Probate Q&A Series

Can a beneficiary object to the personal representative’s commission, and what does the court consider when deciding whether to reduce it? – North Carolina

Short Answer

Yes. In North Carolina, a beneficiary (as an “interested person”) can object to a personal representative’s requested commission, and the Clerk of Superior Court decides what commission is reasonable within the statutory limits. The clerk does not have to reduce the commission dollar-for-dollar just because the estate also paid attorney or accountant fees, but the clerk may consider those professional fees when deciding what is fair. The clerk focuses on the work actually done and the responsibility involved, and can reduce (or in serious situations deny) commissions when the facts justify it.

Understanding the Problem

In a North Carolina estate administration, a personal representative (executor or administrator) may request a commission for handling estate work. The decision point is whether an interested person, such as a beneficiary (including through a representative), can object to the requested commission and ask the Clerk of Superior Court to reduce it, including when the objection argues the commission should be reduced or offset because the estate also paid attorney fees and the commission issue should be decided later in the administration.

Apply the Law

North Carolina generally treats a personal representative’s commission as something the clerk allows—it is not automatic. When the will does not set compensation, the clerk has discretion to set a reasonable commission up to a statutory maximum that is commonly described as up to 5% of certain “receipts and disbursements.” In deciding what is reasonable, the clerk considers practical factors such as the time spent, the responsibility carried, the trouble involved, and the skill needed to manage the estate. The clerk may also consider whether the estate paid professionals (like attorneys or accountants) for work that overlaps with ordinary administration, but the clerk is not required to reduce the commission by those fees on a strict dollar-for-dollar basis.

Key Requirements

  • Standing to object (interested person): A beneficiary generally has the right to raise objections in the estate file when the requested commission affects what beneficiaries receive.
  • Commission must be allowed by the clerk: The personal representative typically requests commissions by petition and/or through the accounting process, and the clerk decides what amount is allowed.
  • Reasonableness factors control reductions: The clerk focuses on the actual work and responsibility involved, and may consider professional fees paid by the estate and whether the requested commission would be unfair in light of what the personal representative actually did.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, a beneficiary (through a representative) has filed objections asking the clerk to reduce or offset the personal representative’s commission due to attorney fees and to address commissions later in the administration. Under North Carolina practice, that type of objection is generally allowed because commissions are not automatic and the clerk must approve them. The clerk will likely focus on what work the personal representative actually performed (time, responsibility, trouble, and skill), and then decide whether attorney fees paid by the estate suggest the requested commission should be reduced because some tasks were handled by counsel rather than by the personal representative.

Process & Timing

  1. Who files: The personal representative typically files a petition/request for commissions; an interested person (including a beneficiary) may file written objections. Where: The Estates Division of the Clerk of Superior Court in the county where the estate is being administered. What: Often a petition for payment of commissions and supporting documentation (and, if raised, documentation supporting attorney fees). When: Commonly near the end of administration or alongside an annual/final accounting; local practice varies on whether the clerk will decide commissions before the final account is filed.
  2. Hearing/decision: If objections are filed, the clerk may set the issue for hearing or require additional records showing receipts, disbursements, and what work the personal representative performed versus what counsel performed.
  3. Order and payment: If allowed, the clerk enters an order approving a specific commission amount. The estate then pays the commission as an administration expense consistent with the clerk’s order and the accounting.

Exceptions & Pitfalls

  • “Attorney fees paid” does not automatically equal “commission reduced”: North Carolina law allows the clerk to consider professional fees, but it does not require a strict offset. The objection is stronger when it ties specific paid legal tasks to ordinary administrative tasks the personal representative did not perform.
  • Commission math errors: Distributions to beneficiaries are generally not “commissionable” disbursements, and commissions usually depend on actual receipts and expenditures. If the request is based on the wrong categories, the clerk may reduce it.
  • Double compensation issues: If the personal representative is also seeking separate compensation for a role outside ordinary administration (for example, compensation tied to a sale proceeding) and then also seeks a full commission on the same funds, the clerk may treat that as improper “double dipping.”
  • Misconduct/neutrality problems: In more serious cases—such as misconduct or abandoning neutrality in a way that harms the estate—the clerk can reduce commissions and may deny them altogether depending on the facts.

Conclusion

Yes—under North Carolina law, a beneficiary can object to a personal representative’s requested commission, and the Clerk of Superior Court decides what amount is reasonable within the statutory limits. The clerk weighs practical factors like time, responsibility, trouble, and skill, and may consider attorney fees paid by the estate without being required to offset commissions dollar-for-dollar. The next step is to file (or respond to) a petition for commissions with the Clerk of Superior Court and present records showing what work the personal representative actually performed and how the requested commission was calculated.

Talk to a Probate Attorney

If a beneficiary has objected to a personal representative’s commission (or a personal representative needs to support a commission request), our firm has experienced attorneys who can help explain the standards the clerk applies, the records that matter, and the timing for raising or responding to objections. 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.