Detailed Answer

A revocable living trust lets you hold assets under a trustee’s name during your lifetime. You control those assets and can change or revoke the trust at any time. Funding the trust means retitling property—real estate, bank accounts, investment accounts, and other assets—in the name of the trust before you die. Proper funding moves those assets out of your probate estate.

Probate is a court-supervised process that validates a will, gathers assets, pays debts, and distributes property. Under North Carolina law, your probate estate includes all assets titled in your name alone at death. When you fund a trust, those assets transfer immediately to the trust and thus avoid probate. You streamline or even eliminate the need for court involvement for trust property.

North Carolina’s Uniform Trust Code (Chapter 36C of the General Statutes) governs revocable trusts. Under G.S. 36C-5-503, a trust is revocable unless you state otherwise. You retain full control. You can amend trust terms or remove assets at any time. At your death, the trustee follows the written instructions to distribute trust property. This process occurs outside probate, speeding access to assets for beneficiaries.

Even with a fully funded living trust, you still need a pour-over will. The pour-over will catches any assets you forgot to fund into the trust. The court must probate those assets and pour them into the trust for distribution under its terms. You must file the pour-over will under Chapter 28A of the North Carolina General Statutes.

By funding your revocable living trust:

• You remove titled assets from probate court supervision.
• You reduce or eliminate probate costs, fees, and delays.
• Your trustee can act immediately to manage or distribute trust property.
• You maintain privacy, as trust administration stays out of public court records.

Key Considerations for Funding Your Trust

• Inventory Your Assets: List real estate, bank accounts, investments, and other assets you want in the trust.
• Retitle Real Estate: Execute and record a new deed that transfers property into your revocable living trust.
• Change Account Ownership: Contact banks and investment firms to change registration from your personal name to the trust’s name.
• Update Beneficiary Designations: Use pour-over wills or beneficiary designation forms for retirement accounts and life insurance policies.
• Review Periodically: Revisit your trust after major life events—marriage, divorce, birth, or death in the family.
• Maintain Records: Keep clear records of transfers so your trustee can identify funded trust assets at your death.
• Consult an Attorney: Follow North Carolina rules, including those in the Uniform Trust Code.

Contact Pierce Law Group

Properly funding a revocable living trust can save your loved ones time and money by avoiding probate. At Pierce Law Group, our attorneys guide you through trust preparation, funding, and related estate planning steps. To discuss funding your trust or any probate questions, email us at intake@piercelaw.com or call (919) 341-7055.