Which statements and financial documents are required for annual and final probate accountings in North Carolina?

Short answer: North Carolina requires a verified, itemized account of every dollar that came into and went out of the estate during the accounting period, supported by bank and brokerage statements and proof (vouchers) for each disbursement. Annual accounts and the final account must balance to the penny and show what assets remain on hand. See G.S. 28A-21-1 and G.S. 28A-21-2.

Detailed Answer

In North Carolina probate, the Clerk of Superior Court oversees estate accountings. The personal representative (executor or administrator) must file:

• Annual accounts until the estate is ready to close, and
• A final account when administration is complete.

The legal requirements come from Chapter 28A of the North Carolina General Statutes:

• What must be filed: Annual and final accounts, under oath, showing all receipts, disbursements, distributions, and assets remaining on hand (G.S. 28A-21-1 and G.S. 28A-21-2).
• How the account must look: Itemized entries for every receipt and disbursement; a schedule of assets on hand; and supporting vouchers for disbursements (G.S. 28A-21-2).
• Connection to the Inventory: The first account should tie back to the Inventory (what the estate owned at death). The Inventory requirements appear in G.S. 28A-20-1 and G.S. 28A-20-2.

Documents you should expect to provide with an Annual Account

Clerks typically require enough documentation to verify each entry and reconcile the ending balances. Plan to include:

• Bank statements for each estate account covering the entire accounting period (monthly statements). Include the statement that shows the ending date of the accounting period.
• Brokerage and investment account statements (monthly or quarterly), including year-end 1099s for dividends, interest, and capital gains credited to the estate.
• Canceled checks or check images for each estate check written, or electronic payment confirmations, plus paid invoices/receipts that match each disbursement.
• Deposit records (deposit slips, confirmations) for incoming funds such as refunds, sale proceeds, rent, dividends, or interest.
• Receipts from beneficiaries for any interim distributions made during the accounting period (signed receipts or releases).
• Proof of funeral and last-illness payments (invoices and receipts).
• Tax documents: Filed federal/state fiduciary income tax returns (Form 1041) if applicable, tax payment vouchers, and any IRS or NCDOR correspondence.
• Appraisals or valuation statements for assets you sold (e.g., vehicles, collectibles, business interests) if needed to substantiate sale price and any gain/loss.
• Real estate sale documents if the estate sold real property: settlement statement (ALTA/HUD/CD), deed, broker invoice, and proof of net proceeds deposited into the estate account. If the sale required court authority, include the order approving the sale.
• Vehicle sale or transfer records (bill of sale, title transfer, DMV receipt) and proof of proceeds deposited.
• Insurance or retirement account paperwork if proceeds were payable to the estate (policy statement, payout confirmation).
• Clerk’s fees and bond premium receipts paid during the period.

Additional documentation for the Final Account

Your final account must prove that administration is complete and that the estate is ready to close. In addition to the items above, include:

• Final bank and brokerage statements showing the zero or residual balances that match your Schedule of Assets on Hand.
• Receipts and releases from all beneficiaries for final distributions.
• Confirmation that all creditor claims were resolved (proof of payment, settlement agreements, or court orders disallowing claims).
• Proof all taxes are filed and paid (final Form 1041 if required, and any property tax or income tax confirmations).
• Any court approvals for sales or compromises that occurred late in administration.

How the numbers must reconcile

The Clerk looks for a clean reconciliation:

• Beginning balance (from prior account or Inventory) + all receipts − all disbursements = Ending balance on hand.
• Ending balance must match the totals shown on your most recent bank/brokerage statements and the assets listed on your Schedule of Assets on Hand.

The forms you’ll file

• Estate Annual/Final Account (AOC-E-506) — available at nccourts.gov.
• Inventory for Decedent’s Estate (AOC-E-505) — available at nccourts.gov. Your first account should tie back to this filing.

Quick example

Suppose the estate started with $40,000 in its checking account (per the Inventory). During the year, the estate received $1,200 in bank interest and $9,500 from selling a vehicle. It paid $8,800 for funeral costs, $2,300 for utilities and insurance on the home, $1,000 for accounting fees, and distributed $5,000 to a beneficiary.

• Your account lists each receipt and disbursement with dates and payees.
• You attach bank statements for the year, check images, the funeral invoice and receipt, the accountant’s invoice and receipt, the vehicle bill of sale and DMV transfer, and the deposit slip for the $9,500.
• The math: $40,000 + $1,200 + $9,500 − $8,800 − $2,300 − $1,000 − $5,000 = $33,600. The latest bank statement must show $33,600 as the balance on hand.

Helpful Hints

• Open a dedicated estate bank account. Never mix estate funds with personal funds.
• Keep every receipt, invoice, and statement. If the Clerk cannot verify a transaction, it may be disallowed.
• Number your vouchers to match the line items on the account. This speeds review.
• Download and save monthly statements as PDFs. Many banks limit how far back you can retrieve them.
• Record every deposit’s source in the memo line and keep supporting documents.
• For electronic payments, print confirmations showing date, amount, and payee.
• Use professional appraisals for unique assets (antiques, firearms, business interests) before selling.
• Before final distributions, confirm all creditor deadlines have run and claims are paid or denied.
• Ask the Clerk’s office about any local preferences. Some counties require specific document formats or extra schedules.
• If you discover new assets after filing the Inventory, file an amended or supplemental Inventory so your next account reconciles properly.

Getting annual and final accountings right avoids delays, extra hearings, and potential personal liability. If you want help assembling a complete, compliant accounting under North Carolina law, our probate team can guide you, prepare the schedules, and work with the Clerk’s office to keep your estate on track. Call us today at (919) 341-7055.