Short Answer

Yes. In North Carolina, you may name a bank or trust company to serve as successor trustee of a revocable or testamentary trust. The institution must agree to serve and will be bound by North Carolina’s trust laws. Banks and trust companies licensed to do trust business in North Carolina generally do not have to post a bond. If the named company declines and there is a vacancy, the trust terms, the beneficiaries, or the Clerk of Superior Court can fill the role.

Understanding the Problem

You want to know if you can appoint a North Carolina financial institution as the successor trustee of a new living trust. You prefer an independent, professional trustee over family. One key fact: you own a North Carolina home free and clear and want its sale proceeds managed for grandchildren until they reach a chosen age.

Apply the Law

North Carolina’s trust code allows you to name an individual or a corporate fiduciary (such as a bank or trust company) as successor trustee. The company must accept the role as your trust specifies or by acting as trustee. If your chosen company declines, North Carolina provides an order of priority to fill a vacancy, and the Clerk of Superior Court can appoint a trustee when needed. Corporate trustees must administer the trust in good faith, with loyalty, prudence, and proper reporting, and they invest under the prudent investor rule. Banks and trust companies licensed to do trust business in North Carolina are typically exempt from filing a bond.

Key Requirements

• Name an eligible fiduciary: You may designate a bank or trust company as successor trustee in the trust document; confirm it is willing to serve.
• Acceptance of trusteeship: The trustee accepts by following the method in your trust or by acting as trustee; if given written notice to accept, failure to accept within 120 days is treated as a declination.
• Bond rules: Banks and trust companies licensed to do trust business in North Carolina generally do not need to post bond unless your trust requires otherwise.
• Duties and standards: The successor trustee must act in good faith, be loyal and impartial, inform and report to qualified beneficiaries, and invest prudently.
• Vacancy fallback: If your named successor cannot serve, the trust terms control first; otherwise qualified beneficiaries may agree, or the Clerk of Superior Court may appoint a trustee.
• Compensation: State law honors compensation stated in your trust; if not stated, compensation must be reasonable and may involve notice procedures.

What the Statutes Say

• North Carolina Gen. Stat. § 36C-7-701 (Accepting or declining trusteeship) – How a trustee accepts, temporarily acts to protect assets, or declines.
• North Carolina Gen. Stat. § 36C-7-702 (Trustee’s bond) – When a bond may be required and exemptions for banks/trust companies.
• North Carolina Gen. Stat. § 36C-7-704 (Vacancy in trusteeship; appointment) – Priority for filling a vacancy and the Clerk’s role.
• North Carolina Gen. Stat. § 36C-9-902 (Prudent investor rule) – Standard for investing trust assets, including sale proceeds.

Analysis

Apply the Rule to the Facts: Because you want a neutral fiduciary, North Carolina law lets you name a bank or trust company as successor trustee in your revocable trust. If you send written notice asking it to accept and it does not do so within 120 days, it is deemed to have declined, so your document should name backups. Your trustee must prudently invest the home-sale proceeds for your grandchildren and provide required reports. If all named successors fail, qualified beneficiaries or the Clerk of Superior Court can ensure a trustee is appointed.

Process & Timing

1. Who files: No court filing is needed to name a successor trustee. Where: Private document execution in North Carolina. What: Sign a revocable living trust naming the financial institution as successor trustee; include powers, compensation, investment authority, and distribution ages. If you want trust assets to receive non‑probate treatment, fund the trust. When: Before you transfer property.
2. Record a deed transferring your home to the trust with the Register of Deeds in the county where the property sits. Many clients use a general warranty or quitclaim deed; recording typically occurs the same day the deed is submitted.
3. Coordinate a pour‑over will to capture assets you forget to retitle and pour them into your trust at death. If the named institution later declines and no successor remains, qualified beneficiaries may agree on a replacement, or a petition can be filed with the Clerk of Superior Court to appoint one.

Exceptions & Pitfalls

• Some corporate fiduciaries will not serve unless the trust meets minimum asset thresholds or specific terms; confirm acceptance and get a fee schedule before you sign.
• Failing to record the deed leaves the house outside the trust; that can frustrate your plan and force probate of the property.
• If you name a non‑bank entity or individual, a bond can be required unless waived by your trust; licensed banks and trust companies in North Carolina are generally exempt.
• Vague distribution standards or missing investment authority can hamper administration; include clear powers and beneficiary ages in the trust.
• If all named successors decline and no backup exists, delay can occur; build in an appointment mechanism and backups to avoid clerk appointment.

Talk to a Estate Planning Attorney

If you’re dealing with choosing and naming a corporate successor trustee and funding a new living 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.