When couples purchase property together, they have the option to own the property as "tenants by entirety." This form of ownership provides several benefits, including asset protection and simplified transfer of ownership in case of death.
Tenancy by entirety differs from other forms of co-ownership in that it is only available to married couples. Under this arrangement, each spouse owns an equal share of the property and has the right to use and enjoy the entire property. In addition, neither spouse can sell or encumber their share without the other’s consent.
One important consideration for couples who choose tenancy by entirety is which banks will allow them to open a joint account. Not all banks permit accounts owned by tenants by entirety, so it’s important to do some research before choosing a bank.
In this article, we will explore banks that allow tenants by entirety and provide some tips for finding a bank that meets your needs.
Banks That Allow Tenants By Entirety
The following is a list of banks that allow tenants by entirety:
- Chase Bank
- TD Bank
- PNC Bank
- Wells Fargo
- US Bank
These are just a few examples of banks that permit tenancy by entirety accounts. However, it’s important to note that policies may vary depending on location and specific account type.
How To Find A Bank That Allows Tenants By Entirety Accounts
If you’re interested in opening a joint account as tenants by entirety, there are several steps you can take to find a bank that permits this form of ownership:
1. Research Local Banks
Start your search for a tenant by entirety friendly bank in your local area. Check with smaller community banks first as they tend to be more flexible with such arrangements than major regional or national banking institutions.
2. Ask For Recommendations
Ask people you know who have jointly owned accounts with their spouses about their banking experiences. They may be able to recommend a bank that permits tenancy by entirety.
3. Check Bank Policies
Once you have identified potential banks, check their policies online or give them a call to confirm they allow tenants by entirety accounts. Also, inquire about any fees or requirements associated with opening such an account.
4. Consider Multiple Accounts
If the bank does not allow tenants by entirety accounts, consider opening separate joint accounts for each spouse, which can still provide many of the same benefits.
Benefits Of Tenants By Entirety Ownership
There are several benefits of owning property as tenants by entirety:
Tenants by entirety ownership offers protection from creditors in case one spouse is sued, as creditors cannot take action against property owned jointly as tenants by entirety.
Simpler Transfer Of Ownership
If one spouse dies, the other spouse automatically inherits the entire ownership of the property without going through probate. This can simplify estate planning and avoid lengthy and costly legal proceedings.
Equal Ownership And Control
Each spouse has an equal right to use and enjoy the entire property and neither partner can sell or encumber their share without the consent of the other.
When choosing a bank for joint accounts as tenants by entirety, it’s important to do your research and find a bank that meets your needs. While larger national banks tend to have more restrictive policies regarding joint ownership arrangements, smaller community banks may be more accommodating.
Overall, tenancy by entirety provides several advantages over other forms of co-ownership and should be considered if you are married and purchasing property together.
What is the meaning of tenants by entirety?
Tenants by entirety refers to a type of joint ownership of a property in which married couples have equal rights to the whole property, rather than having separate halves.
What are the benefits of owning property as tenants by entirety?
Owning property as tenants by entirety provides protection against creditors and lawsuits, and also allows for automatic transfer of ownership to the surviving spouse upon death.
Which banks allow tenants by entirety?
There are several banks that offer accounts and loans for tenants by entirety, including Chase, Wells Fargo, Bank of America, and US Bank.
Can unmarried couples own property as tenants by entirety?
No, tenants by entirety is a form of joint ownership that is only available to legally married couples. Unmarried couples may consider other forms of joint ownership, such as tenancy in common or joint tenancy with right of survivorship.
How does owning property as tenants by entirety affect estate planning?
Owning property as tenants by entirety can simplify estate planning because it provides automatic transfer of ownership to the surviving spouse without going through probate. However, it’s still important to have a comprehensive estate plan in place that addresses other assets and potential issues.
Do all states allow tenants by entirety ownership?
No, not all U.S. states recognize the tenancy by entirety form of joint ownership. In fact, only a handful (about 25) currently permit it.
Can one spouse sell their share in a property owned as tenants by entirety?
No, neither spouse can transfer their interest in the property without the consent of the other spouse because they both own equal shares in the whole property under this type of title.
Is it possible to convert from joint tenancy to tenants by entirety after purchasing a property?
It depends on the state and the specific circumstances. In some cases, it may be possible to convert joint tenancy to tenancy by entirety if both spouses agree and meet certain criteria, such as being legally married. However, it’s important to consult with an attorney before attempting to make this change.
What happens if one spouse passes away and they own property as tenants by entirety?
When one spouse dies under tenancy by entirety ownership, their interest in the property automatically transfers to the surviving spouse without going through probate. This means that the surviving spouse will own 100% of the property.
Can tenants by entirety ownership protect assets from long term care costs?
Tenants by entirety can provide some protection against creditors and lawsuits, but it may not shield assets from long-term care costs or Medicaid eligibility rules in all cases. It’s important to consult with a financial advisor who specializes in elder law or asset protection for guidance on this issue.