Jan172026
Probate Q&A Series

What is the difference between the estate inventory and the estate accounting, and when does each get filed? – North Carolina

Short Answer

In North Carolina probate, the estate inventory is a snapshot list of what the decedent owned that is part of the probate estate, valued as of the date of death. The estate accounting is a running report that shows what came in and what went out during administration (starting balances, receipts, disbursements, and what remains). The inventory is generally due within three months after the personal representative qualifies, and accountings are filed annually until a final account can be filed (often around the one-year mark, unless extended or delayed by required clearances).

Understanding the Problem

Under North Carolina probate practice, a personal representative must report estate information to the Clerk of Superior Court during administration. The decision point is whether a particular report is meant to list what property is part of the probate estate at the start (the inventory) or to show the money and property activity over time (the accounting), and when each must be filed after qualification.

Apply the Law

North Carolina requires a personal representative (executor or administrator) to file an inventory after qualification and then file accounts while estate assets remain under the personal representative’s control. The inventory focuses on identifying and valuing probate assets as of the date of death. The accounting focuses on tracking administration activity (what was collected, what was paid, and what is left) and supports closing the estate through a final account when administration is complete.

Key Requirements

  • Inventory (what the estate owns): A list of probate assets that came into the personal representative’s hands (or are held for the personal representative), with values generally tied to the date of death.
  • Accounting (what happened during administration): A debit/credit style report showing beginning assets, money received, expenses and distributions paid, and the ending balance or remaining property.
  • Timing and ongoing duty: The inventory is due early in the case; accountings continue on a schedule (annual) until the estate can be closed with a final account (or another approved closing method, depending on the estate).

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the inventory is being prepared from bank records obtained from a financial institution, which fits the inventory’s job: identifying what probate assets existed as of the date of death and came under the personal representative’s control. Later, the accounting will use those same records (plus estate bills and receipts) to show transactions during administration, including deposits, payments, and any distributions. If certain assets are titled in the client’s name rather than the decedent’s name (or pass by beneficiary designation), those items may be excluded from the probate inventory and instead documented as non-probate property, which is why counsel may request an affidavit and supporting documentation to confirm ownership.

Process & Timing

  1. Who files: The personal representative (executor or administrator). Where: The Estates Division of the Clerk of Superior Court in the county where the estate is opened in North Carolina. What: The inventory is commonly filed on AOC-E-505 (Inventory for Decedent’s Estate); annual and final accounts are commonly filed on AOC-E-506 (Account). When: The inventory is generally due within three months after qualification.
  2. Annual accounting while the estate stays open: If the estate is not ready to close, an annual account is filed on the statutory schedule (often tied to one year after qualification unless a fiscal year is elected). The Clerk may set internal deadlines and send reminders, but the legal duty exists even without a reminder.
  3. Final accounting to close: When administration is complete (assets collected, valid claims handled, and distributions ready), the personal representative files a final account under the statutory timing framework. If the estate cannot close by the usual timeframe, counsel typically requests an extension and files the appropriate annual account(s) until closing is available.

Exceptions & Pitfalls

  • Non-probate vs. probate ownership confusion: Joint accounts with survivorship, payable-on-death accounts, beneficiary-designated assets, and assets titled in someone else’s name may not belong on the probate inventory. Clear title documents and date-of-death statements help avoid misreporting.
  • Mixing “inventory values” with “accounting activity”: The inventory generally reports date-of-death values; the accounting reports transactions during administration. Blending these concepts can create audit questions and delays.
  • Missing later-discovered assets: If an asset is found after the inventory is filed (or a value/description was wrong), North Carolina law requires a supplemental inventory. Some estates also reflect changes on later accounts, but counsel should confirm what the local Clerk expects for the specific situation.
  • Documentation gaps: Bank records, closing statements, and proof of ownership matter. When an asset appears connected to the decedent but is titled to someone else, the Clerk may require additional proof (often through affidavits and supporting documents) before accepting how it is reported.

Conclusion

In North Carolina, the estate inventory and estate accounting serve different purposes: the inventory lists and values probate assets as of the date of death, while the accounting shows what the personal representative received, paid, and still holds during administration. The inventory is generally due within three months after qualification, and annual accounts are required while assets remain under the personal representative’s control until a final account can be filed to close the estate. Next step: file the inventory with the Clerk of Superior Court within three months of qualification.

Talk to a Probate Attorney

If an estate inventory and later accounting are being prepared and questions exist about whether certain assets are probate assets or owned outside the estate, our firm has experienced attorneys who can help explain the reporting requirements, documentation, and timelines. 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.

Category: Probate Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.