What is the process for distributing the sale proceeds and handling attorney fees after the hearing is scheduled?

Detailed Answer

In North Carolina probate, once the clerk has scheduled and held the hearing to confirm the sale of estate property and to allow commissions and attorney fees, the personal representative follows several steps to distribute the sale proceeds and pay the attorney. Here’s how the process works:

1. Confirmation of Sale: After notice and hearing under N.C. Gen. Stat. § 28A-18-2, the clerk issues an order confirming the sale of real estate and approving the purchase price and terms.
2. Allowance of Commissions and Fees: At the same hearing, or a separate hearing, the clerk reviews petitions for commissions to the personal representative under N.C. Gen. Stat. § 28A-15-2 and for reasonable attorney compensation under N.C. Gen. Stat. § 28A-15-3. The clerk approves and sets the amounts.
3. Release of Funds: Once the order confirms the sale and allowances, the clerk or escrow agent releases the sale proceeds. The personal representative collects these funds as the estate’s asset.
4. Payment of Fees and Commissions: From the sale proceeds, the personal representative pays the approved attorney fee and personal representative commission first, as priority expenses of administration.
5. Payment of Debts and Expenses: The personal representative uses remaining funds to pay valid debts and administrative expenses under N.C. Gen. Stat. § 28A-13-1.
6. Final Settlement and Distribution: After settling debts, the personal representative files a final accounting and a petition for distribution under N.C. Gen. Stat. § 28A-18-1. The clerk sets a hearing, and upon approval, the clerk issues an order directing the final distribution to beneficiaries.
7. Disbursement to Beneficiaries: The personal representative distributes the net proceeds to beneficiaries according to the will or North Carolina’s intestacy statutes.

Key Steps to Streamline Proceeds Distribution

• Confirm sale and approve terms through the probate clerk.
• Serve notice and attend the hearing for sale confirmation (N.C.G.S. § 28A-18-2).
• File petitions for personal representative commissions (N.C.G.S. § 28A-15-2) and attorney fees (N.C.G.S. § 28A-15-3).
• Collect sale funds and pay court-authorized commissions and fees.
• Pay estate debts and administrative costs (N.C.G.S. § 28A-13-1).
• Submit final accounting and petition for distribution (N.C.G.S. § 28A-18-1).
• Distribute net proceeds to beneficiaries as ordered by the court.

Distributing sale proceeds and handling attorney fees requires strict adherence to North Carolina’s probate statutes and court procedures. Skipping steps or missing deadlines can delay final distribution and expose the personal representative to personal liability.

At Pierce Law Group, we guide you through each stage of probate administration. Our team has many years of experience in North Carolina estates. Contact us today to protect your loved one’s estate and ensure a smooth probate process. Email us at intake@piercelaw.com or call (919) 341-7055.