Probate Q&A Series

Will a deposit be refunded if my case is transferred to a court-appointed administrator?

1. Detailed Answer

When you pay a deposit in a probate matter, it may serve one of two purposes:

  • Attorney retainer: An advance on fees and out-of-pocket costs.
  • Fiduciary bond deposit: Money or securities posted with the clerk instead of a surety bond under N.C. Gen. Stat. § 28A-13-1.

Attorney Retainer Deposit

If you engaged a probate attorney and paid a retainer, that money remains your property until the lawyer earns it. When a court-appointed administrator replaces your attorney or personal representative, your lawyer must:

  • Provide a final billing statement.
  • Return any unearned funds promptly.

This obligation flows from the North Carolina Rules of Professional Conduct. Under Rule 1.15, your lawyer must hold client funds in a trust account and keep clear records. Rule 1.16(d) requires the lawyer to refund unused fees when representation ends.

Fiduciary Bond Deposit

If you posted cash or securities with the clerk instead of obtaining a surety bond, the clerk holds that deposit under N.C. Gen. Stat. § 28A-13-1. When the court appoints a new administrator, the successor must file a final account. Once the clerk approves it, any remaining deposit returns to the fiduciary or the estate under N.C. Gen. Stat. § 28A-14-1. The clerk issues the refund by check.

Timing and Procedure

Whether your deposit was a retainer or a bond substitute, you can expect a refund only after:

  1. The estate’s final accounting and approval by the clerk.
  2. Your attorney or the court-appointed administrator computes all earned fees and expenses.
  3. An order directs the clerk or attorney to disburse remaining funds.

If you do not receive your refund within 30 days of the final accounting, contact the fiduciary or the clerk’s office. You may also seek guidance from a probate attorney to enforce your rights.

2. Key Points to Keep in Mind

  • Confirm the nature of your deposit: retainer vs. bond deposit.
  • Review your fee agreement for refund provisions.
  • Request a final invoice showing earned fees and costs.
  • Track the filing of the final accounting by the court-appointed administrator.
  • Note the clerk’s approval date to calculate when a refund should arrive.
  • If funds don’t arrive, follow up in writing with the fiduciary or clerk.

Contact Pierce Law Group for Probate Guidance

Navigating deposits and refunds in court-appointed administration can feel complex. Our attorneys at Pierce Law Group have handled countless probate transitions in North Carolina. We provide clear guidance, protect your interests, and ensure proper handling of all funds.

Contact us today to discuss your situation. Email us at intake@piercelaw.com or call (919) 341-7055. Let us help you secure the refund you deserve and move your probate matter forward.