Short Answer

In North Carolina, you may pay approved estate administration costs (including reasonable attorney’s fees) before distributing assets. Funeral expenses are payable up to statutory caps, and a separate cap applies to a gravestone or burial place. Nursing facility charges are lower-priority claims and are paid only if funds remain and the claims are not time‑barred. Travel costs are reimbursable only if they were necessary estate administration expenses and approved by the Clerk.

Understanding the Problem

North Carolina: You served as the prior administrator and found a new, small asset after the estate closed. Can you reimburse yourself for funeral, nursing facility, travel, and legal expenses from that money when you reopen the estate and then distribute shares to the estates of the now-deceased heirs?

Apply the Law

North Carolina law requires the estate to pay valid claims and approved administration expenses in a set order before distributing anything to heirs. The Clerk of Superior Court oversees administration. If an estate is reopened to collect after‑discovered property, claims already barred cannot be revived, but current, reasonable administration costs to finish the job can still be approved and paid. For deceased heirs, distributions go to their estates (often via small estate affidavit if eligible) rather than directly to individuals.

Key Requirements

• Priority of payment: Administration costs are paid first, then funeral expenses (up to statutory caps), then other claims in order; heirs receive only what is left.
• Administration expenses: Reasonable and necessary costs to administer or close the estate (e.g., attorney’s fees, court costs, sometimes travel directly tied to estate work) may be allowed by the Clerk.
• Funeral and burial caps: Funeral expenses are payable only up to a set amount, with a separate cap for a gravestone/burial place.
• Nursing facility charges: Treated as general claims unless a lien applies; they are paid after higher‑priority items and only if not time‑barred.
• Reopened estates: After‑discovered assets can be administered, but claims previously barred by time limits cannot be asserted in the reopened file.
• Small estate distribution: A small estate affiant must pay debts in statutory order and may reimburse someone who already paid valid estate debts before distributing the balance.
• Deceased heirs: The decedent’s share goes to each deceased heir’s estate; you may use small‑estate procedures for those estates if eligible.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-19-6 (Order of payment; funeral and burial caps) – sets the priority of claims and statutory limits.
• North Carolina Gen. Stat. § 28A-23-5 (Reopening an estate) – allows reopening for after‑discovered property and bars previously time‑barred claims.
• North Carolina Gen. Stat. § 28A-23-3 (Commissions; necessary charges) – Clerk may allow reasonable, necessary administration expenses (including counsel fees).
• North Carolina Gen. Stat. § 28A-25-3 (Small estate distribution) – affiant pays prioritized debts and may reimburse someone who paid valid debts before distributing the remainder.

Analysis

Apply the Rule to the Facts: Because the estate closed over a decade ago, any funeral or nursing facility claims that were not timely presented back then are generally barred and cannot be revived just because the estate is reopened. You can, however, pay current, reasonable administration expenses needed to handle the after‑discovered asset (e.g., filing fees, approved attorney’s fees, and any documented, necessary travel for estate work) before distribution. The remaining balance must be distributed to the estates of the deceased heirs, not to individuals.

Process & Timing

1. Who files: Prior administrator or an interested party. Where: Clerk of Superior Court in the North Carolina county where the original estate was administered. What: Petition and Order to Reopen Estate (AOC‑E‑908) and, once funds are marshaled, an Account (AOC‑E‑506). When: After discovering the new asset; no waiting period applies, but previously barred claims cannot be revived.
2. Marshal the new asset into an estate account (not a personal account), document any necessary administration expenses, and request the Clerk’s approval for payment of attorney’s fees and any unusual costs (like travel) as administration expenses. Expect the Clerk to require receipts and concise explanations.
3. Distribute the net balance to the estates of the deceased heirs. If each heir’s estate qualifies, use Collection by Affidavit (AOC‑E‑203B) in that heir’s county of domicile to receive the share; otherwise, open a full estate. File a final Account (AOC‑E‑506) in the reopened grandparent’s estate reflecting distributions, then seek closure.

Exceptions & Pitfalls

• Funeral and burial reimbursements are limited by statute; amounts above the caps are not payable as priority claims.
• Nursing facility balances rank below administration and funeral/burial claims and are payable only if not time‑barred and funds remain.
• Travel is reimbursable only if it was necessary for estate administration; keep receipts and an explanation. Personal or family travel is not payable.
• Depositing the check into a personal account creates commingling risk; correct this by moving funds to an estate account and fully accounting for the receipt and disbursement.
• Distribute to the estates of deceased heirs, not directly to surviving relatives; open small estates or full estates for them as needed.

Talk to a Probate Attorney

If you’re dealing with after‑discovered assets and questions about reimbursing expenses before distribution, our firm has experienced attorneys who can help you understand your options and timelines. 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.