Declaration of Trust — North Carolina UTC Adopted
State-specific requirements for creating a Declaration of Trust in North Carolina.Create yours now →
Certificate of Trust · At a glance
North Carolina · summary of the record on file
North Carolina Uniform Trust Code at N.C.G.S. Chapter 36C (enacted 2005, effective Jan 1, 2006); Certificate of Trust at N.C.G.S. § 36C-10-1013 (UTC § 1013). Business Trusts at N.C.G.S. Chapter 39, Article 8 (§§ 39-44 to 39-48).Citation text is shown as currently recorded. No source URL is on file for this state.Source URL missing · unverified- Notary: Notarization is customary and supports third-party acceptance but is not statutorily required for trust validity.
- Witnesses: North Carolina does NOT require witnesses for trust execution.
- Recording: For real property transactions, certification of trust may be required to be executed and acknowledged in a manner permitting recording with the register of deeds in the county where real property is located.
- Source URL: https://www.ncleg.gov/enactedlegislation/statutes/html/bysection/chapter_36c/gs_36c-10-1013.html
- Last verified: 2026-09-17
- Legal review: Not performed
Governing Statute
North Carolina Uniform Trust Code at N.C.G.S. Chapter 36C (enacted 2005, effective Jan 1, 2006); Certificate of Trust at N.C.G.S. § 36C-10-1013 (UTC § 1013). Business Trusts at N.C.G.S. Chapter 39, Article 8 (§§ 39-44 to 39-48).
Execution Requirements
North Carolina does NOT require witnesses for trust execution. Notarization is customary and supports third-party acceptance but is not statutorily required for trust validity. For real property transactions, certification of trust may be required to be executed and acknowledged in a manner permitting recording with the register of deeds in the county where real property is located. NC does not require registration or filing of revocable living trusts with the court. For business trusts, a memorandum of the written instrument or declaration of trust must be recorded in the county where land is held (N.C.G.S. § 39-46). Remote online notarization (RON) is available in NC but generally not permitted for trust instruments themselves.
Business Trust Treatment
North Carolina has a statutory business trust framework at N.C.G.S. Chapter 39, Article 8 (§§ 39-44 to 39-48), enacted in 1977. Definition (§ 39-44) explicitly includes Illinois land trusts, Delaware statutory trusts, and Massachusetts business trusts as 'business trusts.' Business trusts are authorized to acquire and hold real estate in their trust names and may sue and be sued in their trust names (§ 39-45). Title to real estate vests in the business trust; conveyance requires an instrument signed by at least one trustee, president, vice-president, or duly authorized officer (§ 39-46). A memorandum of the declaration of trust must be recorded in the county where land is held. Prior deeds are validated (§ 39-47). This is a real-property-focused business trust statute.
Favorable Trust Laws
North Carolina repealed the Rule Against Perpetuities effective August 19, 2007 (N.C.G.S. § 41-15), allowing dynasty trusts of unlimited duration — one of the few states to completely abolish RAP. NC has no state estate tax or inheritance tax. NC Uniform Trust Decanting Act (Article 8B of Chapter 36C) allows trustee to decant trust assets. NC has strong trust modification provisions. NC's business trust statute is particularly useful for real estate holding. NC allows self-settled asset protection trusts under certain conditions (N.C.G.S. § 1-407.1 provides spendthrift trust protections but does NOT authorize self-settled asset protection trusts in the traditional DAPT sense).
Unique Factors
North Carolina is one of the few states that has COMPLETELY REPEALED the Rule Against Perpetuities (2007), making it one of the premier jurisdictions for dynasty trusts with truly unlimited duration — alongside South Dakota, Alaska, and a few others. NC's business trust statute (Chapter 39, Art. 8) is specifically tailored to real estate holding and explicitly recognizes Delaware statutory trusts and Massachusetts business trusts by name. NC requires recording a memorandum of declaration of trust for business trusts holding real estate. NC's certification of trust uniquely allows withholding the settlor's identity if the trust instrument so provides. NC has no state estate or inheritance tax. NC has a Uniform Trust Decanting Act. NC's trust code uniquely requires the trust's taxpayer identification number in the certification of trust (with SSN privacy exception).
Certification of Trust in North Carolina
Under N.C.G.S. § 36C-10-1013, a certification of trust must contain: (1) existence of the trust and date the trust instrument was executed; (2) identity of the settlor, unless withheld under a provision in the trust instrument; (3) identity and address of the currently acting trustee; (4) powers of the trustee; (5) revocability or irrevocability of the trust and identity of any person holding a power to revoke; (6) authority of cotrustees to sign/authenticate and whether all or less than all are required to exercise powers of the trustee; (7) the trust's taxpayer identification number; (8) the manner of taking title to trust property. Must state trust has not been revoked, modified, or amended in a manner that would cause representations to be incorrect. Need not contain dispositive terms. Any trustee may sign. For real property transactions, person may require certification be executed and acknowledged in a manner permitting registration with register of deeds. TIN need not be included if it is also the settlor's SSN, but trustee must certify TIN in a manner reasonably satisfactory to the relying person.
Already have a trust? You may also need a Certificate of Trust for North Carolina to prove its existence to banks and institutions.
How a Declaration of Trust works in North Carolina
A declaration of trust in North Carolina is the written instrument that creates a trust under N.C.G.S. Chapter 36C, the North Carolina Uniform Trust Code effective January 1, 2006. The settlor states an intent to hold property for named beneficiaries and appoints a trustee to manage it. The trust instrument must be signed by the settlor. North Carolina does not require witnesses for trust execution, and notarization is customary but not statutorily required for trust validity. The trust becomes active when it is funded: real property moves by a new deed to the trustee, and bank and brokerage accounts are retitled in the name of the trust or trustee. A successor trustee named in the document takes over if the acting trustee steps down, becomes incapacitated, or dies. When proof of the trust is needed, N.C.G.S. § 36C-10-1013 lists what a certification of trust may contain, and a third party may require the trustee to furnish excerpts.
Frequently asked questions
Does a North Carolina declaration of trust have to be notarized or witnessed?
Under N.C.G.S. Chapter 36C, the trust instrument must be signed by the settlor. Witnesses are not required, and notarization is not statutorily required for trust validity. Notarization or an acknowledgment may still be required for recording purposes, such as real property transactions or a certification of trust. For business trusts, a memorandum of the declaration of trust must be recorded in the county where land is held under N.C.G.S. § 39-46.
Can a North Carolina trust continue forever?
Yes. North Carolina repealed the Rule Against Perpetuities effective August 19, 2007, under N.C.G.S. § 41-15, allowing dynasty trusts of unlimited duration. This makes North Carolina one of the premier jurisdictions for multi-generational wealth transfer. The repeal applies broadly, and trusts can be structured for perpetual duration. The specific terms of the trust instrument and how the trust is administered still determine what happens in any particular case.
What goes in a certification of trust under N.C.G.S. § 36C-10-1013?
The statute lists the contents: that the trust exists and the date the instrument was executed, the identity of the settlor (unless withheld under a provision in the trust instrument), the identity and address of the currently acting trustee, the powers of the trustee, whether the trust is revocable or irrevocable and who holds the power to revoke, cotrustee signing authority and whether all or less than all are required, the trust's taxpayer identification number, and the manner of taking title to trust property. A third party may require the
How does North Carolina treat business trusts?
North Carolina has a statutory business trust framework at N.C.G.S. Chapter 39, Article 8 (§§ 39-44 to 39-48), enacted in 1977. The definition of business trust explicitly includes Illinois land trusts, Delaware statutory trusts, and Massachusetts business trusts. Business trusts may acquire and hold real estate in their trust names and may sue and be sued in their trust names. A memorandum of the declaration of trust must be recorded in the county where land is held. Prior deeds are validated under § 39-47.
Common mistakes
Common issues include assuming North Carolina law requires witnesses or notarization for the trust instrument itself (it requires neither, though recording-related steps such as deeds or certificates of trust may call for an acknowledgment), and leaving the trust unfunded so that property never actually moves into it through a new deed or retitled accounts. Another frequent mix-up is treating a business trust like a family trust: North Carolina requires a memorandum of the declaration of trust to be recorded for business trusts holding real estate. People also assume the settlor's identity must always appear in the certification of trust, but N.C.G.S. § 36C-10-1013 uniquely allows withholding the settlor's identity if the trust instrument so provides. Documents that omit a successor trustee, or that do not match the certification of trust described in § 36C-10-1013, create avoidable friction during administration.
North Carolina notes
North Carolina operates under the North Carolina Uniform Trust Code, N.C.G.S. Chapter 36C (effective January 1, 2006), and the certification of trust contents are set by § 36C-10-1013. A third party may require the trustee to furnish excerpts from the trust instrument. North Carolina repealed the Rule Against Perpetuities effective August 19, 2007, under N.C.G.S. § 41-15, making it one of the few states with truly unlimited dynasty trust duration. The state has no state estate tax or inheritance tax. North Carolina's business trust statute (Chapter 39, Article 8) is specifically tailored to real estate holding and explicitly recognizes Delaware statutory trusts and Massachusetts business trusts by name. The certification of trust uniquely allows withholding the settlor's identity if the trust instrument so provides. North Carolina also has a Uniform Trust Decanting Act under Article 8B of Chapter 36C.