Short Answer

In North Carolina, your final account must show every dollar that came into the estate (receipts) and every dollar paid out (disbursements and distributions), with backup documents for each entry. Transfers between estate accounts are recorded as an estate disbursement out of one account and a corresponding receipt into the other; distributions to a supplemental needs trust are listed as distributions with proof of deposit. File the account with the Clerk of Superior Court by the deadline and include vouchers like bank statements, canceled check images, and the real estate closing statement.

Understanding the Problem

You’re the personal representative in North Carolina and must file a final accounting with the Clerk of Superior Court. You closed the decedent’s bank accounts, the home was sold, and the proceeds went into a supplemental needs trust. The question is how to show these moves clearly and how to collect the right records so the clerk can audit and approve your final account.

Apply the Law

Under North Carolina law, the final account is a cash-basis report that covers the administration period after your last report. It must itemize all receipts (including proceeds from estate asset sales), all disbursements (administration costs and debt payments), and all distributions (such as transfers to beneficiaries or a supplemental needs trust). You file it in the Estates Division of the Clerk of Superior Court where you qualified. The final account is due by the later of one year after you qualified, six months after any state tax release (if applicable), or the due date for an annual account if the estate remained open beyond a year; you may request an extension for good cause.

Key Requirements

• Complete content: Show the accounting period, all receipts, gains, disbursements, distributions, and any balance remaining (final accounts should end at or near zero).
• Vouchers and backups: Provide vouchers for each payment and distribution (e.g., canceled check images, itemized receipts/bills marked paid, bank statements, and the real estate closing statement). If a voucher is unavailable, be prepared to submit sworn proof.
• Transfers between accounts: Record transfers between estate accounts as an expense from the source account and a matching receipt into the receiving account so the audit trail is clear.
• Distributions to a trust: List distributions to the supplemental needs trust as distributions, not internal transfers; include proof of deposit to the trust account and a beneficiary receipt if applicable.
• Real property proceeds: If the personal representative sold the home, report the gross sale proceeds as a receipt and the allowable selling costs as disbursements, supported by the settlement statement.
• Non‑probate assets: Only include assets that are part of the probate estate. Life insurance or death benefits payable to a named beneficiary are generally not reported in the estate account.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-21-2 (Final accounts—timing) – Sets when the final account is due and allows extensions.
• North Carolina Gen. Stat. § 28A-21-3 (Contents of account) – Lists what must be shown in the account.
• North Carolina Gen. Stat. § 28A-21-5 (Vouchers/verified proof) – Requires vouchers or sworn proof supporting payments.
• North Carolina Gen. Stat. § 28A-23-1 (Discharge after approval) – Clerk enters an order discharging the personal representative after audit and approval.

Analysis

Apply the Rule to the Facts: You’ll list all deposits into the estate (closing out the decedent’s accounts and any sale proceeds) as receipts. You’ll list administrative expenses, debt payments, and sale costs as disbursements with vouchers. Transfers from one estate account to another appear as a disbursement out and a receipt in, keeping totals accurate. The payment to the supplemental needs trust is a distribution; attach proof of deposit from the trust account.

Process & Timing

1. Who files: Personal representative. Where: Clerk of Superior Court, Estates Division, in the county of qualification. What: ACCOUNT (AOC‑E‑506) with itemized schedules; beneficiary receipts (AOC‑E‑521) for distributions; Affidavit of Notice to Creditors (AOC‑E‑307) and Publisher’s Affidavit if not already filed; bank/investment statements and real estate settlement statement; tax certification if applicable. When: File the final account by the later of one year after qualification, six months after any state estate/inheritance tax release (if applicable), or the next annual‑account deadline; request extensions in advance if needed.
2. Audit: The clerk audits the account and may request more documents (for example, check images, monthly statements, or a closing disclosure). You may optionally give written notice of the proposed final account to heirs/beneficiaries; they have 30 days after service to object.
3. Closure: After approval, the clerk records the account and issues an order discharging you as personal representative.

Exceptions & Pitfalls

• Non‑probate items: Do not report life insurance or death benefits payable to a named beneficiary; include only estate assets and proceeds of estate sales.
• Missing vouchers: Clerks expect canceled check images, itemized receipts, statements, and settlement documents. If a voucher is missing, be ready to provide sworn proof and an explanation.
• Repairs and reimbursements: Reimbursing a family member for home repairs requires a detailed invoice and proof of payment; otherwise, the clerk may disallow it.
• Transfers vs. distributions: Transfers between estate accounts must offset; distributions to the supplemental needs trust need proof of deposit from the trust account.
• Timing issues: If the estate cannot close within a year, file an annual account and request any needed extension; failure to file can lead to orders to compel or removal.

Talk to a Probate Attorney

If you’re dealing with a North Carolina final accounting that involves multiple estate and trust accounts, 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.