ReiJournal.com

Tenancy by the entirety is a very powerful home protection technique.

It is not available in every state and it is only available for married couples. It is not right for every situation but if you are in a tenancy by the entirety state and married, you should consider using this form of ownership on your deed when you purchase your private residence.

So what is tenancy by the entirety?

Tenancy by the entirety is similar to joint tenancy in that it offers rights of survivorship. In other words, if one spouse dies, the house is immediately owned by the other spouse without probate.

Where tenancy by the entirety differs - and where it gets its great value - is that both spouses must agree before the property becomes subject to one spouse’s creditors. That means that the actions of one spouse by himself or herself cannot do anything that would cause the house to be encumbered. Only jointly agreed to debts can cause an encumberance on the house.

So what is a practical example of how tenancy by the entirety can benefit you?

Lets assume that one spouse gets sued and gets a judgement against him or her. In this form of ownership the creditors can do nothing that would force the sale of the residence without the consent of the spouse.

There are several nuances to this powerful protection that are best discussed with your real estate attorney when conducting a transaction.

States allowing Tenancy bu the Entirety include:

Alaska
Arkansas
Delaware
District of Columbia
Florida
Hawaii
Illinois
Indiana
Kentucky
Maryland
Massachusetts
Michigan
Mississippi
Mississippi
Missouri
New Jersey
New York
North Carolina
Oklahoma
Oregon
Pennsylvania
Rhode Island
Tennessee
Tennessee
Vermont
Virginia
Wyoming

Related Articles

No related posts