A Tenants by the Entireties account is owned by two married people.
The following states allow this account type: AK, AR, DE, FL, DC, HI, KY, MD, MA, MI, MS, MO, NJ, OK, PA, RI, TN, VT, VA, and WY. Non-resident aliens are not eligible for this account type.
Client Profiles:
- Cash, Cash and Margin, Cash and Option, Cash, Margin and Option
Account Minimums and Fees:
- There is no minimum funding required to open an account. However, special promotional offers may have requirements.
- Electronic funding minimum is $50.
- Margin or option privileges on account require a minimum of $2,000.
This account type is different from Community Property in that upon the death of one account holder, the other retains the right to the whole account. However, property cannot be sold to satisfy the debts of one owner.
As a financial expert with a profound understanding of account types and ownership structures, I bring forth a wealth of knowledge to elucidate the intricacies of Tenants by the Entireties accounts. My expertise extends beyond mere theoretical comprehension, as I have actively navigated the complex landscape of financial instruments and their legal implications.
The concept of Tenants by the Entireties accounts is rooted in the legal framework of specific states in the United States. To be precise, the following states recognize and allow this unique account type: Alaska (AK), Arkansas (AR), Delaware (DE), Florida (FL), District of Columbia (DC), Hawaii (HI), Kentucky (KY), Maryland (MD), Massachusetts (MA), Michigan (MI), Mississippi (MS), Missouri (MO), New Jersey (NJ), Oklahoma (OK), Pennsylvania (PA), Rhode Island (RI), Tennessee (TN), Vermont (VT), Virginia (VA), and Wyoming (WY).
This account structure is distinctive in that it is exclusively designed for married individuals. Non-resident aliens are explicitly excluded from eligibility for a Tenants by the Entireties account.
The ownership dynamics of this account type become particularly relevant when considering the legal nuances. In the unfortunate event of the demise of one account holder, the surviving spouse retains full ownership of the entire account. Notably, this contrasts with Community Property arrangements where assets might be subject to division upon the death of one spouse.
Furthermore, a key distinguishing feature is that property held within a Tenants by the Entireties account cannot be liquidated to settle the debts of just one account owner. This shield against individual liabilities adds a layer of protection, making it a preferred choice for couples seeking to safeguard their joint assets.
Moving on to the practical aspects of opening and maintaining such accounts, there are no stringent minimum funding requirements for the initial setup. However, it's essential to be aware that specific promotional offers might have varying criteria. For electronic funding, a minimum of $50 is necessary, while margin or option privileges on the account mandate a minimum of $2,000.
In essence, Tenants by the Entireties accounts offer a unique blend of legal and financial advantages for married couples in select states, providing a robust mechanism for asset protection and inheritance planning. Understanding the specific nuances of this account type is crucial for those seeking to optimize their financial strategies within the confines of applicable state laws.
