Short Answer

In North Carolina, a personal representative must account for every estate receipt and disbursement with bank statements and vouchers (like check images and paid receipts). If a withdrawal is unexplained, reconcile the account, get item-level records from the bank, and gather or recreate documentation. If needed, request more time to file the accounting, and use an estate proceeding to examine anyone who may hold information about the funds. If the transaction cannot be verified as a proper estate expense or distribution, be prepared to correct the account and restore funds before approval.

Understanding the Problem

You are the personal representative in North Carolina and must file a court-required accounting that lists all estate receipts and clearly classifies each debit as a valid estate expense or a distribution. You lack some receipts for routine payments, and a large mid-December withdrawal from the estate account cannot be traced. You also have two parcels of real property with unclear fractional ownership.

Apply the Law

Under North Carolina law, the personal representative must keep accurate records and file annual and/or final accounts with the Clerk of Superior Court, supported by bank statements and vouchers for every disbursement. The Clerk audits accounts and may require sworn explanations, additional documentation, or a hearing. When money or records are outside your control, you can initiate an estate proceeding to examine persons reasonably believed to hold estate property or information. If a receipt is lost, verified proof under oath may be accepted. The main forum is the Clerk of Superior Court in the county where the estate is pending. Annual accounts are typically due the 15th day of the fourth month after the estate’s fiscal year end; final accounts are due by statute unless extended.

Key Requirements

• Complete documentation: Every disbursement must be supported by a voucher (e.g., check image, invoice marked paid) or verified proof if the voucher is unavailable.
• Accurate classification: Each debit must be classified as an estate expense or a distribution; items tied to real property not under estate control generally should not be paid from estate funds.
• Clerk audit and inquiry: The Clerk can audit, request more records, examine the personal representative under oath, and withhold approval until the account is satisfactory.
• Discovery tools: The personal representative may petition to examine persons reasonably believed to possess estate property or records to trace missing funds.
• Timing compliance: File by the statutory deadlines or obtain an extension from the Clerk before the due date if more time is needed to investigate.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-21-1 (Annual accounts) – Requires annual accounts and production of vouchers for payments.
• North Carolina Gen. Stat. § 28A-21-2 (Final accounts; extensions) – Sets timing for final accounts and permits extensions.
• North Carolina Gen. Stat. § 28A-21-5 (Lost vouchers) – Allows verified proof under oath if a voucher is lost.
• North Carolina Gen. Stat. § 28A-15-12 (Examination of persons holding estate property) – Authorizes proceedings to examine persons reasonably believed to hold estate property and to order recovery.

Analysis

Apply the Rule to the Facts: You must show the Clerk bank statements and vouchers for each payment, including the disputed mid-December withdrawal. Start by reconciling the bank statements and requesting check images and ACH details to identify the payee and purpose. For routine payments (veteran medical bill, motor vehicle fees, utilities, telecom closure), obtain invoices or confirmations; if a receipt is unavailable, prepare verified proof under oath. Because fractional ownership of real property is unclear, avoid classifying post-death property expenses as estate expenses unless the estate has legal authority over the property; otherwise document as distributions or seek court guidance.

Process & Timing

1. Who files: Personal representative. Where: Clerk of Superior Court (Estates Division) in the county where the estate is pending in North Carolina. What: ACCOUNT (AOC-E-506) with bank statements, vouchers (check images, paid invoices), and a clear classification of the unexplained withdrawal; if a receipt is missing, include sworn verified proof; if time is short, file a written request to extend the accounting deadline. When: Annual account is due by the 15th day of the fourth month after the selected fiscal year end; the final account is due as set by statute unless extended.
2. Request item-level records from the bank (front/back of checks, ACH trace, merchant descriptors). If a third party may hold answers or funds, file a verified petition to examine that person under North Carolina Gen. Stat. § 28A-15-12, and serve an estate proceeding summons. Bank investigations and record pulls often take several weeks; county practices vary.
3. Submit a corrected or supplemented account once the withdrawal is traced. If it was not a valid estate expense, reclassify it (e.g., distribution) or restore funds before seeking approval. The Clerk will audit and either approve the account or set a hearing for any unresolved issues.

Exceptions & Pitfalls

• Unverified withdrawals: If you cannot produce a voucher or verified proof, the Clerk may refuse to approve the account and can require you to replace the funds before approval.
• Real property expenses: In North Carolina, post-death expenses tied to real property not under estate control generally should not be paid from estate funds; misclassification can delay approval.
• Lost receipts: A sworn statement can substitute for a lost voucher, but it must specifically describe the payment, purpose, and how the original was lost.
• Failure to meet deadlines: Missing the accounting deadline can trigger orders to show cause, hearings, or removal; request extensions early if needed.
• Third-party control of records: Use an estate proceeding to examine persons or entities who hold needed information or funds if voluntary cooperation stalls.

Talk to a Probate Attorney

If you’re dealing with a missing or unexplained estate withdrawal and an upcoming accounting, our firm has experienced attorneys who can help you understand your options 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.