Short Answer

In North Carolina, the personal representative must collect written proof that each creditor claim was paid and include that proof (called a voucher) with the estate’s annual or final account. Acceptable vouchers include a creditor’s “paid in full” letter, an invoice marked paid, a canceled check, a wire confirmation, or a release. For secured debts, also get and record the lien cancellation. File the account and all vouchers with the Clerk of Superior Court.

Understanding the Problem

In North Carolina probate, how do you, as the personal representative, obtain and file satisfactory proof that creditor claims have been paid when you submit the estate’s accounting to the Clerk of Superior Court? Here, two creditors (a credit union and a service provider) have outstanding claims while the estate is in the accounting phase.

Apply the Law

North Carolina requires the personal representative to support every estate disbursement with a voucher or verified proof when filing an annual or final account. For creditor payments, the voucher is usually a written “paid in full” confirmation from the creditor, a bill marked paid, a canceled check, or similar proof. If the claim is secured (like a mortgage or deed of trust), obtain a written payoff, pay from verified funds, and ensure the lender files or provides a satisfaction of the lien for recording. Accounts must show the date, payee, description, and amount for each disbursement, and the Clerk audits for compliance, including proper claim priority and proof of payment.

Key Requirements

• Confirm the claim and its priority: Verify the claim is valid and pay it in the statutory order; do not prefer one claim over another within the same class.
• Obtain written proof of payment: Collect a payoff letter or “paid in full” letter, invoice marked paid, canceled check, or wire confirmation; for distributions, use receipts.
• Address secured claims: For mortgages or other liens, get a payoff statement and ensure the lien satisfaction is recorded with the Register of Deeds.
• Complete the account properly: Use the Account (AOC‑E‑506) and attach vouchers; list date, payee, description, and amount for each creditor payment.
• Use alternative satisfaction when appropriate: If someone assumes a debt with creditor consent, file the signed assumption agreement; it operates like payment for estate purposes.
• Mind timing: Don’t pay general claims until the creditor notice period expires unless the estate is clearly solvent; file required annual/final accounts on time.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-21-1 (Annual accounts) – Requires vouchers or verified proof for payments in annual accounts.
• North Carolina Gen. Stat. § 28A-21-3 (Contents of accounts) – Lists what each account must show, including disbursements.
• North Carolina Gen. Stat. § 28A-19-6 (Order of payment of claims) – Sets priority classes for paying creditor claims.
• North Carolina Gen. Stat. § 28A-19-7 (Satisfaction other than by payment) – Allows filing a signed assumption/compromise agreement as a discharge of the estate’s liability.

Analysis

Apply the Rule to the Facts: For the credit union claim, obtain a written payoff, pay from the estate account, and secure a “paid in full” letter; if the debt is secured by real property, record the satisfaction after closing and include the settlement statement and lien release as vouchers. For the service provider, request an invoice marked paid or a zero‑balance statement and attach that, along with the canceled check, to the account. Include all payment details on AOC‑E‑506 and observe claim priority and timing.

Process & Timing

1. Who files: Personal representative. Where: Clerk of Superior Court (Estates Division) in the North Carolina county of administration. What: Account (AOC‑E‑506) with vouchers (creditor payoff letters, invoices marked paid, canceled checks/wire confirmations; for distributions, receipts such as AOC‑E‑521). If using an assumption/compromise, file the signed agreement under § 28A‑19‑7. When: File a final account within the statutory timeframe or an annual account if the estate remains open beyond one year (deadlines can vary by circumstance and any extensions).
2. After filing, the Clerk audits the account for proper claim priority and supporting proof. If something is missing, the Clerk may request additional vouchers or send a notice identifying what is needed; response times vary by county.
3. Once approved, the Clerk records the account and enters an order closing the estate and discharging the personal representative from further liability for the reported period.

Exceptions & Pitfalls

• Do not pay lower‑priority claims ahead of higher‑priority ones; no preference within a class. Paying out of order can create personal liability.
• For secured debts on real property, a payoff without recording the lien satisfaction leaves the lien of record; obtain and record the lender’s satisfaction after closing.
• If you resolve a claim by assumption or compromise, ensure the agreement is signed by the creditor, the assuming party, and the personal representative, and file it so it operates as a discharge for the estate.
• Avoid paying general claims before the creditor notice period expires unless the estate is clearly solvent; otherwise you may have to prorate and risk overpayment.
• Keep clean proof trails: use the estate account for payments and retain confirmations; if a voucher is lost, be prepared to provide verified proof.
• Hold back for taxes and administrative costs before marking claims as fully satisfied to avoid shortfalls at final accounting.

Talk to a Probate Attorney

If you’re dealing with paid claims and need to gather and file proper satisfaction letters with your probate accounting, 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.