Sep222025
Probate Q&A Series

What steps do I need to transfer real property title to my daughter as a UTMA custodian? – North Carolina

Short Answer

In North Carolina, you transfer a minor’s real estate interest to a custodian by recording a deed that vests title “to [Custodian], as custodian for [Minor] under the North Carolina Uniform Transfers to Minors Act.” If a personal representative is making the UTMA transfer and the property’s value exceeds $10,000, the Clerk of Superior Court must authorize it first. Because real property vests in heirs at death, all current owners usually must sign the deed, and the personal representative must also join if the transfer occurs within two years of death and before the estate’s final account.

Understanding the Problem

You want to know how, under North Carolina probate law, to deed real property from your father’s estate to your daughter using a UTMA custodian. The key decision: who signs and records which deed, and whether the Clerk must approve the transfer. One fact that matters here is that the properties are co‑owned, which affects who must sign the deed and how costs are handled.

Apply the Law

Under North Carolina law, UTMA lets adults hold property for minors until age 21. A personal representative may transfer a minor’s share to a UTMA custodian if it’s in the minor’s best interest and not inconsistent with the will. If the value transferred by a personal representative exceeds $10,000 (or the personal representative would serve as custodian), the Clerk must authorize the transfer before execution. Real property, however, vests in heirs or devisees at death, so titleholders—not the estate—generally must sign the deed. If the transfer happens within two years of death and before the estate’s final account, the personal representative must also join the deed so the conveyance is valid as to creditors. The deed must use UTMA vesting language and be recorded in the county where the land lies.

Key Requirements

  • Confirm title and authority: Identify current titleholders (heirs/devisees) and whether the personal representative has any power over the real estate.
  • UTMA eligibility and best interest: Use UTMA only if it benefits the minor and the governing documents do not prohibit it.
  • Clerk authorization threshold: If a personal representative transfers property over $10,000 in value (or acts as custodian), obtain a Clerk order before signing.
  • Who must sign: Have all current owners of record sign the deed; if within two years of death and before final accounting, the personal representative must also join.
  • Deed vesting language: Convey “to [Name], as custodian for [Minor] under the North Carolina Uniform Transfers to Minors Act,” and record with the Register of Deeds in the county where the land is located.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because the properties are co‑owned, every current owner of record must sign the UTMA deed. Real property vests in heirs at death, so unless the will puts title in the personal representative or grants a power that changes this, the deed should be from the heirs/devisees (including you and your brother) to “you, as custodian for [your daughter] under the North Carolina UTMA.” If this transfer occurs within two years of death and before the final account, have the personal representative join the deed. If a personal representative is making a UTMA transfer that exceeds $10,000 in value, obtain the Clerk’s written authorization before execution.

Process & Timing

  1. Who files: Personal representative (if Clerk approval is required). Where: Clerk of Superior Court (Estates Division) in the county of administration. What: A petition/motion in the estate file requesting authorization for a UTMA transfer, with proposed deed attached. When: Before signing any deed if the personal representative is transferring property over $10,000 or serving as custodian.
  2. Circulate the deed for signatures of all current owners. If within two years of death and before the estate’s final account, have the personal representative join the deed. Expect additional time to coordinate co‑owners and, when needed, to obtain a Clerk’s order.
  3. Record the executed deed with the Register of Deeds in the county where the property is located. Keep a conformed copy for the estate file and for the custodian’s records.

Exceptions & Pitfalls

  • Will/trust restrictions: If the governing document prohibits UTMA transfers or sets a different method, follow that instead.
  • Clerk approval: If a personal representative transfers property over $10,000 in value (or would act as custodian), seek Clerk authorization before signing.
  • Missing signatures: A co‑owner’s missing signature clouds title; confirm all titleholders and obtain all required signatures, plus personal representative joinder when applicable.
  • Cost handling: After death, ongoing real property expenses typically belong to the heirs unless the personal representative obtains possession/control for administration; estate may pay necessary administration costs like deed preparation/recording and prorated taxes through date of death.
  • Wording errors: Use precise UTMA vesting language in the granting clause and record in the correct county.

Conclusion

To transfer North Carolina real property to your daughter via UTMA, prepare and record a deed from all current owners conveying to “you, as custodian for [your daughter] under the North Carolina UTMA.” If the personal representative is making a UTMA transfer over $10,000 (or serving as custodian), obtain Clerk authorization first. When the transfer occurs within two years of death and before the final account, the personal representative must join the deed. Next step: draft the UTMA deed and, if required, file a petition with the Clerk for approval.

Talk to a Probate Attorney

If you’re dealing with a UTMA deed for a minor’s share of estate real estate, our firm has experienced attorneys who can help you understand your options and timelines. 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.

Category: Probate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.