Short Answer

In North Carolina, the executor first accounts for every asset (including anything found after the initial inventory), resolves valid creditor claims, and then makes final distributions so the estate account ends at $0. You document the after-discovered cash with a supplemental inventory, reject untimely creditor claims when appropriate, issue distribution checks with receipts/releases, obtain the bank’s final zero-balance statement, and file a zero-balance Final Account with the Clerk of Superior Court for discharge.

Understanding the Problem

You’re the North Carolina executor and need to close the estate bank account, get a zero-balance statement, and distribute what’s left to three siblings. This involves reporting the cash you discovered after the inventory, addressing a late hospital bill, splitting funds, and reflecting the house transfer to the heirs.

Apply the Law

North Carolina requires a complete accounting of estate assets and debts before closing an estate. After-discovered assets are added by supplemental inventory. Creditors must present claims within the statutory period following notice; late claims can be denied. Distributions occur after valid claims and costs are paid or provided for. You conclude by filing a zero-balance Final Account with the Clerk of Superior Court; upon approval, the Clerk enters an order discharging the personal representative.

Key Requirements

• Account for all assets: List initial assets and file a supplemental inventory for anything found later; keep all receipts in the estate account.
• Handle creditor claims: Publish/mail notice to creditors; pay allowed claims and reject untimely ones in writing.
• Distribute only after debts: Make final distributions to heirs/beneficiaries only after paying or reserving for valid claims and expenses.
• Zero-balance accounting: Issue final checks, wait for them to clear, obtain a bank statement showing $0, and include it as a voucher.
• Final Account and discharge: File a zero-balance Final Account with supporting vouchers; the Clerk audits and then discharges the executor.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-20-3 (Supplemental inventory) – Add after-discovered assets or correct errors.
• North Carolina Gen. Stat. § 28A-14-1 (Notice to creditors) – Executor must give notice and set a claim presentation deadline.
• North Carolina Gen. Stat. § 28A-19-3 (Bar of claims not timely presented) – Late claims are barred after the notice deadline.
• North Carolina Gen. Stat. § 28A-23-1 (Settlement and discharge) – Clerk discharges the executor after approving the Final Account.

Analysis

Apply the Rule to the Facts: Because you found cash after filing the inventory, file a supplemental inventory and deposit those funds into the estate account so every dollar is tracked. If the hospital’s claim came in after the published/mailed deadline in the creditor notice, you can reject it as untimely. After approved expenses and taxes are paid or reserved, distribute the remaining funds equally to the three siblings, obtain signed receipts/releases, and ensure the account balance is $0 before filing the Final Account with the Clerk.

Process & Timing

1. Who files: Executor. Where: Clerk of Superior Court (Estates Division) in the county of administration. What: File a Supplemental Inventory (to report the found cash), then the Annual/Final Account form (AOC form available from the Clerk) with bank statements, canceled checks, and receipts; use Inventory for Decedent’s Estate (AOC‑E‑505) for initial inventory. When: Inventory is due within three months of qualification; Final Account is typically due within one year unless extended.
2. Send written rejection for untimely claims and pay only allowed claims/expenses. Make final distributions to heirs (and, if distributing assets in kind like the motorcycle, document by receipt and title transfer). Ask the bank to close the estate account after all checks clear and issue a final zero-balance statement.
3. File the zero-balance Final Account with vouchers. Consider giving heirs a written “proposed Final Account” notice so they have 30 days to object; if no objection, the Clerk audits and enters an order of discharge.

Exceptions & Pitfalls

• Late claims can still be valid if proper notice wasn’t mailed to a known creditor; confirm that notice was given correctly before rejecting.
• Do not distribute until all known valid claims, taxes, and costs are paid or reserved; early distributions can create personal liability.
• Wait for distribution checks to clear before closing the bank account; include the bank’s zero-balance statement with your Final Account.
• Real property generally vests in heirs/devisees at death. If the house is not needed to pay claims, heirs can record a deed (often a quitclaim among the siblings) to reflect title; a personal representative’s deed is not always required.
• If you serve a proposed Final Account, heirs have 30 days to object; track this before filing to avoid delays.

Talk to a Probate Attorney

If you’re wrapping up an estate—adding a supplemental inventory, handling a late claim, and closing the account—our firm can help you understand each step and timeline. Call us today to discuss your situation.

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.