Probate Q&A Series

How Are Probate Attorney Fees Paid from Proceeds When Inherited Real Property Is Sold in a North Carolina Estate?

Detailed Answer

When you serve as personal representative of a North Carolina estate and sell inherited real property, you must follow court procedures for collecting sale proceeds and paying estate expenses, including attorney fees. First, you obtain an order allowing you to sell the real property by filing a petition under N.C. Gen. Stat. § 28A-26-1. After the sale, you deposit the net proceeds into the estate account held by the Clerk of Superior Court.

Next, you prepare and file a petition for allowance of attorney fees. North Carolina law requires the Clerk to review fee requests and approve only reasonable charges. The clerk bases fees on the nature of services, time spent, and customary local rates under N.C. Gen. Stat. § 28A-27-2. Once the clerk signs the fee order, you request disbursement of those fees from the estate account. The clerk issues a check payable to your law firm.

Finally, you distribute remaining funds according to the priority set by N.C. Gen. Stat. § 28A-18-2. This statute directs payment of funeral expenses, reimbursements to the personal representative, and other debts before any distribution to heirs or devisees. By following these steps, you ensure attorney fees come out of the estate properly and preserve your right to legal compensation.

Key Steps to Pay Probate Attorney Fees from Real Property Sale Proceeds

  • Obtain an order to sell the decedent’s real property under N.C. Gen. Stat. § 28A-26-1.
  • Close the sale and deposit net proceeds with the Clerk of Superior Court.
  • Prepare and file a petition for allowance of attorney fees under N.C. Gen. Stat. § 28A-27-2.
  • Attend the clerk’s hearing (if required) and secure approval of reasonable fees.
  • Request disbursement of approved fees from the estate account.
  • Follow the statutory order of payment in N.C. Gen. Stat. § 28A-18-2 before distributing remaining proceeds to heirs or devisees.

Probate administration involves strict court supervision. Selling inherited real estate and paying attorney fees requires careful compliance with North Carolina statutes. At Pierce Law Group, our attorneys handle each step to safeguard your interests and meet all legal requirements. For a consultation, email us at intake@piercelaw.com or call us at (919) 341-7055.