Probate Q&A Series

What steps do I need to satisfy an order to show cause for a late or missing annual accounting? – North Carolina

Short Answer

In North Carolina, if you receive an order to show cause for a missing annual account, you must file a complete annual account or obtain an extension within 20 days of service of the order. Use the Account (AOC-E-506) form, include all required receipts, disbursements, and supporting vouchers, and appear at the hearing if scheduled. If bank statements are unavailable, provide sworn proof of payments and document your efforts to obtain records. Failure to comply can lead to removal or contempt.

Understanding the Problem

You are the North Carolina estate administrator and the Clerk of Superior Court issued an order to show cause because the annual account was not filed on time. You want to know how to cure the default and avoid removal or contempt when key bank statements are missing.

Apply the Law

Under North Carolina law, an administrator must file an annual account if the estate remains open beyond one year. The account is due by the 15th day of the fourth month after the end of the fiscal year you select for the estate, and annually thereafter, until you file a final account. When an account is late, the clerk can order you to file a “full and satisfactory” account within 20 days after service of the order; if you do not comply or obtain more time, the clerk may remove you or hold you in contempt. The clerk audits accounts and expects vouchers for disbursements; when originals are not available, sworn proof may be accepted. You may ask the clerk for more time before the deadline for cause shown, or after the deadline upon a showing of excusable neglect.

Key Requirements

  • Timely filing: File an annual account each year the estate stays open; respond to a show-cause order within 20 days of service.
  • Complete content: Report beginning balance, all income and additional receipts, all disbursements, gains/losses, and the ending balance, with descriptions and dates.
  • Supporting proof: Attach vouchers (e.g., canceled checks, itemized receipts). If unavailable, provide verified proof explaining the payment and your efforts to obtain records.
  • Extensions: Request additional time from the clerk—before the deadline for cause shown; after the deadline only for excusable neglect—with a detailed affidavit and supporting documents.
  • Consequences and cure: You can avoid removal or contempt by filing a proper account or obtaining more time; appear at any scheduled hearing.
  • Fees: Be prepared to pay the account filing fee on new personal property receipts since the prior filing (minimum applies; cumulative cap).

What the Statutes Say

Analysis

Apply the Rule to the Facts: You received a show-cause order because the annual account was not filed due to missing bank statements. To cure, prepare and file the Annual Account (AOC-E-506) that reports all receipts—include the unclaimed life insurance funds you recovered—and all disbursements, with vouchers or sworn proof for any items lacking statements. Because tax returns are pending but do not stop the accounting deadline, attach a request for more time if needed with an affidavit detailing your efforts to obtain the bank records and any bank correspondence.

Process & Timing

  1. Who files: Administrator. Where: Clerk of Superior Court (Estates Division) in the county where the estate is pending. What: Account (AOC-E-506) with vouchers; optional Fiscal Year Election (AOC-E-514) if not previously set; written request/motion for extension with affidavit if needed; and the applicable filing fee. When: Within 20 days after service of the show‑cause order, unless the clerk grants more time.
  2. If records are missing: File the best-available account with verified proof for payments lacking statements, and include documentation of your efforts to obtain bank records. If the bank remains unresponsive and a hearing is set, ask the clerk to issue a subpoena for the records. Expect the clerk’s audit to take several weeks; timing varies by county.
  3. Hearing and outcome: Attend the show‑cause hearing if scheduled. You typically purge the issue by filing a satisfactory account or obtaining an extension. Upon approval, the clerk endorses the account; continue annual filings until you can file the final account.

Exceptions & Pitfalls

  • Deadlines don’t pause for taxes: Pending estate or fiduciary income tax returns do not extend the accounting due date; request an extension if needed.
  • Missing vouchers: If you lack original statements, provide sworn proof explaining the payment and the steps you took to obtain records. Keep meticulous ledgers and copies.
  • Fiscal year traps: If you chose a fiscal year, your annual account is due the 15th day of the fourth month after its end. Confirm the clerk’s system has the correct due date.
  • Distributions before approval: Don’t make distributions without tracking and supporting them; distributions must be shown on the account with receipts.
  • Nonresponse risk: Ignoring the order or missing the hearing can lead to removal or contempt; communicate promptly with the clerk if you need more time.

Conclusion

To satisfy a North Carolina show‑cause order for a late annual account, file a complete Account (AOC‑E‑506) within 20 days of service or obtain an extension from the clerk. Include all receipts (such as unclaimed life insurance) and disbursements with vouchers or sworn proof, pay the fee, and appear at any hearing. If records are missing, document your efforts and ask the clerk for more time. Next step: file your account or extension request with the Clerk of Superior Court before the show‑cause deadline.

Talk to a Probate Attorney

If you’re facing a North Carolina show‑cause order over a missing annual account, 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.