Short Answer

In North Carolina, a personal representative’s commission is set by the Clerk of Superior Court and may not exceed 5% of commissionable receipts and disbursements (excluding distributions to heirs). The Clerk considers time, responsibility, and skill, and must approve commissions before payment. Real estate is not part of the commission base unless it is sold to pay debts or legacies. A will can change these rules, and small estates under $2,000 are handled differently.

Understanding the Problem

You want to know how, in North Carolina probate, a personal representative can get paid: what counts in the commission calculation and how to claim it with the Clerk of Superior Court. You also want clarity because a sibling wants to buy small farm equipment from the estate below the appraised value.

Apply the Law

North Carolina law gives the Clerk of Superior Court discretion to approve a commission for a personal representative, up to a maximum percentage tied to what the estate actually receives and pays out. The commission base generally includes the value of personal property when received by the estate and lawful expenditures, but it excludes distributions to heirs. Real property only factors in if it is sold to pay claims or legacies. The Clerk usually allows the commission at final accounting, but may approve it earlier when supported by an accounting.

Key Requirements

• Commission base: Up to 5% of commissionable receipts (including value of personal property when received) plus commissionable disbursements; distributions to heirs do not count.
• Clerk approval: You must petition and obtain the Clerk’s order before paying yourself a commission.
• Will provisions and consent: A will can set compensation. If a will says “reasonable compensation,” written consent from all affected beneficiaries can allow a specific amount outside the 5% cap.
• Real property limit: Real estate is not part of the commission base unless sold to pay debts or legacies; only the portion applied to those payments counts.
• Special thresholds: If the estate’s gross value is $2,000 or less, the Clerk may set a just and adequate commission without the 5% limit; with co‑representatives, the total can’t exceed the cap and is apportioned by services performed.

What the Statutes Say

• N.C. Gen. Stat. § 28A-23-3 (Commissions of personal representatives) – Sets the 5% maximum, what counts in the base, Clerk discretion, timing, and exceptions.
• N.C. Gen. Stat. § 28A-23-4 (Attorney personal representatives) – Allows additional counsel fees when legal work exceeds routine administration.
• N.C. Gen. Stat. § 28A-16-1 (Sale or lease of personal property) – Permits PRs to sell personal property without a court order and requires reporting in the next account.
• N.C. Gen. Stat. § 28A-15-2 (Title to property of decedent) – Title to real property generally vests in heirs at death unless law provides otherwise.

Analysis

Apply the Rule to the Facts: As personal representative, your commission is based on commissionable receipts and disbursements; you must request approval from the Clerk and cannot pay yourself until the order issues. If your sibling buys the farm equipment, the sale proceeds are a receipt that can be commissionable, but you must document a fair process to avoid self‑dealing concerns; selling below appraisal without justification risks objection and could affect your commission. The small real property interest that passed directly to heirs does not increase your commission base unless the property is sold to pay estate debts; routine property taxes on heir‑owned real estate are generally their responsibility unless the Clerk authorizes estate action to protect the asset.

Process & Timing

1. Who files: Personal representative. Where: Clerk of Superior Court in the county administering the estate. What: A petition for payment of personal representative’s commissions, supported by your latest annual or final account and time/effort details. When: Commonly with the final account; the Clerk may allow interim commissions if supported by an accounting.
2. After filing, the Clerk reviews your account to determine commissionable receipts and disbursements and applies discretion (time, responsibility, trouble, and skill). Some counties prefer to approve commissions when an account is audited; practices vary.
3. The Clerk enters a written order stating the allowed amount. You then pay the commission from estate funds and reflect it on the next account or the final account, as applicable.

Exceptions & Pitfalls

• 5% is a cap, not a guarantee; the Clerk can award less based on the work involved.
• Distributions to heirs are not commissionable; distinguish expenses from distributions on your accounts.
• Real estate counts only when sold to pay debts or legacies, and only the portion applied to those payments is commissionable.
• Will terms control compensation; if a will says “reasonable compensation,” unanimous written consent from all affected beneficiaries can set a specific amount, but you still should obtain the Clerk’s approval before payment.
• Avoid self‑dealing. For sales to family or insiders, use independent valuation, competitive bids, or beneficiary consents; disclose fully in your account to reduce challenges that could affect your commission.
• Co‑representatives share a single cap; early interim payments can constrain later awards, including for a successor PR.
• Misconduct can result in reduced or denied commissions and other sanctions; maintain neutrality among beneficiaries and document decisions.

Talk to a Probate Attorney

If you’re dealing with how to calculate and claim a personal representative’s commission and document insider sales or real estate issues, 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.