Detailed Answer
When you move an out-of-state trust vehicle into North Carolina, you must register the foreign trust and then ensure all assets sit properly in that trust. Under North Carolina’s Uniform Trust Code, a trustee of a trust created outside the state may register the trust by sending a certified copy of the trust instrument and a cover letter to the clerk of superior court in any county where the trustee plans to administer the trust. See N.C.G.S. § 36C-8-803.
After registration, you can continue administering the trust under North Carolina law. Next, you must retitle or transfer each asset into the trust’s name. For North Carolina real property, prepare and record a new deed conveying the property to the trustee of the trust. For bank and brokerage accounts, contact each institution, provide the trust documents and trustee certification, and complete required account forms. Update beneficiary designations on retirement plans and life insurance policies if you intend the trust to receive those proceeds.
What about assets that currently sit outside the trust? If you find assets that you intended to fund into the trust but never moved, you still have the power to transfer ownership into the trust. Real property requires a deed; personal property may need a written assignment or an amended schedule of trust assets. If the trust creator has passed away and those assets remain outside the trust, they will pass under North Carolina probate law, not the trust. You can pursue summary administration for small estates under N.C.G.S. § 28A-13-2, or open a full estate administration in the clerk’s office.
Proper funding protects your trust’s integrity and avoids unintended probate. Planning now reduces delays, cuts fees, and honors the trust creator’s goals.
Key Steps to Guide Your Trust Transfer and Asset Funding
- Register the foreign trust with the clerk under N.C.G.S. § 36C-8-803.
- Choose whether to continue the existing trust or decant into a new North Carolina trust.
- Prepare and record deeds to retitle real property in the trust name.
- Submit trust documentation to banks and brokerages to retitle accounts.
- Review beneficiary designations on retirement and insurance policies.
- Identify and transfer any assets that never funded into the trust.
- Use summary administration or full probate under Chapter 28A for assets outside the trust.
- Consult an experienced trust administration attorney for personalized guidance.
If you need help transferring your out-of-state trust vehicle to North Carolina or handling assets not properly funded, Pierce Law Group’s experienced attorneys can guide you every step of the way. Contact us at intake@piercelaw.com or call (919) 341-7055 to schedule a consultation.
