Can the administrator charge the estate for surveying land, tearing down buildings, or clearing property if that real estate isn’t part of the estate? – North Carolina

Short Answer

Usually, no. In North Carolina, an administrator can generally reimburse only expenses that were properly incurred to collect, protect, manage, and distribute estate property. If land is not actually an estate asset (for example, it passed outside the estate at death), costs like surveying, demolition, or land clearing are often not proper estate expenses and may be disallowed or charged back to the administrator.

Understanding the Problem

In a North Carolina intestate estate, can an estate administrator treat property-work costs (like surveying land, tearing down buildings, or clearing a lot) as “estate expenses” when the real estate being worked on is not part of the probate estate? The decision point is whether the work was done to administer estate property under the clerk of superior court’s estate file, or instead benefited property that passed outside the estate or belonged to someone else.

Apply the Law

In North Carolina, an administrator (personal representative) has broad authority to take reasonable steps to administer the estate, but that authority is tied to estate administration—collecting assets, safeguarding them, paying allowed expenses and claims, and distributing what remains. As a practical matter, the clerk of superior court supervises estate administration through the inventory and accountings. If an expense does not relate to estate property or a necessary estate task, the clerk can disallow it in an accounting, and the administrator can be required to repay the estate.

Key Requirements

Estate connection: The expense must be tied to property or a task that is actually part of the estate administration (not simply something the administrator wanted done).
Proper purpose: The expense must be reasonably aimed at collecting, protecting, preserving, or distributing estate assets, or complying with a clerk-required step in the estate.
Documentation and approval risk: The administrator should be able to show what was done, why it was needed for the estate, and how it was paid; questionable expenses can be disallowed when the accounting is reviewed.

What the Statutes Say

N.C. Gen. Stat. § 32-59 (Compensation and reimbursement for fiduciaries other than trustees) – allows reimbursement for expenses properly incurred in administering the fiduciary relationship, subject to clerk oversight.
N.C. Gen. Stat. § 7A-307 (Costs in administration of estates) – lists estate administration costs and includes certain court-related fees (including fees for court appointees such as surveyors when applicable).
N.C. Gen. Stat. § 30-21.1 (Reporting of allowances by personal representative) – clarifies that some assets awarded as a spouse’s allowance may not be estate inventory/accounting items if they never come into the personal representative’s possession.

Analysis

Apply the Rule to the Facts: The administrator is accused of charging the estate for property-related work while also filing an inventory that lists little to no estate value and while there is a dispute about what property is actually in the estate. If the land being surveyed, cleared, or improved passed outside the estate (or belonged to someone else), those costs generally do not have the required estate connection and are vulnerable to being disallowed in the estate accounting. If the work was done to benefit an heir’s or the administrator’s own property position rather than to preserve an estate asset, the clerk can treat it as an improper administration expense.

Process & Timing

Who raises the issue: An interested person (often the surviving spouse, an heir, or a creditor). Where: The Clerk of Superior Court (Estates) in the county where the estate is open. What: An objection to the inventory/accounting and/or a request that the clerk require a corrected inventory or disallow specific disbursements as improper expenses. When: Typically when the inventory is filed, when an accounting is filed, or when questionable expenses become known.
Evidence and explanation: The administrator may need to show invoices, proof of payment, and a clear explanation of why the work was necessary for estate administration and what estate asset it protected or collected.
Clerk action: The clerk can disallow the expense in the accounting and require repayment to the estate, and can also address related administration problems through the estate proceeding.

Exceptions & Pitfalls

Real estate might still be an “estate problem” even if heirs take title at death: Some real property issues can still affect the estate (for example, creditor issues or a court-approved sale to pay debts). If the clerk authorizes action involving real property, related costs may be treated differently.
“Survey” can be legitimate in narrow situations: A survey may be appropriate if it is required for a clerk-approved transaction, a boundary issue that blocks an estate sale, or another step necessary to administer an estate asset. Without that tie, it is often hard to justify as an estate expense.
Power of attorney ends at death: Financial actions taken after death under a power of attorney can create disputes about whether funds were properly handled and whether later “expenses” were really estate expenses.
Mixing roles creates risk: If the administrator is also an heir and pays for property work that benefits heirs personally, it can look like self-dealing unless there is clear clerk authority and clear estate benefit.

Conclusion

In North Carolina, an administrator generally may reimburse only expenses properly incurred to administer estate property and complete required estate tasks under the clerk’s supervision. If surveying, demolition, or land clearing relates to real estate that is not actually part of the estate, those charges are commonly improper and can be disallowed, with repayment required. The practical next step is to raise the issue in the estate file with the Clerk of Superior Court and object to the inventory or accounting entries that treat non-estate property work as an estate expense.

Talk to a Probate Attorney

If an administrator is charging the estate for property work that does not appear tied to estate assets, our firm has experienced attorneys who can help explain options for challenging expenses, correcting the inventory, and protecting spousal rights and deadlines. 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.