Overview: Paying Court Fees and Attorney Services from Estate Assets
When you serve as a personal representative in North Carolina, you handle estate assets to settle debts and distribute inheritances. Two common expenses are probate court fees and attorney’s services. State law allows you to pay these expenses from the estate principal, provided you follow statutory requirements and court procedures.
1. Detailed Answer
a. Authority to Pay Administrative Expenses
Under N.C.G.S. § 28A-12-2, a personal representative may use estate assets to pay necessary expenses of administration, including filing fees, publication costs, appraisal fees, and attorney’s fees. These expenses come out of the residue of the estate before any distribution to heirs or beneficiaries.
b. Probate Court Fees
Probate court fees cover filing the petition for probate, supervising estate administration, and final settlement. These fees are set by statute or local rule. As personal representative, you should:
- Verify current fee schedules with the clerk of superior court.
- Submit payment at the time you file initial documents or as required by the clerk’s office.
- Record the payment in your estate accounting.
c. Attorney’s Fees
North Carolina law classifies attorney’s fees as a “necessary expense of administration” under N.C.G.S. § 28A-12-2. The court reviews and approves fees under N.C.G.S. § 28A-15-3. Follow these steps:
- Obtain a written fee agreement with your attorney that specifies hourly rates or flat fees and describes the services to be provided.
- Ensure the fee arrangement is reasonable, considering customary charges in your area and the complexity of the estate.
- Prepare a petition for allowance of attorney’s fees when you file the final account (see N.C.G.S. § 28A-16-3).
- Serve notice of the petition on all interested parties and heirs as required by N.C.G.S. § 28A-16-3(b).
- Attend the hearing if the court schedules one. The judge may ask questions about the work performed, the time spent, and the benefit to the estate.
- Once the court approves the fee, pay the attorney from estate funds and reflect the payment in your final accounting.
d. Recording and Reporting Payments
You must keep accurate records of all payments made from estate assets. The final accounting filed with the clerk must include:
- A schedule of all administrative expenses paid, including court fees and attorney’s fees.
- Copies of receipts or cancelled checks supporting each payment.
- The court’s order approving attorney’s fees and any compensation you received as personal representative under N.C.G.S. § 28A-15-1.
2. Key Steps for Personal Representatives
- Check the local fee schedule for probate filings before submitting any papers.
- Enter into a clear, written fee agreement with your attorney.
- Document expenses promptly and maintain detailed receipts.
- File a petition for allowance of attorney’s fees with your final account per N.C.G.S. § 28A-16-3 (link).
- Serve notice of your petition on beneficiaries and creditors.
- Obtain court approval before disbursing large fees.
- Maintain transparency with heirs to avoid disputes.
Conclusion and Next Steps
Paying court fees and attorney’s services from estate assets is a routine part of estate administration in North Carolina. By following statutory requirements, obtaining court approval for attorney’s fees, and keeping accurate records, you fulfill your duties and protect the estate from challenges.
If you have questions or face complex issues in settling an estate, Pierce Law Group can help. Our team of experienced probate attorneys guides personal representatives through every step. Contact us today at intake@piercelaw.com or call (919) 341-7055 for a consultation.
