Tenants by Entirety (TBE)
Candlefocus EditorThe legal concept of Tenants by Entirety (TBE) seeks to avoid this consequence. By utilizing TBE, a married couple is considered a single entity in the eyes of the law which generally provides both spouses with equal rights to the property. In addition, with TBE, both spouses must agree to any transfers of the property. This means that if one spouse dies, the other spouse will retain full ownership of the property.
This legal structure also offers other benefits. Because the agreement is considered a single entity, each spouse is generally protected from creditors of the other spouse. The theory is that the creditor is only permitted to collect from the assets of the person to whom the debt is owed. With TBE, one spouse's assets are off-limits to creditors of the other.
Another benefit of Tenants by Entirety (TBE) is that it should avoid probate court. When a married couple jointly owns property and either of them dies, the property typically passes to the surviving spouse without having to go through the lengthy and expensive probate process. This can provide considerable peace of mind.
The rules of Tenants by Entirety (TBE) may vary according to state laws. Some states, such as Massachusetts, recognize TBE as a way to transfer property, while other states take a more traditional approach. Before transferring property, married couples should consult a knowledgeable attorney to ensure that they have the most appropriate estate-planning structure in place.
Overall, Tenants by Entirety (TBE) provides married couples with the legal protection and peace of mind they need to protect their investments. It allows them to enjoy the full rights and protections that come along with jointly owning property without having to worry about legal or financial consequences that may arise should one partner pass away. By understanding the local state laws, couples can use TBE to ensure their joint assets are protected in the event one partner dies.