Probate Q&A Series

Detailed Answer

In North Carolina, a probate estate must pay its own administration costs before distributing assets to beneficiaries. Attorney fees and legal expenses fall under “costs of administration” when a personal representative or any party in interest incurs them in the course of winding up an estate. State law outlines when and how these fees may be reimbursed.

1. Authorization as Costs of Administration

Under N.C. Gen. Stat. § 28A-18-1, an estate covers “all costs and expenses of administration,” which include reasonable attorney fees. You can read the statute here: 28A-18-1.

2. Clerk’s Approval of Fees

A personal representative applies to the clerk of superior court for an allowance of compensation and fees. The clerk reviews the application and may hold a hearing if creditors or beneficiaries object. The statute governing this process is N.C. Gen. Stat. § 28A-26-1. Details are available at 28A-26-1.

3. Fees in Will Contests or Construction Petitions

If someone successfully contests or asks the clerk to interpret a will, the clerk may award reasonable compensation, including attorney fees and costs, to the prevailing party. This allowance comes from estate assets under N.C. Gen. Stat. § 30-3.1. Review the statute here: 30-3.1.

4. Extraordinary or Litigation-Related Fees

Not all legal work is routine. If the estate requires complex litigation—such as claims against third parties, tax audits, or disputes over asset valuation—the estate may seek additional allowances for extraordinary services. The personal representative must justify these fees in the application to the clerk.

Key Points to Remember

  • File a detailed fee application with the clerk of superior court.
  • List services performed, hours spent, and hourly rates.
  • Identify whether fees are ordinary (routine administration) or extraordinary (litigation, tax issues).
  • Notify heirs and creditors and allow time for objections.
  • Attend a clerk’s hearing if the court schedules one.
  • Understand that beneficiaries cannot be personally charged; fees come from estate assets.
  • Consider mediation or settlement to limit litigation fees.

Handling attorney fees and legal expenses in probate requires careful planning, clear documentation, and compliance with North Carolina statutes. When you face complex questions about estate administration or need to submit fee applications, you want experienced probate counsel on your side.

Call us today. Pierce Law Group’s probate attorneys guide personal representatives and beneficiaries through every step of estate administration. Email us at intake@piercelaw.com or call (919) 341-7055 to schedule a consultation.