Detailed Answer

Attorney Fees in North Carolina Probate

When you open a probate estate in North Carolina, you pay for professional services out of estate assets. That includes both the personal representative’s allowance and attorney fees. North Carolina law sets the rules for those fees under N.C.G.S. § 28A-1-13. You must file a petition in court showing the work performed, the time spent, and the estate’s gross value. The clerk reviews the petition to ensure the fees are reasonable in light of the estate’s complexity and value.

In formal administration, you can file interim petitions to draw fees at different stages. The court approves each fee request before payment. Once approved, the clerk directs the registrar to issue checks from the estate account. Those fees become an official distribution and reduce the balance available for beneficiaries.

Managing Testamentary Trust Funds in Probate

Many wills set up a testamentary trust to hold assets for minor or remote beneficiaries. A testamentary trust only arises after the court admits the will and the personal representative transfers the designated assets to a trustee. At that point, the trustee follows rules in N.C.G.S. § 28A-17-1 et seq..

The trustee must invest and manage trust assets under a “prudent person” standard. That means they balance income, growth, and risk when making investment decisions. The trustee also maintains detailed records and provides periodic accountings—typically annual statements or reports on request. Distributions come only as the trust instrument allows, such as for education, health, or support until a child reaches a set age.

Court rules may require the trustee to post a bond equal to the trust’s value to protect beneficiaries. If the trustee fails to follow the trust terms or account properly, interested parties can ask the clerk to remove the trustee or grant other relief.

Key Points to Remember

• Attorney fees come from estate assets and require court approval under N.C.G.S. § 28A-1-13.
• You must file detailed fee petitions and wait for the clerk’s allowance in formal administration.
• Testamentary trusts start when the will is admitted and assets pass from the personal representative to the trustee.
• Trustees follow N.C.G.S. § 28A-17-1 et seq., invest prudently, keep clear records, and provide accountings.
• Bond requirements protect beneficiaries against mismanagement.
• Trust distributions occur only under the terms set by the decedent’s will.
• Proper management of fees and trusts promotes a transparent, efficient probate process.

Take the Next Step

Managing attorney fees and trust funds in probate involves strict rules and court oversight. Pierce Law Group’s attorneys guide you through each step to help you fulfill your duties efficiently and protect beneficiary interests. Contact us today to discuss your situation. Email intake@piercelaw.com or call (919) 341-7055.