Feb32026
Estate Planning Q&A Series

What does a revocable living trust actually include, and what assets should I put into it? – North Carolina

Short Answer

In North Carolina, a revocable living trust usually includes a written trust agreement (naming the trustee, successor trustee, and beneficiaries) plus a plan to “fund” the trust by retitling certain assets into the trust’s name. The assets that typically belong in the trust are the ones that would otherwise require probate to transfer at death, such as North Carolina real estate and non-retirement investment accounts. Some assets are often better handled by beneficiary designations (like retirement accounts and life insurance) rather than moving them into the trust.

Understanding the Problem

Under North Carolina estate planning, the practical question is: what documents and moving parts make up a revocable living trust, and which assets must be retitled so the trust can do its job. The key decision point is whether an asset should pass through the trust (because it is titled in the trust) or pass another way (like a beneficiary designation or joint ownership). For an older adult relocating to North Carolina and expecting a significant incoming sum, the timing of funding matters because newly received assets often default into an individual name unless steps are taken to direct them into the trust.

Apply the Law

A revocable living trust is a trust that can be changed or revoked during the creator’s lifetime. In most plans, the creator serves as the initial trustee and keeps full control of trust property while alive, with a successor trustee stepping in at death (or sometimes during incapacity) to manage and distribute trust assets. The trust only controls assets that are actually transferred to it; simply signing a trust agreement does not automatically move property into the trust. For real estate and many financial accounts, the “forum” for making the trust effective is not a courtroom—it is the institution or office that controls title (for example, the county Register of Deeds for real property, and the bank or brokerage for accounts).

Key Requirements

  • A written trust agreement with the right roles: The document typically names the person creating the trust (often called the settlor or grantor), the trustee, a successor trustee, and the beneficiaries, and it spells out what the trustee can do and when distributions happen.
  • Funding (retitling) of assets: Assets intended to avoid probate generally must be retitled into the trustee’s name (often shown as the trustee of the trust) or otherwise assigned to the trust, depending on the asset type.
  • Coordination with non-trust transfers: Some assets pass by contract (beneficiary designations, POD/TOD registrations, joint ownership). Those should be coordinated with the trust so the overall plan matches the intended distribution.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because the older adult is moving to North Carolina and expects a significant amount of money, the most common planning gap is that new accounts (or a new home purchase) get titled individually, which leaves them outside the trust. If the trust agreement is signed but the incoming funds remain in an individual bank or brokerage account with no POD/TOD designation, that asset may still require probate at death. If, instead, the account is opened in the name of the trustee of the trust (or properly transferred into the trust after opening), the successor trustee can usually manage and distribute it under the trust terms without waiting for a probate appointment.

Process & Timing

  1. Who sets it up: The person creating the trust (the settlor). Where: The trust agreement is signed privately; funding steps happen with the county Register of Deeds for North Carolina real estate and with the bank/brokerage for accounts. What: A signed trust agreement, plus funding documents such as a deed to the trustee for real estate and institution-specific change-of-ownership or trust account paperwork for financial accounts. When: Ideally before receiving or depositing the significant funds, or immediately after receipt so the new asset does not remain outside the plan.
  2. Fund the trust in a prioritized order: First retitle North Carolina real estate (if any) and major non-retirement investment accounts; then address bank accounts meant to be controlled by the successor trustee; then review beneficiary designations and POD/TOD registrations for consistency.
  3. Confirm the “paper trail”: After each transfer, obtain confirmation (recorded deed copy for real estate; updated account statements or confirmation letters for financial accounts). Keep a current asset list so the successor trustee can locate and administer trust property efficiently.

Exceptions & Pitfalls

  • “Signed but not funded” trusts: A common mistake is assuming the trust controls everything automatically. In practice, the trust controls what is titled in the trust (or payable to it), and unfunded assets can still trigger probate.
  • Beneficiary designations that conflict with the trust: Retirement accounts and life insurance typically pass by beneficiary form. If those beneficiaries do not match the trust plan, the trust may not control where that money goes.
  • POD/TOD and creditor issues: North Carolina recognizes TOD/POD transfers as non-will transfers, but the statutes also address potential claims when an estate cannot pay debts. That is one reason a coordinated plan (trust + beneficiary designations + will) matters.
  • Real estate title details: Real property transfers should be handled carefully and recorded properly. North Carolina law provides rules that treat a transfer “to a trust” as a transfer to the trustee(s), but the deed still needs to be prepared and recorded correctly.
  • Out-of-state property: If property exists outside North Carolina, that state’s title rules may affect how (and whether) it should be transferred to the trust. A North Carolina plan often still helps, but funding steps may differ by location.

Conclusion

In North Carolina, a revocable living trust usually includes a written trust agreement (trustee, successor trustee, beneficiaries, and instructions) plus a funding plan that transfers selected assets into the trust. The assets most often placed into the trust are the ones likely to require probate if left in an individual name, especially North Carolina real estate and major non-retirement accounts. The most important next step is to retitle newly received assets into the trust (or set up coordinated POD/TOD or beneficiary designations) as soon as the money arrives.

Talk to a Estate Planning Attorney

If you’re dealing with setting up a revocable living trust and deciding which assets should be titled in the trust versus handled by beneficiary designations, our firm has experienced attorneys who can help explain options and timelines under North Carolina law. 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.