Detailed Answer

In North Carolina, licensed certified public accountants (CPAs) may prepare and file federal estate tax returns, such as IRS Form 706. Preparing tax returns falls squarely within a CPA’s professional scope under state board regulations and federal law. However, distributing estate assets to heirs and creditors is a separate legal function governed by North Carolina probate statutes.

Federal and state rules allow a CPA to produce accurate tax filings and deadlines, calculate tax liabilities, and advise on estate tax planning. North Carolina imposes no state-level estate tax, so the CPA focuses on compliance with Internal Revenue Code requirements.

By contrast, North Carolina law requires a court-appointed personal representative to collect estate assets, pay debts and expenses, and distribute the remainder to beneficiaries. N.C. General Statutes § 28A-7-1 (link) defines who may qualify as a personal representative and mandates that the clerk of superior court issue letters testamentary or of administration. A CPA who is not appointed under those rules has no statutory authority to transfer title, negotiate beneficiary distributions, or close an estate.

In practice, a CPA may serve dual roles. If named as personal representative in a decedent’s will or appointed by the court, the CPA can handle both tax filings and asset distribution. Absent that appointment, the CPA limits services to accounting and tax work. Anyone who distributes assets without proper appointment risks personal liability for misapplication of estate property.

Key North Carolina statutes:

• N.C.G.S. § 28A-7-1: Qualifications, bond requirements, and issuance of letters testamentary or of administration.
• N.C.G.S. § 28A-9-1: When letters of administration issue to the surviving spouse or other next of kin.
• N.C.G.S. § 28A-15-1: Personal representative’s entitlement to commissions on estate distributions.

In summary, a North Carolina CPA can legally prepare and file estate tax returns but cannot distribute assets unless formally appointed by the clerk of superior court.

Key Takeaways

• CPAs may prepare federal estate tax returns (e.g., IRS Form 706) without becoming personal representatives.
• North Carolina has no state estate tax; CPAs focus on federal filing requirements.
• Only a court-appointed personal representative may collect, manage, and distribute estate assets under N.C.G.S. § 28A-7-1.
• Unauthorized distribution of estate property can expose a non-appointed individual to liability.
• A CPA can serve as personal representative if appointed in the will or by the court, enabling both tax preparation and asset distribution.

Next Steps

Understanding the distinct roles of tax preparation and probate administration protects you and the estate from legal risks. If you need guidance on estate tax returns, probate appointments, or asset distribution in North Carolina, contact Pierce Law Group. Our attorneys combine deep probate administration experience with clear explanations of your options.

Reach out today for a consultation:

• Email: intake@piercelaw.com
• Call: (919) 341-7055