Tenancy by the Entirety (TBE)

Lesson

Tenancy by the Entirety (TBE) is a form of joint ownership between married couples, where each spouse has an equal and undivided interest in the property. This type of ownership provides certain legal protections and benefits, such as the right of survivorship and protection from creditors.

Practice Question #1

Which of the following is a unique feature of tenancy by the entirety (TBE)?

A) Right of survivorship

B) Creditor protection

C) Equal ownership interest

D) Separate property shares

Select an option above to see an explanation here.

A) Right of survivorship is also a feature of joint tenancy. B) Creditor protection is unique to TBE, as creditors cannot seize the property to satisfy a debt owed by only one spouse. C) Equal ownership interest is also a feature of joint tenancy. D) Separate property shares are a feature of tenancy in common, not TBE.

Terms

Tenancy by the Entirety (TBE):: A form of joint ownership between married couples, where each spouse has an equal and undivided interest in the property.
Right of Survivorship:: The right of a surviving spouse to inherit the entire property upon the other spouse's death.
Creditor Protection:: TBE provides protection from creditors, as they cannot seize the property to satisfy a debt owed by only one spouse.

Practice Question #2

What happens to a property held as tenancy by the entirety (TBE) when one spouse dies?

A) The property is divided equally among the surviving spouse and the deceased spouse's heirs.

B) The surviving spouse inherits the entire property.

C) The property is subject to probate.

D) The property is converted to a tenancy in common.

Select an option above to see an explanation here.

A) This would occur in a tenancy in common, not TBE. B) In TBE, the surviving spouse inherits the entire property due to the right of survivorship. C) TBE avoids probate due to the right of survivorship. D) The property would only be converted to a tenancy in common if the TBE was severed.

Do Not Confuse With

Tenancy in Common:: Unlike TBE, tenancy in common does not provide the right of survivorship or creditor protection.
Joint Tenancy:: While joint tenancy also provides the right of survivorship, it does not offer the same level of creditor protection as TBE.
Community Property:: A form of marital property ownership in some states where each spouse has an equal interest in the property but without the right of survivorship or creditor protection.

Practice Question #3

Which of the following forms of ownership provides the right of survivorship but does not offer the same level of creditor protection as tenancy by the entirety (TBE)?

A) Tenancy in common

B) Joint tenancy

C) Community property

D) Sole ownership

Select an option above to see an explanation here.

A) Tenancy in common does not provide the right of survivorship. B) Joint tenancy provides the right of survivorship but does not offer the same level of creditor protection as TBE. C) Community property does not provide the right of survivorship or the same level of creditor protection as TBE. D) Sole ownership does not involve multiple owners, so the right of survivorship is not applicable.

Historical Example

In the early 1900s, a married couple purchased a home as TBE. When the husband passed away, his wife automatically inherited his share of the property, avoiding the probate process.