Detailed Answer
When you begin the probate process in the State of North Carolina, a probate attorney will usually ask for a retainer or an upfront fee. This retainer covers initial work such as filing documents with the clerk of court, notifying creditors, and reviewing the will. Whether you pay this fee out of pocket or from estate funds depends on your circumstances.
1. Retainer Requirements
Most law firms require a retainer to ensure they cover costs as they begin work. You and your attorney will agree on the amount and the billing structure—either hourly or flat-fee. The attorney places your retainer in a trust account, and fees and expenses are drawn from that account as work proceeds.
2. Appointment of the Personal Representative
Before the estate can pay attorney fees, the court must appoint you (or another individual) as the personal representative. Once the clerk of superior court issues letters testamentary or letters of administration, you have legal authority to manage estate assets.
3. Payment from Estate Assets
After appointment, you may pay the law firm from the estate’s funds. North Carolina law treats attorney fees as an administrative expense. Under N.C. Gen. Stat. §28A-15-1, the clerk of court may approve reasonable compensation for attorneys who assist in probate administration. You file a final accounting or a petition for allowance of fees, and the court reviews and approves the request.
4. Reimbursement Process
If you pay attorney fees out of your own pocket before appointment, you may ask the court to reimburse you. Submit a verified statement of expenses and invoices as part of your first accounting. The court will review whether those expenses were necessary and reasonable under §28A-15-1. Approved expenses become a charge against the estate.
5. When Estate Funds Are Limited
If the estate lacks sufficient liquid assets to cover a retainer, some attorneys will advance fees and recover them later. You should request this arrangement in writing and confirm that the estate bears the ultimate cost if the court approves your fee petition.
Key Takeaways
- Agree on a retainer amount and billing method before work begins.
- The court must appoint a personal representative before the estate pays attorney fees.
- Attorney fees qualify as administrative expenses under N.C. Gen. Stat. §28A-15-1.
- You can seek reimbursement for out-of-pocket fees by filing an accounting with invoices.
- If the estate lacks funds, discuss an advance-fee arrangement with your attorney.
- Always keep detailed records and receipts for the court’s review.
Managing attorney fees in probate can seem complex. You don’t have to navigate these rules alone. Our attorneys at Pierce Law Group guide you through retainer agreements, court approvals, and reimbursements so you can focus on settling your loved one’s estate.
Ready to get started? Contact us by email at intake@piercelaw.com or call us at (919) 341-7055 to schedule a consultation.
