AOC-E-506 Final Account Walkthrough: Closing an Estate in NC

What Is the AOC-E-506 and Why Does It Matter?

The AOC-E-506 is North Carolina’s official Final Accounting and Petition to Close Estate form. It’s the document that ends your job as executor. It reconciles every dollar that came into the estate against every dollar that went out, proving to the court that you handled the money responsibly and can finally be released from liability.

Think of it this way: you’ve spent months (or longer) managing someone else’s money, sometimes hundreds of thousands of dollars. Without a final accounting, you’re never fully protected from being sued later. A beneficiary could claim years down the road that you mismanaged funds. A creditor might resurface with a new claim. You’re perpetually exposed.

The AOC-E-506 changes that. Once the court approves it, you’re exonerated. Beneficiaries can’t sue you for breach of fiduciary duty related to how you handled the estate. Creditors have had their chance. You’re done, and you’re legally protected.

This is why getting the AOC-E-506 right matters so much. It’s not just a form to check off. It’s your protection, your proof, and your release from one of the most stressful responsibilities you’ll ever take on.

When Do You File the AOC-E-506?

Timing matters. You don’t file the AOC-E-506 until you’re actually ready to close the estate.

File it only when all of the following are true:

• All valid creditor claims have been paid or formally rejected
• All estate debts have been paid (mortgages, credit cards, medical bills)
• All required tax returns have been filed (final individual income tax return, estate income taxes, federal estate tax if applicable)
• All assets have been collected and accounted for
• You have confirmation from the IRS and NC Department of Revenue that tax matters are resolved
• All real property has been transferred or is ready to transfer
• You’re ready to make final distributions to beneficiaries

File too early: The court will return the form requesting additional information. You’ll need to file an amended accounting, which delays everything.

File too late: Courts generally expect the AOC-E-506 within 18 to 24 months of death. Filing much later raises questions about why administration is taking so long. You may need to explain delays or get court approval for extended administration.

Typical timeline: Most NC estates file the AOC-E-506 between 12 and 18 months after death, depending on complexity, asset sales, and tax complications.

Understanding Receipts: What Came Into the Estate

The first major section of the AOC-E-506 covers receipts. This is every dollar (or asset value) that came into the estate from the date of death through the closing date.

Opening Inventory

Your first receipt is the opening inventory value from the AOC-E-204 form you filed earlier.

Let’s say the decedent’s estate inventory showed:

• Primary residence: $400,000
• Bank accounts: $50,000
• Investment accounts: $75,000
• Vehicle: $15,000
• Personal property: $10,000
• Total opening inventory: $550,000

All $550,000 is listed as the opening receipt. This is where your accounting starts.

Supporting documentation: The opening balance should match the total from your filed AOC-E-204 inventory. Attach the inventory filing confirmation or a statement from your county clerk showing the document was accepted.

Income Earned During Probate

During the months (or years) the estate is open, assets generate income. All of it is a receipt.

Interest on bank accounts: If you held $50,000 in a checking account during 12 months of probate and earned $320 in interest, that $320 is a receipt.

Dividends and investment income: If the estate held stocks or mutual funds that paid dividends, all dividends are receipts. Get statements from your brokerage showing the dates and amounts of all dividend payments.

Rental property income: If the decedent owned rental property, all rent collected during probate is a receipt. List it by month or as an annual total. You’ll deduct mortgage payments, property taxes, maintenance, and management fees as disbursements later, so the net rental income will be clear.

Business income: If the estate owned a business that continued operating during probate, all revenue is a receipt. Get copies of business tax returns and deposit records.

Insurance proceeds: If the estate was named as beneficiary on a life insurance policy (rather than specific family members), the death benefit is a receipt.

Non-probate property: Here’s where many executors get confused. If a beneficiary received life insurance proceeds directly, or a retirement account passed directly to a named beneficiary, those amounts do NOT appear as receipts in the accounting. Non-probate property never enters the estate accounting because it bypassed probate entirely. Don’t list it.

Asset Sales and Liquidations

If you sold real property, vehicles, or other assets during probate, the sales proceeds are receipts.

Example: You sell the decedent’s house for $450,000. The gross sale proceeds ($450,000) are a receipt. The realtor’s commission, closing costs, title insurance, and recording fees are disbursements. The difference between the inventory value ($400,000) and the sale price ($450,000) is a capital gain, also listed as a receipt.

Supporting documentation: Attach the real estate settlement statement (HUD-1 or Closing Disclosure) showing the gross sale price and all closing costs. For vehicles or personal property sold, attach sale receipts or auction confirmations.

Understanding Disbursements: What Went Out of the Estate

Disbursements are organized into several categories, each requiring different documentation.

Debts and Creditor Claims

This is the money paid to satisfy debts owed by the decedent at death.

Mortgages: If you paid off a home mortgage from estate funds, the payoff amount is a disbursement. Attach a letter from the lender showing the payoff amount as of the payoff date.

Credit card debt: All unpaid credit card balances are valid debts. Pay them in full or negotiate settlements. Get confirmation letters showing the balance was paid.

Medical and hospital bills: These are priority claims under NC law. Get receipts showing all final medical bills were paid.

Utilities and other household debts: If utilities remained unpaid, property taxes owed, or other debts existed, they’re disbursements.

Creditor claims rejected: If a creditor submitted a claim but you rejected it (because the claim was invalid, outside the claims deadline, or not properly documented), note this in a schedule showing the creditor name, claimed amount, and reason for rejection. NC law allows you to reject invalid claims.

Supporting documentation: For each debt paid, attach proof of payment: cancelled checks, wire confirmations, or payoff letters from creditors.

Taxes

Executors must pay all required taxes from estate funds.

Federal income tax: The decedent’s final income tax return (Form 1040) covering January 1 of the death year through the date of death. Any balance owed is a disbursement.

NC income tax: North Carolina income tax on the decedent’s final income. File Form D-400 (or joint return if the spouse is filing jointly).

Estate income tax: If the estate earned income (interest, dividends, rental income, capital gains on asset sales), the estate itself is a taxpayer. Federal Form 1041 (U.S. Fiduciary Income Tax Return) and NC Form D-407 (Fiduciary Return) may be required for each year the estate is open. Any tax owed is a disbursement.

Federal estate tax: Only required if the estate exceeds the federal exemption (13.61 million as of 2024). Most NC estates do not owe federal estate tax. If applicable, Form 706 is filed and any tax owed is a disbursement. NC has no state estate tax.

Property taxes: Pay all property taxes owed for the year of death through the end of probate. These are priority claims.

Supporting documentation: Attach copies of all tax returns filed (federal and state, income tax and estate tax if applicable) and proof of payment (receipts, cancelled checks, IRS payment confirmations).

Fiduciary and Administration Expenses

These are the costs of administering the estate. All are proper disbursements paid from estate funds.

Attorney fees: If you hired a probate attorney to handle any part of administration or closing, the fee is a disbursement. Attach the attorney’s invoice showing work performed, dates, and total fee.

Appraisal and valuation fees: Professional appraisals for real property, business valuations, jewelry appraisals, or art valuations are proper expenses. Attach invoices.

Accountant and CPA fees: Tax preparation, bookkeeping, final accounting assistance. Attach invoices.

Court costs and filing fees: Probate filing fees, eCourts filing fees, clerk costs, publication costs for creditor notices.

Bonding and insurance: Court-ordered executor bonds, property insurance maintained during probate, liability insurance.

Real estate agent commissions: If you listed and sold real property, the realtor’s commission is shown in the settlement statement as a disbursement.

Title company and recording fees: Title insurance, deed recording, lien searches.

Digital tools and services: If you used Afterpath or other estate management software to organize receipts, track expenses, and generate this final accounting, the cost is a reasonable administrative expense and should be listed.

Estate sale company fees: If you hired an estate sale company to liquidate personal property, their fees and commission are disbursements.

Supporting documentation: For each expense, attach the vendor’s invoice and proof of payment.

Executor Compensation

The executor may take a fee for their service. This is not automatic and must be listed in the accounting.

NC statutory commissioning: If the will doesn’t specify executor compensation, NCGS 28A-23-1 allows a reasonable commission. Courts typically approve commissions of 2.5 to 5 percent of the gross estate value, depending on the complexity of administration.

Example: An estate of $500,000. A reasonable commission might be $12,500 (2.5 percent) to $25,000 (5 percent), depending on how much work was required.

Will-specified compensation: Some wills specify exact executor compensation. If the will says $15,000 flat fee or $10,000 to each of two co-executors, use those figures.

Waiving compensation: Many executors (especially spouses or beneficiaries) choose to waive compensation. If you’re waiving, note “Executor compensation: $0 (waived)” in the accounting.

Co-executor compensation: If there are multiple executors, each can take a commission (or waive individually). List separately.

Supporting documentation: Show the calculation. Example: “Jane Smith (Executor): $12,500 (2.5 percent of gross estate value of $500,000).”

Distributions to Beneficiaries

The final disbursements are distributions to beneficiaries: the money and property they actually receive.

Cash distributions: If you’re distributing $100,000 cash to a beneficiary, that’s a disbursement.

Real property distributions: If you’re distributing a house, the property is listed with how it was transferred (fiduciary deed from executor to beneficiary, for example).

Specific bequests: If the will specifies “my watch to my son” and you distribute it, list the item, estimated value, and beneficiary.

Residuary distributions: After all debts, taxes, expenses, and specific bequests, the remaining estate (usually the bulk of what’s left) goes to the residuary beneficiary. This is typically the largest distribution line item.

Example distribution schedule:

Beneficiary	Amount/Property	Method
Mary Smith (spouse)	$200,000 + primary residence (valued at $400,000)	Cash + fiduciary deed
James Smith (son)	$75,000	Check
Sarah Smith (daughter)	$75,000	Check
Charity Foundation	$50,000	Check
Total distributed	$800,000

Supporting documentation: Obtain signed receipts from each beneficiary acknowledging receipt of distribution. For real property, attach recorded deeds.

Step 1: Organize All Receipts and Create Supporting Documentation

Before you complete the AOC-E-506 form, create a detailed spreadsheet listing every receipt.

Receipts spreadsheet columns:

• Receipt Date
• Description (opening inventory, interest earned, rent collected, asset sale, insurance proceeds, etc.)
• Amount
• Source/Account
• Notes

Example:

Receipt Date	Description	Amount	Source	Notes
1/15/2025	Opening inventory (from AOC-E-204)	$550,000	Inventory filing	Chase total
3/20/2025	Interest earned	$320	Chase checking	Q1 2025 statement
6/15/2025	House sold	$450,000	Real estate sale	Settlement statement attached
9/30/2025	Rental income	$4,200	Rental property	3 months (July-Sept)
Total receipts		$1,004,520

Reconciliation check: Total receipts should equal (opening inventory) plus (income earned) plus (asset sale proceeds) plus (insurance or other income). If the numbers don’t match your bank statements and account records, find the discrepancy.

Step 2: Organize All Disbursements and Create Supporting Schedules

Create a detailed spreadsheet for every disbursement.

Disbursements spreadsheet columns:

• Disbursement Date
• Payee/Recipient
• Category (Debt, Tax, Expense, Compensation, Distribution)
• Amount
• Check/Wire Number
• Notes

For large or complex estates, create a detailed supporting schedule for each category:

Schedule A: Debts and Claims Paid

Creditor	Account #	Amount	Date Paid	Proof
Mortgage (Chase)	12345	$200,000	2/15/2025	Payoff letter
Credit card (Citi)	67890	$8,500	2/28/2025	Statement
Medical (Duke Hospital)	-	$3,200	3/10/2025	Receipt
Property tax (Wake County)	-	$2,100	3/15/2025	Tax receipt
Total debts paid		$213,800

Schedule B: Taxes Paid

Tax Type	Return Form	Year	Amount Paid	Date
Federal income tax	Form 1040	2024	$4,500	4/15/2025
NC income tax	Form D-400	2024	$1,200	4/15/2025
Estate income tax	Form 1041	2025	$2,100	11/15/2025
Total taxes			$7,800

Schedule C: Fiduciary and Administration Expenses

Vendor/Service	Invoice Date	Amount	Date Paid	Notes
Attorney (Smith & Associates)	3/15/2025	$4,500	3/30/2025	Probate administration
Appraisal (Appraisal Corp)	1/20/2025	$600	2/5/2025	House appraisal
CPA (Jane Doe CPA)	4/10/2025	$1,200	4/30/2025	Tax prep and 1041
Court filing fees (eCourts)	1/15/2025	$150	1/15/2025	Probate filing
Title and recording	3/10/2025	$800	3/15/2025	Deed recording
Total admin expenses		$7,250

Schedule D: Distributions to Beneficiaries

Beneficiary	Amount	Distribution Type	Date	Notes
Mary Smith	$200,000	Check	10/15/2025	Cash distribution
Mary Smith	Primary residence	Fiduciary deed	10/15/2025	Real property transfer
James Smith	$75,000	Check	10/15/2025	Cash
Sarah Smith	$75,000	Check	10/15/2025	Cash
Total distributed	$425,000

Step 3: Reconcile: The Math That Closes the Estate

Now reconcile. This is the critical step.

The formula: Total Receipts - Total Disbursements = Remaining Estate (should equal zero if fully distributed)

Example reconciliation:

Item	Amount
RECEIPTS
Opening inventory	$550,000
Interest earned	$320
House sold	$450,000
Rental income	$4,200
Total receipts	$1,004,520
DISBURSEMENTS
Debts paid	($213,800)
Taxes paid	($7,800)
Admin expenses	($7,250)
Executor compensation	($12,500)
Distributions to beneficiaries	($763,170)
Total disbursements	($1,004,520)
Balance	$0

If the numbers don’t match:

Check for:

1. Opening inventory total: Is it correct and matches your AOC-E-204?
2. Income earned: Did you miss an interest payment, dividend, or rental income?
3. Asset sales: Are the sale prices correct?
4. Duplicate entries: Did you list a payment twice?
5. Missing disbursements: Did you forget a check or wire transfer?
6. Missing receipts: Did you miss an account or income item?

Common reconciliation errors:

• Double-counting an asset: You list a $400,000 house in inventory, then also list $450,000 as the sale proceeds. That’s double-counting. The house was in inventory at $400,000. The sale proceeds ($450,000) replace it. The gain ($50,000) is separately noted as income.

• Forgetting interest earned: You collected 12 months of bank interest but forgot to list it as a receipt. The bank statements show it; find it and add it to receipts.

• Wrong opening inventory total: The starting point must match your filed AOC-E-204 exactly. If it doesn’t, your entire accounting will be off.

Find and fix all discrepancies before completing the AOC-E-506 form.

Step 4: Completing the AOC-E-506 Form Line by Line

The form itself has several sections. Let’s walk through each.

Header Information

Fill in:

• Court name and county (e.g., “Superior Court of Wake County”)
• Case number (from your AOC-E-201 petition for probate)
• Decedent’s name and date of death
• Estate opening date (when you qualified as executor)
• Date of final accounting filing

Part 1: Receipts (Fiduciary Income)

List all money and property that came into the estate.

Line 1: Cash and balances per inventory Enter the total from your filed AOC-E-204 inventory.

Line 2: Income Interest, dividends, rental income, business income earned during probate. Break this down by type if there are multiple income sources. Attach a schedule if substantial.

Line 3: Proceeds from sale of estate property Gross proceeds from selling real property, vehicles, or other assets. If you sold multiple properties, list each separately or as a total with a schedule.

Line 4: Insurance proceeds If the estate was beneficiary on a life insurance policy, the death benefit is listed here. Do NOT include insurance payable to specific beneficiaries (that’s non-probate).

Line 5: Other receipts Inheritances to the estate, loans, miscellaneous income. Itemize if significant.

Subtotal: Total receipts Sum of all receipt lines.

Part 2: Disbursements

This section has multiple categories.

Section A: Debts, Claims, and Taxes

List each creditor, amount paid, and date paid. Create a schedule if numerous.

Example format:

Mortgages and liens paid: $200,000 Credit card debts paid: $8,500 Medical bills paid: $3,200 Property taxes paid: $2,100 Federal income tax paid: $4,500 NC income tax paid: $1,200 Estate income tax paid: $2,100 Creditor claims rejected and denied: $0

Total debts and taxes: $221,600

Section B: Fiduciary and administration expenses

Itemize attorney fees, court costs, appraisal fees, CPA fees, title insurance, recording fees, bonding, and other administration costs.

Example:

Attorney fees: $4,500 Appraiser fees: $600 CPA fees: $1,200 eCourts filing fees: $150 Title and recording: $800 Executor bond premium: $0 (waived by court) Afterpath platform fees: $99

Total administration expenses: $7,249

Section C: Executor compensation

List executor name and compensation amount (or note if waived).

Example: Jane Smith (Executor): $12,500 (2.5% of gross estate)

Section D: Distributions to beneficiaries

List each beneficiary, amount distributed, and how (cash, property, etc.).

Example:

Mary Smith (spouse): $200,000 cash + primary residence (via fiduciary deed) James Smith (son): $75,000 cash Sarah Smith (daughter): $75,000 cash

Total distributions: $425,000

Subtotal: Total disbursements Sum of all disbursement sections (A + B + C + D).

Part 3: Summary and Reconciliation

• Total receipts (from Part 1)
• Less: Total disbursements (from Part 2)
• Equals: Final estate balance

This should be zero (or very close, accounting for rounding).

Part 4: Signature, Oath, and Notarization

The executor (and any co-executors) must sign the form. You’re swearing under oath that the accounting is complete and accurate to the best of your knowledge.

Check with your county clerk: Some NC counties require notarized signatures; others do not. Get the signature notarized to be safe.

Co-executors: If there are multiple executors, both should ideally sign, or one can sign on behalf of both with a note explaining the arrangement.

Common Rejection Reasons and How to Fix Them

Courts and clerks reject AOC-E-506 filings for specific reasons. Here’s how to avoid and fix them.

Unreconciled Numbers

Problem: Receipts minus disbursements does not equal zero (or intended remaining balance).

Fix: Recheck your math. Create a detailed reconciliation spreadsheet showing:

• Opening inventory total
• All receipts added
• All disbursements subtracted
• Final balance

Find the missing or duplicate entry. Once reconciled, resubmit the form with a corrected reconciliation statement.

Missing Supporting Schedules

Problem: You list “Debts paid: $213,800” without itemizing each debt, or “Distributions: $425,000” without naming beneficiaries.

Fix: Attach detailed schedules (Schedule A, B, C, D) as exhibits. The court needs to see that the totals are supported by actual documentation. Include bank statements, tax returns, vendor invoices, and distribution confirmations.

Incomplete Tax Information

Problem: Tax returns haven’t been filed yet, or you haven’t listed all required taxes in the accounting.

Fix: File all required tax returns first (Form 1040, Form 1041, Form 706 if applicable). Get confirmation of filing from the IRS and NC Department of Revenue. Attach copies of all returns filed and proof of tax payments to the accounting.

Missing Beneficiary Signatures or Distributions Not Explained

Problem: The will specifies bequests to specific beneficiaries, but the accounting doesn’t show how those bequests were satisfied.

Fix: List each specific bequest and show the property or funds distributed to each beneficiary. Get signed receipts from beneficiaries confirming receipt. Attach receipts to the accounting.

Vague Expense or Disbursement Descriptions

Problem: “Legal fees: $5,000” without naming the attorney or explaining the work performed.

Fix: Provide specific details. Example: “Attorney fees (Smith & Associates Law Firm): $5,000 for probate administration, will contest defense, and final accounting preparation.” Attach the attorney’s invoice as an exhibit.

Real Estate Sale Proceeds Unclear

Problem: You list a house sale but don’t explain the relationship between the inventory value, sale price, closing costs, and net proceeds.

Fix: Attach the real estate settlement statement (HUD-1 or Closing Disclosure) showing:

• Gross sale price
• Real estate commission
• Closing costs (title insurance, recording, survey, etc.)
• Net proceeds to estate

This makes the numbers transparent and defensible.

Signature Not Notarized (if required)

Problem: Some NC counties require notarized executor signatures on the AOC-E-506.

Fix: Check with your county clerk. If notarization is required, have your signature notarized before submitting. Resubmit if originally unsigned.

Filing the AOC-E-506 via eCourts

Most NC counties now require electronic filing through NC eCourts. Here’s the process.

Prepare the Complete Document Package

Convert the completed AOC-E-506 form and all supporting materials to a single PDF.

Include:

• The completed AOC-E-506 form (main document)
• Schedule A: Debts and claims paid
• Schedule B: Taxes paid
• Schedule C: Administration expenses
• Schedule D: Distributions to beneficiaries
• Tax return copies (Form 1040, Form 1041, property tax receipts)
• Beneficiary distribution receipts or acknowledgments
• Bank statements showing opening balances
• Appraisal reports (if applicable)
• Real estate settlement statements (if property was sold)
• Cancelled checks or wire confirmations for major disbursements (optional but helpful)

Number pages sequentially. eCourts will assign document IDs to all pages.

eCourts Registration

If you haven’t already registered as an e-filer:

1. Visit nccourts.org/efile
2. Register for NC eCourts access
3. You’ll need: attorney name/number (if an attorney is filing) or non-attorney representative registration
4. Create a username and password
5. Some counties require completion of basic eCourts training

Filing Steps

1. Log into nccourts.org/efile with your username and password
2. Select your county and probate case (search by case number)
3. Click “File Document”
4. Select document type: “Accounting by Fiduciary” or “Final Account” (exact name varies by county system)
5. Upload the complete PDF packet
6. Verify that eCourts has assigned document IDs to all pages
7. Confirm the filing fee (usually $0 for this form, though some counties charge $50-$150)
8. Submit for filing
9. Save the electronic filing receipt

You’ll receive an electronic filing receipt immediately showing the document ID, filing timestamp, and confirmation that the document was received.

After eCourts Submission

The clerk’s office will process the document within 3 to 5 business days. They may request additional information via email or phone call if anything is unclear.

Court approval timeline:

• Simple, uncontested accounting: 2 to 4 weeks for approval
• Complex accounting with multiple items: 4 to 8 weeks or longer
• Accounting with beneficiary objections: 2 to 3 months or longer

Stay in contact with the clerk’s office. If you don’t receive approval within the expected timeframe, call to check status.

If Beneficiaries Object

If a beneficiary objects to the accounting (disputes a distribution amount, questions an expense, or alleges breach of fiduciary duty), NCGS 28A-21-3 allows the court to hold a hearing.

You’ll need to defend the accounting. Bring all supporting documentation showing:

• How much was received
• How much was spent
• Why expenses were necessary and reasonable
• How distributions were calculated per the will

After Court Approval: Exoneration and Final Steps

Once the court approves the AOC-E-506, your responsibilities are nearly done.

Exoneration Order

The court issues a written exoneration order (or approval order) confirming that the accounting is accepted and the executor is released from liability.

This is critical: After exoneration, beneficiaries generally cannot sue you for breach of fiduciary duty related to how you handled money during probate (assuming your accounting was honest and accurate). You have legal protection.

Get a certified copy: Request from the clerk’s office a certified copy of the exoneration order. Beneficiaries may request it later, and having it on file is helpful.

Final Distributions

If you haven’t already distributed all assets to beneficiaries, you now have court approval to do so.

Cash distributions: Use checks or wire transfers. Keep records of beneficiary names, amounts, dates, and methods.

Real property transfers: Execute fiduciary deeds transferring real estate from the estate to beneficiaries. Have each deed notarized and recorded in the county Register of Deeds office.

Obtain signed receipts: Have beneficiaries sign written receipts acknowledging that they received their distribution. Keep these receipts in your estate file.

Estate Closure and Discharge

Once all assets are distributed and the accounting is approved, the estate is considered closed.

The court may issue a discharge order formally releasing you as executor. Some NC counties do this automatically with the exoneration order; others require you to file a separate petition to close.

Request a discharge certification: Get a letter from the clerk confirming you’ve been discharged as executor. This is helpful for closing remaining estate accounts (utilities, subscriptions, insurance, etc.).

Record Retention

Keep all probate documents for at least 7 years:

• AOC-E-201 (petition)
• AOC-E-204 (inventory)
• AOC-E-506 (final accounting)
• All supporting schedules and exhibits
• Tax returns
• Bank statements
• Receipts
• Cancelled checks

The IRS has a 7-year statute of limitations on estate audits. Beneficiaries occasionally resurface with questions. Keeping complete records protects you.

Featured Snippet

The AOC-E-506 is North Carolina’s Final Accounting and Petition to Close Estate form, filed to officially close a probate estate. It reconciles all receipts (opening inventory, income earned, asset sales) against all disbursements (debts paid, taxes, expenses, distributions), and the math should balance to zero if all assets are distributed. The accounting must be supported by detailed schedules and documentation. Once the court approves the AOC-E-506, the executor receives an exoneration order, legally protecting them from liability for the estate administration.

Frequently Asked Questions

Q: Can I distribute assets to beneficiaries before filing the AOC-E-506?

A: Partially. You can make partial distributions if it’s clear that enough funds are available for all known debts, taxes, and expenses. However, it’s safer to complete all debt payments and tax filings first, then file the AOC-E-506 before final distribution. This gives the court a chance to review and approve the accounting before assets leave the estate. If beneficiary objections or unexpected claims arise, you’ll have remaining estate funds to address them.

Q: What if I discover I paid the wrong amount to a creditor or beneficiary after filing?

A: If the error is discovered before court approval, file an amended AOC-E-506 showing the correction. If discovered after court approval, consult a probate attorney. You may need to file a supplemental accounting or take corrective action (return overpayment, demand additional payment from underpaid beneficiary). Document the error and correction thoroughly.

Q: Do I have to file an AOC-E-506 if the estate is very small?

A: If the estate is extremely small (under $3,000 to $5,000 in most NC counties) or qualifies for simplified probate procedures, accounting requirements may be waived. Check with your county clerk. Most estates require an AOC-E-506, regardless of size.

Q: What if a beneficiary refuses to sign the distribution receipt?

A: Document the offer of distribution and the refusal. File the accounting showing the distribution was offered. Some NC counties allow you to deposit unclaimed distributions with the NC State Treasurer under unclaimed property laws (NCGS 116B). Consult an attorney if a beneficiary refuses distribution.

Q: Who pays the CPA to prepare the AOC-E-506 and tax returns?

A: The estate pays for all administration expenses, including CPA and tax preparation fees. These costs are listed as disbursements in the AOC-E-506. This is a proper estate expense, not a personal cost to you as executor.

Q: How long does court approval of the AOC-E-506 take?

A: Simple, uncontested accounting typically receives approval within 2 to 4 weeks. Complex estates with multiple objections or missing information can take 2 to 3 months or longer. Check with your county clerk for expected timelines in your jurisdiction.

Q: Can Afterpath help me organize the information needed for the AOC-E-506?

A: Yes. Afterpath’s expense tracking and document vault features are designed to keep all the receipts, disbursements, and supporting documentation organized throughout estate administration. When you’re ready to file the AOC-E-506, you can generate a report of all your transactions, which forms the foundation of your final accounting. This saves enormous time compared to manually gathering documents from the past 12 to 18 months.