Short Answer

Under North Carolina law, your parents must create and sign their own revocable living trust under the law of the state where they live. You can be named as successor (or co-) trustee to manage assets if they become incapacitated. To avoid probate, their assets must be retitled into the trust during life; if they own North Carolina real estate, deed it into their trust now to avoid ancillary probate here. A revocable trust does not protect assets for Medicaid.

Understanding the Problem

You want to know if you can set up a revocable trust so you can manage your parents’ assets if they become incapacitated. In North Carolina, the key decision is whether your parents—who live in another state—should create a revocable living trust that names you to act when needed, and how to title assets (including any North Carolina property) so the plan actually works and avoids probate.

Apply the Law

North Carolina recognizes revocable living trusts created during life to hold and manage property. The person creating the trust (the settlor) must have capacity and intend to create it, and the trust must be properly signed under the governing state’s law. The main forum for any court issues is where the trust is administered (the principal place of administration—usually where the trustee keeps the trust’s records). Court oversight is limited; most trust administration occurs outside court. There is no filing deadline to create a trust, but assets must be retitled into the trust before incapacity or death for the plan to work and to avoid probate. If nonresidents die owning North Carolina real estate outside a trust, their will or an ancillary proceeding may need to be filed here, which you can avoid by placing the North Carolina property in their trust now.

Key Requirements

• Settlor action and capacity: Your parents (not you) must sign a revocable trust with intent and capacity under their home state’s formalities.
• Governing forum: Set the trust’s principal place of administration in your parents’ state; North Carolina courts generally won’t oversee a foreign trust’s routine administration.
• Trustee structure: Name a reliable initial trustee and successor; you can serve when they’re incapacitated or at death.
• Funding: Retitle the house, bank accounts, and vehicle to the trust; record any deeds (including North Carolina deeds) with the local Register of Deeds.
• Back‑ups for gaps: Pair the trust with pour‑over wills and durable powers of attorney so non‑trust assets and incapacity are covered.
• Medicaid expectations: Revocable trust assets remain available to the settlor and are generally countable for Medicaid; this is not an asset‑protection tool.

What the Statutes Say

• North Carolina Gen. Stat. § 36C‑6‑602 (Revoking or amending a revocable trust) – How a settlor can revoke or amend a revocable trust.
• North Carolina Gen. Stat. § 36C‑2‑204 (Venue) – Court venue is tied to the trust’s principal place of administration.
• North Carolina Gen. Stat. § 36C‑2‑203 (Clerk’s jurisdiction over trust proceedings) – Describes the clerk’s authority and limits, including constraints for foreign trusts.
• North Carolina Gen. Stat. § 28A‑2A‑17 (Probate of foreign wills affecting NC real property) – How a nonresident’s will is filed in NC to pass title if property was not in a trust.

Analysis

Apply the Rule to the Facts: Because your parents live in another state, they must be the settlors and sign their revocable trust under their state’s law. You can be named successor (or co‑) trustee so you can step in at incapacity, but that authority only works if their assets are funded into the trust. If they own or later buy North Carolina real estate, deeding it into the trust now avoids ancillary probate here; if they don’t, there’s nothing to file in North Carolina. A revocable trust will not preserve assets for Medicaid, so any Medicaid planning should be done with an elder‑law attorney in your parents’ state.

Process & Timing

1. Who files: No court filing is required to create a revocable trust. Where: Your parents sign with an attorney licensed in their state; if NC real estate is involved, deeds are recorded with the county Register of Deeds in North Carolina. What: Revocable trust agreement, pour‑over wills, durable financial and health‑care powers of attorney. When: Complete signing and funding before incapacity; record any NC deed immediately after execution.
2. Retitle assets: the home (record a deed to the trustee), bank and brokerage accounts (owner = trustee of the revocable trust), and the vehicle (update title per DMV rules). Expect account retitling to take 1–4 weeks and deed recording to post within days; DMV timing varies by county.
3. For any North Carolina real estate: prepare a North Carolina deed to the trustee, sign with required formalities, and record with the Register of Deeds. Keep proof of funding for future administration.

Exceptions & Pitfalls

• Trying to create or sign the parents’ trust yourself. Only the parents (or a properly authorized agent) can create and sign their trust; use an attorney in their state.
• “Forgetting” to fund. Unfunded trusts do not avoid probate; retitle the house, accounts, and vehicle into the trust.
• North Carolina property owned at death. If not in the trust, a certified copy of a foreign will may need to be filed in the NC county where the real estate sits, or ancillary administration may be required.
• Combining your trust with theirs. Keep trusts separate; merging different settlors’ assets can create gift, tax, and control problems.
• Medicaid misunderstandings. Revocable trusts are generally countable resources; get state‑specific Medicaid advice in your parents’ state.

Talk to an Estate Planning Attorney

If you’re dealing with out‑of‑state parents and want a revocable trust that actually works, 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.