How can I transfer our out-of-state cabin into a family trust? – North Carolina

Short Answer

Under North Carolina law, you can title an out-of-state cabin in a family trust, but the deed and recording must follow the law of the state where the cabin is located. First, confirm who owns the property now and clear any interest of the deceased co-owner under that state’s rules. Then, create your North Carolina trust and record a properly drafted deed from the current owners to the trustee in the cabin’s county.

Understanding the Problem

In North Carolina, how do you place an out-of-state cabin into a new revocable trust when a co-owner has died? The key decision is whether you can deed the cabin into the trust now or must first clear title to the deceased co-owner’s share in the other state. This affects who signs the deed and where you must file documents.

Apply the Law

North Carolina trusts can own real estate located anywhere, but real estate transfers follow the law of the state where the land sits. That means the deed form, signatures, notary requirements, transfer taxes, and recording happen in the cabin’s state and county. If the deceased co-owner’s share did not pass by survivorship, you generally must complete probate (often ancillary probate) in the cabin’s state before conveying that share to a trustee.

Key Requirements

• Set up the trust and trustee authority: Create a North Carolina revocable trust and name a trustee with power to hold real property.
• Confirm current title and survivorship: Pull the recorded deed to see how the owners held title and whether the deceased co-owner’s interest passed automatically or requires probate in the cabin’s state.
• Clear the deceased owner’s interest if needed: If no survivorship, complete the other state’s process (e.g., local probate or recording a death certificate/affidavit if allowed) so the right parties can sign the deed.
• Use the correct deed and recording office: Prepare and record that state’s required deed from the current owners to the trustee, filed with the county recorder where the cabin is located; pay any transfer taxes.
• Retitle related items: Update insurance, tax mailing address, and any local filings (e.g., property transfer forms) to reflect trustee ownership.

What the Statutes Say

• N.C. Gen. Stat. § 36C-8-815 (General powers of trustee) – Trustee may exercise broad ownership powers unless limited by the trust.
• N.C. Gen. Stat. § 36C-8-816 (Specific powers of trustee) – Trustee may acquire, hold, and convey real property, including through deeds.
• N.C. Gen. Stat. § 31-46 (Validity of out-of-state wills) – North Carolina recognizes wills valid where executed or at domicile, relevant when a will controls a deceased co-owner’s share.
• N.C. Gen. Stat. § 28A-2A-17 (Probate of wills from another jurisdiction) – Sets North Carolina’s process for recognizing a will proven elsewhere; for out-of-state land, expect that state’s equivalent rules.

Analysis

Apply the Rule to the Facts: Because a co-owner has died, first confirm whether the recorded deed created a right of survivorship. If it did, the survivor may own that share automatically and can deed into the trust now. If it did not, you must clear the deceased co-owner’s interest under the cabin state’s probate process before any trust transfer. After title is clear in the living owners, prepare and record that state’s deed from those owners to the trustee.

Process & Timing

1. Who files: Current living owners (and, if required, the deceased owner’s personal representative in the cabin’s state). Where: The county recorder/registry where the cabin is located (out-of-state). What: That state’s deed form conveying from the owners to “[Trustee Name], Trustee of the [Trust Name], dated [date]”; if probate is required, open an ancillary estate in the cabin’s state first. When: After the trust is signed and title is cleared for the deceased owner’s share.
2. Record the deed and any required transfer/valuation forms; pay recording and transfer taxes. Update insurance and tax mailing address to the trustee. Many counties return recorded documents within a few weeks.
3. Keep the recorded deed and a short trust certificate (if the recorder requests it). Title should now reflect the trustee as owner of the cabin for the trust.

Exceptions & Pitfalls

• Survivorship vs. tenants-in-common: Survivorship may avoid probate for that share; tenants-in-common usually requires probate in the cabin’s state.
• Wrong deed or signatures: Use the other state’s required deed type and notary blocks; sign in trustee capacity and include full trust name and date.
• Unaddressed estate claims: Some states restrict transfers of a deceased owner’s share until creditors’ claim periods run or a local personal representative joins.
• Taxes and fees: Expect local transfer taxes, recording fees, and possible property tax classification changes after transferring to a trust.
• Lender/HOA issues: Check for due-on-sale clauses, association approval, or use restrictions before you transfer.

Talk to a Estate Planning Attorney

If you’re dealing with transferring an out-of-state cabin into a new family trust, 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.