Short Answer

Yes. In North Carolina, the estate pays its own valid debts and the costs of administration before beneficiaries receive anything. That includes court costs, publication fees, bond premiums, reasonable attorney’s fees, and the personal representative’s commission—paid from estate assets in a set priority. If you advance a necessary cost, you can usually reimburse yourself from the estate once funds are available and approved.

Understanding the Problem

North Carolina: As the surviving spouse seeking to serve as administrator, can you have probate fees and debts paid from estate assets instead of paying personally, and when does that happen in the process? Here, the decedent died without a will.

Apply the Law

Under North Carolina law, estates pay their own administration costs first, then debts in statutory priority. The Clerk of Superior Court oversees the probate file. After Letters of Administration are issued and notice to creditors is published and mailed, the personal representative (PR) gathers assets, pays allowed expenses and claims in order, and distributes any remaining property. Many counties expect the PR to wait until the creditor claim window closes before paying most debts unless assets clearly cover all charges.

Key Requirements

• Administration costs come first: Court costs, publication, bond premiums, reasonable attorney’s fees, and the PR’s commission are paid from estate assets before creditor claims.
• Creditor notice and claim window: Publish and mail required notices; creditors generally must present claims by the date set (at least three months after first publication).
• Order of claims: After administration costs and any year’s allowances, pay claims by class (for example, liens, funeral and burial-related limits, taxes, judgments/Medicaid, wages/medical, equitable distribution, then all others).
• No preference within a class: If assets are short, creditors in the same class are paid pro rata.
• Use only estate assets: Nonprobate property (like assets titled solely in the surviving spouse’s name or insurance with a named beneficiary) is not used to pay estate debts.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-23-3 (PR commissions and administration costs) – Allows PR commissions and necessary expenses, paid as administration costs before creditors.
• North Carolina Gen. Stat. § 28A-14-1 (Notice to creditors) – Requires publication and mailing of creditor notice.
• North Carolina Gen. Stat. § 28A-19-3 (Time limits to present claims) – Sets the claim deadline and bars late claims subject to exceptions.
• North Carolina Gen. Stat. § 28A-19-6 (Order of payment of claims) – Establishes the priority classes for paying estate debts.

Analysis

Apply the Rule to the Facts: As surviving spouse and likely administrator, you may pay court costs, publication fees, bond premiums (if any), reasonable attorney’s fees, and your commission from the estate first. The natural child (not the unadopted stepchild) is an heir for intestacy and would be the relevant person to consent to any bond waiver; any bond premium that is required is an estate expense. The house in your sole name is not an estate asset and is not used to pay the decedent’s debts. A life insurance policy with no beneficiary often pays to the estate and can be used for costs and debts after the creditor period.

Process & Timing

1. Who files: Surviving spouse. Where: Clerk of Superior Court (Estates Division) in the decedent’s county of domicile in North Carolina. What: Apply for Letters of Administration (AOC‑E‑202); open an estate bank account; arrange creditor notice publication and mailings; file Affidavit of Notice (AOC‑E‑307) with the 90‑day inventory. When: Publish notice once a week for four consecutive weeks; set a claim-by date at least three months after first publication; file the inventory within 90 days of qualification.
2. After the claim window closes, determine allowed claims and pay in statutory order from estate funds. If cash is short, liquidate estate assets (e.g., bank funds, stocks, or the vehicle) as needed and permitted.
3. When all allowed expenses and claims are satisfied and distributions are made, file the final account. The Clerk audits the account and, if approved, discharges the administrator.

Exceptions & Pitfalls

• Nonprobate assets: Property solely in the surviving spouse’s name and insurance with a named beneficiary are not estate assets; they are not used to pay estate debts. If no beneficiary is named, insurance often pays to the estate; confirm with the insurer.
• Insolvent estates: Do not pay general creditors until the claim window closes unless you are certain assets cover all charges; otherwise you risk personal liability. Pay by statutory class and prorate within a class.
• Funeral and burial limits: Only a capped amount of funeral costs has priority; burial place and gravestone costs have a separate, smaller priority cap. Excess amounts are lower-priority claims and must be timely presented.
• Bond waivers: Only heirs can waive bond. An unadopted stepchild is not an heir in intestacy, so their waiver is not required. Any bond premium is an estate expense.
• Reimbursement and approvals: Keep receipts if you advance costs; request reimbursement from the estate account. PR commissions and attorney’s fees must be reasonable and may require Clerk approval or confirmation in accountings.

Talk to a Probate Attorney

If you’re handling an intestate estate and want to ensure fees and debts are paid properly from estate assets, our firm has experienced attorneys who can help you understand your options and timelines. Contact us today to discuss your next steps.

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.