Where would insurance or government program payments appear on the statement of account? – North Carolina Probate Guide

Where Do Insurance or Government Program Payments Go on a North Carolina Estate Statement of Account?

Detailed Answer

North Carolina requires every personal representative to file an interim or final Statement of Account (AOC-E-506 or AOC-E-505). The form tracks three categories for each accounting period:

• Column A — Receipts: money coming into the estate
• Column B — Disbursements: money going out
• Schedule of Distributions: property and cash delivered to heirs or devisees

Insurance proceeds and government program payments—Veterans Affairs burial allowance, Social Security one-time death payment, Medicare premium refunds, etc.—are placed on the Statement according to N.C. Gen. Stat. § 28A-21-3 (content of accounts):

1. Payment made to the estate (check payable to “Estate of …”)
   • Enter the gross amount in Column A — Receipts.
   • Describe the item, e.g., “State Health Plan life insurance refund.”
   • Attach backup documents (check copy, deposit slip, letter).
2. Payment made directly to a named beneficiary
   • It bypasses probate under § 28A-15-10; do not list it as a receipt.
   • Note it in the “Information for Clerk” section so the clerk knows why it is excluded.
3. Reimbursement of an expense already shown as a disbursement
   • Record the reimbursement in Column A — Receipts.
   • Reference the original disbursement line to keep the account balanced.
4. Receivable not yet collected
   • List it on the Schedule of Assets Remaining (Page 4).
   • Move it to Column A once the money arrives.

Placing each payment in the correct spot keeps the account in balance and avoids clerk rejections or surcharges under § 28A-21-4.

Helpful Hints

• Open a dedicated estate bank account and deposit all estate-payable checks there first.
• Keep copies of every check, deposit slip, and award letter with the accounting file.
• Ask insurers or agencies to state in writing whether the estate or a beneficiary is the payee.
• Reconcile the estate bank statement monthly; unmatched deposits delay approval.
• File interim accounts annually as required by § 28A-21-1 to avoid late fees.

Ready to close the estate without accounting headaches? Our North Carolina probate team guides personal representatives every day, prevents costly mistakes, and speeds up estate closing. Call us now at (919) 341-7055 for a free consultation.