Probate Q&A Series

Do I need to wait until the estate receives money from the sale of real property before filing a petition for fiduciary commission? – North Carolina

Short Answer

Usually, yes. In North Carolina estate administration, the Clerk of Superior Court typically approves fiduciary commissions based on what the personal representative has actually received and disbursed (or is about to disburse) as shown in an accounting, not on a future or estimated real estate closing.

If a related special proceeding is selling real property, the safer practice is to wait until the sale proceeds are received (or at least fixed and ready for disbursement) so the commission request matches the estate’s records and the clerk’s audit process.

Understanding the Problem

In a North Carolina estate administration, a personal representative (executor or administrator) may want to ask the Clerk of Superior Court to approve a fiduciary commission while a separate special proceeding is pending to sell real property. The single decision point is timing: can a petition for fiduciary commission be filed and approved before the estate actually receives the sale proceeds from the real property transaction, or must the request wait until the money is in hand and reflected in the estate’s accounting?

Apply the Law

In North Carolina, fiduciary commissions are tied to the personal representative’s administration of estate assets and are commonly reviewed in connection with the estate’s accountings filed with (and audited by) the Clerk of Superior Court. When real property is being sold through a clerk-supervised sale proceeding, the sale proceeds and the reporting/accounting for that sale often drive when the estate can accurately show receipts and disbursements. Practically, a commission request that depends on sale proceeds is easiest to approve after the proceeds are received and can be shown on the next accounting (annual or final), or after the sale accounting/reporting required in the sale proceeding is complete.

Key Requirements

  • Actual receipts and disbursements: The commission request should match what the personal representative has actually handled (money received, bills paid, distributions made), not a projected closing statement.
  • Proper accounting posture: The request is typically supported by an estate accounting (or a filing that functions like one) that the clerk can audit and record.
  • Sale-proceeds clarity: If the commission is based in part on real estate sale proceeds, the proceeds generally need to be received (or otherwise fully accounted for under the sale proceeding) so the numbers are final and consistent across filings.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The estate administration is already open and a related special proceeding exists to marshal assets, which commonly includes authority and court oversight for handling real property. If the fiduciary commission request depends on the real property sale proceeds, filing before the estate receives those proceeds often forces the petition to rely on estimates and incomplete receipts/disbursements. Waiting until the sale closes and the proceeds are received (and can be shown on the next accounting or the sale accounting) usually makes the petition easier for the Clerk of Superior Court to audit and approve without revisions.

Process & Timing

  1. Who files: The personal representative (often through counsel). Where: The Clerk of Superior Court in the county where the estate is administered (and, if applicable, the clerk file for the related sale special proceeding). What: A petition/request for fiduciary commission supported by the estate accounting and documentation showing the receipts and disbursements that the commission is based on. When: Commonly when an annual account or final account is being filed, or when the sale proceeds have been received and can be accurately reported.
  2. Coordinate with the sale proceeding: If a commissioner is appointed to conduct the sale, the commissioner’s final account is typically due after the sale proceeds are paid/matured, and the clerk audits that account. If the personal representative is the seller under the sale statutes, the sale receipts/disbursements are typically captured in the next annual or final estate account unless the clerk orders a special account.
  3. Clerk review and order: The clerk reviews the numbers for consistency with the estate file and sale file, may request corrections or additional documentation, and then enters an order approving the commission (often as part of the accounting approval workflow).

Exceptions & Pitfalls

  • Filing too early creates mismatched numbers: A commission petition based on a projected closing statement can conflict with the later recorded sale account or the estate’s next accounting, leading to delays or a requirement to refile.
  • Bond issues can delay receipt of proceeds: In some sales, the clerk requires a bond or increased bond before a fiduciary receives sale proceeds. If the bond is not addressed early, the closing/disbursement timeline can slip, which in turn delays a commission request tied to those proceeds.
  • Confusing the roles in the sale: Timing and accounting duties differ depending on whether the sale is conducted by a court-appointed commissioner versus the personal representative acting under an order. The commission request should track the correct role and the correct accounting record.
  • Local practice varies: Clerks’ offices may prefer commissions to be requested with the annual or final account, even if a separate petition could be filed earlier. Checking the clerk’s preferred workflow can prevent avoidable continuances or rejection of the submission.

Conclusion

In North Carolina, a fiduciary commission request is usually best filed when the estate can show final, auditable receipts and disbursements. If the commission depends on proceeds from a real property sale in a related special proceeding, the practical answer is to wait until the sale closes and the proceeds are received (and properly accounted for) so the petition matches the estate accounting the Clerk of Superior Court will audit. A common next step is to file the commission request with the next annual or final account after the sale proceeds are received.

Talk to a Probate Attorney

If an estate administration involves a pending real property sale and the timing of fiduciary commissions, our firm has experienced attorneys who can help clarify the clerk’s process, required filings, and the best time to submit a commission request. 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.