Jan242026
Probate Q&A Series

Why would certain money be listed as a receipt on the estate accounting instead of being included on the inventory? – North Carolina

Short Answer

In North Carolina probate, the inventory is meant to list what the decedent owned (and its date-of-death value), while the estate accounting is meant to show what the personal representative actually received and paid out during a reporting period. Money that was not in the personal representative’s possession or control when the inventory was prepared—such as sale proceeds held by a court pending identification of the proper recipient—often shows up later as a “receipt” when it is released and deposited into the estate account. If the money was an estate asset as of the date of death, a supplemental inventory may also be appropriate, depending on timing and local clerk practice.

Understanding the Problem

In a North Carolina estate administration, can funds connected to a decedent’s interest in property be shown on the later estate accounting as a receipt instead of being listed on the inventory, when the funds are being held by a court and have not yet been released to the personal representative? The decision point is whether the money should be treated as an asset owned as of the date of death (inventory) versus money later collected by the personal representative during administration (accounting). The question commonly comes up when a third party (including a court) is holding funds and the estate must file an application or motion to have the funds released into the estate account.

Apply the Law

North Carolina uses two different reporting tools that serve different purposes. The inventory is a snapshot of the probate estate’s assets and their fair market value as of the date of death. The annual or final account is a cash-flow style report that lists what came into the estate (receipts) and what went out (disbursements) during the accounting period, supported by records. If an asset is discovered later or its value was unknown or incorrect, North Carolina law contemplates filing a supplemental inventory; however, in day-to-day practice, many estates also reflect newly collected assets on the next account so the clerk can see when the personal representative actually received the funds.

Key Requirements

  • Inventory is date-of-death ownership and value: The inventory is designed to list property owned by the decedent as of the date of death and to report its fair market value as of that date, even if the asset is not immediately liquid.
  • Accounting is what the personal representative received and paid: The accounting is designed to show receipts into the estate and disbursements out of the estate during a defined period, typically using the estate checking account as the hub for tracking.
  • Later-discovered assets may require a supplemental inventory: If property was not included on the original inventory (or was misstated), the personal representative may need to file a supplemental inventory so the court file accurately reflects the estate’s assets.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The out-of-state real property sale proceeds were not available to the estate because they were deposited with a court while no verified recipient was available. That makes it reasonable for the personal representative to show the eventual release and deposit into the estate account as a “receipt” on the next accounting, because that is when the personal representative actually received the money. At the same time, if the decedent’s right to those proceeds existed as of the date of death, the inventory may need to reflect that interest (sometimes with an “undetermined” value until the exact amount is confirmed) or be updated by a supplemental inventory once the amount is known.

Process & Timing

  1. Who files: The personal representative. Where: The Clerk of Superior Court (Estates) in the county where the North Carolina estate is pending. What: An inventory/appraisement filing and later an annual or final account (commonly filed on the AOC estate accounting form used by the clerk). When: The inventory is typically due within about 90 days after qualification (unless extended by the clerk), and accounts are due on the schedule set by statute and the clerk’s office.
  2. Collect and document the funds: File the appropriate application/motion in the court holding the funds to have them released to the estate, then deposit the funds into the estate checking account and keep clear documentation showing the date received, the source, and the reason for the payment.
  3. Report consistently: On the next account, list the deposit as a receipt with a description that matches the paperwork (for example, “court-held proceeds released to estate”). If the asset was not shown on the inventory (or the value was unknown), consider filing a supplemental inventory so the estate file aligns with the accounting and the clerk’s audit is smoother.

Exceptions & Pitfalls

  • Mixing up “owned” versus “received”: An asset can be owned as of the date of death (inventory concept) even if the cash is not received until months later (accounting concept). Treating everything as a receipt can make the inventory look incomplete.
  • Skipping a supplemental inventory when needed: North Carolina practice recognizes that newly discovered or corrected assets may require a supplemental inventory. Some clerks accept reporting on the next account, but others may want the inventory corrected for the file.
  • Weak paper trail: Court-released funds should be deposited into the estate checking account and supported with the release order, deposit record, and any correspondence. Missing documentation can slow clerk approval of the account.
  • Creditor-period timing: With a claims period still open, the accounting should clearly show when the funds became available to pay expenses and claims, and the estate should avoid distributions that could create cash-flow problems if valid claims arrive.

Conclusion

In North Carolina, the inventory reports what the decedent owned and its date-of-death value, while the estate accounting reports what the personal representative actually received and paid during administration. When sale proceeds are held by a court and only later released to the estate, it is commonly shown as a receipt on the next account because that is when the money is collected. If the decedent’s right to the proceeds existed at death, the next step is to file the inventory on time and, if needed, file a supplemental inventory after the funds are confirmed and released.

Talk to a Probate Attorney

If dealing with court-held funds, out-of-state sale proceeds, and North Carolina inventory/accounting deadlines, our firm has experienced attorneys who can help explain options, documentation, and timelines. Call us today at [CONTACT NUMBER].

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.

Category: Probate Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.