Tenancy by the Entirety in Indiana

The final type of co-tenancy in Indiana is tenancy by the entirety (“TBE”). A TBE can only occur when the co-owners are married. TBE is very similar to a joint tenancy, with a few key differences besides just the prerequisite of marriage.

A TBE is assumed when spouses purchase real estate. The contract does not require specific words to create the TBE, although generally you will see the words “as husband and wife” or “as spouses” in a TBE deed conveying the property to spouses. Essentially, when a married couple purchases real estate, the property is presumed to be conveyed as TBE. This presumption is, however, rebuttable if certain circumstances exist. The only time that a TBE is not presumed is when spouses buy real estate is when the contract expressly creates a tenancy in common or when it appears that the contract was intended to create a tenancy in common.

Additionally, if spouses hold property as joint tenants or as tenants in common, they can convey this property to themselves as TBE. The classic example of this would be when a couple buys a house or land together before they get married as joint tenants or tenants in common, and then once they get married, they transfer the land to themselves as TBE.

A key difference in TBE compared to the other two Indiana co-tenant instruments is that each person in a TBE has a one hundred percent interest in the property meaning that the spouses are considered one entity that owns the property. Another key difference is that neither spouse’s interest can be terminated during the marriage. When one spouse dies, the other spouse receives the title of the entire estate.

An advantage of both spouses having a full interest in the property is that one spouse’s creditors cannot come after the property if the other spouse is not on the debt. Only joint debts can place a lien against the property if it is owned as TBE. This is the only type of co-tenancy that offers this kind of protection from creditors.

If you have questions about how you hold your property and what rights that entitles you to, call the experienced attorneys at McNeelyLaw LLP today at (317) 825-5110.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.