1. Detailed Answer

When an individual in North Carolina passes away, the personal representative (sometimes called the executor) must pay the estate’s debts and expenses before distributing property to heirs or beneficiaries. Two key types of administration expenses are attorney fees and carrying costs. Here is how the process works under North Carolina law.

Attorney Fees

North Carolina law allows attorneys to recover reasonable fees for probate services. The personal representative or the attorney files a petition asking the clerk of superior court to approve the fees. The clerk reviews the request, considering:

• The complexity of the estate.
• The time and labor required to complete tasks.
• The skill and experience required for the administration.
• Any statutory allowances already paid to the personal representative.

Once approved, the fees become a debt of the estate. The clerk enters an order directing the personal representative to pay the attorney from estate assets. This procedure follows G.S. §28A-27-1, which you can review on the North Carolina General Assembly website: G.S. 28A-27-1.

Carrying Costs

Carrying costs are ongoing expenses necessary to preserve estate property. Common carrying costs include:

• Property taxes.
• Insurance premiums.
• Mortgage or loan payments.
• Utility bills.
• Repairs and maintenance.

The personal representative pays these costs out of estate funds as they come due. Carrying costs qualify as administration expenses and receive priority payment under G.S. §28A-22. The court orders payment of these expenses, ensuring the estate does not lose value while probate is pending. You can read the statute here: G.S. 28A-22.

Allocation and Distribution

After the court approves attorney fees and confirms carrying costs, the personal representative pays them in this order of priority:

1. Costs of administration, including clerk fees and bond premiums.
2. Reasonable attorney fees approved by the court.
3. Carrying costs necessary to preserve estate property.
4. Debts of the decedent.
5. Family allowances and statutory commissions.
6. Remaining assets to heirs or beneficiaries.

By paying in this sequence, the estate meets all legal obligations before distributing any remaining assets.

2. Key Takeaways

• Attorney fees in probate must be approved by the clerk under G.S. 28A-27-1.
• Carrying costs are ongoing expenses to preserve estate property and get priority under G.S. 28A-22.
• The personal representative files a petition and provides detailed billing or invoices.
• Approved fees and costs are paid before distributing assets to heirs.
• Clear records and timely filings help avoid delays in estate administration.