Probate Q&A Series

How does tenancy by entirety affect inheriting a jointly owned timeshare interest? – North Carolina

Short Answer

Under North Carolina law, real property owned by spouses as tenants by the entirety passes automatically to the surviving spouse at the first death and does not go through the first spouse’s probate. After the surviving spouse later dies without a will, the timeshare becomes part of that spouse’s estate and passes by intestacy. Because the timeshare is located outside North Carolina, you typically must follow that state’s process (often by filing authenticated North Carolina probate papers in the property’s county) to update title.

Understanding the Problem

In North Carolina probate, can you inherit a timeshare that your parents held as tenants by the entirety when one parent died first and the other later died without a will, given the timeshare is located in another state? Here, the key fact is that the deed showed tenancy by the entirety between the parents.

Apply the Law

In North Carolina, tenancy by the entirety (between spouses) carries a built-in right of survivorship for real property: when one spouse dies, the survivor owns the whole property automatically. That means the first spouse’s estate has no interest to administer or transfer. When the surviving spouse later dies, the property is part of the survivor’s estate. For real property outside North Carolina, the law of the place where the property sits controls how title is transferred, and you generally use that county’s court and recording offices to vest title, often by presenting authenticated copies of the North Carolina probate orders for the surviving spouse’s estate.

Key Requirements

  • Confirm the ownership form: The deed must have created tenancy by the entirety between legally married spouses at the time of conveyance; if so, survivorship applied at the first death.
  • Effect of first death: The surviving spouse became sole owner immediately; the first spouse’s will and estate do not control the timeshare.
  • Second death controls inheritance: At the surviving spouse’s death (intestate), the timeshare is part of that spouse’s estate and passes by intestacy.
  • Situs and forum: Because the timeshare is located in another state, title updates typically require an ancillary step in the property’s county using authenticated North Carolina probate documents for the surviving spouse’s estate.
  • Documentation threshold: Expect to provide certified death certificates and exemplified/Authenticated copies of North Carolina letters or orders for the surviving spouse’s estate to the out-of-state court/recorder.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because the parents’ deed showed tenancy by the entirety, the first parent’s death vested full ownership in the surviving parent outside probate. The co-executors of the first estate therefore have no authority over the timeshare. When the surviving parent later died intestate, the timeshare became an asset of that estate. Since the property is in another state, the heirs will typically need to file authenticated North Carolina probate documents for the surviving parent’s estate in the property’s county to vest title before converting to a points program.

Process & Timing

  1. Who files: The administrator of the surviving parent’s North Carolina estate. Where: Open/qualify in the Clerk of Superior Court in the decedent’s North Carolina county of domicile, then pursue ancillary steps in the out-of-state county where the timeshare is located. What: Obtain certified death certificates and exemplified or authenticated North Carolina letters/orders for the surviving spouse’s estate. When: As soon as practical after appointment, because resort programs and counties vary in processing times.
  2. File the authenticated North Carolina probate papers with the out-of-state court/recorder as that county requires; once accepted, record any orders needed to update the land records. This step can take a few weeks to a few months depending on the county.
  3. Provide the recorded documents to the timeshare program/association so the account reflects the heirs or the estate, then complete any program paperwork to convert the interest to points.

Exceptions & Pitfalls

  • If the deed did not create tenancy by the entirety (for example, the spouses were not married at conveyance or it was titled as tenants in common), the first spouse’s share may have passed through the first estate.
  • The 120-hour survival rule can defeat survivorship if deaths occur almost simultaneously; confirm survivorship before relying on it.
  • “Right-to-use” or contractual timeshares may be treated as personal property; check the instrument, because transfer steps and beneficiaries can differ.
  • Ancillary requirements vary by state and county; submit properly authenticated documents or your filing may be rejected.
  • Ongoing assessments and property taxes attach to the property; keep accounts current during transfer to avoid liens or collection actions.

Conclusion

Tenancy by the entirety means the surviving spouse became sole owner of the deeded timeshare at the first death, so the first spouse’s estate had no share to pass. When the surviving spouse later died without a will, the timeshare became part of that estate and passes by intestacy. Because the property is outside North Carolina, the next step is to open and qualify the surviving spouse’s North Carolina estate and file authenticated probate papers in the property’s county to vest title there.

Talk to a Probate Attorney

If you’re dealing with a deeded timeshare after parents passed and need to sort out survivorship and out-of-state filings, 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.