Jan272026
Estate Planning Q&A Series

Can I take an investment or money market account out of my trust and put it back in my individual name, and what does that change? – North Carolina

Short Answer

Often, yes—if the trust is revocable and the account is titled in the name of the trustee, the account can usually be retitled back into an individual name by following the financial institution’s paperwork process. The main change is administrative: the account may no longer be controlled under the trust’s terms during life or at death, which can affect probate avoidance, incapacity planning, and how (and to whom) the account passes at death. Before retitling, it is important to coordinate beneficiary designations and powers of attorney so the overall plan still works.

Understanding the Problem

In North Carolina estate planning, the decision point is whether an investment or money market account that is currently titled in the name of a trust can be moved back into an individual name, and what that change does to control, management during incapacity, and what happens at death. The actor is typically the person who created the trust and serves as trustee (or a successor trustee). The action is retitling the account from the trust to an individual owner, which can change which document governs the account (the trust versus the account’s own beneficiary setup) and which person has authority to manage it if incapacity occurs.

Apply the Law

Under North Carolina practice, whether an account can be removed from a trust depends first on what kind of trust it is and who has authority to act for the trust. Many living trusts used for estate planning are revocable, meaning the person who created the trust typically keeps the practical ability to change the trust and move property in and out of it. Retitling an account is usually done through the brokerage or bank’s internal process (not through the courthouse), but the institution will require proof of authority (such as a certification or excerpt of trust) and signed transfer/retitling forms.

What changes after retitling depends on how the account is set up afterward. If the account is left in an individual name with no beneficiary designation, it may become part of the probate estate at death. If the account is set up with a transfer-on-death (TOD) beneficiary, it can pass by the account contract instead of the will or trust, and the owner can usually change that TOD designation during life.

Key Requirements

  • Authority to act for the trust: The person signing must have legal authority as trustee (or as an authorized agent if the trustee cannot act) to direct the retitling.
  • Correct retitling method for the institution: The brokerage/bank must accept the request and its forms must be completed exactly as required (including medallion signature guarantees if demanded).
  • Coordinated “who gets it at death” plan: After retitling, the account must be aligned with the intended transfer method (trust, TOD beneficiary, or probate through a will), or the plan can break.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, some assets (including an investment or money market account) are already titled in the trust, and the question is whether they can be moved back to an individual name and what changes. If the trust is a typical revocable living trust and the same person is trustee, the retitling is usually a paperwork step with the financial institution. The bigger issue is what replaces the trust as the “traffic cop” for that account—if nothing replaces it (no TOD beneficiary and no coordinated will plan), the account may be pulled back into probate and may not follow the trust’s distribution instructions.

Process & Timing

  1. Who files: The current trustee (often the person who created the trust). Where: With the brokerage firm or bank that holds the investment or money market account (not the Clerk of Superior Court). What: The institution’s retitling/transfer forms plus trust documentation (often a certification or excerpt showing trustee authority). When: Any time the trustee has authority and the institution will process the request; processing time varies by institution.
  2. Update the “at-death” transfer setup: Decide whether the account should (a) stay governed by the trust (by retitling back into the trust), (b) pass by TOD/POD beneficiary designation, or (c) pass through the probate estate under a will. If using TOD, confirm the registration is in beneficiary form and that primary/contingent beneficiaries match the overall plan.
  3. Confirm incapacity coverage: If the account is moved into an individual name, confirm the financial power of attorney on file with the institution is current and accepted, and confirm the trust and powers of attorney still work together for other assets that remain in the trust.

Exceptions & Pitfalls

  • Irrevocable trust issues: If the trust is not revocable, removing assets may be restricted by the trust terms and fiduciary duties, and may require beneficiary consent or court involvement depending on the situation.
  • “Unfunding” can defeat the trust’s purpose: If the trust was intended to avoid probate, manage assets for a beneficiary, or provide continuity during incapacity, moving a major account out of the trust can undercut that goal unless another transfer method replaces it.
  • Beneficiary designations can override the plan: After retitling, a TOD/POD designation (or lack of one) may control who receives the account at death, regardless of what the trust says. North Carolina’s TOD rules allow changes during life and keep ownership with the owner until death, which is helpful—but only if the designation is set correctly. See N.C. Gen. Stat. § 41-45.
  • Institution-specific requirements: Some institutions require specific trust language, a particular certification format, or a medallion signature guarantee. A mismatch can delay access or transfers.
  • Incapacity gap: If the trust was the main tool for management during incapacity, moving the account to an individual name can create a gap unless the financial power of attorney is current, properly executed, and accepted by the institution.

Conclusion

In North Carolina, an investment or money market account can often be retitled out of a revocable trust and back into an individual name, but doing so can change whether the trust controls that account during incapacity and at death. If the account is no longer in the trust, it may pass by TOD/POD designation (if set up) or through probate (if not). The most important next step is to decide the intended transfer method and then submit the institution’s retitling request and updated beneficiary designation paperwork promptly.

Talk to a Estate Planning Attorney

If you’re dealing with whether to move an investment or money market account out of a trust and how that affects probate, beneficiary designations, and incapacity planning, 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: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.