Short Answer

In North Carolina, you usually only need a properly prepared and notarized deed that transfers the property from the current owner(s) to the trustee(s) of the living trust, then record it with the county Register of Deeds. No statewide “transfer” form is required. You may include a short certification of trust to show the trustee’s authority, and you must address real estate excise tax on the deed (often $0 when there’s no consideration). County‑specific cover sheets and formatting rules apply.

Understanding the Problem

You want to know what extra paperwork North Carolina requires—beyond the deed—when you transfer a rental property into a living trust. You and your spouse co-own the property and each has a separate living trust. You plan to record the deed and want to be sure about residency, signatures, mailing, and recording details with the Register of Deeds.

Apply the Law

North Carolina law focuses on the deed, proper execution, and recording in the county where the property is located. Trusts can hold title, and trustees should ensure the public record shows the trust relationship. The practical add‑on is a certification of trust (instead of recording the entire trust) to confirm a trustee’s authority. Real estate excise tax is shown on the face of the deed and is typically not due if there’s no consideration (for example, a simple retitling into your own revocable trust). Recording standards, notary rules, and county formatting control what the Register of Deeds will accept.

Key Requirements

• Deed into trust: Prepare and sign a deed from the current owner(s) to the trustee(s), naming the trust and date; record in the county where the property sits.
• Proper execution: All current owners sign in front of a notary; out‑of‑state notarizations are acceptable if legally valid where taken.
• Certification of trust (optional but helpful): A short statement showing the trust’s name, date, and trustee powers; use it to avoid recording the full trust.
• Excise tax disclosure: State the consideration and excise tax on the deed; if none, note the exemption or that no tax is due.
• Recording standards: Meet county formatting (margins, font, return address, grantee address, legal description, parcel info if required).
• Trust titling: Title should reflect trustee capacity so the interest appears as trust property in public records.

What the Statutes Say

• N.C. Gen. Stat. § 36C-8-810 (Trustee records and identification of trust property) – trustees must keep records and, where feasible, have title reflect trust ownership.
• N.C. Gen. Stat. § 161-14 (Recording standards) – sets prerequisites and standards for recording instruments with the Register of Deeds.
• N.C. Gen. Stat. § 105-228.30 (Real estate excise tax) – governs deed excise tax; whether tax is due depends on consideration and transaction type.

Analysis

Apply the Rule to the Facts: Because you and your spouse co-own the rental and each has a separate trust, you’ll use a deed that conveys each spouse’s current interest to the appropriate trustee(s) and trust(s). The trustee capacity and trust name/date should appear in the grantee line so public records reflect trust ownership. A short certification of trust can accompany the recording to show trustee authority without disclosing the full trust. If you aren’t exchanging value, excise tax is typically $0, but you still disclose consideration on the deed.

Process & Timing

1. Who files: The current owner(s) or their attorney. Where: County Register of Deeds where the property is located in North Carolina. What: Original, notarized deed (to the trustee(s) “of [Trust Name and date]”), any county cover sheet, and a check for recording fees and any excise tax. Include a certification of trust if a recorder, attorney, or title company requests proof of trustee authority. When: Record promptly after signing; the transfer is effective against third parties upon recording.
2. Register of Deeds reviews formatting, acknowledgment, names, legal description, return address, and excise tax statement. Walk‑in recordings are often processed same day; mail‑in recordings typically take several business days after receipt.
3. After recording, update county tax records with the trust/trustee mailing address, notify the insurer of the title change, and keep a copy of the recorded deed and certification of trust with the trust records.

Exceptions & Pitfalls

• Spousal co-ownership: Moving a tenancy by the entirety into separate trusts can alter marital creditor protections. Consider coordinated deeds or a trust structure that preserves intended protections.
• Lender and insurance: Check any deed of trust or mortgage for due‑on‑sale clauses and notify your insurer; some lenders require notice or consent even for trust retitling.
• Trustee authority: Make sure the trustee named on the deed matches the trust and has power to hold title; a certification of trust helps avoid recording the full instrument.
• Notary defects: Improper acknowledgments or missing notary seals cause rejections; out‑of‑state notarizations must comply with the law where taken.
• County formatting: Missing margins, return address, or grantee address often trigger rejection; follow local cover sheet rules.
• Excise tax errors: If any consideration is paid or debt is assumed/shifted, tax may be due; when in doubt, confirm before recording.

Talk to a Estate Planning Attorney

If you’re dealing with retitling a rental property into a living trust and want to avoid recording or tax missteps, 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.