What is a trust deed?

A trust deed is a legal document used to transfer a legal interest in real property from one party (the trustor) to another party (the trustee). The trustor is usually the owner of the real estate and the trustee is usually a third party appointed by the trustor to manage the transferred property. This document states the terms and conditions of the transfer and outlines the rights and duties of the two parties involved. A trust deed is often used in the context of trusts and estates law in North Carolina in order to transfer real estate from the trustor to the trustee for the benefit of the trust’s beneficiaries. For example, if the trustor is the owner of an estate and wishes to pass it on to his beneficiaries, he may create a trust deed which states that upon his passing, the trustee will manage the estate for the beneficiaries. A trust deed can also be used as a form of security for a loan. In such cases, the trustor will pledge the title to the real property as security for the loan. In the event of default, the lender has the right to take control of the property for repayment of the loan. Overall, a trust deed is an important legal document that allows a transfer of ownership of real property and sets forth the rights and duties of the parties involved.

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