Jan102026
Probate Q&A Series

How is a personal representative commission approved, and what records should I provide? – North Carolina

Short Answer

In North Carolina, a personal representative’s commission is approved by the Clerk of Superior Court (the probate court) based on what the estate actually received and what the personal representative actually paid out during administration. In many counties, the Clerk approves commissions through a written petition and order, sometimes in connection with an annual or final accounting. The best support is clean, organized records that tie each receipt and disbursement to bank statements, invoices, and proof of payment.

Understanding the Problem

In North Carolina estate administration, can a personal representative take a commission automatically, or must the Clerk of Superior Court approve it first, and what documentation should be presented with the annual accountings? The decision point is whether the commission request is supported by the estate’s accounting records showing what came into the estate and what went out, including proceeds from selling personal property. The question often comes up when the estate has non-cash property that is sold and converted to cash, and the accounting must show where the money went and how the commission was calculated.

Apply the Law

North Carolina law allows a personal representative to be paid a commission for time and trouble in administering an estate, but the commission is not self-approved. The Clerk of Superior Court reviews the estate’s accountings and/or a separate commission request and then enters an order allowing a specific amount. In practice, the Clerk typically focuses on (1) what receipts and disbursements are “commissionable,” (2) whether the commission request stays within the statutory framework, and (3) whether the records support the numbers shown on the accounting.

Key Requirements

  • Clerk approval: The commission should be requested and allowed by order of the Clerk of Superior Court (probate) rather than simply taken without documentation.
  • Commissionable activity: Commissions are generally based on estate receipts and disbursements tied to administration (not just paper transfers or investment shuffling), and some items may be treated differently depending on what the funds were used for.
  • Proof that matches the accounting: The request should be supported by records that reconcile to the annual or final account (bank statements, deposit records, invoices, receipts, and proof of payment).

What the Statutes Say

Analysis

Apply the Rule to the Facts: The estate administration includes annual accountings to the Clerk, so the commission request should line up with what those accountings show as money received and money paid out. Because the estate included a coin collection that was converted to cash, the accounting should clearly show the sale proceeds as a receipt and then show the deposit into the estate account, followed by any disbursements (claims, expenses, distributions) supported by proof. If the proceeds are currently secured and will be deposited, the cleanest record trail is to deposit them into the estate account and then pay estate expenses from that account so the Clerk can easily audit the numbers.

Process & Timing

  1. Who files: The personal representative. Where: The Clerk of Superior Court (Estates Division) in the county where the estate is administered in North Carolina. What: The required annual accounting, and (in many counties) a written petition requesting payment of commissions with a proposed order for the Clerk to sign. When: Typically with an annual accounting cycle and/or before the final account is approved; local practice varies by county and by the size/complexity of the estate.
  2. Clerk review: The Clerk (or assigned staff) audits the accounting and compares the commission request to the receipts/disbursements shown, looking for support and consistency. If something is unusual (for example, a large one-time sale of personal property), the Clerk may ask for more detail before signing an order.
  3. Order and payment: Once the Clerk signs an order allowing commissions, the commission is paid from the estate account and shown as a disbursement on the next accounting (or on the final account), with proof of payment retained for the file.

Exceptions & Pitfalls

  • Taking commissions without an order: A common problem is paying a commission from estate funds before the Clerk approves it; many Clerks expect the request to be presented first and supported by the accounting.
  • Unclear “coin sale” paper trail: For collectibles, the Clerk often wants to see how value was determined and how the sale occurred. Missing documentation (bill of sale, settlement sheet, deposit record) can lead to questions or a request for supplemental information.
  • Records that do not reconcile: If receipts and disbursements on the accounting do not match bank statements, or if cash is held outside the estate account for too long without documentation, the Clerk may require clarification and may delay approval.
  • Commission base misunderstandings: Not every movement of money is treated the same for commission purposes. Transfers that look like mere changes in investment form, or amounts not actually applied to estate obligations in certain contexts, can create disputes about what is commissionable.

Conclusion

In North Carolina, a personal representative’s commission is typically approved by the Clerk of Superior Court after review of the estate’s receipts and disbursements shown on the annual or final accounting (and, in many counties, a separate petition and proposed order). The strongest support is a clear record trail: sale documentation for the coin collection, deposit records showing proceeds going into the estate account, and invoices and proof of payment for each expense. The next step is to prepare the commission request to match the accounting and submit it to the Clerk for approval before payment.

Talk to a Probate Attorney

If a personal representative commission needs approval or the Clerk is asking for more detail about estate receipts (including proceeds from selling collectibles), our firm has experienced attorneys who can help organize the accounting support and present a clear commission request. 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.

Category: Probate Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.