Estate Planning

Joint tenancy interests can now be unequal in NC

By Gregory Herman-Giddens

As of July 10, 2009, there is no longer any doubt as to whether real property owners in North Carolina can create unequal joint tenancy with right of survivorship interests.

Session Law 2009-268, amending N.C.G.S. Section 41-2.

Example: A owns blackacre.  A can deed blackacre to himself, with a 1/2 interest, and B and C, each with a 1/4 interest.  When one owner dies, that owner's share is divided pro-rata according to the surviving owners' respective interests (unless otherwise provided in the deed).  Thus, if B died, 1/3 of his share would belong to C, and a 2/3 share would go to A.

Note:  Unequal tenancy in common interests have been commonly used for years without any dispute about whether such interests were allowable under the law.  However, such interests do not pass to the surviving owners by operation of law, and must be devised under a Will or Trust.

Full post as published by North Carolina Estate Planning Blog on July 21, 2009 (boomark / email).