Jan82026
Estate Planning Q&A Series

If I put my properties into a revocable trust, can I still make all decisions and manage everything while I’m alive? – North Carolina

Short Answer

Yes. In North Carolina, a revocable trust is commonly designed so the person who creates it keeps control during life by serving as trustee and keeping the power to amend or revoke the trust. Day-to-day management (collecting rent, signing leases, paying expenses, selling or refinancing property) can usually continue the same way—just in the name of the trust. The main change is that the trust becomes the “owner” on paper, and a successor trustee can step in if incapacity occurs or after death.

Understanding the Problem

In North Carolina estate planning, the decision point is whether placing real estate into a revocable trust allows the parent (as the person creating the trust) to keep full control of management while alive, while also setting up a clean transition so children can take over only if incapacity happens or after death. The question focuses on who has authority to make decisions for the properties during the parent’s lifetime and what triggers the children’s authority to act. The goal is continuity of control now, with a planned handoff later through the trust’s successor trustee provisions.

Apply the Law

Under North Carolina law, a revocable trust is generally structured so the creator (often called the “settlor” or “grantor”) can keep the power to change or cancel the trust and can also serve as the trustee. When the parent is trustee, the parent keeps the legal authority to manage trust-owned property. The children typically have no management authority unless and until they become the acting trustee under the trust’s terms (most often after a defined incapacity determination or after death). For real estate, the practical “forum” is not a courtroom—management happens through the trustee’s actions, and ownership is reflected in county land records through deeds into the trust.

Key Requirements

  • Trust design keeps control during life: The trust must be written so it is revocable and names the parent as the initial trustee with broad management powers.
  • Successor trustee trigger is clearly defined: The trust should spell out when and how a successor trustee takes over (commonly a written determination of incapacity by one or more licensed physicians, or another clear standard).
  • Funding and titling are completed: Each property must be properly deeded into the trust (and related accounts/leases coordinated) so the trustee can actually manage the assets through the trust.

What the Statutes Say

Analysis

Apply the Rule to the Facts: With a sizable mix of residential and commercial real estate, the parent can usually keep full control by creating a revocable trust and serving as the initial trustee. If the trust is drafted with broad trustee powers, the parent can continue signing leases, approving repairs, collecting rents, and deciding whether to sell or refinance—just acting as “Trustee” for the trust. If incapacity occurs, the children would step in only if the trust’s incapacity trigger is met and they are named (and able) to serve as successor trustee.

Process & Timing

  1. Who files: No court filing is required to create a typical revocable trust. Where: The trust is signed privately, but deeds transferring North Carolina real estate into the trust are recorded with the Register of Deeds in the county where each property is located. What: A revocable trust agreement, plus new deeds (often a general warranty deed or quitclaim deed, depending on the situation) conveying the property to the trustee of the trust. When: Ideally, deeds are recorded soon after the trust is signed so the trust is actually funded.
  2. Next step: Update the “paper trail” so management runs smoothly—confirm how leases should be signed, how rents are deposited, how insurance names the insured, and how property managers and lenders should list the owner/trustee. Timing varies by property and by lender/insurer response time.
  3. Final step: Confirm the successor trustee transition plan—how incapacity is determined, what documents the successor trustee must present to banks/tenants/closing attorneys, and whether a separate durable power of attorney is still needed for tasks outside the trust.

Exceptions & Pitfalls

  • Unfunded trust problem: Creating the trust but failing to deed the real estate into it can defeat the main purpose (continuity and probate avoidance for those properties).
  • Lender and contract issues: Some mortgages, leases, or commercial loan documents require notice or consent before changing title. The trust plan should be coordinated with existing financing and lease terms.
  • Unclear incapacity standard: If the trust does not clearly define how incapacity is determined, family members can end up in disputes or needing court involvement to prove authority.
  • Co-trustee complications: Naming children as co-trustees during the parent’s lifetime can unintentionally reduce the parent’s control and slow decisions (for example, requiring multiple signatures for a sale or refinance).
  • Real estate administration details: Insurance, property tax billing, and property management agreements often need updates so claims, notices, and payments do not get delayed.

Conclusion

Yes—under North Carolina law, a revocable trust is typically set up so the parent keeps control while alive by serving as trustee and retaining the power to change or revoke the trust. The children usually have no authority unless they become acting successor trustee after a defined incapacity event or after death. The most important practical step is to fund the trust by recording new deeds that transfer each property into the trust through the county Register of Deeds as soon as the trust is signed.

Talk to a Estate Planning Attorney

If you’re dealing with how to keep control of real estate during life while setting up a smooth transition for incapacity or death, 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.