How do disputed filing fees or liens affect the estate closing process, and what steps can be taken to resolve them?

1. Detailed Answer

When someone dies, their estate goes through probate before heirs receive assets. During probate, the personal representative files documents with the clerk of superior court. Each filing carries a court fee under North Carolina General Statutes Chapter 7A, Article 30 (N.C. Gen. Stat. § 7A-300 et seq.). If fees go unpaid or parties dispute them, the clerk will withhold approval of key orders. That leads to delays in distributing assets and closing the estate.

Liens pose a similar challenge. Liens are legal claims against estate property. Common liens include unpaid taxes, mortgages, or secured creditor claims. North Carolina law ranks these claims and liens against an estate in N.C. Gen. Stat. § 28A-25.4. Until valid liens clear, the clerk will not approve the final decree of distribution under N.C. Gen. Stat. § 28A-13.14.

Disputes over fees or liens often arise when a claimant contests the amount owed or the priority of payment. For example, a creditor may challenge the amount of a funeral home’s lien. Unless the personal representative resolves that dispute, the estate cannot close.

To move forward, the personal representative must:

• Identify all filing fees, court costs, and liens. Review the clerk’s fee schedule and lien records at the register of deeds or clerk’s office.
• Provide notice to claimants. Under N.C. Gen. Stat. § 28A-15.2, notify creditors and lienholders in writing of pending estate administration.
• Attempt informal resolution. Sometimes negotiation or partial payment can satisfy a lienholder or the clerk.
• File a motion with the court. If informal talks fail, the personal representative can ask the clerk for a hearing to determine fee amounts or the validity and priority of liens.
• Obtain a court order. After a hearing, the clerk or judge issues an order resolving the dispute. That order often includes directions on payment and lien release.
• Pay the approved amounts and secure lien releases. Use estate funds to pay the determined fees or liens. Then file lien satisfaction documents or releases with the clerk.
• Submit final closing papers. Once all fees and liens resolve, prepare and file the final accounting and petition for distribution. The clerk will review and enter the final decree.

2. Key Steps to Resolve Disputed Filing Fees or Liens

• Compile a full list of required filing fees and known liens.
• Review the current fee schedule at the clerk’s office (N.C. Gen. Stat. § 7A-300 et seq.).
• Send formal notices to each potential claimant or lienholder (N.C. Gen. Stat. § 28A-15.2).
• Negotiate payment plans or settlements where possible.
• File motions to determine fee or lien disputes if parties remain at odds.
• Attend court hearings and secure orders resolving disputes.
• Pay court-approved fees and record lien satisfactions.
• Finalize and file closing documents for the clerk’s approval (N.C. Gen. Stat. § 28A-13.14).

Resolving disputed fees and liens early keeps your loved one’s estate on track and protects beneficiaries. Pierce Law Group’s probate team has guided families through these challenges for years. If you face filing fee or lien disputes in a North Carolina estate, reach out today. Let us help you clear the way to a smooth closing.

Call now at (919) 341-7055 or email intake@piercelaw.com to schedule a consultation.