Tenancy by the Entirety
What is tenancy by the entirety?A tenancy by the entirety is a type of concurrent ownership. It is held by husband and wife where each has ownership of the undivided whole property and is coupled with the Right of Survivorship. This ensures that upon the death of either the husband or the wife the survivor is entitled to the decedent’s share.
A Tenancy by the Entirety allows husband and wife to own property together as a single legal entity. Under a tenancy by the entirety, an individual’s creditors are not allowed to attach and sell the interest of that individual spouse. However the married couple’s creditors can attach and sell the interest in the property owned by tenancy by the entirety.
A tenancy by the entirety can only be established by married persons. In most states a husband and wife is presumed to take title to property as tenants by the entirety, unless the deed or a conveying document stipulates something different.
What are the steps to creating a tenancy by the entirety in Illinois?According to the Illinois guidelines; you create a tenancy by the entirety when property is deeded to a married couple, who live or will live there. The deed must say that the property is being transferred to a tenancy by the entirety, and not into a joint tenancy, or a tenancy in common (which are the other two ways of co-owning property).
The deed must also name both the husband and wife, and specify that they’re husband and wife. And, that they are married to each other.
I own a house with my wife in tenancy by entirety. When I die how much value of the house can potentially be subject to federal estate tax?Your home would not be subject to any federal estate tax since you own the property with your wife as tenants by entirety. Titling the property as tenants by entirety means that as husband and wife you have an undividable interest in your home with the rights of survivorship. Upon your death the title will automatically pass to your wife.
My husband and I own our home in tenancy by the entirety. What happens if we get divorced?A divorce will end the tenancy by the entirety and establishes a tenancy in common. Each of you would then own fifty/fifty interest in the property.
Having the right information and understanding about tenancy of the entirety can help when dealing with questions about concurrent ownership of property. Experts can help answer questions about what tenancy of the entirety states or how tenancy of the entirety can be severed. Get the answers fast and affordably by asking an Expert online.