Short Answer

In North Carolina, you fund a revocable trust by retitling assets into the trustee’s name. For real estate, sign and record a new deed conveying each property to your trustee to protect priority under state recording laws. For LLC interests, execute an assignment to the trustee in compliance with your operating agreement and update the company’s records. Coordinate spousal and title issues before recording.

Understanding the Problem

You want to know how to move North Carolina real estate and rental LLC interests into your already-drafted revocable trust so it actually works as your primary estate plan. The decision is: how do you, as settlor (and often current trustee), retitle each property and assign the LLC membership interest so the trust—not you personally—holds them. One key fact: some of your properties are owned through an LLC.

Apply the Law

Under North Carolina law, a revocable trust only controls assets that are properly titled to the trustee or made payable to the trust at death. For real estate, a new deed must be executed and recorded in the county Register of Deeds to protect the trust’s interest against later purchasers or lien creditors. For LLC membership interests, you must follow the operating agreement’s transfer rules, typically using a written assignment to the trustees and updating company books. Trustees must take control of and clearly designate assets as trust property and keep records reflecting that status. If you also want to change distribution timing for your child, that is handled by amending the trust under state rules.

Key Requirements

• Title real estate to the trustee: Prepare and record a new deed conveying each property to your trustee(s) using correct vesting language and legal descriptions.
• Record to perfect priority: Recording in the county Register of Deeds is what protects the trust’s interest against third parties.
• Address spousal ownership: If property is owned with your spouse, ensure both spouses sign and that the deed/trust structure preserves intended marital protections.
• Assign LLC interests properly: Review and honor the operating agreement (consents, rights of first refusal) and execute a written assignment to the trustee(s); update the membership ledger and internal records.
• Trustee control and labeling: Maintain records showing assets are trust property and keep trust assets separate from personal assets.
• Amend if needed: To add or clarify distribution timelines, amend the revocable trust using the method in the trust or as allowed by statute.

What the Statutes Say

• N.C. Gen. Stat. § 47-18 (Connor Act – Recording to protect title) – Unrecorded deeds are vulnerable to later purchasers or lien creditors.
• N.C. Gen. Stat. § 36C-8-809 (Trustee must take control of trust property) – Trustees must take reasonable steps to control and protect trust assets.
• N.C. Gen. Stat. § 36C-8-810 (Recordkeeping and designating trust property) – Keep trust property separate and identified as trust property on third-party records.
• N.C. Gen. Stat. § 36C-6-602 (Revoking or amending a revocable trust) – Explains how to amend a revocable trust if you need to adjust distributions.

Analysis

Apply the Rule to the Facts: Because your trust wasn’t funded, it doesn’t control your real estate or LLC interests yet. Deed each personally owned North Carolina property from you (and your spouse, if co-owners) to yourselves as trustees of your revocable trust, and record those deeds to protect the trust’s priority. For properties held in your rental LLC, keep the real estate titled in the LLC, but assign your LLC membership interest to the trustee(s) in accordance with the operating agreement and update the company records. If you want clearer payout timing for your child, amend the trust.

Process & Timing

1. Who files: You (through your attorney). Where: County Register of Deeds where each property is located. What: A new deed (e.g., general warranty deed, quitclaim deed, or deed of gift) conveying from you to “[Name], Trustee(s) of the [Trust Name] dated [date].” Include full legal description. When: Record as soon as the deed is signed and notarized; priority runs from recording.
2. LLC interests: Review the operating agreement for transfer restrictions and required consents. Prepare and sign an Assignment of Membership Interest to the trustee(s); obtain written consents if required; update the membership ledger and internal records. Coordinate with the LLC’s manager and tax professional. Timeline depends on consent procedures.
3. Finalize trust records: Update your trust asset schedule; store recorded deeds and the LLC assignment with your trust; notify your insurance carriers and, if applicable, your lender. Expect recording confirmation from the Register of Deeds within days to a couple of weeks, varying by county.

Exceptions & Pitfalls

• Spousal ownership: If you own as spouses, ensure both sign the deed and that your trust/deed structure preserves intended marital protections; details can vary by situation.
• Lender and title insurance: Check mortgage and HOA covenants; transfers to a revocable trust are often permitted, but notice or endorsements may be prudent to avoid coverage gaps.
• County recording costs/excise tax: Recording fees apply; an excise tax may be assessed based on the transaction—confirm with the Register of Deeds before filing.
• LLC transfer restrictions: Operating agreements can require prior consent or give other members purchase rights. Get approvals in writing before assigning.
• Keep trust assets separate: Retitle and clearly label assets in the trustee’s name and maintain records; avoid commingling personal and trust property.

Talk to a Estate Planning Attorney

If you’re dealing with moving North Carolina real estate and LLC interests into a revocable trust, 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.