Nov52025
Estate Planning Q&A Series

How can I set up a trust to hold my business assets, real estate, and equipment? – North Carolina

Short Answer

In North Carolina, you create a written trust agreement, name a trustee, and then retitle each asset into the trustee’s name. Real estate moves by a new deed recorded with the Register of Deeds; business interests and equipment transfer by assignments or title changes; bank and investment accounts are retitled. If you act under a power of attorney, your document must clearly authorize creating and funding a trust or you should obtain court approval before moving assets.

Understanding the Problem

You want to know how, in North Carolina, to set up and fund a trust to hold business assets, real estate, and equipment. You hold a power of attorney for your parent, so a key question is whether you can create and fund a trust for them now, and how titling and account ownership affect what can actually be moved into the trust.

Apply the Law

North Carolina’s trust law lets you create a revocable or irrevocable trust by a written agreement signed by the property owner (the settlor). A trustee then holds legal title for the beneficiaries. Courts do not supervise most living trusts. Funding is critical: assets only benefit from the trust once they are retitled to the trustee. If an agent under a power of attorney is acting, North Carolina law requires express authority in the power of attorney or trust documents to create, amend, or fund a trust; otherwise, the agent should seek approval from the Clerk of Superior Court or the Superior Court before transferring assets. Real property must be conveyed by deed to the trustee and recorded with the county Register of Deeds. Joint accounts with right of survivorship generally pass outside the trust at death unless retitled during life and may be reachable for estate debts in limited situations if the estate is short.

Key Requirements

  • Clear authority to act: The property owner signs the trust; an agent may only create or fund a trust if the power of attorney expressly allows it (or a court authorizes it).
  • Proper funding: Retitle each asset to the trustee (deed for real estate; assignment or title change for business interests and equipment; institution paperwork for financial accounts).
  • Real estate recording: Record the deed to the trustee with the county Register of Deeds to make the transfer effective.
  • Account ownership realities: Joint-with-survivorship accounts typically bypass the trust at death unless retitled during life; they may still be subject to limited estate-debt recovery.
  • Business documents: Follow operating agreements, bylaws, or buy-sell provisions when assigning LLC interests, corporate shares, or partnership interests to a trust.
  • Proof of authority: Use a certification of trust to show third parties the trustee’s powers without disclosing the full trust.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because you hold a power of attorney, first confirm it expressly authorizes creating and funding a trust. If it does, you can sign a trust agreement for your parent and begin retitling assets. The previously sold property cannot be added now; the property held with survivorship likely bypasses the trust unless retitled during life. The joint checking account also bypasses the trust at death unless you and your sibling agree to retitle funds owned by your parent into the trust now.

Process & Timing

  1. Who files: The property owner (your parent) or an authorized agent under a power of attorney. Where: No court filing is required to create a living trust; use private documents. What: Execute a revocable trust agreement; obtain an EIN if recommended by your tax advisor; prepare a certification of trust; sign transfer documents. When: Execute the trust first; then immediately start funding by retitling assets.
  2. Real estate: Prepare and sign a deed from the current owner to the trustee and record it with the county Register of Deeds; allow time for recording and indexing (timing varies by county). Update insurance and tax billing to show the trust/trustee.
  3. Business and equipment: Assign LLC interests, stock, or partnership interests per the governing documents; obtain any required consents. Retitle titled equipment or vehicles with the appropriate state agency. Update banking and vendor records using the certification of trust.
  4. Financial accounts: Work with each institution to open trust-titled accounts or retitle existing ones to the trustee. Provide the certification of trust as proof of authority. Expect institution-specific forms and processing times.
  5. After funding: The trustee keeps trust assets separate, maintains records, and provides reports to beneficiaries as required by law and the trust terms.

Exceptions & Pitfalls

  • Power of attorney limits: Without clear authority to create/fund a trust, an agent should not move assets; seek court approval if needed.
  • Real estate titling: North Carolina does not use transfer-on-death deeds for real property; to include real estate in a trust, record a deed to the trustee.
  • Joint accounts: Joint-with-survivorship accounts usually bypass the trust at death; consider retitling during life if the goal is trust management and distribution.
  • Business restrictions: Operating agreements and lender covenants may require consent before assigning interests to a trust.
  • Proof of authority: Provide a certification of trust to banks, brokers, and closing attorneys to avoid delays.
  • Recordkeeping: Trustees must keep trust property separate and maintain clear records of receipts, disbursements, and asset titles.

Conclusion

To set up a North Carolina trust to hold business assets, real estate, and equipment, sign a trust agreement, then retitle each asset to the trustee. Record a deed for real estate with the Register of Deeds and assign business interests and equipment per their governing rules. If you act as an agent, confirm your power of attorney expressly authorizes creating and funding a trust; if not, seek court approval. The next step is to execute the trust and begin retitling assets into the trustee’s name.

Talk to a Estate Planning Attorney

If you’re dealing with creating and funding a trust for business assets and real estate in North Carolina, 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: Estate Planning 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.