1. Understanding Tenancy by the Entirety Rights

In North Carolina, spouses can hold real property as tenants by the entirety. This form of ownership provides a special set of rights and protections:

• Equal and Undivided Interest: Each spouse owns the whole property, not a divisible share. Neither spouse can sell, mortgage or encumber the property without the other’s written consent.
• Right of Survivorship: When one spouse dies, ownership automatically passes to the surviving spouse without a court proceeding.
• Creditor Protection: If one spouse alone owes a debt, a creditor generally cannot seize tenancy by entirety property to satisfy that debt.
• Termination Events: Only divorce, mutual agreement, death of a spouse or a court order (for example, in equitable distribution) can end a tenancy by the entirety.

As a spouse, you retain the right to live in, use and manage the property. You can petition a court for relief if your spouse tries to encumber or transfer property without your consent. In a divorce, the court will divide the property under Chapter 50, but until then, you remain protected.

2. Challenging a Power of Attorney

North Carolina follows the Uniform Power of Attorney Act (Chapter 32C). Under this law, an agent must act within the authority granted by the principal and under strict fiduciary duties. You can challenge a power of attorney on several grounds:

• Lack of Capacity: The principal must have mental capacity when signing. You can seek court review under G.S. 32C-8-804.
• Undue Influence or Fraud: If someone coerced or misled the principal, you can petition the clerk of superior court to void or modify the document.
• Breach of Fiduciary Duty: An agent must act in the principal’s best interest. You can file a civil action under G.S. 32C-3-304 for damages or seek a constructive trust under G.S. 32C-3-305.
• Revocation by Principal: A principal can revoke a power of attorney at any time under G.S. 32C-8-801. If you have proof of revocation, the agent’s authority ends immediately.
• Agent Exceeds Authority: Agents may only act within the scope defined. Any act beyond that scope is void and you can petition for injunctive relief.

To start a challenge, gather evidence—medical records, witness statements or financial documents. Then file a petition with the clerk of superior court in the county where the principal resides. The court can revoke or limit the agent’s power, order an accounting and award damages.

3. Key Points to Remember

• Tenancy by the entirety protects one spouse from unilateral transfers and personal creditors of the other spouse.
• Neither spouse can encumber or sell property held as tenants by the entirety without written consent.
• To challenge a power of attorney, act promptly. File a petition under the Uniform Power of Attorney Act (Chapter 32C).
• Grounds for challenge include lack of capacity, fraud, undue influence or breach of fiduciary duty.
• Court remedies include revocation of authority, injunctions, constructive trusts and damages.

Contact Pierce Law Group for Help

Protecting your rights in tenancy by the entirety and challenging a power of attorney requires careful legal steps. Pierce Law Group’s attorneys have extensive experience guiding clients through North Carolina probate and fiduciary disputes. Reach out to us for a consultation:

• Email: intake@piercelaw.com
• Call: (919) 341-7055

We can help you understand your rights and secure the best possible outcome.