Probate Q&A Series

How does tenancy by the entirety affect passing my marital home outside probate? – North Carolina

Short Answer

In North Carolina, a home owned by spouses as tenants by the entirety passes to the surviving spouse automatically at death and does not go through probate. You typically do not list it on the estate’s Inventory. The surviving spouse should still handle practical steps like recording a death certificate and maintaining mortgage, tax, and insurance obligations. Individual creditors of the deceased spouse generally cannot reach entirety property, but existing liens (like a mortgage) remain.

Understanding the Problem

In North Carolina, can I, as the executor, leave our marital home off the estate Inventory if the deed shows my spouse and me owned it as tenants by the entirety?

Apply the Law

Tenancy by the entirety is a form of marital ownership of real estate available only to legally married spouses. If the marital home was titled to both spouses and the couple was legally married when they acquired it, ownership includes a built-in right of survivorship. At death, the survivor becomes the sole owner by operation of law—no probate transfer is required. For probate administration, the Clerk of Superior Court oversees the estate, and the Inventory is generally due within three months after you qualify as personal representative. Entirety property is not a probate asset and is not listed on the Inventory, but other real property interests without survivorship and probate personal property are listed at date-of-death value.

Key Requirements

  • Marital ownership at conveyance: The spouses must have been legally married when they took title for tenancy by the entirety to arise.
  • Survivorship by operation of law: At death, the surviving spouse becomes the sole owner; no probate conveyance is needed.
  • Not a probate asset: Entirety real estate is not included on the estate Inventory; keep the deed for records and consider recording a death certificate.
  • Creditor treatment: Ordinary individual debts of the decedent generally cannot force sale of entirety property; existing liens (e.g., mortgage) and joint obligations still attach.
  • Inventory timing: File the Inventory with the Clerk of Superior Court within three months of qualification, listing probate assets and real property interests that are not entirety property.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because the marital home was held as tenancy by the entirety, it passes to you automatically and is not listed on the Inventory. By contrast, your spouse’s interest in the parent’s property co-owned with a sibling (a non-survivorship interest) should be valued at date of death and listed. List probate personal property (household furnishings, firearms, gear) and vehicles; address the missing vehicle title with DMV. Joint financial accounts with survivorship pass to you but may need to be disclosed as non-probate survivorship property that can be reached only if estate assets are insufficient to pay claims.

Process & Timing

  1. Who files: Executor/personal representative. Where: Clerk of Superior Court in the county of primary administration. What: Inventory for Decedent’s Estate (AOC-E-505). When: File within three months after you qualify.
  2. Do not list the marital home held as tenancy by the entirety on the Inventory. Instead, record a certified death certificate with the Register of Deeds to update the land records; keep the original deed for your files. Continue paying the mortgage, taxes, and insurance in your name.
  3. List and value probate assets: vehicles (work with DMV to replace any missing title), personal property, and the decedent’s share of non-survivorship real property. Gather date-of-death bank/brokerage statements and support for any survivorship designations in case the Clerk requests proof.

Exceptions & Pitfalls

  • Title wasn’t true entirety: If the spouses weren’t legally married at conveyance, or only one spouse was grantee, survivorship may not apply; the decedent’s share could be a probate asset.
  • Divorce changes things: Divorce generally converts entirety property to a tenancy in common; survivorship is lost.
  • Liens and joint debts remain: Mortgages, deeds of trust, and valid joint obligations still encumber the home despite survivorship.
  • Inventory mistakes: Listing entirety property on the Inventory can cause confusion and fees; instead, keep proof of title and provide it if the Clerk requests verification.
  • Don’t overlook other real property: The decedent’s interest in co-owned non-survivorship real estate must be valued and listed even if the marital home passes outside probate.

Conclusion

In North Carolina, a marital home titled to spouses as tenants by the entirety passes to the surviving spouse automatically and stays out of probate. You generally leave it off the Inventory. Focus your Inventory on probate assets and non-survivorship real estate. Next step: file your Inventory (AOC‑E‑505) with the Clerk of Superior Court within three months after you qualify, and record a death certificate with the Register of Deeds to update land records.

Talk to a Probate Attorney

If you’re dealing with whether your marital home bypasses probate and how to complete the Inventory accurately, 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.