Jan12026
Probate Q&A Series

Does the jointly owned property need to go through probate or can it transfer directly? – North Carolina

Short Answer

In North Carolina, jointly owned property transfers directly only if the deed or account paperwork clearly creates a right of survivorship (or, for spouses, a tenancy by the entirety). If the property is owned as tenants in common or as joint owners without survivorship language, the deceased owner’s share usually becomes part of the probate estate and passes under the will (or intestacy). Even when an asset transfers outside probate, it may still be reachable to pay certain estate debts if the probate estate does not have enough assets.

Understanding the Problem

In North Carolina probate, the key question is whether a deceased co-owner’s share of jointly owned property passes automatically to the surviving co-owners, or whether that share must be handled through the estate process. This question turns on how the property is titled (for real estate) or how the account is set up (for financial assets), and whether the ownership documents include survivorship language. The same issue often comes up when multiple siblings are listed on a deed for “equal division,” and one owner dies.

Apply the Law

North Carolina does not assume survivorship just because multiple people are listed as owners. Survivorship must be created by the ownership instrument (such as a deed or account agreement) or by a special form of ownership available to spouses. If survivorship exists, the asset generally transfers directly to the surviving owner(s) by operation of law. If survivorship does not exist, the deceased owner’s share generally passes through the estate and is controlled by a probated will.

Key Requirements

  • How title is held: The deed or account agreement must be reviewed to confirm whether it is (a) joint ownership with right of survivorship, (b) joint ownership without survivorship, (c) tenancy in common, or (for spouses) tenancy by the entirety.
  • Survivorship must be clear: For many jointly owned assets, survivorship applies only when the document clearly shows an intent that the deceased owner’s interest passes to the survivor(s).
  • Probate controls non-survivorship interests: If the deceased owner’s interest does not pass by survivorship or beneficiary designation, the will must be probated to effectively pass title, especially as to third parties.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The jointly owned property titled in all siblings’ names for equal division will avoid probate only if the recorded deed clearly includes a right of survivorship (for example, language showing the owners hold “as joint tenants with right of survivorship”). If the deed instead creates a tenancy in common, or it lists multiple owners without survivorship language, the deceased sibling’s share typically becomes part of the probate estate and passes under the will. The joint bank accounts and beneficiary-designated assets (like life insurance and many annuities) usually transfer by contract to the surviving joint owner or named beneficiary, but those assets can sometimes be pulled back in a limited way if the estate lacks funds to pay allowed claims and expenses.

Process & Timing

  1. Who checks title: the personal representative named in the will (once appointed) or a family member gathering information before opening the estate. Where: the Register of Deeds for the county where the real property is located (for the deed) and the financial institution (for account agreements/beneficiary designations). What: obtain a certified copy of the deed and confirm the exact survivorship wording; obtain the bank’s signature card/account agreement showing whether the account is “with right of survivorship.” When: as soon as possible after death, before trying to sell, refinance, or divide the property.
  2. If survivorship exists: the surviving owner(s) typically record a death certificate (and sometimes an affidavit) to update the public record for real estate, and they work with the bank/broker to retitle accounts.
  3. If survivorship does not exist: the will is filed and probated with the Clerk of Superior Court (Estates). Once the personal representative qualifies and receives Letters, the personal representative can take steps to transfer or administer the deceased owner’s share under the estate process.

Exceptions & Pitfalls

  • “Jointly owned” does not always mean survivorship: In North Carolina, survivorship is not automatic just because multiple names appear on a deed. If the deed does not clearly create survivorship, the deceased owner’s share may still require probate.
  • “Equal division” language can be misleading: Families often assume “equal division” means the survivors automatically split the property. Title language controls, and “equal division” may still be consistent with a tenancy in common that requires probate for the deceased owner’s share.
  • Non-probate assets can still be tapped for claims: Joint accounts with survivorship and certain beneficiary-type assets usually do not pass under the will, but they may be treated as available to pay certain estate claims and expenses if the probate estate is not sufficient.
  • Bank paperwork matters: If the signature card or account agreement does not clearly establish survivorship, some institutions (and sometimes the estate process) may treat all or part of the balance as estate property until the ownership terms are proven.
  • Getting a copy of the filed will: Once the will is filed with the Clerk of Superior Court (Estates) in the county where the estate is opened, it is typically a court record. A copy is usually obtained by requesting it from that Estates office (fees and procedures can vary by county).

Conclusion

In North Carolina, jointly owned property transfers directly only when the controlling document clearly creates a right of survivorship (or, for spouses, tenancy by the entirety). If the deed or account does not include survivorship, the deceased owner’s share usually becomes part of the probate estate and passes under a probated will. The most important next step is to obtain and review the recorded deed (and any account agreements) and, if probate is needed, offer the will for probate with the Clerk of Superior Court (Estates) promptly after death.

Talk to a Probate Attorney

If you’re dealing with jointly owned property after a death and need to confirm what avoids probate versus what must go through the estate, our firm has experienced attorneys who can help explain the title language, the probate steps, and the 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.

Category: Probate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.