Do I have to file an annual estate accounting even if there has been no money recovered yet? – North Carolina

Short Answer

Usually, yes. In North Carolina, a personal representative generally must keep the estate’s probate reporting current with the Clerk of Superior Court while the estate remains open, even if a pending wrongful death case has not produced any recovery yet. When there has been no activity, the annual account is typically filed as a “no activity” (or “zero”) accounting that still covers the required reporting period and confirms nothing was received or paid out.

Understanding the Problem

In a North Carolina wrongful death situation, the question is whether the personal representative handling the estate must still file the estate’s annual accounting with the Clerk of Superior Court when the only significant potential asset is a wrongful death claim that has not settled or paid anything yet. The decision point is simple: if the estate remains open and the Clerk’s probate deadlines are approaching, does “no money recovered yet” eliminate the annual accounting requirement, or does the personal representative still need to file an annual account showing no receipts and no disbursements?

Apply the Law

North Carolina probate administration is supervised by the Clerk of Superior Court. As a practical matter, when an estate remains open, the Clerk typically expects periodic accountings until the estate is closed, even if there is little or no activity. A pending wrongful death claim often delays closing because the personal representative may need to receive and later distribute funds, but “pending” is not the same as “received.” If no settlement or judgment funds have come into the estate’s control during the accounting period, the accounting is commonly filed showing zero receipts and zero disbursements for that period (and still listing any property that remains under the personal representative’s control, if any).

Key Requirements

Estate is still open: If the estate has not been closed, the Clerk generally continues to require the estate’s periodic reporting.
Report the correct time period: The accounting must cover the required reporting window set by the Clerk’s schedule (even if every line item is “$0.00”).
Truthful “no activity” reporting: If nothing was received and nothing was paid, the accounting should clearly show that—while still attaching or listing any required supporting information the Clerk expects for that form.

What the Statutes Say

N.C. Gen. Stat. § 1-339.32 (Including sale proceeds in the next annual or final account) – Illustrates that an executor/administrator typically reports receipts and disbursements in the next annual or final account, rather than skipping reporting.

Analysis

Apply the Rule to the Facts: Here, the estate is waiting on updates about a product-related wrongful death claim, and no recovery has been received yet. That means there may be nothing to report as “receipts” from the case during the current accounting period. But the probate filings are still coming due, so the personal representative generally should keep the estate compliant by filing an annual accounting that shows no activity for that period, rather than missing the deadline while waiting for the lawsuit to resolve.

Process & Timing

Who files: The personal representative (executor or administrator). Where: The Estates Division of the Clerk of Superior Court in the county where the estate is administered. What: The annual account form required by that Clerk (often an “Annual Account” form; some counties also require specific attachments or a particular format). When: By the annual deadline set in the estate file; if an extension is needed, it should be requested before the due date.
How to show “no activity”: The accounting is completed for the period with zero receipts and zero disbursements, and it should still reconcile beginning and ending balances (even if both are $0.00). If the estate has other assets or expenses (court costs, publication, bond premiums, etc.), those must still be reported even if the wrongful death case has not paid.
What happens next: The Clerk reviews the filing. If accepted, the estate remains open and the personal representative continues to file future accountings until the estate can be closed (often after the wrongful death claim resolves and any required distributions are completed).

Exceptions & Pitfalls

Assuming “no recovery” means “no filing”: A pending lawsuit does not automatically suspend probate reporting. Missing the accounting deadline can create problems with the Clerk and delay the estate.
Overlooking small transactions: Even when the wrongful death case is pending, the estate may still have costs (publication, filing fees, bond premiums, postage, etc.). If any estate funds were received or spent, the accounting should reflect that activity.
Mixing wrongful death funds with estate funds: If money is later recovered, it must be handled and documented carefully. The personal representative should track settlement proceeds, expenses, and distributions in a way that matches the Clerk’s accounting requirements and any court approvals that may be needed.

Conclusion

In North Carolina, a personal representative generally must keep probate accountings current while the estate remains open, even if a wrongful death claim has not produced any recovery yet. When there has been no activity, the annual account is commonly filed as a “zero” accounting for the required period. The most important next step is to file the annual accounting with the Clerk of Superior Court by the deadline shown in the estate file (or request an extension before that deadline).

Talk to a Wrongful Death Attorney

If an estate is waiting on a wrongful death case but probate deadlines are still approaching, our firm has experienced attorneys who can help explain the reporting requirements, coordinate with the estate process, and keep timelines on track. 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.