However, North Carolina law now allows property transferred to a joint revocable or irrevocable trust or to each spouse’s individual revocable or irrevocable trusts to retain tenancy by the entireties creditor protections. Under the new statute, former tenancy by the entireties property transferred to one or more trusts established by either or both spouses retains immunity from the claims of the spouses’ separate creditors as long as:
- The couple remains married
- The property continues to be held in trust
- The spouses remain the beneficial owners of the property.
This change became effective January 1, 2015 for real property transferred to trust on or after that date.
Since the statute explicitly references “husband and wife,” it is not entirely clear whether same-sex couples who are legally married will be afforded the protections under the statute. However, given the recent trend in North Carolina case law regarding recognition of same-sex marriage, it seems likely that the statute will be interpreted to apply to same-sex couples as well.