How do I transfer my home and my business into the trust and keep it funded? – North Carolina

Short Answer

In North Carolina, a trust only controls the property that is actually retitled (or assigned) into the trust. A home is usually transferred by signing and recording a new deed to the trustee of the trust with the county Register of Deeds. A business is usually transferred by signing assignment documents (and often updating company records and agreements) so the trust (through its trustee) becomes the owner. “Keeping it funded” means using a written funding checklist and retitling new assets and updates as they arise.

Understanding the Problem

In North Carolina estate planning, the question is not only “can a trust be created,” but “how does a house and a business get moved into the trust so the trust actually owns them?” The actor is typically the person creating the trust (the “settlor”) and the trustee named in the trust document. The action is transferring title to real estate and ownership interests in a business so they are held by the trustee for trust purposes. The key trigger is timing: the transfer steps must be completed after the trust exists, and they should be revisited whenever major assets are bought, sold, refinanced, or reorganized.

Apply the Law

Under North Carolina law, a trust is “funded” when property is transferred to the trustee of the trust using the proper transfer method for that type of property. Real estate generally requires a deed that is eligible for recording with the county Register of Deeds. Business ownership generally requires an assignment and acceptance consistent with the business’s governing documents and the type of entity (for example, partnership interest, corporate shares, or membership interests). North Carolina also has rules that treat a conveyance “to a trust” as a conveyance to the trustee(s), which helps avoid technical title problems when instruments reference the trust name.

Key Requirements

Use the correct transfer document for each asset type: Real estate usually needs a deed; business interests usually need assignments and updated internal records (and sometimes consents required by agreements).
Retitle the asset to the trustee (not just list it in the trust paperwork): A trust schedule or “asset list” is a helpful roadmap, but it does not replace a deed or assignment when title must change.
Complete the public-record or company-record step: Real estate transfers must be recorded; business transfers must be reflected in the entity’s records (and sometimes updated with banks, licensing agencies, or contract counterparties).

What the Statutes Say

N.C. Gen. Stat. § 39-6.7 (Conveyances to or by trusts) – Treats instruments transferring property “to a trust” as transfers to the trustee(s), which helps with how title is construed.
N.C. Gen. Stat. § 47-14 (Register of deeds verification and recording) – Describes requirements the Register of Deeds uses when accepting instruments for recording, including acknowledgement details for documents that require it.
N.C. Gen. Stat. § 59-57 (Assignment of partner’s interest) – Explains that assigning a partnership interest generally transfers the right to receive profits but does not automatically transfer management rights.

Analysis

Apply the Rule to the Facts: The scenario involves creating an individual trust for estate planning and wanting the trust to hold both a house and a business. Under North Carolina practice, that typically means (1) signing and recording a deed that retitles the house to the trustee of the trust and (2) signing business transfer documents that assign ownership interests to the trustee, consistent with the business’s entity type and governing documents. “Keeping it funded” means building a repeatable system so future assets (or changes to existing assets) get retitled to the trust instead of staying in an individual name.

Process & Timing

Who files: The current owner(s) of the home signs the deed; the deed is then submitted for recording. Where: The county Register of Deeds where the home is located in North Carolina. What: A new deed transferring the home to the trustee of the trust, plus any county-required cover sheets. When: As soon as practical after the trust is signed; do not wait until a later event.
Business transfer step: The current owner signs an assignment (or stock transfer documentation, membership interest assignment, or partnership assignment depending on the entity). The company should then update its internal records (for example, membership ledger, stock ledger, or ownership schedule) and confirm whether any consents are required by an operating agreement, bylaws, shareholder agreement, buy-sell agreement, lender documents, or key contracts. Timing varies; many transfers can be completed within days once the correct documents are prepared, but it can take longer if third-party consents are needed.
Keeping the trust funded: Maintain a written funding checklist that is reviewed at least annually and whenever major events occur (home refinance, new bank/investment account, buying/selling real estate, forming a new entity, admitting a new business partner, or signing a new lease). A common final step is producing an updated “trust funding summary” that lists what has been retitled and what still remains outside the trust.

Exceptions & Pitfalls

Mortgages and refinancing: A deed transfer changes the record owner even if the loan stays in place. Lenders and title insurers can have requirements during refinance, and documents should be reviewed before recording a deed into a trust.
Business agreements restricting transfers: Many operating agreements, shareholder agreements, or buy-sell agreements restrict transfers or require notice/consent. A transfer to a trust may be permitted, but the paperwork and approvals still matter.
Entity type matters: An assignment that works for a sole proprietorship may be wrong for an LLC or corporation. For example, partnership statutes recognize that an assignment may transfer economic rights without automatically giving management rights.
Licenses and contracts: Some businesses have permits, professional licensing rules, leases, or vendor contracts tied to the owner or entity. The transfer should be reviewed for any required notices or amendments.
“Schedule of assets” is not enough for real estate: Listing a home on a trust schedule does not substitute for a recorded deed in the land records.

Conclusion

In North Carolina, transferring a home and a business into a trust generally requires more than signing the trust document: the home must be deeded to the trustee and recorded with the county Register of Deeds, and the business ownership must be assigned and reflected in the company’s records (often with required consents). The key threshold is whether title and ownership records actually show the trustee as owner. The next step is to prepare and record the deed and complete the business assignment paperwork promptly after the trust is signed.

Talk to a Estate Planning Attorney

If dealing with transferring a home and business into a trust and keeping the trust properly funded, experienced attorneys can help identify the right transfer documents, required consents, and timing issues. 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.