How Are Probate Attorney Fees Structured, Held, and Approved in North Carolina, and What Options Exist for Billing Disputes?
Detailed Answer
1. Fee Structures in North Carolina Probate
In North Carolina, attorneys handling probate matters typically agree on one of three common fee arrangements with the Personal Representative:
- Hourly Fees: Attorneys charge for each hour worked. Rates vary based on experience and the complexity of the estate.
- Flat Fees: A single fixed amount covers specified tasks, such as preparing the petition for probate or closing the estate.
- Percentage Fees: Attorneys may charge a percentage of the estate’s value. This is less common and must be reasonable for the work performed.
All fee agreements must comply with North Carolina law. The clerk of superior court reviews fee petitions under N.C.G.S. § 28A-15-1 to ensure they remain reasonable for the services rendered. For details, see the statute here: N.C.G.S. § 28A-15-1.
2. Holding and Approval of Attorney Fees
When the estate holds funds to cover legal services, the Personal Representative deposits them into a separate estate bank account. Attorneys cannot withdraw funds directly from that account until the court approves their fee petition.
To obtain approval, the attorney files a detailed petition with the clerk of superior court. The petition must include:
- An itemized statement of hours worked or description of tasks performed
- The agreed billing arrangement (hourly, flat, or percentage)
- Affidavits or declarations supporting the reasonableness of the work
The clerk reviews the petition, and if any interested party objects, the court may schedule a hearing. Once approved, the clerk issues an order directing the Personal Representative to release the funds to the attorney.
3. Billing Disputes: Resolution Options
If you believe the fees are excessive or do not match your engagement agreement, you have several remedies:
- Open Dialogue: Start by discussing your concerns directly with your attorney. Clarify tasks performed and request detailed billing records.
- Fee Arbitration: Under Rule 2.5 of the North Carolina Rules of Professional Conduct, you may request binding arbitration of a fee dispute through the North Carolina State Bar.
- Court Objection: File an objection with the clerk during the fee-petition process. The court will review the petition’s reasonableness and may reduce or deny fees.
- Civil Action: As a last resort, you can sue for breach of contract or fee forfeiture in superior or small claims court.
Key Points to Remember
- Attorneys may charge hourly rates, flat fees, or percentages in probate matters.
- Estate funds stay in a separate account until the clerk approves fee petitions.
- The clerk reviews attorney fees under N.C.G.S. § 28A-15-1 for reasonableness.
- You can request arbitration through the North Carolina State Bar if you dispute fees.
- You may object during the court’s fee-approval process or pursue a civil lawsuit if necessary.
Contact Pierce Law Group
Navigating probate fees can feel overwhelming. At Pierce Law Group, our attorneys bring years of experience helping families manage estates and resolve billing disputes efficiently. If you have questions about how fees are structured, held, or approved—or if you need assistance disputing a charge—reach out today.
Email us at intake@piercelaw.com or call (919) 341-7055 to schedule a consultation.
