How Do Probate Attorneys Manage Jurisdiction and Retainer Agreements in Cases Involving Disputed Escrow Funds from Out-of-State Property Transactions in North Carolina?
Detailed Answer
When a decedent’s estate includes disputed escrow funds from the sale of real property located outside North Carolina, a North Carolina probate court still holds authority over those funds if the decedent was domiciled here at death. Under G.S. 28A-2-1(8), escrow proceeds qualify as intangible personal property. The personal representative appointed by the North Carolina court can collect those funds by presenting letters testamentary or letters of administration to the escrow agent or title company.
If the escrow agent refuses to release funds, the personal representative can take steps to enforce the probate court’s order. This may include registering the North Carolina probate order in the foreign jurisdiction under the Uniform Enforcement of Foreign Judgments Act or filing a separate collection action there.
Before the attorney-client relationship begins, North Carolina Rule of Professional Conduct 1.5(b) requires a written retainer agreement. This agreement must define the scope of representation (including pursuit of escrow funds), the fee structure (hourly, flat fee, or contingency), billing practices, and how the firm will handle client funds. To safeguard disputed escrow proceeds, the attorney deposits funds into a trust account as required by Rule 1.15 of the NC Rules of Professional Conduct. If a conflict arises or the scope of work changes, the attorney and client must revise or terminate the agreement under Rule 1.16.
Key Steps to Manage Jurisdiction and Retainer Agreements
- Confirm the decedent’s domicile and identify all intangible personal property (escrow funds) held in any jurisdiction.
- File a probate petition in the county where the decedent was domiciled under G.S. 28A-13-1.
- Obtain letters testamentary or of administration authorizing the personal representative to act.
- Draft and sign a written retainer agreement in compliance with Rule 1.5(b) of the NC Rules of Professional Conduct.
- Open a client trust account and deposit escrow proceeds in accordance with Rule 1.15.
- Notify the escrow agent of the personal representative’s authority and demand release of funds.
- If necessary, register the North Carolina probate order in the foreign state under the Uniform Enforcement of Foreign Judgments Act.
- Pursue collection actions in the other state if the escrow agent or title company resists.
- Once escrow disputes resolve, distribute funds according to the will or North Carolina intestacy statutes under G.S. 28A-15-1.
Conclusion and Next Steps
Disputed escrow funds in out-of-state property transactions present both jurisdictional and procedural challenges. A clear, written retainer agreement ensures your rights stay protected while a North Carolina court-appointed personal representative can assert authority over all intangible assets of the estate. If you need assistance recovering escrow proceeds or drafting a compliant retainer agreement, our team at Pierce Law Group stands ready to help. Contact us today by emailing intake@piercelaw.com or calling (919) 341-7055 to schedule a consultation.
