Definition of Tenancy By the Entirety (TBE)

form of individual (versus corporate or partnership) co-ownership in which ownership passes automatically at the death of one co-owner to the surviving co-owner. The person with a TBE co-ownership interest lacks the power to freely dispose of that interest by WILL. In this respect, it is similar to joint tenants with right of survivorship (JTWROS). Unlike JTWROS, however, the TBE ownership interests are limited to ownership by two persons who are husband and wife at the time the property is acquired. If the married couple then divorces, the form of ownership automatically changes to Tenancy In Common (TIC). Generally, TBE ownership is limited to real estate, although about a dozen states permit TBE ownership of personal property.