A version of this article has been published in Investor Magazine.

By John H. Robinson Owner/Founder

What Married Couples Should Know About TBE

Tenancy by the Entirety, commonly abbreviated TBE is an underutilized asset-registration option that may provide a valuable combination of creditor protection and probate avoidance.

Unlike ordinary joint ownership, where each spouse owns a separate fractional interest, TBE generally treats the husband and wife as owning the property together as a single legal unit. Each spouse is considered to have 100% ownership of the entire property, rather 50:50 as in the vastly more common Joint Tenants With Rights of Survivorship (JTWROS) registration. 

As you will read, that distinction can have important implications, but consumers - and even financial advisors  - are largley unaware. 

There are three reasons why TBE flies under the radar.  First, it is not available in all states. Second, it varies from state to state in terms of which asset types are eligible. And Third, not all financial institutions allow the registration, even in states where it is a permitted form of ownership.

This article raises awareness of TBE and sorts through some of the complexity.

The Big Benefit: Protection From One Spouse’s Creditors

The primary reason why consumers (and their financial planners and estate-planning attorneys) may wish to consider TBE is not probate avoidance. It is creditor protection.

When an asset is properly titled as TBE, a creditor with a judgment against only one spouse generally may be restricted in their ability to seize the jointly owned asset to satisfy that judgment. The theory is that the debtor spouse does not own a separable interest in the property that can be attached by an individual creditor.

That protection can be particularly valuable for families with significant assets and a potentially higher liability exposure. Business owners, physicians, dentists, landlords and other professionals may have more reason than most to consider it.

But TBE is not a magic shield. It generally does not protect against a creditor with a claim against both spouses. The protection can also disappear upon divorce, and federal tax liens, bankruptcy, fraudulent transfers and other circumstances can produce different results. The laws vary considerably from state to state.

That is why TBE should be viewed as a potential planning tool, not an impenetrable fortress.

Where Is TBE Available?

TBE is not available everywhere. As of 2026, 25 states and the District of Columbia recognize some form of tenancy by the entirety. However, the rules differ substantially. Some states limit TBE to real estate, while others extend it to personal property, including bank and investment accounts.

For a current state-by-state breakdown, see this 2026 state-by-state TBE guide.

The distinction between real estate and financial assets is critical. A couple might have a beautifully protected home while their $2 million investment portfolio remains exposed to an individual creditor of one spouse.

A smaller group of 15 states, plus the District of Columbia, provides broad TBE treatment that includes both real property and personal property such as financial accounts. Those states are Arkansas, Delaware, Florida, Hawaii, Maryland, Mississippi, Missouri, New Jersey, Oklahoma, Pennsylvania, Rhode Island, Tennessee, Vermont, Virginia and Wyoming, plus D.C. Some other jurisdictions provide limited personal-property protection. 

TBE Is More Than a Real Estate Strategy

Many people associate TBE exclusively with the family home. That is understandable because historically that has been its most common application.

But in states that permit TBE for personal property, married couples may also be able to use the registration for bank accounts, brokerage accounts and other financial assets.

This can create a potentially powerful combination: a married couple can obtain creditor protection from the individual creditors of either spouse while also allowing the surviving spouse to automatically become the sole owner when the first spouse dies.

However, the strength of the liability protection varies significantly from state to state.  For instance, Hawaii is generally regarded as offering a fair amount of protection against tort claims against one spouse, while in Massachusetts, TBE on bank and investment accounts is regarded as affording more limited legal protection against such claims.

That second feature is important from an estate-planning perspective. TBE includes a right of survivorship. When one spouse dies, the surviving spouse becomes the owner without the asset passing through probate. 

But Your Bank or Brokerage May Not Offer It

There is an important practical catch.

A state permitting TBE does not mean every financial institution has to offer TBE registration.

For examble, national financial institutions such as Fidelity and Charles Schwab have account documentation that specifically provides for a  “Joint Tenants by the entirety” while many banks and credit unions do not permit TBE on their account registrations.

And even when an institution offers TBE, the institution’s rules may impose additional restrictions.

It is important for consumers to know that an account registered simply as Joint Tenants does not necessarily mean TBE.  If TBE protection is important to you, ask the institution specifically:

“Is this account registered as tenants by the entirety under the applicable state law?”

Do not settle for the answer, “It’s a joint account.”

TBE and TOD/POD Beneficiary Designations

TBE can also be part of a broader estate-planning strategy involving Transfer on Death (TOD) and Payable on Death (POD) designations.

A TOD designation is generally used to designate beneficiaries a nonretirement investment account, while POD is commonly used for bank accounts. Both allow assets to pass directly to named beneficiaries at death, generally avoiding probate. Some states permit TOD and POD agreements to be used on accounts registered as Tenants By the Entirety.

A married couple might therefore have a brokerage account titled TBE while also using a TOD designation to determine who receives the account in the event of simultaneous death of both spouses without subjecting desired heirs to the probate process. 

The sequence is important.

While both spouses are alive, TBE can provide the joint ownership and potential creditor protection. When the first spouse dies, the surviving spouse generally becomes the sole owner. When the surviving spouse subsequently dies, the TOD or POD designation can direct the remaining assets to children, trusts or other beneficiaries.

In some circumstances, the combination of TBE and TOD/POD may functionally obviate the need for the consumer to go through the expense of drafting a revocable trust. However, TBE and TOD/POD provisions do not automatically work together at every financial institution. Some institutions may not permit a beneficiary designation on a TBE account, or may impose special rules. The account agreement controls the mechanics, and legal guidance is recommended in the registration and estate planning process.

Don’t Rely Entirely on Insurance

There is another reason TBE deserves more attention: insurance is not the impenetrable liability shield that many people assume it is.

Personal liability insurance and umbrella policies remain extremely important. But recent developments in the insurance industry demonstrate why affluent households should not necessarily assume that every liability claim will simply be paid.

A March 2025 analysis reported that some insurers were adding exclusions to protect themselves against emerging liability exposures, while several insurers had actually sued policyholders to avoid paying for underlying litigation.

More recently, the Wall Street Journal reported that the five largest U.S. home insurers did not pay more than 44% of resolved homeowners claims in 2025, up substantially from a decade earlier. Insurers have become more aggressive about deductibles, exclusions and claim determinations as losses have increased.

This does not mean homeowners should abandon insurance. Quite the opposite. Adequate homeowners, auto and umbrella coverage is an essential part of a comprehensive risk-management strategy.

But it does suggest that wealthy households should consider TBE as a second line of defense.

Insurance transfers risk to an insurance company.

Proper asset titling can sometimes make an asset less accessible to an individual creditor in the first place.

Those are two very different forms of protection.

TBE Deserves a Place on the Planning Checklist

TBE will not be appropriate for every married couple. It can create restrictions on an owner’s ability to deal independently with an asset, and the creditor protection varies by state and circumstance.

It also should not be implemented without considering the couple’s estate plan, trusts, tax situation, business interests and potential liability exposure. On this score, it is worth mentioning that Hawaii Law permits the TBE asset protection charachterstics on real estate and personal property (including financial accounts) to be retained when the assets are transferred into a revocable trust.  However, TBE cannot be assigned to assets in a trust that were not previously registered as TBE.

Given its potential benefits, TBE deserves considerably more attention than it receives. For married couples living in a state that permits it, the question should not simply be, “How should we title our house?”

It should be:

“Which of our assets should be owned by us individually, jointly, in trust, or as tenants by the entirety?”

That is a much better estate-planning/asset protection question.  And for couples with substantial assets, the answer may be that TBE belongs on more than just the deed to the house.

In my financial planning reviews, I find that nearly all financial accounts of married couples in TBE states - and even most real estate - are registered simply as Joint Tenants, JTWROS, or in trust.  As a practical matter, a plausible scenario in which TBE might realistically be valuable could be when one spouse is determined to be at fault and financially liable in an automobile accident. 

This potential scenario provides the motivation for writing this article and is why I raise awareness of TBE with all of my financial planning clients. 

NOTE: Hawaii residents should also be aware the Hawaii permits transfer on death deeds to be applied to real estate that is registered as Joint TBE.

Supporting Articles:

How Should You Hold Title to Your Property in Hawaii? (HawaiiTrustLaw.com)

Tenants by Entirety States (Lamberg)

States that allow TBE on Personal Property (Asset Protection Planners)

Tenants by the Entirety for Personal Property (Okura & Associates Law Firm)

States That Allow Transfer-On-Death Deeds for Real Estate (Nolo.com 2025)

Avoiding Probate In Hawaii With Transfer-on-Death Deeds (Nolo.com)