Understanding Final Accountings in North Carolina Probate

When someone passes away with assets that require probate, the personal representative (also known as the executor or administrator) must manage the estate and keep accurate records of all financial transactions. The culmination of this process is the final accounting. This document shows every receipt, disbursement, and transaction from the date letters testamentary or of administration were issued until the estate’s assets have been distributed.

Under North Carolina law, a personal representative must file the final accounting with the clerk of superior court. The rules for submitting and approving final accountings appear in Chapter 28A of the North Carolina General Statutes:

• N.C. Gen. Stat. § 28A-18-1 (Entry for settlement of account)
• N.C. Gen. Stat. § 28A-18-2 (Notice of hearing on settlement)

Here’s what happens in practice:

1. Prepare the Accounting: List every dollar the estate received and paid out. Include bank statements, sale proceeds, funeral costs, attorney fees, and any other estate expenses.
2. File with the Clerk: Submit the formal accounting document to the clerk of superior court in the county where probate opened.
3. Serve Notice: Send notice of the settlement hearing to all interested parties. This includes heirs, devisees named in the will, creditors who filed claims, and anyone else entitled to notice. Statutory notice periods apply, generally 10 to 20 days before the hearing.
4. Attend the Hearing: At the scheduled hearing, parties may object to the accounting. Common objections involve questioning disbursements, challenging fees, or asserting undisclosed claims.
5. Clerk’s Approval: If the clerk finds the accounting correct and no valid objections remain, the clerk signs an order settling the account. This order effectively approves the accounting.
6. Distribution and Discharge: Once the accounting is settled, the personal representative may distribute remaining assets as ordered. After distribution, the personal representative can petition to be discharged. Upon discharge, the representative’s duties end and personal liability for estate administration typically ceases.

Completing this process accurately ensures the estate concludes properly under North Carolina law. Any mistakes can delay closing the estate or expose the personal representative to personal liability.

Key Steps to Final Accounting Approval

• Compile detailed records of all estate transactions.
• Use the correct form and format required by the clerk.
• Serve timely notice to all interested parties per N.C. Gen. Stat. § 28A-18-2.
• Schedule and attend the settlement hearing.
• Address any objections or questions raised at the hearing.
• Obtain the clerk’s order settling the account.
• Distribute remaining assets and file a petition for discharge.