Short Answer

In North Carolina, you ask the Clerk of Superior Court to approve estate administration expenses (like personal representative commissions and attorney’s fees) by filing a verified petition in the estate file, showing the amounts, what they cover, and how they fit the statutory priority of claims. If proceeds from a court-ordered sale are still held by the court, you also file a motion in that sale file to disburse funds consistent with the clerk’s order. The clerk can rule without a hearing if uncontested; if contested, you must serve parties and the clerk will set a hearing.

Understanding the Problem

You want to finish an estate in North Carolina by paying approved costs, then distributing the remaining sale proceeds to the right people. The decision point is this: can the Clerk of Superior Court approve your estate expenses and authorize disbursement now? One heir died before distribution without a will, so their share must be paid through that heir’s estate before the balance reaches the children.

Apply the Law

Under North Carolina law, the Clerk of Superior Court oversees estate administration. Administrative costs (commissions and necessary legal fees) are allowed in the clerk’s discretion and paid ahead of most other claims. Funds from a court-ordered real estate sale are applied first to liens and valid claims; any remaining balance is distributed to heirs or devisees through the proper file (estate or special proceeding). If a distributee dies before receiving a share, payment goes to that person’s estate representative once appointed.

Key Requirements

• Show the expenses are allowable and reasonable: Itemize personal representative commissions and attorney’s fees, with time records or invoices, and explain why they were necessary for administration.
• Follow claim priority: Pay costs of administration first, then other classes of claims in statutory order before distributing any remainder.
• Use the correct file and forum: File a verified petition in the estate file for expense approval; if sale proceeds remain in a special proceeding file, also move there for disbursement consistent with the order of sale.
• Provide notice if contested: Serve all respondents with an Estate Proceeding Summons and comply with Rule 4; the clerk may hold a hearing and enter findings.
• Distribute to the right party: If an heir died before distribution, pay that share to the personal representative of the deceased heir’s estate (after that estate addresses any spousal year’s allowance and claims).

What the Statutes Say

• North Carolina Gen. Stat. § 28A-23-3 (Personal representative’s commissions; necessary charges) – Clerk may allow reasonable commissions and necessary expenses, generally capped at 5% of receipts and disbursements.
• North Carolina Gen. Stat. § 28A-23-4 (Attorney PR performing legal services) – An attorney serving as PR may receive compensation for legal services in addition to PR commissions when warranted.
• North Carolina Gen. Stat. § 28A-19-6 (Order of payment of claims) – Sets the priority for paying claims; costs of administration come first.
• North Carolina Gen. Stat. § 30-15 (Year’s allowance to surviving spouse) – Spousal allowance payable from personal property; timing and amounts affect distributions in a deceased heir’s estate.

Analysis

Apply the Rule to the Facts: You will need the clerk to approve your commissions and attorney’s fees as administration costs, which are paid before other claims under the statute. After satisfying valid claims, you can request an order to disburse the remaining sale proceeds. Because one heir died before distribution with no will, the clerk will require you to direct that heir’s share to the personal representative of that heir’s estate (not directly to the children) once that estate is opened and any spousal allowance or claims there are addressed.

Process & Timing

1. Who files: The personal representative. Where: Clerk of Superior Court, Estates Division, in the county where the estate is pending; and, if applicable, in the special proceeding sale file. What: Verified petition to approve PR commissions and attorney’s fees with itemized support; proposed distribution schedule showing claim priority; if needed, a motion to disburse surplus in the sale file; use an Estate Proceeding Summons (AOC-E-102) if contested. When: After the creditor claim window closes and known claims are resolved; earlier if the clerk permits interim fee approval.
2. The clerk reviews the petition; if uncontested, the clerk may enter an order on the filings. If contested, serve respondents under Rule 4; the clerk sets a hearing, receives evidence, and enters findings of fact and conclusions of law.
3. After expenses and claims are approved and paid, submit a motion or proposed order to disburse the remaining proceeds to the proper distributees, including payment of a deceased heir’s share to that heir’s estate representative. Final accounting reflects the payments.

Exceptions & Pitfalls

• If the clerk still holds sale proceeds, the clerk will not approve distributions that skip the statutory claim order or required recipients (for example, paying children directly when a deceased heir’s estate must receive the share).
• Commissions on real estate sale proceeds are limited to the portion actually applied to debts or legacies when the sale was to create assets; avoid “double-dipping” between sales costs and PR commissions.
• Some counties require a separate petition for commissions or attorney’s fees; others approve them through interim or final accounts—ask the estates office about local practice.
• If the amount held by the clerk arises under the “payment to clerk” procedure, the clerk cannot administer more than $5,000 total for a decedent; larger amounts require formal administration.
• Service issues stall approvals: in contested matters, use the Estate Proceeding Summons and proper Rule 4 service; the clerk may require additional notices before entry of orders.

Talk to a Probate Attorney

If you’re dealing with court‑held sale proceeds and need the clerk to approve expenses before distribution, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.