Short Answer

In North Carolina, you report estate money in the final account on AOC-E-506 as receipts and disbursements, each backed by vouchers (like closing statements, canceled checks, and itemized receipts). If the personal representative sold the home under proper authority, list the gross sale as a receipt, closing costs and approved repairs as disbursements, and the transfer to the supplemental needs trust as a distribution with a trustee receipt. If heirs sold the home and the estate never held the funds, note the sale for context but do not list the proceeds as estate receipts.

Understanding the Problem

You’re the personal representative in North Carolina and must file a final accounting with the Clerk of Superior Court. The estate’s home was repaired by a sibling and sold, and the proceeds went to a supplemental needs trust. You want to know where to show those sale proceeds and repair costs in the final account, and how to document transfers from closed accounts when you lack paper checks.

Apply the Law

North Carolina requires a cash-basis account that shows all money the estate actually received and paid out during the period, supported by vouchers. Real estate usually passes directly to heirs or devisees. If the personal representative had authority to sell (by will power or court order) and the estate received the sale proceeds, the account must show the sale and related costs. If heirs sold and the estate never held the money, do not report those proceeds as estate receipts; instead, provide context so the clerk can see that all inventoried property has been addressed. The final account is filed with the Clerk of Superior Court, Estates Division, where you qualified. Core timelines apply, and the clerk may require additional explanations or proof if records are missing.

Key Requirements

• Show what the estate actually handled: List only money that came into or went out of estate control; attach a brief note if real property passed outside the estate.
• Authority to sell matters: If the will gave a power of sale or you obtained court authority, list the home’s gross sale as a receipt and costs as disbursements; otherwise, a sale by heirs belongs outside the estate.
• Vouchers for disbursements: Support each payment (e.g., repairs, commissions, taxes) with a settlement statement, invoices, receipts, canceled checks, or verified proof.
• Funding the trust: Treat money transferred from the estate to the supplemental needs trust as a distribution; obtain a trustee receipt and bank proof of transfer.
• Deadlines and form: Use AOC-E-506; file the final account by the statutory deadline or file an annual account if the estate remains open.

What the Statutes Say

• N.C. Gen. Stat. § 28A-21-2 (Final account) – Requires filing and sets the timing for final accounts.
• N.C. Gen. Stat. § 28A-21-1 (Annual accounts; vouchers) – Requires vouchers/verified proof for disbursements and sets annual account timing.
• N.C. Gen. Stat. § 28A-21-5 (Lost vouchers) – Allows sworn proof if a voucher is lost.
• N.C. Gen. Stat. § 28A-17-12 (Sales by heirs/devisees; PR joins) – Explains when heirs sell real property and the PR’s role.

Analysis

Apply the Rule to the Facts: If you (as PR) had authority to sell the home and the estate received the closing funds, list the gross sale on AOC-E-506 as a receipt, show commissions/closing costs/approved repairs as disbursements (with the closing statement and receipts), and list the payment to the supplemental needs trust as a distribution with a trustee receipt. If the sibling and heirs sold the home and the proceeds went straight to the trust without passing through the estate, do not list the money as estate receipts; instead, include a short explanation and attach the deed/settlement statement for clarity.

Process & Timing

1. Who files: Personal Representative. Where: Clerk of Superior Court, Estates Division in the county of qualification. What: ACCOUNT (AOC-E-506) with exhibits; beneficiary/trustee RECEIPT (AOC-E-521) for distributions; optional FISCAL YEAR ELECTION (AOC-E-514). When: File the final account by the statutory deadline under § 28A-21-2; if not ready, file an annual account by the 15th day of the fourth month after the estate’s fiscal year end under § 28A-21-1.
2. Show the sale correctly: If an estate sale, list “Home sale – gross proceeds” as a receipt; attach the closing disclosure/HUD-1. List realtor commission, taxes, recording fees, and necessary repairs as disbursements with invoices, receipts, and check images. Then list the wire/check to the supplemental needs trust as a distribution with the trustee’s signed receipt and bank evidence.
3. Document transfers and missing checks: For closed accounts moved into the estate account, show each deposit as a receipt with bank statements. If you lack canceled checks, use electronic images or bank-provided copies; if a voucher is lost, provide verified proof under § 28A-21-5. Keep non-probate monies (e.g., life insurance or state death benefits paid directly to a beneficiary or trust) off the estate account unless the estate actually received them.

Exceptions & Pitfalls

• Real property not in the estate: If heirs sold and the estate never held funds, do not report the proceeds as estate receipts; provide the deed and closing statement for context.
• Repairs by family: Reimburse only necessary, estate-authorized repairs tied to an estate-managed sale; require invoices and proof of payment. Avoid reimbursing without documentation.
• Commingling: Keep estate, trust, and personal funds in separate accounts; attach bank statements showing segregation.
• Non-probate assets: Do not list life insurance or state death benefits unless paid to the estate; if paid to the trust directly, omit from estate receipts.
• Voucher gaps: Many clerks accept bank statements and electronic check images; when a voucher is missing, use a sworn statement as allowed by statute.

Talk to a Probate Attorney

If you’re dealing with how to show home sale proceeds, repairs, and trust funding in a North Carolina estate accounting, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

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.