GENERAL ASSEMBLY OF NORTH CAROLINA
1989 SESSION
CHAPTER 891
The General Assembly of North Carolina enacts:
Section 1. G.S. 41-2 reads as rewritten:
"§ 41-2.
Survivorship in joint tenancy abolished defined; proviso as
to partnership.
In Except as otherwise provided herein, in all
estates, real or personal, held in joint tenancy, the part or share of any
tenant dying shall not descend or go to the surviving tenant, but shall descend
or be vested in the heirs, executors, or administrators, respectively, of the
tenant so dying, in the same manner as estates held by tenancy in common:
Provided, that estates held in joint tenancy for the purpose of carrying on and
promoting trade and commerce, or any useful work or manufacture, established and
pursued with a view of profit to the parties therein concerned, are vested in
the surviving partner, in order to enable him to settle and adjust the
partnership business, or pay off the debts which may have been contracted in
pursuit of the joint business; but as soon as the same is effected, the
survivor shall account with, and pay, and deliver to the heirs, executors
and administrators respectively of such deceased partner all such part, share,
and sums of money as he may be entitled to by virtue of the original agreement,
if any, or according to his share or part in the joint concern, in the same
manner as partnership stock is usually settled between joint merchants and the
representatives of their deceased partners. Nothing in this section
prevents the creation of a joint tenancy with right of survivorship in real or
personal property if the instrument creating the joint tenancy expressly
provides for a right of survivorship, and no other document shall be necessary
to establish said right of survivorship. Upon conveyance to a third party
by less than all of three or more joint tenants holding property in joint
tenancy with right of survivorship, a tenancy in common is created among the
third party and the remaining joint tenants, who remain joint tenants with
right of survivorship as between themselves. Upon conveyance to a third
party by one of two joint tenants holding property in joint tenancy with right
of survivorship, a tenancy in common is created between the third party and the
remaining joint tenant."
Sec. 2. G.S. 41-2.2 is rewritten to read:
"§ 41-2.2. Joint ownership of corporate stock and investment securities.
(a) In addition to other
forms of ownership, shares of corporate stock or investment securities may be
owned by a husband and wife any parties as joint tenants with
rights of survivorship, and not as tenants in common, in the manner provided in
this section.
(b)
(1) A joint tenancy in shares of corporate stock or
investment securities as provided by this section shall exist when such
shares or securities indicate that they are owned with the right of
survivorship, or otherwise clearly indicate an intention that upon the death of
either spouse party the interest of the decedent shall pass to
the surviving spouse party.
(2) Such a joint tenancy
may also exist when a broker or custodian holds the shares or securities for
the joint tenants and by book entry or otherwise indicates (i) that the shares
or securities are owned with the right of survivorship, or
(ii) otherwise
clearly indicates that upon the death of either spouse, party, the
interest of the decedent shall pass to the surviving spouse. party. Money
in the hands of such broker or custodian derived from the sale of, or held for
the purpose of, such shares or securities shall be treated in the same manner
as such shares or securities.
(c) Upon the death of a joint tenant his interest shall pass to the surviving joint tenant. The interest of the deceased joint tenant, even though it has passed to the surviving joint tenant, remains liable for the debts of the decedent in the same manner as the personal property included in his estate, and recovery thereof shall be made from the surviving joint tenant when the decedent's estate is insufficient to satisfy such debts.
(d) Nothing herein contained shall be construed to repeal or modify any of the provisions of G.S. 105-2, 105-11, and 105-24, relating to the administration of the inheritance tax laws, or any other provisions of the law relating to inheritance taxes."
Sec. 3. Nothing in this act shall be construed to affect the validity of instruments that provide for a right of survivorship executed prior to the effective date of this act.
Sec. 4. This act shall become effective January 1, 1991.
In the General Assembly read three times and ratified this the 12th day of July, 1990.