Joint Ownership Of Agreement In North Carolina
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Joint ownership is a common estate planning strategy that offers both simplicity and challenges. While it can streamline the transfer of assets and reduce probate costs, it also comes with potential drawbacks, including loss of control and unintended consequences.
Each party in a joint tenancy has an equal interest in the property—the financial obligations as well as any benefits. A joint tenancy creates a right of survivorship, which means that if one party dies, their interest is automatically transferred to the surviving tenant(s).
Joint Tenancy Has Some Disadvantages They include: Control Issues. Since every owner has a co-equal share of the asset, any decision must be mutual. You might not be able to sell or mortgage a home if your co-owner does not agree. Creditor Issues.
North Carolina and South Carolina are equitable distribution states, not community property states. Unlike a community property state, which divides marital assets 50/50, equitable distribution states take the time to make sure the division is fair to both parties, and they do not divide separate property.
Problems With Joint Ownership By jointly owning property, you may find yourself party to a lawsuit if your co-owner is sued or the asset could be lost to a creditor of your co-owner. If your co-owner becomes incapacitated, you could find yourself “owning” the property with the co-owner's guardian or the courts.
Medicaid rules provide that for jointly owned real estate, such as a home or farm land, the entire value of the property can, in certain circumstances, be disregarded as a non-countable resource, meaning it will not count against the applicant.
In North Carolina, there are three types of co-ownership with real estate: Tenancy by the Entirety, Tenancy in Common and Joint Tenancy with Rights of Survivorship. Tenancy-by-the-entirety (“TBE') is a type of tenancy reserved exclusively for married couples.
In effect, this means that the last surviving owner becomes the sole owner of the property. Notably, a joint tenancy is “not controllable.” In other words, as a joint tenant, you cannot control who will inherit your share of the property upon your death.
The general rule is that each co-owner must sign the joint account signature card. The FDIC recognizes electronic signatures. The signature card requirement may also be satisfied by information in the IDI's deposit records establishing co-ownership of the deposit account.
Recommended documents for proof of joint ownership include: A mortgage or bank statement, residential leasing agreement, property tax bill, or joint credit card statement. Documents must include both the employee's name and the spouse's name.