminate either person’s responsibility. The agreement must be signed by both co-administrators and filed with the Clerk of Superior Court for approval in the county where the estate is opened. Next step: file the signed agreement with the Clerk at qualification or immediately afterward for approval.

Talk to a Probate Attorney

If an estate needs two co-administrators and a written agreement to allocate responsibilities, our firm has experienced attorneys who can help clarify what the Clerk will expect and get the paperwork ready for signature and filing. 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.