Can a Personal Representative Seek a Commission on Estate Assets and Sale Proceeds in North Carolina?

Detailed Answer

Yes—North Carolina law allows a personal representative (PR) to request a commission for managing estate assets, including money generated when estate property is sold. The right to compensation and the amount paid are governed by N.C.G.S. § 28A-23-3. Below is a plain-English overview of how this statute works.

1. What counts as the “commission base”?

• Personal property received. All cash, securities, vehicles, and other personal items the PR collects for the estate.
• Sale proceeds of real estate. If the PR sells land under a will power of sale or by a Clerk-approved court order, the money from that sale becomes personal property of the estate and is included in the commission base.
• Disbursements. Many Clerks also look at how much was paid out (funeral bills, debts, distributions) when setting a fair fee. The statute caps the total commission at no more than 5 % of the value of the personal property that “passes through the PR’s hands.”

2. Situations where no commission applies

When real estate passes directly to heirs or devisees—and the PR never handles the sale proceeds—those land values are not part of the commission base. Only property actually collected, managed, or sold by the PR counts.

3. Ordinary vs. extraordinary services

Most estates involve routine tasks: gathering assets, paying debts, filing tax returns, and distributing the remainder. § 28A-23-3 authorizes the Clerk of Superior Court to award up to 5 % for these ordinary services.

When the estate is especially large, involves litigation, or requires specialized work—think closely held business sales or multiple court petitions—the PR may request additional “extraordinary” compensation. The Clerk decides what is fair based on complexity, time spent, and results achieved.

4. How to request a commission

1. Keep time records. Even though the statute uses a percentage, detailed logs justify the request and help the Clerk understand the work performed.
2. File an accounting. In North Carolina, every estate must file an initial inventory (AOC-E-505) and at least one annual or final account (AOC-E-506). The commission request appears on these accounting forms.
3. Explain extraordinary services (if any). Attach a narrative and copies of invoices, receipts, or court orders that support your additional fee.
4. Attend the audit. The Clerk’s office reviews every accounting. Be prepared to answer questions or supply more documentation.
5. Collect the commission only after approval. A PR who takes a fee before the Clerk signs off risks surcharge or removal under § 28A-9-2.

5. Hypothetical example

Assume Mary is the PR of her father’s estate. She collects $200,000 in bank accounts and sells the family home for $300,000 pursuant to a will power of sale. The commission base is $500,000. The maximum ordinary commission Mary can seek is 5 %, or $25,000. If she spent 300 hours resolving title issues and a will caveat, she may petition for an additional extraordinary fee explaining the extra work.

Helpful Hints

• File a petition for sale of real property before listing the house when the will does not grant a power of sale.
• Track mileage, postage, and overnight delivery charges; they are reimbursable expenses separate from the commission.
• Ask the Clerk about interim commissions in lengthy estates—North Carolina allows partial payments for work already completed.
• Communicate with heirs. Surprises about fees often trigger objections and delays in closing the estate.
• Review the estate tax impact. Commissions are deductible expenses on the federal estate tax return (Form 706) if one is required.

Take the Next Step

North Carolina’s commission rules look simple, but the Clerk has broad discretion and the paperwork must be done right. Our probate team has guided hundreds of personal representatives through fee approvals and final accountings. If you have questions about what you can claim—or face an objection—call us today at (919) 341-7055 for a confidential consultation.