Do I Have to Pay North Carolina Probate Attorney Fees Upfront and Can I Seek Reimbursement From the Estate?

Detailed Answer

When you open a probate estate in North Carolina, you and your attorney will discuss how fees will be handled. Many probate attorneys ask for a retainer before they begin work. A retainer serves as a deposit against future billing. It protects the attorney if the estate has no cash on hand at the start.

Under North Carolina law, attorney fees for estate administration qualify as a cost of administration. N.C. Gen. Stat. § 28A-15-1 authorizes the personal representative to pay reasonable attorney fees from estate assets. You do not have to cover those fees out of your own pocket if the estate holds sufficient funds or liquid assets.

Here is how the process usually works:

• You sign a written fee agreement with the attorney. That agreement may call for payment of a retainer up front.
• The attorney uses the retainer to cover time and expenses as they work on the estate.
• As assets become available, the personal representative files a verified statement of fees in the probate file. The clerk reviews and approves reasonable fees per N.C. Gen. Stat. § 28A-15-1.
• Once approved, the court orders the fees paid from estate funds. Your retainer will apply toward the total, and any additional balance will come from the estate.

If the estate has no cash, the personal representative may need to liquidate assets or borrow against the estate to cover expenses. In that case, you might advance funds personally but later recover them as administration expenses once assets sell or convert to cash.

Key Points to Remember

• Retainers are common but refundable to the extent they exceed billed services.
• Attorney fees for probate count as administration costs under N.C. Gen. Stat. § 28A-15-1.
• The personal representative must submit a verified fee statement to the clerk for approval.
• Once approved, fees are paid from estate assets before distributions to beneficiaries.
• If you pay out of pocket, treat it as an advance against the estate and document it clearly.

How to Prepare

• Ask the attorney for a clear fee agreement and estimate of costs.
• Confirm whether you need to deposit a retainer and how it will apply to billing.
• Check estate assets early to ensure sufficient funds exist for administration expenses.
• Keep detailed records of any personal advances you make on behalf of the estate.

Ready to Discuss Your Probate Questions?

Probate administration can involve many moving parts, including attorney fees and estate expenses. The attorneys at Pierce Law Group have extensive experience guiding personal representatives through each step. We help you understand your obligations and protect estate assets. Contact us today to schedule a consultation:

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