Dec272025
Estate Planning Q&A Series

Do both spouses have to sign when moving jointly owned property into a trust if the properties are in a different state? – North Carolina

Short Answer

Usually, yes. If North Carolina spouses own real estate together and want to deed it into their revocable living trust, the safest approach is for both spouses to sign the deed, because the signature requirements often depend on how title is held (especially if it is tenancy by the entirety) and because the deed must meet the recording rules of the state where the property sits. Even when the trust is a North Carolina trust, the out-of-state county recorder/register’s office will apply that state’s deed rules.

Understanding the Problem

In North Carolina estate planning, a common next step after creating a revocable living trust is “funding” the trust by retitling assets. The decision point here is whether both spouses must sign the deed that transfers jointly owned, out-of-state investment properties into the trust. The trigger for the signature question is the current form of ownership on the recorded deed and the fact that real estate transfers must be recorded in the jurisdiction where the land is located.

Apply the Law

Under North Carolina law, how spouses hold title matters. When North Carolina spouses own real property as tenants by the entirety, neither spouse can transfer or otherwise encumber that property without the other spouse’s written joinder, unless a narrow statutory exception applies. North Carolina also has a separate rule that, to fully convey a married person’s interest without leaving the spouse’s statutory marital interest attached, the spouse generally must join in the conveyance. In practice, when a couple is moving jointly owned property into a trust, both spouses usually sign as grantors to avoid an incomplete transfer.

Key Requirements

  • Identify the current title/ownership type: The recorded deed will typically show whether the spouses own as tenants by the entirety, joint tenants with right of survivorship, or tenants in common. That label drives who must sign to convey the whole interest.
  • Match grantors to owners: Everyone who currently owns an interest that is being transferred to the trust should appear as a grantor and sign, unless a recognized exception applies (for example, an authorized agent under a valid power of attorney).
  • Record under the land’s local rules: Even with a North Carolina trust, the deed must comply with the execution/acknowledgment and recording rules in the state and county where the property is located.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the properties are jointly owned by spouses and the goal is to transfer title into a revocable living trust. If the recorded deeds show North Carolina-style tenancy by the entirety (common for married couples), North Carolina law generally requires both spouses to join in a conveyance, which means both would sign the deed into the trust. Even if the ownership is another joint form, having both spouses sign as grantors usually avoids leaving one spouse’s interest (or marital rights) behind. Because the properties are in another state, the deed must also meet that state’s signature and notarization rules to be accepted for recording.

Process & Timing

  1. Who files: The current owners (both spouses) typically sign as grantors, and the trustee of the trust signs only if that state’s form requires acceptance. Where: The Register of Deeds/County Recorder (or equivalent land records office) in the county where each property is located. What: A deed transferring title from the spouses to the trustee of the revocable trust (often titled as a “trustee’s deed,” “warranty deed,” or “quitclaim deed,” depending on the plan and local practice). When: As part of trust funding; record promptly after signing so the public record matches the estate plan.
  2. Confirm the chain of title: Obtain the most recent recorded deed for each property and confirm the legal description and vesting language. Many recording offices provide online search portals; otherwise, a request can be made through the land records office or a local title company.
  3. Record and retain proof: After recording, keep the stamped/recorded copy (or the recording receipt and instrument number) with the trust records and provide a copy to the insurance and property management contacts if needed.

Exceptions & Pitfalls

  • Tenancy by the entirety issues: If the deed shows tenancy by the entirety, one spouse signing alone generally does not accomplish a valid transfer of the entire interest under North Carolina rules, and it can also cause recording or title problems later.
  • Marital rights not waived: Even when one spouse owns title alone, a deed signed only by that spouse can leave the other spouse’s statutory marital interest attached unless it is properly waived, which can create problems in a later sale or estate administration.
  • Out-of-state recording requirements: The state where the property sits may require specific deed formatting, witness rules, notary language, trust certification/affidavit, or mailing address statements. A deed drafted “the North Carolina way” can be rejected for recording elsewhere.
  • Wrong grantee name: Deeding to the trust name instead of the trustee (or failing to identify the trustee capacity) can create ambiguity in some states. The deed should match how the trust holds title under that state’s rules.
  • Legal description errors: Copying an old abbreviated description instead of the full legal description from the last recorded deed is a common cause of recording rejections and title defects.

Conclusion

Most of the time, both spouses should sign the deed when transferring jointly owned real estate into a revocable living trust, and that is especially true if the property is held as tenants by the entirety under North Carolina law. The deed must also satisfy the recording rules of the state and county where the property is located. The practical next step is to obtain the most recent recorded deed for each property and then prepare and record a deed signed by both spouses in the local land records office where the property is located.

Talk to a Estate Planning Attorney

If there is a plan to move jointly owned, out-of-state real estate into a North Carolina revocable living trust, an estate planning attorney can help confirm the vesting on the recorded deeds, coordinate any out-of-state deed form requirements, and make sure the right people sign so the transfers record cleanly. 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.