JOINT SURVIVORSHIP CLARIFICATIONS.

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View NCGA Bill Details2017-2018 Session
Senate Bill 451 (Public) Filed Tuesday, March 28, 2017
AN ACT TO REPLACE AND CLARIFY THE GENERAL STATUTES PERTAINING TO THE CREATION AND SEVERANCE OF JOINT TENANCY WITH RIGHT OF SURVIVORSHIP PERTAINING TO REAL PROPERTY.
Intro. by Newton, Daniel.

Status: Re-ref Com On Judiciary III (House Action) (Jun 14 2018)
S 451

Bill Summaries:

  • Summary date: Apr 25 2017 - View Summary

    Senate committee substitute makes the following changes to the 1st edition.

    Amends proposed GS 41-2.3(h), which specifies three events that do not result in severance of joint tenancy with right of survivorship. Makes a technical change to the provision specifying that when married individuals who hold an interest as tenants by the entirety in a joint tenancy with one or more individuals' divorce, the divorced individuals hold their existing interest equally as joint tenants unless the divorced individuals agree otherwise. 


  • Summary date: Mar 29 2017 - View Summary

    Repeals GS 41-2, pertaining to survivorship in joint tenancy. 

    Enacts GS 41-2.3, Joint tenancy, providing that a conveyance to two or more persons creates a tenancy in common unless a joint tenancy with right of survivorship is created as provided by the statute, or a tenancy by the entirety is created as provided by law. Defines conveyance as the transfer of title to real or personal property by deed, devise, assignment, or other means of transferring title.

    Establishes that a conveyance to two or more persons creates a joint tenancy with right of survivorship if the instrument expresses an intent to create a joint tenancy with right of survivorship. Provides that express intent exists, unless the instrument otherwise provides, if the instrument uses the language "joint tenants with right of survivorship," "joint tenants," "joint tenancy," "tenants in common with right of survivorship," "joint with right of survivorship," "with right of survivorship," "to them or the survivor of them," or wording of similar import.

    Establishes that the interests of joint tenants in a joint tenancy with right of survivorship are equal unless the instrument of conveyance provides otherwise. This provision applies to any conveyance of an interest in property created at any time that explicitly seeks to create unequal ownership interest in a joint tenancy with right of survivorship. Provides that distributions made prior to October 1, 2009, that were made in unequal amounts from a joint tenancy with right of survivorship that sought to create unequal ownership remain valid and are not subject to modification on the basis of this new provision.

    Declares that for a joint tenancy interest conveyed to individuals married to each other and to one or more other joint tenants in the same conveyance instrument, the interest held by the married individuals is a tenancy by the entirety, and the married individuals are to be treated as a single joint tenant unless the instrument provides otherwise.  

    Details six events that result in severance of a joint tenancy with right of survivorship: (1) where a joint tenant executes an instrument where the joint tenant is a grantor and the grantee and the intention to sever expressly appears on the instrument and (2) where a joint tenant coveys all of that joint tenant's interest to a third party. Defines severance as the termination of the right of survivorship resulting in the creation of a tenancy in common, as provided. Details the creation of a tenancy in common upon severance, with variations depending on the event that triggered severance. Specifies three events that do not result in severance of a joint tenancy with right of survivorship: (1) the filing of a judgment against one joint tenant; (2) the filing of a petition by one joint tenant in bankruptcy; or (3) the divorce of married individuals holding an interest as tenants by the entirety in a joint tenancy with one or more other joint tenants, unless the divorced individuals agree otherwise, with the divorced individuals then holding their existing interest as joint tenants with each owning one-half of their prior interest.

    Clarifies that the statute does not limit the manner or effect of a severance ordered by a court of competent jurisdiction. 

    Provides that joint tenant interests among two or more joint tenants holding property in joint tenancy with right of survivorship are subject to GS 28A-24-3 (requirement of survival by 120 hours) upon the death of one or more of the joint tenants.

    Exempts from the statute's provisions executors or trustees in their representative capacity, partnerships governed by GS Chapter 59, business entities, accounts established under GS 41-2.1 (right of survivorship in bank deposits created by written agreement) or GS 41-2.2 (joint ownership of securities) to the extent inconsistent with the provisions of the statute, and life estates.

    Provides that the statute does not invalidate estates created or severed prior to when the act becomes law. 


  • Summary date: Mar 28 2017 - View Summary

    To be summarized.