Detailed Answer

When someone passes away in North Carolina, the court appoints a personal representative to handle the estate. As part of that duty, the representative must report the estate’s financial activity to the clerk of superior court. In probate, these reports take two main forms: annual accountings and a final accounting.

Annual Accounting

An annual accounting provides the court and interested parties an update on the estate’s ongoing administration. It covers a 12-month period and includes:

• Assets the estate holds at the beginning of the period.
• Income received, such as interest, rents, or dividends.
• Expenses paid, including funeral costs, taxes, and administration fees.
• Distributions made to beneficiaries or heirs.
• Assets remaining at the end of the period.

North Carolina law requires the personal representative to file an annual accounting within 12 months of appointment and every 12 months thereafter until closing the estate. See N.C. Gen. Stat. § 28A-21-4.

Final Accounting

A final accounting closes out the estate. The personal representative must file it after settling all debts, paying taxes, and distributing assets to the heirs or beneficiaries. It includes:

• A full record of every asset received and distributed during administration.
• All receipts and disbursements from the date of appointment to the date of final distribution.
• A proposed distribution plan for any remaining assets.

Once the court approves the final accounting, the clerk enters an order discharging the representative from further responsibility. See N.C. Gen. Stat. § 28A-21-16.

Key Differences

While both accountings share similar forms, they serve different purposes:

• Timing: Annual accountings cover each year of administration. The final accounting covers the entire administration period but is filed once.
• Scope: Annual accountings focus on year-to-year activity. The final accounting reviews all transactions from start to finish.
• Outcome: Annual filings keep the court informed. The final accounting ends the administration and allows the personal representative to step down.

Quick Reference Checklist

• File your first annual accounting within 12 months of appointment (§ 28A-21-4).
• Submit subsequent annual accountings every 12 months until all duties end.
• Prepare a final accounting after settling debts and distributing assets.
• Obtain a court order approving the final accounting to close the estate (§ 28A-21-16).
• Keep detailed records of all receipts and disbursements throughout administration.

Contact Pierce Law Group

Handling accountings in probate can feel overwhelming. Pierce Law Group guides personal representatives through each step. If you need help preparing or filing annual or final accountings in North Carolina probate, reach out today. Our attorneys have years of experience in estate administration.

Email us at intake@piercelaw.com or call (919) 341-7055 to schedule a consultation.