How do I calculate the personal representative’s commission correctly for an estate administration? – North Carolina

Short Answer

In North Carolina, a personal representative’s commission is set by the Clerk of Superior Court and is usually calculated as a percentage (up to a statutory maximum) of the estate’s commissionable receipts and commissionable disbursements. The most common calculation mistake is using the wrong base—such as counting beneficiary distributions, or counting the same money twice as it moves between accounts. The safest approach is to build a clear receipts-and-disbursements worksheet that matches the estate accountings and then request approval from the clerk.

Understanding the Problem

In a North Carolina estate administration, how is the personal representative’s commission calculated when the clerk’s office questions the amount due to a math or calculation issue? The decision point is whether the commission request was calculated on the correct items (receipts and lawful expenditures) and at the correct rate, consistent with what the Clerk of Superior Court will approve during the administration or at closing.

Apply the Law

North Carolina treats a personal representative’s commission as an allowance approved by the Clerk of Superior Court (Ex Officio Judge of Probate), not an automatic flat percentage. When the will does not set compensation, the clerk has discretion to allow a commission that generally cannot exceed 5% of receipts (including the value of personal property when received) and lawful expenditures, but excluding distributions to beneficiaries. The clerk also considers practical factors such as the time, responsibility, trouble, and skill involved, and commissions can be allowed during administration rather than only at the end.

Key Requirements

Use the correct commission base: Calculate from commissionable receipts and commissionable lawful expenditures, and do not treat beneficiary distributions as commissionable.
Stay within the statutory cap (when it applies): For estates over the small-estate threshold, the commission generally cannot exceed 5% of the commissionable base, and multiple personal representatives share that same overall cap.
Get clerk approval and show the math: The clerk approves the amount, so the request should be supported by a clear worksheet that ties directly to the inventory and the annual/final accountings (and avoids double-counting).

What the Statutes Say

N.C. Gen. Stat. Chapter 28A (Administration of Decedents Estates) – The probate code chapter that includes the rules on personal representative compensation and estate accountings (the specific commission section is within this chapter).

Analysis

Apply the Rule to the Facts: Here, the clerk questioned a commission amount due to a math/calculation issue. Under North Carolina practice, that usually means the commission was calculated on the wrong base (for example, including non-commissionable distributions) or the same funds were counted more than once as they moved through the estate account. The fix is typically to rebuild the calculation from the estate’s accounting categories—separating receipts, lawful expenditures, and distributions—and then resubmit a corrected request that matches the filed accountings.

Process & Timing

Who files: The personal representative (often through counsel). Where: The Clerk of Superior Court, Estates Division in the county where the estate is being administered. What: A written request/petition for payment of commissions with a supporting worksheet that ties to the inventory and the annual/final account. When: Commissions may be requested during administration or at closing, but the clerk must approve the amount.
Show the calculation clearly: Provide a one-page summary that lists (a) total commissionable receipts, (b) total commissionable lawful expenditures, (c) the requested percentage, and (d) the resulting commission. Attach a backup schedule that shows how each number was pulled from the accounting lines.
Correct and resubmit if questioned: If the clerk flags a math issue, the usual next step is to submit a corrected worksheet (and, if needed, an amended request) that fixes the base, the percentage, or the arithmetic so the clerk can enter an order allowing commissions.

Exceptions & Pitfalls

Counting distributions: A common error is treating distributions to heirs/beneficiaries as commissionable disbursements. North Carolina practice generally treats distributions as excluded from the commission base.
Double-counting the same money: Transfers between estate accounts (or moving sale proceeds into and out of an estate checking account) can accidentally be counted as multiple receipts/disbursements if the worksheet is not tied to the accounting categories.
Will controls if it sets compensation: If the will sets a specific fee, method, or a fiduciary fee schedule, that can change the calculation and may replace the default percentage-cap approach.
Multiple personal representatives: The overall commission cap applies in the aggregate, and the clerk may apportion the allowed amount among co-personal representatives based on services performed.
Advance payment without approval: Paying commissions before the clerk approves them can create problems in the accounting and may trigger objections or required corrections.

Conclusion

In North Carolina, the personal representatives commission is approved by the Clerk of Superior Court and is generally calculated from commissionable receipts and lawful expenditures, subject to a statutory maximum percentage in many estates and excluding beneficiary distributions from the base. When the clerk questions the amount, the usual issue is an incorrect base or double-counting. The next step is to file a corrected commission request with a worksheet that ties each number to the inventory and the annual/final account so the clerk can enter an order allowing the commission.

Talk to a Probate Attorney

If an estate administration commission was questioned by the clerk due to a calculation issue, our firm has experienced attorneys who can help clarify the correct commission base, prepare a clean worksheet that matches the accountings, and address clerk feedback efficiently. 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.