§ 41-2.2. Joint ownership of securities. - North Carolina Statutes

§ 41‑2.2.  Jointownership of securities.

(a)        In addition toother forms of ownership, securities may be owned by any parties as jointtenants with rights of survivorship, and not as tenants in common, in themanner provided in this section.

(b)       (1)        Ajoint tenancy in securities as provided by this section shall exist when suchsecurities indicate that they are owned with the right of survivorship, orotherwise clearly indicate an intention that upon the death of either party theinterest of the decedent shall pass to the surviving party.

(2)        Such a joint tenancymay also exist when a broker or custodian holds the securities for the jointtenants and by book entry or otherwise indicates (i) that the securities areowned with the right of survivorship, or (ii) otherwise clearly indicates thatupon the death of either party, the interest of the decedent shall pass to thesurviving party. Money in the hands of such broker or custodian derived fromthe sale of, or held for the purpose of, such securities shall be treated inthe same manner as such securities.

(c)        Upon the death of ajoint tenant his interest shall pass to the surviving joint tenant. Theinterest of the deceased joint tenant, even though it has passed to thesurviving joint tenant, remains liable for the debts of the decedent in thesame manner as the personal property included in his estate, and recoverythereof shall be made from the surviving joint tenant when the decedent'sestate is insufficient to satisfy such debts.

(d)        This section doesnot repeal or modify any provisions of the law relating to estate orinheritance taxes.

(e)        As used in thissection, "securities" has the same meaning as in G.S. 41‑40(9)and includes "security account" as that term is defined in G.S. 41‑40(10).(1967, c. 864,s. 1; 1969, c. 1115, s. 2; 1989 (Reg. Sess., 1990), c. 891, s. 2; 1998‑69,s. 12; 1999‑337, s. 10; 2005‑411, s. 3.)