Probate Q&A Series

How Are Probate Attorney Fees Handled, and Can an Executor Pay the Retainer Fee from Estate Funds Rather Than Out-of-Pocket?

1. Detailed Answer

When someone dies in North Carolina, probate ensures the decedent’s assets transfer correctly and debts get paid. A probate attorney guides the executor or personal representative through those steps. Under North Carolina law, the estate typically pays attorney fees.

Legal Basis for Paying Fees from the Estate

North Carolina General Statute § 28A-15-2 allows an attorney to receive “reasonable compensation” for probate services. You can read the statute here: G.S. 28A-15-2. The court clerk reviews and approves any fees before final distribution.

Retainer Agreements and Advances

An attorney often asks for a retainer—a deposit against future work. In probate, an executor may use estate funds to pay that retainer at the start. That approach avoids out-of-pocket payment. The retainer reduces the balance owed and shows the attorney has funds to begin work.

Interim and Final Fee Allowances

  • Interim Fees: If the probate lasts many months, the attorney may request periodic allowances. The executor files a petition with the clerk of superior court, attaching time records and billing details.
  • Final Fees: At the end of probate, the executor submits a detailed accounting. The court clerk then approves final attorney fees, crediting any retainer or interim payments. The clerk ensures total fees remain reasonable under the statute.

Executor Responsibilities

The executor must keep clear records of all payments, including retainers. Under G.S. 28A-15-2, the court reviews those records. Beneficiaries may object if they think fees exceed reasonable value.

2. Key Points to Help You Navigate Probate Attorney Fees

  • Written Fee Agreement: Always ask for a clear, written retainer agreement. It should outline hourly rates, flat fees, and payment terms.
  • Use Estate Funds: The executor may pay the retainer from estate bank accounts. Document transfers carefully to avoid disputes.
  • Court Approval: The clerk of superior court must approve all fees. Plan for final fee petitions as part of your probate timeline.
  • Record Keeping: Track all attorney hours, costs, and retainer use. Organized records make fee petitions smoother.
  • Reasonableness Standard: North Carolina law requires that fees align with the work performed. Avoid large, unexplained charges.
  • Interim Allowances: For longer estates, petition for interim fee allowances. This keeps cash flow steady and prevents delays.

Conclusion and Next Steps

Probate attorney fees in North Carolina must follow statutory guidelines. An executor can pay an initial retainer from estate funds, but all fees require court approval and must remain reasonable. Clear records and written agreements help avoid disputes with beneficiaries.

If you face probate administration questions or need guidance on attorney fees, turn to Pierce Law Group. Our attorneys have deep experience handling estates of all sizes. Reach out today to discuss your case confidentially.

Contact us by email at intake@piercelaw.com or by phone at (919) 341-7055.