1. Detailed Answer

When heirs work together to administer an estate in North Carolina, they must decide how to pay probate attorney fees. State law permits three common payment methods: retainer deposits, hourly billing, and inheritance-share assignments. Each method carries advantages, requirements, and statutory oversight under Chapter 28A of the North Carolina General Statutes.

Retainer Deposits

Heirs pay an initial sum—called a retainer—into the attorney’s trust account. The attorney draws from this account as they perform tasks such as filing the petition for probate, notifying creditors, and gathering assets. Under Rule 1.15-1 of the North Carolina Rules of Professional Conduct, attorneys must keep client funds separate from personal or business accounts. Any unused portion of the retainer returns to the estate upon closing.

Hourly Billing

With hourly billing, the attorney charges a pre-agreed rate for each hour of work. Rates vary by the attorney’s experience and the complexity of tasks. The attorney issues regular, itemized statements detailing hours worked and services provided. If heirs dispute fees, North Carolina General Statutes § 28A-3-25 gives the clerk of superior court authority to approve only those fees deemed “reasonable.”

Inheritance-Share Assignments

Under an inheritance-share assignment, an heir transfers a specified portion of his or her inheritance to the attorney instead of paying cash. To protect all parties, the assignment must be in writing and signed by the assigning heir. The total fee charged cannot exceed a reasonable amount under § 28A-3-25, and the clerk of superior court must review the agreement. Assignments must account for statutory allowances, creditor claims, and the heir’s net distributive share.

2. Key Points Checklist

• Put all fee agreements in writing to ensure clarity and enforceability.
• Specify the retainer amount and how the attorney will bill against it.
• Agree on an hourly rate that matches the attorney’s qualifications and the estate’s needs.
• Detail the percentage or fixed share for inheritance-share assignments.
• Secure signatures from all heirs impacted by an assignment.
• File the fee agreement with the clerk of superior court for transparency.
• Review billing statements regularly to monitor time entries and trust account balances.
• Remember that the clerk can adjust fees under N.C. Gen. Stat. § 28A-3-25 if they prove unreasonable.