Probate Q&A Series

What happens if the commission amount submitted to the clerk is incorrect or doesn’t match the court’s calculation? – North Carolina

Short Answer

In North Carolina estate administration, the clerk of superior court—not the personal representative—sets and approves the commission amount. If the amount submitted is wrong or does not match the clerk’s calculation, the clerk will typically require a corrected petition/order or will approve a different amount based on the estate’s commissionable receipts and disbursements. If a commission was paid based on an incorrect figure, the clerk can require the accounting to be corrected and may require repayment or other adjustments before the estate can be closed.

Understanding the Problem

In a North Carolina estate, can a personal representative’s commission be paid based on a number that was submitted to the clerk of superior court if the math is off or the clerk calculates a different amount? The decision point is whether the commission request matches what North Carolina law allows and what the clerk will approve for that estate administration file. The practical issue usually shows up when the clerk reviews a petition for commissions, an annual account, or a final account and flags a calculation or documentation problem.

Apply the Law

North Carolina law allows a personal representative (executor/administrator) to receive commissions, but the clerk of superior court must approve the amount. The clerk has discretion within statutory guidelines, and commissions are typically tied to “commissionable” receipts and disbursements shown in the estate accounting (not simply the inventory value or a flat percentage of everything that moved through an estate-related account). Commissions generally should not be paid in advance of clerk approval, and the clerk may require the commission request to be supported by the accounting records used to compute it.

Key Requirements

  • Clerk approval before payment: The commission should be requested and approved by the clerk of superior court before it is paid from estate funds.
  • Correct “commission base”: The calculation must use the right receipts and lawful expenditures and exclude items North Carolina law does not treat as commissionable (for example, distributions to beneficiaries are typically excluded from the commission base).
  • Support in the accounting: The petition/order amount should match the numbers shown in the annual or final account (and the supporting bank records), so the clerk can verify the math.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the clerk questioned a commission amount due to a math/calculation issue in an estate administration matter. Under North Carolina practice, the clerk will compare the requested commission to the accounting’s receipts and disbursements and to what the clerk considers commissionable. If the submitted figure does not match the clerk’s calculation, the clerk commonly requires a revised petition/order amount and may require the accounting schedules to be corrected so the commission request and the estate’s records match.

Process & Timing

  1. Who files: The personal representative (often through counsel). Where: The Estates Division of the Clerk of Superior Court in the county where the estate is administered. What: A petition/request for payment of commissions with a proposed order, supported by the estate accounting schedules showing the calculation. When: Often in connection with an annual account or the final account; timing can vary by county practice.
  2. Clerk review and correction: If the clerk’s math differs, the clerk may (a) reject the proposed order and request a corrected submission, (b) approve a different amount than requested, or (c) require amended accounting pages that reconcile the commission base (receipts/expenditures) used in the calculation.
  3. Fixing overpayment or underpayment: If a commission was already paid based on an incorrect number, the clerk may require the personal representative to adjust the accounting and, depending on the situation, repay the difference to the estate or offset it in a later accounting before approving closing documents.

Exceptions & Pitfalls

  • Paying commissions before approval: A common problem is paying commissions before the clerk signs an order. Even if the amount is later “close,” early payment can create a compliance issue and force corrective filings.
  • Using the wrong base numbers: Mistakes often come from including non-commissionable items (such as beneficiary distributions) or from counting “paper” transfers that are really just changes in investments rather than true receipts/expenditures for commission purposes.
  • Mismatch between petition and accounting: If the petition amount does not tie to the annual/final account totals, the clerk may require amended schedules, clearer backup documentation, or a revised order before approving the accounting.
  • County-to-county practice differences: Some clerks prefer commissions to be handled at the end with the final account, while others will consider interim commissions with an accounting. That local practice can affect how quickly a mismatch must be corrected.

Conclusion

In North Carolina, the clerk of superior court approves and sets personal representative commissions under statutory guidelines, so a commission request that is mathematically incorrect or does not match the clerk’s calculation usually gets corrected rather than “pushed through.” The clerk may require a revised petition/order and may require the estate accounting to be amended so the commission base and math reconcile. The next step is to file a corrected commission request that matches the accounting and obtain a signed order before payment (or before the final account is approved).

Talk to a Probate Attorney

If an estate administration commission was flagged by the clerk because the numbers do not match, our firm has experienced attorneys who can help sort out the commission base, fix the accounting, and get the right paperwork back in front of the clerk. 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.