§ 41-2. Survivorship in joint tenancy defined; proviso as to partnership; unequal ownership interests. - North Carolina Statutes

§ 41‑2.  Survivorship injoint tenancy defined; proviso as to partnership; unequal ownership interests.

(a)        Except as otherwiseprovided herein, in all estates, real or personal, held in joint tenancy, thepart or share of any tenant dying shall not descend or go to the survivingtenant, but shall descend or be vested in the heirs, executors, oradministrators, respectively, of the tenant so dying, in the same manner asestates held by tenancy in common: Provided, that estates held in joint tenancyfor the purpose of carrying on and promoting trade and commerce, or any usefulwork or manufacture, established and pursued with a view of profit to theparties therein concerned, are vested in the surviving partner, in order toenable the surviving partner to settle and adjust the partnership business, orpay off the debts which may have been contracted in pursuit of the jointbusiness; but as soon as the same is effected, the survivor shall account with,and pay, and deliver to the heirs, executors and administrators respectively ofsuch deceased partner all such part, share, and sums of money as the deceasedpartner may be entitled to by virtue of the original agreement, if any, oraccording to the deceased partner's share or part in the joint concern, in thesame manner as partnership stock is usually settled between joint merchants andthe representatives of their deceased partners. Nothing in this sectionprevents the creation of a joint tenancy with right of survivorship in real orpersonal property if the instrument creating the joint tenancy expresslyprovides for a right of survivorship, and no other document shall be necessaryto establish said right of survivorship. Upon conveyance to a third party byless than all of three or more joint tenants holding property in joint tenancywith right of survivorship, a tenancy in common is created among the thirdparty and the remaining joint tenants, who remain joint tenants with right ofsurvivorship as between themselves. Upon conveyance to a third party by one of twojoint tenants holding property in joint tenancy with right of survivorship, atenancy in common is created between the third party and the remaining jointtenant. A conveyance of any interest in real property by a party to one or moreother parties, whether or not jointly with the grantor‑party, as jointtenants with right of survivorship, creates in the parties that interest, ifthe instrument of conveyance expressly provides for a joint tenancy with rightof survivorship.

(b)        The interests ofthe grantees holding property in joint tenancy with right of survivorship shallbe deemed to be equal unless otherwise specified in the conveyance. Any jointtenancy interest held by a husband and wife, unless otherwise specified, shallbe deemed to be held as a single tenancy by the entirety, which shall betreated as a single party when determining interests in the joint tenancy withright of survivorship. If joint tenancy interests among three or more jointtenants holding property in joint tenancy with right of survivorship are heldin unequal shares, upon the death of one joint tenant, the share of thedeceased joint tenant shall be divided among the surviving joint tenantsaccording to their respective pro rata interest and not equally, unless thecreating instrument provides otherwise.

This subsection shall apply toany conveyance of an interest in property created at any time that explicitlysought to create unequal ownership interests in a joint tenancy with right ofsurvivorship. Distributions made prior to the enactment of this subsection thatwere made in equal amounts from a joint tenancy with the right of survivorshipthat sought to create unequal ownership shares shall remain valid and shall notbe subject to modification on the basis of this act.  (1784, c. 204, s. 6; R.C.,c. 43, s. 2; Code, s. 1326; Rev., s. 1579; C.S., s. 1735; 1945, c. 635; 1989(Reg. Sess., 1990), c. 891, s. 1; 1991, c. 606, s. 1; 2009‑268, s. 1.)