Short Answer

In North Carolina, a personal representative may resolve a dispute over asset values by documenting the true value, correcting the record, and making a settlement payment that is shown on the final account. Practically, you gather evidence (e.g., appraisals or affidavits), file a supplemental inventory or explain the correction in the final account, and record the settlement as a disbursement to the affected beneficiaries. If minors or incapacitated persons are involved, or to ensure finality, ask the Clerk to approve the settlement. Beneficiaries served with notice of the final account have a short window to object.

Understanding the Problem

You’re the personal representative in a North Carolina probate. Can you reimburse beneficiaries to settle a dispute after two older vehicles sold for less than the values listed on the inventory—and how is that shown in the accounting as the estate closes? That’s the single decision point here: how to structure and document a good‑faith settlement tied to a valuation discrepancy so the Clerk will accept the final account.

Apply the Law

North Carolina requires fair market value reporting as of the date of death, and it gives the personal representative authority to sell personal property and to account for the true results. When a valuation in the inventory proves erroneous or misleading, you correct it—either by a supplemental inventory or within the annual/final account—and support it with evidence (such as appraisals, bills of sale, and affidavits). Settlement of a good‑faith controversy within the Clerk’s jurisdiction can be approved by the Clerk. The final account is due on a statutory timetable, and beneficiaries can be given formal notice that triggers a 30‑day period to object.

Key Requirements

• Document true value: Use objective proof (appraisals, mechanic affidavits, bills of sale) to show the vehicles’ condition and sale price reflect fair market value.
• Correct the record: File a supplemental inventory to fix any erroneous or misleading valuation, or explain the correction clearly in the final account.
• Record the settlement: Show any reimbursement as a disbursement to beneficiaries, labeled as a good‑faith valuation settlement.
• Consent/approval: Obtain written consents from competent adult beneficiaries; seek the Clerk’s approval if minors or incapacitated beneficiaries are affected, or for added certainty.
• Timing and notice: File the final account on time and consider serving the optional notice of final account to start a 30‑day objection window.

What the Statutes Say

• North Carolina Gen. Stat. § 28A-20-3 (Supplemental inventory) – Allows updates or corrections when the original valuation is erroneous or misleading.
• North Carolina Gen. Stat. § 28A-21-2 (Final accounts) – Sets deadlines for filing the final account and Clerk oversight.
• North Carolina Gen. Stat. § 28A-21-6 (Notice of final accounts) – Permits serving notice; if properly served, beneficiaries have 30 days to object.
• North Carolina Gen. Stat. § 28A-2-10 (Settlement of controversies) – Authorizes the Clerk to approve good‑faith settlements within the Clerk’s jurisdiction.

Analysis

Apply the Rule to the Facts: Because two vehicles sold below the inventory values, you can correct those valuations via a supplemental inventory or by explaining the adjustment in the final account with supporting affidavits and the bills of sale. The proposed reimbursement of one‑half of the difference can be shown as a settlement disbursement to beneficiaries. If all adult beneficiaries consent, the Clerk can approve the account; if any beneficiary is a minor or objects, seek the Clerk’s approval of the settlement.

Process & Timing

1. Who files: Personal representative. Where: Clerk of Superior Court (Estates Division) in the North Carolina county of administration. What: Final Account (AOC‑E‑506) with vouchers; either file a supplemental inventory to correct the vehicle values or include a clear explanation in the account; attach the signed settlement agreement and affidavits. When: File the final account on the timetable set by statute and any Clerk extensions under § 28A‑21‑2.
2. If all beneficiaries consent, submit the consents with the account. Consider serving the optional notice of final account; if served under Rule 4, beneficiaries have 30 days to object under § 28A‑21‑6. If someone objects, the Clerk schedules a hearing and can approve or adjust the account.
3. Upon approval, the Clerk enters an order allowing the account and discharging the personal representative after distributions are completed.

Exceptions & Pitfalls

• Minor/incapacitated beneficiaries: Do not pay a compromise without court approval; seek the Clerk’s approval of the settlement.
• Missing proof: A settlement without evidence (affidavits, appraisals, bills of sale) risks denial or a surcharge. Keep complete vouchers.
• Uncorrected inventory: If the original inventory is misleading, file a supplemental inventory or explain the correction in the account; silence invites objections.
• Notice missteps: The 30‑day objection period runs only if notice of the final account is properly served; improper service leaves the door open to later challenges.

Talk to a Probate Attorney

If you’re dealing with a valuation dispute and need to settle it correctly in the final account, 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.