How Tenancy by the Entirety in North Carolina Avoids Probate and Simplifies Title Transfer
Detailed Answer
Tenancy by the entirety is a unique form of property ownership reserved for married couples in North Carolina. Under N.C. Gen. Stat. § 47-49, it creates a single legal entity made up of both spouses. Each spouse holds an undivided interest in the entire property. Neither spouse can sell, mortgage, or transfer their interest without the other spouse’s consent.
This structure delivers two major benefits when one spouse dies:
- Automatic Title Transfer: When one spouse passes away, the surviving spouse instantly owns the property in full. The transfer occurs by operation of law and does not require court approval.
- Probate Avoidance: Because title passes directly to the survivor, the property never becomes part of the deceased spouse’s estate. It bypasses probate administration entirely. Heirs do not need to file petitions or obtain court orders for the property.
In practice, this means families save time and reduce legal costs. You avoid filing a formal probate case and skip the court delays that can last several months. With tenancy by the entirety, the surviving spouse can show the death certificate and a deed reflecting the tenancy. A title company or the county register of deeds then updates the ownership record.
North Carolina courts respect tenancy by the entirety as long as documents clearly state the form of ownership. When you buy or refinance, work with your attorney and lender to ensure the deed names you and your spouse “as tenants by the entirety.” Proper language prevents confusion and ensures you both enjoy full rights during your marriage and secure transfer rights at death.
Key Points to Remember
- Available only to legally married couples in North Carolina.
- Each spouse holds an equal, indivisible interest in the whole property.
- Neither spouse can act alone to sell or encumber the property without the other’s consent.
- On the death of one spouse, full ownership passes automatically to the survivor.
- Property held this way never enters probate, saving time and court fees.
- Ensure deeds clearly state “tenants by the entirety” to secure these benefits.
Contact Pierce Law Group
If you want to protect your family and streamline property transfer, consider tenancy by the entirety. Our attorneys at Pierce Law Group help you draft deeds and explain every step under North Carolina law. Reach out today to discuss your options.
Email us at intake@piercelaw.com or call (919) 341-7055.
