Short Answer

Yes—if you want to transfer 100% of North Carolina real estate into trust, every current owner of record must sign the deed. For married couples who hold title as tenants by the entirety (the usual default for spouses), both spouses must sign to convey full title. Each signature must be notarized, and the deed must be recorded with the county Register of Deeds to be effective against third parties.

Understanding the Problem

In North Carolina, you and your spouse co-own a rental property and each of you has a living trust. You want to know if both of you must sign a deed to transfer the property into your trusts and what it takes to record that deed with the county Register of Deeds.

Apply the Law

Under North Carolina law, who must sign depends on how the property is titled now. Married couples typically hold title as tenants by the entirety, which means both spouses together own the whole. With tenancy by the entirety, both must sign to transfer full title. If the deed shows joint tenancy or tenancy in common, each co-owner must sign to convey their share; to move the entire property into trust, all co-owners sign. A deed must be properly acknowledged before a notary and recorded in the county where the land sits to protect against later purchasers or creditors. North Carolina imposes an excise tax on deeds based on consideration; gifts or transfers without consideration generally do not owe tax, but if the trust assumes debt, tax may be due.

Key Requirements

• Identify current title: Confirm whether the deed shows tenancy by the entirety, joint tenancy, or tenancy in common.
• Who signs: Every current owner of record signs; for spouses holding by the entirety, both spouses must sign to convey full title.
• Proper grantee naming: Deed to the trustee(s) by name, as trustee(s) of the specific trust(s), with the trust date if available.
• Notarization and recording: Each grantor’s signature must be acknowledged by a notary; record the original deed with the county Register of Deeds where the property is located.
• Excise tax and consideration: Note consideration on the face of the deed; no consideration usually means no excise tax, but assumption of debt can trigger tax.

What the Statutes Say

• North Carolina Gen. Stat. § 39-13.6 (Tenancy by the entirety) – Spouses typically take title together with survivorship and must act together to convey full title.
• North Carolina Gen. Stat. § 47-18 (Connor Act recording statute) – Deeds must be recorded to be effective against purchasers and creditors.
• North Carolina Gen. Stat. § 36C-1-103 (Trust definitions) – Clarifies roles such as trustee, settlor, and beneficiary for titling to a trust.
• North Carolina Gen. Stat. § 105-228.28 (Real estate excise tax) – Excise tax is based on consideration; gifts generally have no tax due.

Analysis

Apply the Rule to the Facts: Because you and your spouse co-own the rental property and each has a living trust, you both must sign if you want to transfer 100% of the title into the trusts. If your current deed is tenants by the entirety (common for married couples), both signatures are required to convey full title. Your signatures must be notarized, and the deed recorded in the county where the rental is located to put the world on notice.

Process & Timing

1. Who files: Both co-owners as grantors. Where: County Register of Deeds where the property is located in North Carolina. What: A properly drafted deed (often a general warranty or quitclaim), naming the grantee(s) as the trustee(s) of the specific living trust(s), with legal description and parcel identifier if the county requires, plus notary acknowledgments. When: Record promptly after signing; the transfer is not effective against third parties until recording.
2. The Register of Deeds reviews the document for recording standards, collects the recording fee and any excise tax shown on the deed, indexes the parties, and images the deed. Many counties accept eRecording through approved vendors; otherwise, submit the original by mail or in person.
3. After recording, the Register of Deeds returns the original deed to the address you list. Keep it with your trust records and update your insurance and tax listing if needed.

Exceptions & Pitfalls

• Only one spouse signs: For tenancy by the entirety, one signature cannot convey full title; it can sever protections and create unintended co-ownership.
• Wrong grantee naming: The grantee should be the trustee(s), not “the trust” alone. Include the trust name and date for clarity.
• Excise tax surprises: Transfers without consideration usually owe no tax, but if the trust takes title subject to an outstanding loan and assumes liability, excise tax may apply.
• Notary issues: Sign anywhere (no NC residency requirement) but use a proper acknowledgment. Illegible names, missing notary seals, or incorrect venue blocks can cause rejection.
• County-specific standards: Some counties require a parcel identifier number, return address, and drafting/preparer information on the first page. Check the Register of Deeds website before mailing.
• Entireties protections in trust: North Carolina allows planning to preserve certain tenancy-by-the-entirety protections when deeding to a trust arrangement if specific deed language and trust terms are used. Get tailored drafting to avoid losing protections unintentionally.

Talk to a Estate Planning Attorney

If you’re planning a trust transfer of North Carolina real estate and want to be sure the deed, signatures, and recording are done right, 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.