How Much Do Executors Get Paid in NC?

You’ve Taken On a Lot. You’re Allowed to Be Paid for It.

Serving as an executor is real work. You’ll track down assets, notify creditors, file paperwork with the Clerk of Superior Court, manage property, communicate with beneficiaries, and navigate a bureaucratic process that most people encounter only once or twice in a lifetime. The law recognizes this, and in North Carolina, executors are entitled to compensation.

But how much? The answer is both specific and frustratingly vague: NC law provides a starting point, courts have flexibility, and family dynamics often end up driving the final decision more than any statute does.

Here’s what you need to know about executor compensation in North Carolina.

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The NC Statutory Fee Schedule

North Carolina General Statute 28A-23-3 governs executor compensation. The statute describes compensation as “reasonable” but also provides a specific fee schedule that courts use as a benchmark:

• 5% of all receipts (money coming into the estate)
• 5% of all disbursements (money going out of the estate)

These two percentages apply to the personal property of the estate. They do not typically apply to real property unless the executor actively manages or sells real estate as part of administration.

A Practical Example

Suppose you’re administering an estate with the following activity:

Receipts:

• Bank accounts: $80,000
• Investment accounts: $120,000
• Life insurance payable to estate: $50,000
• Proceeds from personal property sale: $15,000
• Total receipts: $265,000

Disbursements:

• Funeral expenses: $8,000
• Outstanding bills paid: $12,000
• Attorney fees paid: $5,000
• Distributions to heirs: $240,000
• Total disbursements: $265,000

Executor compensation:

• 5% of $265,000 receipts: $13,250
• 5% of $265,000 disbursements: $13,250
• Total: $26,500

That’s a significant sum, and it illustrates why executor compensation deserves serious thought before accepting or waiving it.

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What “Reasonable” Actually Means in NC Courts

The 5%/5% schedule is a starting point, not a guarantee. NC courts can adjust compensation up or down based on factors including:

Complexity of the estate: An estate with multiple properties, business interests, or disputed assets warrants higher compensation. A simple estate with one bank account warrants less.

Time invested: Courts consider the actual hours spent on administration. If you’ve devoted 200 hours to an estate over 18 months, that’s different from a 30-hour engagement.

Skills required: If your professional background (accounting, law, finance) directly benefited the estate, courts may factor that in.

Results achieved: Did you recover assets that might have been lost? Negotiate a favorable settlement? Protect the estate from creditors? Positive outcomes can support higher compensation.

Local norms: Some NC counties have informal expectations about what’s typical for local estates. An attorney familiar with the Clerk’s office in your county can give you a sense of local practice.

If any beneficiary objects to the compensation you request, the Clerk of Superior Court will review the matter and make a determination. Disputes over executor fees are not uncommon, particularly in family situations where siblings have conflicting feelings about who was chosen as executor.

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When Executors Waive Their Fee

Many family executors waive their compensation entirely. This is common when:

• The executor is also a primary beneficiary and would essentially be paying themselves from their own inheritance
• The estate is small and fees feel disproportionate to the emotional context
• The executor wants to preserve goodwill with other beneficiaries
• The estate value is modest and legal fees are consuming a significant share already

There is nothing wrong with waiving your fee. It’s a personal decision, and no one is obligated to accept compensation. That said, waiving fees is a formal decision, not just something you do by not asking. Document it in writing and ideally include it in the final accounting to the Clerk.

One important note: if you waive compensation, make sure it’s genuinely your choice and not the result of pressure from other heirs. You took on significant legal responsibility by accepting the executor role. You have every right to be compensated for that.

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Tax Implications of Executor Compensation

This is the part many executors don’t think about until it’s too late.

Executor fees are taxable income. If you accept compensation, it must be reported on your personal income tax return as ordinary income in the year it’s received. You’ll pay federal and state income tax on the full amount.

Inheritances are not taxable income. Whatever you receive as a beneficiary of the estate is generally not subject to income tax (with some exceptions for inherited IRAs and retirement accounts).

This creates an interesting calculation for executor-beneficiaries. In many cases, it’s more tax-efficient to waive the executor fee and simply take a larger share of the estate as an inheritance, rather than receiving the same economic benefit as taxable compensation.

Example: If you’re in the 22% federal tax bracket and you accept $10,000 in executor fees, you net roughly $7,800 after taxes. If instead you waive those fees and the estate distributes an extra $10,000 to you as an heir, you keep the full $10,000 (assuming the estate contains assets that aren’t taxable as income when distributed).

Consult a tax professional before making your final decision, especially if the compensation amount is substantial.

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Court Approval for Executor Compensation

In North Carolina, executor compensation doesn’t require advance court approval in most cases. You document your fee in the final accounting filed with the Clerk of Superior Court, and the Clerk reviews it as part of closing the estate.

However, if any beneficiary objects, the Clerk will hold a hearing. The executor must then justify the fee with documentation: logs of time spent, records of what was done, and evidence that the work was necessary.

This is why keeping thorough records throughout administration matters so much. If you’re ever challenged on your compensation, you need to demonstrate the value you provided.

Afterpath’s task management system creates a running log of every action you take on behalf of the estate, from creditor notifications to asset transfers. That documentation isn’t just helpful for managing the process; it becomes your evidence if compensation is ever questioned.

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Co-Executors and Fee Splitting

Some NC estates name co-executors, and the compensation question becomes more complicated. The general rule is that each co-executor is entitled to compensation for their own work, but fees don’t automatically double. Courts expect co-executors to coordinate their efforts, not duplicate them.

If one co-executor does the majority of the work, it’s appropriate for the compensation to reflect that imbalance. Document who did what throughout the process.

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Professional Executors and Fiduciary Companies

If an individual named as executor can’t serve (or declines the role), some families turn to professional fiduciaries, trust companies, or bank trust departments. These institutions charge differently, often as an annual percentage of assets under administration, ranging from 0.5% to 2% of the estate’s value per year.

Professional executors bring experience and neutrality, which can be valuable in contentious family situations, but their fees can add up quickly for larger estates.

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How Afterpath Supports Executors

Whether you accept your fee or waive it, Afterpath’s platform is designed to help you do the job well and protect yourself in the process.

Pathfinder, Afterpath’s AI guide, can help you understand your rights and responsibilities as an executor under NC law, including compensation rules and the process for documenting your fee in the final accounting.

The document vault stores every record related to the estate, keeping your administration organized and defensible if anyone ever reviews your work. And Afterpath’s NC compliance engine ensures you’re following the correct sequence of steps under North Carolina statute, reducing the risk of errors that could expose you to liability.

For executors who want professional support without paying full attorney hourly rates, Afterpath’s professional marketplace connects you with NC-licensed attorneys and accountants who can review your accounting before you submit it to the Clerk.

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FAQ: Executor Compensation in North Carolina

Q: Am I required to take my executor fee? No. Compensation is entirely optional. Many family executors waive it.

Q: Can I be paid as I go, or do I have to wait until the end? NC law allows interim compensation with Clerk approval, but most executors take the full fee at the time of final accounting.

Q: What if I’m both the executor and the sole beneficiary? Taking a fee doesn’t change the math much since you’d be paying yourself. Most sole-beneficiary executors waive the fee for simplicity.

Q: Can the will set a specific executor fee? Yes. If the will specifies a fee amount or formula, that controls over the statutory schedule, unless you decline those terms when you qualify as executor.

Q: How does Afterpath help with executor compensation? Afterpath tracks your work throughout administration, giving you documentation to support your fee request. Pathfinder can explain how the fee schedule works and what to include in your final accounting.

Q: What if beneficiaries challenge my fee? The Clerk of Superior Court will review the dispute. Strong documentation of your work and time is your best defense.

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Your Time Has Value

Serving as executor is a genuine service to the people your loved one cared about. You took on legal responsibility, time, stress, and often emotional burden during an already hard period. The law recognizes that. So should you.

Take time to understand your compensation options, consult a tax professional about the tax implications, and keep thorough records of everything you do on behalf of the estate.

If you’re looking for a tool that supports every step of the executor role, from opening the estate to final accounting, Afterpath was built for you. Learn more and join the waitlist at /waitlist/.