How Summafolio formats it
Accountings for North Carolina are formatted to the structure of: North Carolina estate account (Form AOC-E-506 structure).
Balance on hand at start, receipts, disbursements, distributions and balance on hand at end, in the structure of AOC-E-506 (Annual/Final Account), with itemized schedules.
Sources:
- N.C.G.S. §28A-21-1, 28A-21-2
- Form AOC-E-506
- N.C.G.S. §36C-8-813 (trustee reports)
- N.C.G.S. ch. 37A (principal and income)
Notes:
- The account is filed with the Clerk of Superior Court on AOC-E-506, with canceled checks or other proof of payment.
The format: AOC-E-506
North Carolina estates account to the Clerk of Superior Court on the Administrative Office of the Courts form AOC-E-506, Account, used for both annual and final accounts and for decedents' estates, minors, adult wards and trusts. The current version (Rev. 6/21) is for decedents who died on or after January 1, 2013.
The form is short and strict:
Part I. Summary
- Personal property on the inventory, or held or invested as shown on the last account
- Minus losses on sale of personal property compared with the inventory or prior account value
- Subtotal
- Plus total receipts (Part III)
- Total assets
- Minus disbursements, debts or expenses (Part IV)
- Subtotal
- Minus distributions, inheritance to heirs (Part V)
- Balance at end of period, which should be zero on a final account
Part II. Balance held or invested (annual accounts only): bank deposits, securities, tangible personal property, real estate willed to the estate and not sold, real estate acquired under G.S. 28A-15-1, and other. The total must equal the Part I balance.
Parts III, IV and V itemize receipts, disbursements and distributions by date, payee and description, with continuation pages.
The form's notes carry rules that trip people up. A gain on sale over the inventory value is reported as a receipt, but a loss goes on Part I, line 2. Unrealized changes in value aren't reported. Rent from real property not willed to the estate belongs to the heirs and isn't an estate receipt. Disbursements need receipts, cancelled checks or other proof.
When accounts are due
An annual account is due 30 days after one year from qualification (or on a fiscal-year schedule) for as long as the representative holds estate property (G.S. 28A-21-1). The clerk audits it and, if approved, endorses and records it. The final account is due within one year after qualifying, or six months after a state estate or inheritance tax release, or on the annual schedule, whichever is later (G.S. 28A-21-2).
Trustees
A trustee keeps qualified beneficiaries reasonably informed. The duty is treated as discharged for matters disclosed in a report sent at least annually and at termination, describing trust property, liabilities, receipts and disbursements, the source and amount of the trustee's compensation, and the assets with market values, including estimates for hard-to-value assets (G.S. 36C-8-813). Beneficiaries can waive reports.
Principal and income
Chapter 37A is North Carolina's Uniform Principal and Income Act (G.S. 37A-1-101).
What Summafolio produces
The nine Part I lines and the Part II breakdown with every amount traced to itemized receipts, disbursements and distributions, the gain-versus-loss treatment the form requires, and an index of the proof for each payment. Copy the totals onto AOC-E-506.
Frequently asked questions
Should the final account show a zero balance?
Yes. Line 9 should equal zero once everything has been distributed.
Where do real estate sale proceeds go?
If the real property was willed to the estate, the entire proceeds are a receipt. The form's Part III notes cover the other cases.
Samples and next steps
Other states
- California
- Florida
- New York
- Pennsylvania
- Texas
- Illinois
- Ohio
- Georgia
- Arizona
- Washington
- New Jersey
- Michigan
- Virginia
- Uniform format