Who Pays Mediation Fees in a North Carolina Probate Dispute, and Can Those Fees Be Paid From the Estate?

Detailed Answer

In North Carolina probate litigation, the parties often resolve disagreements through mediation. The clerk of superior or district court may order mediation in contested probate matters. Under North Carolina’s Alternative Dispute Resolution rules, the mediator charges a fee for services. By default, the parties share that fee equally. The court can adjust each party’s share by order or the parties can agree among themselves to a different split.

When it comes to paying mediation fees from the deceased’s estate, state law allows it in certain circumstances. North Carolina General Statutes § 28A-15-3(g) authorizes courts to include “costs of mediation or other alternative dispute resolution” as part of the costs of accounting in an estate settlement. If the personal representative files a petition asking the court to approve mediation fees as estate expenses, and the court finds them reasonable and necessary to resolve estate litigation, the clerk may allow the fees to be paid out of estate funds.

Here is how it works in practice:

1. The court orders mediation or the parties stipulate to it.
2. The mediator submits an invoice or statement of fees.
3. Parties either pay their agreed share directly or seek court approval to have the estate pay part or all of those fees.
4. The personal representative petitions the court under NC Gen. Stat. § 28A-15-3(g). If approved, the fees become a lawful estate expense and reduce the distributable estate before distributions to heirs or beneficiaries.

By allowing mediation fees as estate costs, North Carolina law encourages dispute resolution while protecting beneficiaries from bearing unreasonable litigation expenses personally.

Key Points to Remember

• Clerks may order mediation in contested probate proceedings.
• Parties typically split mediator fees equally unless they agree otherwise or the court orders a different allocation.
• Under NC Gen. Stat. § 28A-15-3(g) (link), mediation costs can be approved as estate expenses.
• The personal representative must petition the court to pay mediation fees from estate assets.
• Once approved, fees reduce the estate’s net value before distributions to heirs and beneficiaries.

Call to Action

If you face a probate dispute in North Carolina and need guidance on mediation, court orders, or estate-expense petitions, contact Pierce Law Group. Our attorneys have extensive experience navigating probate mediation and court procedures. Let us help you resolve conflicts efficiently and protect estate assets.

Email us at intake@piercelaw.com or call us at (919) 341-7055 to schedule a consultation.