How Are Probate Attorney Fees Calculated for Estate Administration in North Carolina?
1. Detailed Answer
When someone passes away in North Carolina, the personal representative (formerly called executor) often hires an attorney to help administer the estate. North Carolina law allows attorneys to charge reasonable fees for probate work, but it also provides guidelines to protect beneficiaries and heirs. Two key statutes govern attorney fees in probate:
- N.C. Gen. Stat. § 28A-15-1 covers the compensation of both personal representatives and their attorneys.
- N.C. Gen. Stat. § 28A-15-2 provides a statutory fee schedule for routine estate administration.
Statutory Fee Schedule. Under § 28A-15-2, the court may approve an attorney fee based on a percentage of the gross estate value, typically:
- 3% on the first $100,000
- 2.5% on the next $100,000
- 2% on the next $800,000
- 1% on amounts over $1 million
For example, if the gross estate equals $500,000, the statutory fee would be:
3% of $100,000 = $3,000
2.5% of $100,000 = $2,500
2% of $300,000 = $6,000
Total = $11,500
Factors That May Adjust Fees. The court may allow more or less than the schedule based on complexity and circumstances. Common factors include:
- The complexity of assets (real estate, businesses, out-of-state property)
- Time spent (court hearings, creditor claims, tax matters)
- Risk or difficulty (litigation, creditor disputes, contested wills)
- Estate size and liquidity
- Customary local rates for similar work
In many cases, attorneys track hours and apply an hourly rate if the statutory schedule does not reflect the actual work required. The personal representative submits the proposed fee to the clerk of superior court for approval. Interested parties can review the petition and object if they believe the fee is unreasonable.
Approval Process. Once the personal representative files an accounting and fee petition, the clerk schedules a hearing or issues an order approving fees. After approval, fees come out of estate assets before distribution.
2. Key Takeaways
- North Carolina law sets a baseline fee schedule under N.C. Gen. Stat. § 28A-15-2.
- Courts adjust fees up or down based on case complexity, time, and risk.
- Attorneys may also use hourly billing if it better matches the work involved.
- The personal representative petitions the court for fee approval.
- Beneficiaries and creditors can object to proposed fees before court approval.
Need Help with Estate Administration?
Navigating probate and attorney fees can feel overwhelming. Pierce Law Group’s attorneys have guided families through estate administration across North Carolina. To discuss your situation and learn what fees may apply, reach out today.
Email: intake@piercelaw.com
Call us: (919) 341-7055
