Understanding Joint Ownership and Survivorship Rights
When a spouse dies, the way you hold title to property can determine whether that property passes automatically or becomes part of probate. North Carolina law recognizes several forms of joint ownership. Each carries its own rules for transfer when one owner dies.
Types of Joint Ownership in North Carolina
- Tenancy by the Entirety: Available only to married couples. Each spouse owns the whole. When one spouse dies, the surviving spouse owns the property outright. See N.C. Gen. Stat. § 41-1.
- Joint Tenancy with Right of Survivorship: Two or more people own equal shares. When one owner dies, the survivor(s) inherit the decedent’s share outside of probate.
- Tenants in Common: Owners hold individual shares. A deceased owner’s share passes according to the will or, if there is no will, under North Carolina’s intestate succession rules in N.C. Gen. Stat. § 29-14.
How Survivorship Transfers Work
For both tenancy by the entirety and joint tenancy with right of survivorship, the surviving owner does not open a full probate estate to take title. Instead, you record:
- A certified death certificate for the deceased spouse.
- An affidavit of survivorship or other form required by your county register of deeds.
Once recorded, the deed reflects sole ownership by the survivor.
When Probate Becomes Necessary
If property is held as tenants in common or your spouse owned property alone, you must address it in probate. The personal representative gathers assets, notifies creditors, and distributes property under the will or intestate succession statutes. That process ensures clear title for all heirs.
Special Considerations for Bank and Investment Accounts
Joint bank and brokerage accounts often include payable-on-death or transfer-on-death designations. These pass outside probate to the named beneficiary. If no beneficiary is named, the surviving co-owner or the probate estate will receive funds, depending on account terms.
Key Takeaways
- Identify the form of ownership on deeds and account statements.
- For tenancy by the entirety or joint tenancy, record a death certificate and survivorship affidavit to clear title.
- If property is not jointly owned, prepare for probate administration under N.C. Gen. Stat. § 29-14.
- Review beneficiary designations on financial accounts to avoid unintended probate delays.
Sorting through joint ownership rules can feel overwhelming. Pierce Law Group’s attorneys guide you step by step under North Carolina law. Contact us by emailing intake@piercelaw.com or calling (919) 341-7055 for a consultation.
