Short Answer

In North Carolina, you transfer real estate into a living trust by signing and recording a new deed that conveys the property from you (as individuals) to you (as trustee) of your trust. Record the deed with the Register of Deeds in the county where the property is located. No North Carolina residency is required for the owners or trustee. Include a proper notary acknowledgment and, if asked, provide a Certification of Trust instead of the full trust document.

Understanding the Problem

You want to know how, in North Carolina, you can move title of a co-owned rental property into a living trust by recording a deed with the county Register of Deeds. You and your spouse each have a living trust and you are unsure about any residency rules, extra state forms, and how to sign, mail, and record the deed. This is a common estate-planning task and the details matter to keep title, creditor protection, and lender relationships intact.

Apply the Law

Under North Carolina law, real property is placed into a trust by conveying legal title to the trustee. The deed must clearly name the trustee and the trust and be properly acknowledged before a notary. You generally do not record the trust itself; instead, you can provide a Certification of Trust to confirm the trustee’s authority. The deed must be recorded in the county where the property sits and meet recording format rules. Record promptly because unrecorded deeds are not effective against later purchasers or lien creditors.

Key Requirements

• Correct parties and titling: Grantors are the current owners; grantee is the trustee, identified as “Jane Doe, Trustee of the Jane Doe Revocable Trust dated [trust date].”
• Proper execution: All current owners sign before a notary; no witnesses are required. Out-of-state acknowledgments are generally accepted if valid where taken.
• Record in the right place: File the deed with the Register of Deeds in the county where the rental property is located and follow page, margin, and font standards.
• Certification of Trust: Provide a Certification of Trust to third parties instead of the full trust to show trustee powers and current trustees.
• Co-trustee signatures: If both spouses serve as co-trustees, both typically sign the deed or related certifications, consistent with the trust’s terms.
• Consideration/excise tax: A transfer to your own trust is usually a gift with no consideration; counties will note any excise tax or exemption on the face of the deed.
• Spousal ownership (tenancy by the entirety): If you want to preserve spousal protections, structure the deed to a joint or spousal trust (or to both spouses as trustees) consistent with North Carolina law.

What the Statutes Say

• North Carolina Gen. Stat. § 47-18 (Recording to protect title) – Unrecorded deeds are not effective against purchasers or lien creditors.
• North Carolina Gen. Stat. § 161-14 (Recording standards) – Sets format, margin, and legibility requirements for recorded documents.
• North Carolina Gen. Stat. § 36C-10-1013 (Certification of trust) – Lets you prove trustee authority without disclosing the full trust.
• North Carolina Gen. Stat. § 36C-10-1012 (Protection of persons dealing with trustee) – Protects third parties who, in good faith, rely on a trustee’s authority.

Analysis

Apply the Rule to the Facts: Because you co-own a North Carolina rental with your spouse and each uses a living trust, you will sign a deed from yourselves as individuals to the appropriate trustee(s) as grantee. You will record the deed with the county Register of Deeds where the rental sits, meeting formatting rules and including a clear legal description. Provide a Certification of Trust if the county or your lender asks for proof of trustee powers. If preserving spousal protections is important, structure the deed to a joint or coordinated spousal trust arrangement consistent with North Carolina law.

Process & Timing

1. Who files: The current owners (you and your spouse). Where: Register of Deeds in the county where the property is located in North Carolina. What: A properly drafted deed (often a non-warranty or deed of gift) conveying title to the trustee; include a legal description, return address, and any county-required tax certifications; keep a Certification of Trust ready. When: Record as soon as the deed is signed and notarized to protect priority.
2. Register of Deeds review: The office checks format, fees, and tax/excise notations. If complete, recording usually occurs the day received; mailed submissions often post within a few days to a couple of weeks depending on volume.
3. After recording: You receive the original back by mail. Update your insurer, property manager, and county tax office with the new trustee title. Keep the recorded deed and trust documents together.

Exceptions & Pitfalls

• Spousal protections: Deeding from spouses to only one spouse’s separate trust can affect tenancy-by-the-entirety protections; consider a joint or coordinated spousal trust approach.
• Lender consent: Some mortgages have due-on-transfer clauses; notify the lender and obtain any needed consent before recording.
• Wrong grantee language: Omit the trustee capacity or trust date and the deed may be rejected or mis-title the property; use “Trustee of the [Trust Name] dated [date].”
• Execution defects: Missing notary acknowledgment, illegible text, or incorrect margins will delay recording; follow county formatting rules closely.
• Unnecessary disclosure: Do not record your full trust; use a Certification of Trust to maintain privacy while proving authority.
• Taxes and fees: Counties may require an excise tax statement or a no-delinquent-tax certification before recording; check your Register of Deeds webpage.

Talk to a Estate Planning Attorney

If you’re dealing with retitling a North Carolina rental home into a living trust and want to avoid title or recording mistakes, 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.