Dec232025
Estate Planning Q&A Series

Is it better to wire the money to the trust or write a check, and what documentation should I keep to prove the transfer happened? – North Carolina

Short Answer

Under North Carolina law, either a wire transfer or a check can work to move money into a family trust, as long as the transfer clearly identifies the trust, the trustee, and the purpose of the payment. In a high-conflict situation, a wire often creates a cleaner, third-party audit trail, while a check can be easier to label and copy. The safest approach is whichever method results in (1) the trust or trustee being the named recipient and (2) records that show the money left the original account and was actually received and deposited into an account titled to the trust.

Understanding the Problem

In North Carolina estate planning, the practical question is how to transfer funds from an account where the surviving owner is listed to a family trust tied to a deceased person, using a method that later proves the transfer really occurred. The decision point is whether sending the funds by wire or by check creates clearer proof that the money moved into the trust (typically through the trustee and a properly titled trust account). The concern usually comes up when family members question past spending, demand accounting, or dispute whether money was properly delivered to the trust after a death.

Apply the Law

North Carolina trust administration focuses heavily on recordkeeping, clear identification of trust property, and the ability to account for transactions. While the law does not require a single payment method for funding or adding assets to a trust, disputes often turn on documentation: what was transferred, when it was transferred, who received it, and how it was held after receipt. Where a trustee holds property in a fiduciary role, North Carolina law expects segregation/clear identification of fiduciary property and records of transactions that can support an accounting if challenged.

Key Requirements

  • Clear recipient identity: The transfer should name the trust or the trustee in a fiduciary capacity (not a personal name alone), so the banking record shows who was supposed to receive the funds.
  • Proof of both “sent” and “received”: Good documentation shows the money left the source account and was credited into an account held for the trust, not just that a payment was initiated.
  • Records sufficient for an accounting: The file should include documents that identify the transaction and support later reporting if a beneficiary demands information or a court orders an accounting.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the goal is to move remaining proceeds held in bank accounts where the surviving owner is listed into a family trust connected to the decedent, while minimizing future arguments about whether the transfer happened and whether it was properly handled. Because there is family conflict about spending and accounting, the best method is the one that produces a clear trail showing (1) the exact amount, (2) the date it left the source account, (3) the identity of the trust/trustee as recipient, and (4) the deposit into a trust-titled account. Both wires and checks can satisfy that if the documentation is assembled correctly, but wires often generate stronger bank-created confirmation records.

Process & Timing

  1. Who files: No court filing is usually required for a routine transfer into an existing trust. Where: The transfer is handled through the financial institutions involved (the bank holding the source account and the bank holding the trust account) and the acting trustee. What: A written direction to the bank (wire request or check issuance), plus a cover letter or memo identifying the trust name/date and stating the transfer is to fund the trust. When: As soon as the trustee has provided correct payee/wiring instructions and the trust’s bank account is already titled properly.
  2. Document receipt: For a wire, obtain the wire confirmation (often called a payment confirmation, reference number, or IMAD/OMAD detail) and the receiving account’s bank statement showing the incoming credit. For a check, keep a copy of the check (front and back after it clears), proof of delivery (if mailed or delivered), and the trust account statement showing the deposit.
  3. Assemble an “accounting packet”: Keep the source account statement showing the debit, the receiving trust account statement showing the credit, and a one-page transaction log describing the transfer (date, amount, source account, recipient account, and purpose). If a trustee (or other fiduciary) signs a written receipt acknowledging the funds were received for the trust, keep that receipt with the packet.

Exceptions & Pitfalls

  • Paying the wrong “payee”: Making a check payable to an individual name (without “Trustee of the ___ Trust”) can create arguments that the money was a personal gift or was not held in a fiduciary capacity.
  • Using the wrong destination account: Depositing into an account not titled to the trust (or not clearly titled in a fiduciary capacity) undermines the “trust property is separate and identifiable” concept and can fuel conflict.
  • Incomplete proof: A screenshot that a wire was “submitted” or a check register entry is usually not enough. The file should also show that the funds posted to the trust account.
  • Missing written acknowledgment: In contested situations, a short signed receipt from the trustee acknowledging receipt for the trust can reduce later factual disputes. North Carolina statutes in the custodial trust context recognize written receipts/acceptances as evidence of acceptance.
  • Tax and liability concerns: A transfer can have tax or liability implications depending on who owns the account, how the annuity and beneficiary designations were set up, and whether the trust is the intended recipient. A lawyer and a CPA should review the plan before moving large sums.

Conclusion

In North Carolina, wiring money to a trust or paying by check can both be appropriate, but the best choice is the method that creates the clearest proof that the trust (through its trustee) received and deposited the funds into a trust-titled account. The core documentation is: a record of the debit from the source account, a record of the credit to the trust account, and a written description tying the transfer to the trust. Next step: obtain the trustee’s exact trust-account titling and payment instructions and complete the transfer using that information.

Talk to a Estate Planning Attorney

If there is a need to transfer inherited or survivor-held funds into a family trust and create a clean paper trail for future accounting, our firm has experienced attorneys who can help explain options and timelines under North Carolina law. 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.