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Faizan
Holding property in joint tenancy is an established means of avoiding probate of certain property, which North Carolina recognizes. This type of ownership comes with rights of survivorship, which means that when one co-owner dies, the other inherits his share of the property and automatically becomes the sole owner. This occurs by operation of the law according to the terms of the deed, so probate is not necessary.
The Decedent's Will
If you hold title to property with someone else as joint tenants with rights of survivorship and the other individual dies, the property passes directly to you, no matter what the terms of his will say. He's not free to give the property to anyone else, and it's not part of his probate estate.
The Decedent's Debts
One catch exists in North Carolina law with regard to joint tenancies. If your co-owner dies without owning any other assets that can be used to pay his debts, his share of the property – rightfully yours now – remains liable for them. Therefore, under North Carolina's statutes, liability for these debts transfers to you because you now own his share of the property. Payment of his debts may be accomplished by probating the asset or liquidating it and then transferring the balance of the proceeds – after his debts are paid – to you.
The Decedent's Will
If you hold title to property with someone else as joint tenants with rights of survivorship and the other individual dies, the property passes directly to you, no matter what the terms of his will say. He's not free to give the property to anyone else, and it's not part of his probate estate.
The Decedent's Debts
One catch exists in North Carolina law with regard to joint tenancies. If your co-owner dies without owning any other assets that can be used to pay his debts, his share of the property – rightfully yours now – remains liable for them. Therefore, under North Carolina's statutes, liability for these debts transfers to you because you now own his share of the property. Payment of his debts may be accomplished by probating the asset or liquidating it and then transferring the balance of the proceeds – after his debts are paid – to you.
Posted in: Estate Laws
