Under North Carolina’s default rule, the clerk of superior court sets an executor’s commission at up to 5% of qualifying estate receipts and lawful expenditures. The clerk may approve less. Specific will provisions or the rule for estates with a gross value of $2,000 or less can change how compensation is set.
You’ve been handling the bills, keeping track of property, and answering questions from family. When you’re ready to request payment for that work, the number in the estate bank account tells you only part of the story.
Start with the will and the estate records. Together, they give you a way to explain where the amount you’re asking for came from.
At a glance
- An inheritance distribution to heirs or beneficiaries under the will does not add to the statutory commission as an expenditure.
- For a statutory commission, petition the clerk and obtain approval before paying yourself from estate funds.
- The clerk can allow reasonable reimbursement for necessary estate expenses separately from the commission.
How is the 5% limit calculated?
Under the default rule, the clerk can allow up to 5% of qualifying receipts and lawful expenditures. When setting the commission, the clerk considers the time, responsibility, difficulty, and skill the work involved.
- Receipts. Include the value of personal property when the executor receives it, as provided in G.S. 28A-23-3.
- Expenditures. Count qualifying payments made in accordance with law. Exclude distributions of inheritance shares to heirs and beneficiaries under the will from this side of the calculation.
- Real estate sales to pay debts or gifts under the will. Count only the sale proceeds actually applied to those debts or gifts for this rule.
- Professional fees. The clerk may consider ordinary estate administration fees paid to attorneys and accountants when setting the maximum commission. The clerk can consider those fees without subtracting them dollar for dollar.
Exception: If the estate’s gross value is $2,000 or less, the clerk can set a commission the clerk considers fair and adequate under the statute.
Suppose the default rule applies, the executor has $100,000 in qualifying receipts, and the estate has $20,000 in qualifying lawful expenditures. The calculation is 5% of $120,000, or $6,000. That’s the ceiling in this example, and the clerk can approve less. Any later payment of inheritance shares stays out of the expenditure side of the calculation.
What if the will says how the executor should be paid?
A will can set the amount, method, or standard for paying an executor. If the will says nothing about compensation, the default rule applies.
- A specified amount, method, or standard. Qualifying will terms replace the default rule in subsection (a) under G.S. 28A-23-3(g).
- “Reasonable compensation.” If the will uses this or similar language, the default rule gives way only if the executor and the beneficiaries whose shares would bear the cost agree in writing to a specific amount.
- “As provided by law.” This wording, including similar language such as “maximum amount provided by law,” keeps the default rule in place.
Read the exact sentence before doing the math. If the will sets the fee or the affected beneficiaries have signed a written agreement under a reasonable-compensation clause, ask the clerk’s office or your estate attorney how to document the payment before moving estate funds.
How do you request approval and document the work?
For a statutory commission, petition the clerk of superior court handling the estate and get approval before paying yourself from estate funds. The North Carolina Judicial Branch’s estate procedures pamphlet describes the approval step in Section 10.
- Prepare the figures. Pull the receipts and disbursements for the period you’re asking about. The court’s Order as to Commissions, AOC-E-435, records those figures and the clerk’s decision.
- Write down the work. Keep the dates, tasks, time spent, and any issues you had to resolve. A short, specific log can show what the work involved.
- Track the timing. Under G.S. 28A-23-3(c), the clerk can allow a commission while the estate is open. The total is determined at final settlement.
- Keep the payment in the account. G.S. 28A-21-3 requires estate accounts to list payments, charges, losses, and distributions. Retain the signed order and proof of payment with the estate records.
A dated entry such as “met with the appraiser, reviewed the valuation, and filed it with the estate records” tells the clerk more about the work than “estate tasks, three hours.” Write those entries as you go, while you can still tie each one to the paperwork.
Use our first-year executor timeline to see where the inventory and accounting fit into the rest of the job.
Can the executor get reimbursed for out-of-pocket expenses?
The clerk may allow reasonable reimbursement for necessary expenses an executor incurred managing the estate. G.S. 28A-23-3(d)(1) treats this allowance separately from payment for the executor’s work.
- Record what you paid. Write down the date, amount, who you paid, and what the estate needed. If you personally paid for an estate appraisal, save the invoice and proof that you paid it.
- Keep the two amounts separate. List the money you spent for the estate separately from the commission you’re requesting for your time and work.
- Keep proof of reimbursement. The court’s annual or final account form, AOC-E-506, calls for documentation of disbursements and identifies reimbursements to people who paid estate creditors directly.
If the estate account already paid an invoice, mark it as paid from the estate. If the money came from your own account, mark it as an out-of-pocket expense. That small step makes it easier to explain each payment later.
Our guide to estate bank accounts explains how to keep estate transactions separate from personal spending.
Put the request on paper before paying yourself
Gather the will, your calculation, and the receipts for anything you paid personally. If you’re unsure whether a sale belongs in the calculation or how to apply the will’s compensation language, bring those documents to a conversation with our probate and estate administration team.
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This article is for educational purposes only and does not constitute legal advice. Filing requirements and outcomes depend on the county, the file, and the facts. For legal advice tailored to your situation, please schedule a consultation.
