When a loved one passes away, one of the most common questions families ask is what happens to property that was owned jointly — whether it’s the family home, a bank account, or land that has been in the family for generations. The answer depends heavily on how the property was titled, and getting it wrong can lead to unnecessary probate, family disputes, or delays in settling the estate. At Nosal & Jeter, LLP, we regularly help families throughout the Charlotte metro, Lake Norman, and York County areas sort out exactly what happens to jointly owned property after a death.
Not all joint ownership is the same. The type of ownership on the deed or account determines whether the property passes automatically to the survivor or must go through probate.
• Joint Tenancy with Right of Survivorship (JTWROS) – When one owner dies, their interest automatically passes to the surviving owner(s), bypassing probate entirely. This is common for married couples who purchased a home together.
• Tenancy by the Entirety – A special form of joint ownership available only to married couples in both North Carolina and South Carolina. Like JTWROS, the surviving spouse automatically becomes the sole owner without probate, and this form of ownership also offers additional creditor protection during the couple’s lifetime.
• Tenancy in Common – Each owner holds a separate, distinct share of the property. There is no automatic right of survivorship, which means a deceased owner’s share becomes part of their probate estate and passes according to their Will or the state’s intestacy laws – not automatically to the other owner(s).
Families are often surprised to learn that simply being a “co-owner” of a house or account does not guarantee they will inherit the deceased owner’s share automatically. If a property was purchased by two siblings as tenants in common, for example, and one sibling passes away, that sibling’s half does not pass to the surviving sibling by default – it passes through probate to whoever is named in the deceased sibling’s Will, or to their heirs under intestacy law if there is no Will. This can result in a surviving co-owner unexpectedly sharing ownership with the deceased owner’s children, spouse, or other relatives.
This is one of the most frequent sources of family conflict we see in probate and real estate matters. A surviving sibling or business partner may assume they will simply continue owning the property outright, only to discover they now co-own it with people they’ve never met.
When a deceased owner’s share of jointly held property is part of the probate estate, the Personal Representative (Executor or Administrator) is responsible for:
• Identifying the decedent’s fractional interest in the property
• Determining its value as of the date of death
• Notifying heirs, beneficiaries, and any co-owners
• Deciding whether the property should be sold, transferred, or divided
• Preparing and recording the appropriate deed to transfer the decedent’s interest
In some cases, co-owners cannot agree on what to do with jointly owned real estate once it passes through probate. When that happens, North Carolina and South Carolina law allow an interested party to file a partition action, asking the court to either physically divide the property or, more commonly with a single residence, order it sold and the proceeds divided among the owners.
These same principles apply beyond real estate. Jointly held bank accounts, vehicles, and other titled assets follow the same rules: an account titled as JTWROS typically passes directly to the surviving owner without probate, while an account without survivorship language may become a probate asset subject to creditor claims and distribution under the Will or intestacy statutes.
The best way to avoid disputes over jointly owned property is to review your deeds, account titling, and estate plan before a death occurs. An experienced estate planning attorney can confirm exactly how your assets are titled, correct any unintended tenancy-in-common arrangements, and, where appropriate, use a properly funded revocable living trust to avoid probate altogether for real estate and other significant assets.
Whether you are administering an estate that includes jointly owned property, or you want to make sure your own property is titled correctly to avoid future disputes, Nosal & Jeter, LLP is here to help. We assist families throughout Fort Mill, Cornelius, the Lake Norman region, and York County with probate administration, real estate transfers, and comprehensive estate planning.
Call (704) 608-3429 (NC) or (803) 351-3597 (SC) to schedule a consultation.