Have you heard the term “tenancy by the entireties” and are not sure what it means? In legal terms, this phrase refers to the type of ownership of real estate that is shared between two individuals who are married, with both spouses having equal rights. Tenancy by the entireties is sometimes referred to as “married persons’ estate” or “TBE.”
What Rights Does Tenancy by the Entireties Provide?
When using TBE, the couple is provided with the following rights: they own the property in equal shares, both spouses must agree on any sales or transfer of ownership of the property, and if one spouse dies, the rights and ownership of the property automatically transfers to the other spouse.
What Are the Benefits of Tenancy by the Entireties?
The advantages of using tenancy by the entireties include the following: It provides a great form of asset protection, especially in a state where creditors can attach a lien on real estate; it prevents one spouse from selling the property without the other spouse’s agreement; and it ensures that if one spouse dies, the property automatically transfers to the other spouse without probate.
Examples of Tenancy by the Entireties
Tenancy by the entireties can be found in the purchase of a home, a business, an investment property, or even a vacation home. It is important to understand that this type of ownership can only occur between two individuals who are married, and the ownership must be held in equal shares.
Conclusion
Tenancy by the entireties provides couples with the ability to own property together and ensure that their rights are legally protected. This type of legal status can provide asset protection and ensure that when one spouse passes away, the other has automatic rights over shared possessions.