Jan202026
Probate Q&A Series

If the surviving spouse hasn’t filed for the spousal allowance yet, can estate money still be used for funeral costs, court costs, or other expenses? – North Carolina

Short Answer

Yes. In North Carolina, a personal representative (including co-administrators) can usually use estate funds to pay reasonable funeral expenses and the costs of administering the estate (including court costs) even if the surviving spouse has not filed a spousal year’s allowance petition yet.

However, a spousal allowance can change what cash and personal property must be set aside for the spouse, and it has strong priority once awarded. That means co-administrators should be careful about paying non-urgent or discretionary expenses before the allowance issue is clarified.

Understanding the Problem

In a North Carolina intestate estate where a surviving spouse and an adult child are serving as co-administrators, the key question is whether estate funds can be used to pay funeral costs, Clerk of Superior Court costs, and other estate-related expenses when the surviving spouse has not yet filed a petition for the spousal year’s allowance. The decision point is whether paying expenses now could conflict with the spouse’s right to claim an allowance from the estate’s cash and personal property and how that affects what the co-administrators should do next.

Apply the Law

North Carolina treats funeral expenses and the costs of administering an estate as high-priority obligations that are typically paid from estate assets during administration. Separately, North Carolina gives a surviving spouse the right to claim a year’s allowance (often called a “spousal allowance”) from the decedent’s cash and personal property, and that allowance is protected from most creditor claims once awarded. The practical takeaway is that routine administration payments can still be made, but co-administrators should avoid spending down cash and personal property in ways that could later be challenged if a year’s allowance is timely filed and awarded.

Key Requirements

  • Proper purpose: The payment should be a legitimate estate obligation (for example, reasonable funeral charges, probate filing fees, required publication/notice costs, bond premiums if required, and similar administration expenses).
  • Correct source of funds: A year’s allowance, if claimed and awarded, is satisfied only from cash or personal property (not real estate). That makes liquid funds and personal property the most sensitive category to manage while an allowance claim is still possible.
  • Timing and notice for the allowance: If a personal representative has been appointed, the surviving spouse generally must file the verified petition for the spouse’s allowance within six months after letters are issued and must deliver or mail a copy to the personal representative.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the estate is intestate and has co-administrators (the surviving spouse and an adult child). Even if the spouse has not filed for the spousal allowance yet, the co-administrators still have to handle immediate estate obligations like funeral bills and court costs to open and administer the estate. The main risk is not that these payments are automatically forbidden, but that paying the wrong expenses (or paying too much, too soon) could reduce the cash/personal property pool that the spouse may later claim as a year’s allowance within the statutory deadline.

Process & Timing

  1. Who pays: The co-administrators, acting for the estate. Where: Through the estate account and filings with the Clerk of Superior Court in the county where the estate is administered. What: Pay and document administration expenses (court costs, required notices, and similar items) and reasonable funeral expenses; keep receipts and invoices for the estate accounting. When: As expenses come due, but with extra caution until the spouse’s allowance deadline runs or the allowance is resolved.
  2. Allowance decision point: If the surviving spouse intends to claim the year’s allowance, the spouse should file a verified petition with the Clerk of Superior Court and provide a copy to the personal representative(s) within six months after letters of administration are issued (when a personal representative has been appointed). The Clerk may award specific cash/personal property to satisfy the allowance.
  3. Accounting and reimbursement: If one co-administrator (or a family member) paid funeral or probate expenses out of pocket, reimbursement is typically handled through the estate administration accounting process, supported by documentation. (For more detail on documentation, see documents to prove funeral expenses were paid and reimbursement for funeral expenses paid out of pocket.)

Exceptions & Pitfalls

  • Spending down cash/personal property too early: Because the spouse’s allowance is satisfied from cash and personal property (not real estate), large or discretionary payments from liquid funds can create disputes if the spouse later files for the allowance.
  • Co-administrator conflict and documentation gaps: When co-administrators disagree, paying expenses without clear invoices, receipts, and a paper trail can lead to objections in the estate accounting.
  • Mixing probate and non-probate assets: Some assets may pass outside probate (for example, certain jointly titled property). Using non-probate funds as if they were estate funds (or vice versa) can create reimbursement and accounting problems.
  • Real property issues are separate: A year’s allowance generally does not come from real estate, but estate debts and claims can still affect whether real property must be sold during administration. Those issues often require a separate, careful analysis of title, liens, and the estate’s liquidity.

Conclusion

In North Carolina, estate funds can generally be used to pay funeral expenses and the costs of administering the estate even if the surviving spouse has not yet filed for the spousal year’s allowance. The practical constraint is that a year’s allowance—if timely claimed and awarded—comes from the estate’s cash and personal property and carries strong priority. The most important next step is to file the spouse’s verified allowance petition with the Clerk of Superior Court within six months after letters of administration are issued if the spouse intends to claim it.

Talk to a Probate Attorney

If there are questions about paying funeral and probate expenses while a spousal allowance claim is still possible, our firm has experienced attorneys who can help clarify priorities, timelines, and how to document payments correctly. Call us today at [CONTACT NUMBER].

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.