Short Answer

In North Carolina, you can stay in control by creating a revocable living trust that names you as initial trustee, clearly retains your rights to amend or revoke, and names a capable successor trustee. To pass assets to your children and avoid probate, fully fund the trust (including your LLC and crypto), include the powers you need (borrowing, pledging collateral, holding digital assets), and set distribution terms for your children. After your death, your trustee can shorten contest periods by sending statutory notice before distributing.

Understanding the Problem

In North Carolina, how can you, as the person creating a trust, keep day‑to‑day control as trustee while ensuring your assets pass to your children without probate? One key fact here is you want to use a North Carolina LLC‑based trust to hold crypto and personal assets and enable borrowing against crypto without triggering capital gains.

Apply the Law

Under North Carolina’s trust code, a revocable living trust lets you serve as trustee while you’re able, keep the right to change or revoke it, and avoid court supervision during your lifetime. You must properly fund the trust to bypass probate. Your trust instrument should grant the trustee the power to borrow, pledge trust assets, hold and manage digital assets, and maintain or assign life insurance. The Clerk of Superior Court becomes involved mainly if a dispute arises (for example, removal of a trustee) or a vacancy must be filled. After your death, your trustee can send formal notice to shorten the window to contest the trust before distributing to your children.

Key Requirements

• Make it revocable and name yourself trustee: Keep amendment/revocation rights and appoint a successor trustee for incapacity and death.
• Fund the trust: Title the LLC membership interest, accounts, and other assets to the trust (or have the LLC owned by the trust) so they avoid probate.
• Grant needed trustee powers: Express authority to borrow, pledge assets (including crypto and insurance), and manage digital assets and records.
• Set clear distributions for children: Choose outright or continuing trusts, add spendthrift language for your children, and outline timing/conditions.
• Plan for administration and disputes: Name a successor, address bond, and allow post‑death notice to shorten contest periods before distribution.

What the Statutes Say

• North Carolina Gen. Stat. § 36C‑6‑602 (Revocation or amendment of revocable trust) – You can retain the right to amend or revoke if stated and follow the method in the trust.
• North Carolina Gen. Stat. § 36C‑5‑505 (Creditors’ claims against settlor) – During life, your revocable trust assets remain subject to your creditors.
• North Carolina Gen. Stat. § 36C‑6‑604 (Limitation on contest of trust) – Post‑death, a trustee’s formal notice can trigger a 120‑day deadline to file a trust contest.
• North Carolina Gen. Stat. § 36C‑7‑706 (Removal of trustee) – The Clerk of Superior Court can remove a trustee for statutory reasons.

Analysis

Apply the Rule to the Facts: Because you want control, a revocable living trust with you as initial trustee preserves your decision‑making and lets you amend terms as circumstances change. Funding the trust with your LLC membership interest and crypto (or having the LLC owned by the trust) positions those assets to avoid probate and pass under the trust to your children. Including explicit powers to borrow, pledge crypto, and use life insurance for collateral enables your loan strategy while keeping within trustee duties and recordkeeping requirements.

Process & Timing

1. Who files: You (the settlor). Where: Private execution; no routine court filing. Record any real estate deed with the county Register of Deeds; keep the trust at your principal place of administration in North Carolina. What: Sign a revocable trust agreement naming yourself as trustee and your successor; execute a pour‑over will; update your LLC operating agreement and assign LLC membership interests to the trust; retitle financial accounts; document crypto custody and authority for digital assets; set insurance ownership/collateral arrangements. When: Execute and fund now; record deeds immediately; update titles and beneficiary designations promptly.
2. After funding, maintain trust records, keep trust property separate, and follow prudent‑investor and loyalty duties. If a dispute arises or a vacancy occurs, proceedings are brought with the Clerk of Superior Court in the county of the trust’s principal place of administration or where a beneficiary resides.
3. Upon death, your successor trustee may send formal notice to potential contestants to start the 120‑day contest period, then pay valid expenses and distribute to your children per the trust. Obtain receipts/releases and close administration.

Exceptions & Pitfalls

• Revocable trust ≠ asset protection for you: while you are alive, your revocable trust assets remain subject to your creditors’ claims.
• Funding failures cause probate: if you do not assign the LLC interest or retitle assets to the trust (and coordinate beneficiary designations), those assets may still pass through probate.
• Crypto handling: specify authority to access exchanges and wallets, safeguard private keys, and maintain clear records; commingling personal and trust crypto violates recordkeeping duties.
• Borrowing and insurance: include explicit trustee powers to borrow and pledge assets; coordinate collateral assignments with lenders/insurers and a tax advisor to avoid unintended tax results.
• Trustee oversight: serious breaches of duty (loyalty, impartiality, prudent administration, reporting) can lead to removal by the Clerk of Superior Court.

Talk to a Estate Planning Attorney

If you’re dealing with setting up a revocable trust to hold an LLC and crypto, retain control, and leave assets to your children, 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.