How can I put our paid-off house and land into a revocable trust and still sell them later? – North Carolina

Short Answer

In North Carolina, a married couple can deed a paid-off home and land into a revocable living trust by signing and recording a new deed that transfers title from the owners to the trustees of the trust. Because trustees have statutory power to sell real estate, the property can later be sold by the trustee(s) just like any other owner, typically by providing a Certification of Trust at closing. A revocable trust avoids probate for assets properly titled to it, but it does not shield those assets from the couple’s creditors while either spouse is living.

Understanding the Problem

North Carolina question: Can a married couple place a paid-off house and separate land into a revocable living trust now and still keep full flexibility to sell either property later? The decision point is how to title the real estate into the trust while preserving the ability of the trustee(s) to convey good title in a future sale and to adjust who serves as trustee and who benefits over time.

Apply the Law

Under North Carolina law, a revocable living trust is a written agreement that names a trustee to hold and manage property for beneficiaries. The settlors (the creators) keep the right to amend or revoke the trust during life. Real estate is “funded” into the trust by recording a deed from the current owners to the trustee(s) of the trust. Once titled to the trust, a future sale is handled by the trustee(s), who have broad statutory powers to sell real property and may prove their authority to third parties with a Certification of Trust. The county Register of Deeds is the primary office involved (for recording deeds). There is no court filing to create or fund a revocable trust, and no routine accounting to the Clerk of Superior Court unless the trust terms require it.

Key Requirements

• Create the trust in writing: Sign a revocable trust that names initial and successor trustees, beneficiaries (including minors as needed), and expressly authorizes sale of real property.
• Deed the property into the trust: Record a properly drafted deed from the current owners to the trustee(s) of the trust in the county Register of Deeds where the property sits; use the trustee’s names and trust title (not the trust name alone).
• Trustee power to sell: Ensure the trust grants the trustee power to sell; North Carolina law also supplies broad sale powers to trustees.
• Use a Certification of Trust: At closing, provide a Certification of Trust so the buyer and closing attorney can confirm trustee authority without reviewing the entire trust.
• Revocability and control: The trust can be amended or revoked; in a joint trust, each spouse can typically act with respect to the portion each contributed unless the trust requires joint action.
• Creditor reality: A revocable trust does not protect assets from the settlors’ creditors during life or from certain claims after death.

What the Statutes Say

• N.C. Gen. Stat. § 36C-6-602 (Revocation or amendment of revocable trust) – Confirms a revocable trust may be amended or revoked and addresses joint settlors.
• N.C. Gen. Stat. § 36C-8-816 (Specific powers of trustee) – Grants trustees authority to acquire and sell real property, among other powers.
• N.C. Gen. Stat. § 36C-10-1013 (Certification of trust) – Allows a trustee to provide a certification in lieu of the full trust to third parties (like a closing attorney or buyer).
• N.C. Gen. Stat. § 36C-5-505 (Creditors’ claims against settlor) – States that property in a revocable trust remains subject to the settlor’s creditors.

Analysis

Apply the Rule to the Facts: Here, a married couple with minor children can sign a joint revocable trust naming themselves as co-trustees and naming backup trustees for incapacity or death. Next, they record deeds transferring the home and land to themselves as trustees of the trust. When they later choose to sell, the acting trustee(s) sign the sale deed, and the closing attorney can rely on a Certification of Trust to confirm authority. Because the trust is revocable, they can add or remove assets and update trustees or beneficiaries as their family’s needs change.

Process & Timing

1. Who files: The settlors (the couple). Where: Sign the trust privately; record the deeds with the County Register of Deeds where each property is located in North Carolina. What: A revocable trust agreement; a deed from the owners to the trustee(s) of the trust (commonly a general warranty or quitclaim deed) with proper notary acknowledgments; any county-required excise/cover sheets. When: Record promptly after signing to ensure the trust, not the individuals, holds title.
2. After recording: Update homeowners insurance to list the trust/trustee as an insured where appropriate, confirm tax mailing addresses, and store the recorded deed with the trust documents. Expect recording to occur on submission; processing and return of originals varies by county.
3. Selling later: The trustee(s) sign the deed to the buyer; provide a Certification of Trust to the closing attorney to verify powers and identities; sale proceeds are paid to the trust and then handled under the trust terms.

Exceptions & Pitfalls

• Wrong deed party: In North Carolina, title should be conveyed to the named trustee(s) “as trustee of [Trust Name],” not to the trust name alone.
• Spousal creditor protection: Transferring from spouses as individuals to a trust can affect certain spousal creditor protections if not structured carefully; use trust terms and deed titling that preserve desired protections and require co-trustee consent where appropriate.
• Creditor/Medicaid limits: A revocable trust does not shield assets from the couple’s creditors during life and is generally counted for needs-based benefits; asset protection requires different planning.
• Co-trustee action: If only one spouse is available to sign later, the trust must clearly authorize one trustee to act alone or provide a smooth path for a successor trustee to step in.
• Funding gaps: Only assets retitled to the trust avoid probate. Consider pour-over wills, powers of attorney, and updated beneficiary designations so the plan works if something is missed.
• Third-party requests: If a buyer or lender asks for the whole trust, North Carolina law permits a Certification of Trust instead; provide it to protect privacy and speed the closing.

Talk to a Estate Planning Attorney

If you’re dealing with titling North Carolina real estate into a revocable trust while keeping the flexibility to sell later, 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.