What Is an Annual Accounting in the Probate Process in North Carolina?
Detailed Answer
In North Carolina probate, an annual accounting serves as an interim financial report that an executor or administrator must file with the clerk of court. Its goal is to track all estate assets received and all payments made during the preceding year. This process promotes transparency, ensures proper estate management and provides beneficiaries with a clear record of fiduciary actions.
Who Must File?
Under G.S. 28A-24-1, every executor, administrator or special representative holding estate assets must file an annual account. The requirement begins one year after letters testamentary or letters of administration issue and continues each year until the estate closes.
What Does an Annual Accounting Include?
- All cash, securities and property received by the fiduciary.
- Itemized disbursements such as creditor payments, taxes, funeral expenses and attorney fees.
- Valuation of estate assets at the start and end of the accounting period.
- Receipts or vouchers supporting each expenditure.
How Is It Filed?
The annual account must be filed in the estate file at the clerk’s office. After filing, the clerk issues notice to all interested parties. Beneficiaries and creditors then have an opportunity to examine the account, ask questions and file exceptions if they believe errors or omissions exist.
Approval and Exceptions
If no one objects within the deadline set by statute, the clerk allows the account. If beneficiaries file exceptions, the court schedules a hearing to resolve disputes. Once approved, the fiduciary moves forward with administering the estate until the next annual accounting or final settlement.
Key Points to Remember
- Deadline: File your first annual account within 12 months of receiving letters; repeat yearly until estate closes.
- Content: Include receipts, disbursements and valuations as required by G.S. 28A-24-1.
- Notice: The clerk must notify interested parties after the account is filed.
- Objections: Beneficiaries can review the account and file exceptions that may lead to a court hearing.
- Final vs. Annual: The final accounting comes when all assets distribute; annual accounts happen each year before that.
Contact Pierce Law Group for Help
Navigating annual accountings in the probate process can feel overwhelming. Pierce Law Group has experienced attorneys ready to guide you through each step. Contact us today to protect your rights and complete the required filings accurately. Email us at intake@piercelaw.com or call (919) 341-7055.
