Protecting your primary residence is a key concern for many seniors in Illinois, especially when planning for Medicaid and long-term care.
Tenants by the Entirety is a form of property ownership that offers significant protections for married couples, including creditor protection and probate avoidance.
At Woods & Bates, P.C., we focus on helping families safeguard their assets and preserve their legacies through thoughtful estate planning.
This article provides an in-depth overview of Tenants by the Entirety in Illinois, explaining its benefits and limitations and how it can help secure your family’s home.
What is “Tenants by the Entirety” in Illinois?
Tenants by the Entirety is a particular form of joint property ownership available only to married couples in Illinois, designed specifically for their primary residence.
It allows both spouses to hold equal ownership with enhanced protections that other forms of ownership don’t offer.
The main characteristics of Tenants by the Entirety include:
Eligibility
Only legally married couples can hold the title of Tenants by the Entirety.
Property Type
This ownership applies solely to the couple’s primary residence.
Unity Requirement
To qualify, four conditions must be met:
- Time: Both spouses acquire ownership simultaneously.
- Title: Ownership is conveyed through the same deed.
- Interest: Both hold equal ownership interests.
- Possession: Each has full rights to use the entire property.
Creditor Protection
The property is generally shielded from individual creditors of either spouse but remains vulnerable to joint debts.
Mutual Consent
Neither spouse can sell, transfer, or encumber the property without the other’s consent.
Right of Survivorship
Upon one spouse’s death, the surviving spouse automatically becomes the sole owner, avoiding probate proceedings.
Contrast with Other Ownership Types
Unlike Joint Tenancy or Tenancy in Common, Tenants by the Entirety provides stronger creditor protection and requires mutual consent for any property transactions.
Benefits of Tenancy by the Entirety in Illinois
Choosing Tenants by the Entirety provides several advantages, particularly for seniors focused on asset protection and estate planning.
Asset Protection
Your home is often your most valuable asset. This ownership structure protects it from individual creditors—such as those pursuing debts against just one spouse. This can be particularly important if you face medical debts or other financial challenges later in life.
Note: This protection does not extend to joint debts or tax liens.
Probate Avoidance
When one spouse dies, the property automatically transfers to the surviving spouse without the need for probate. This simplifies the process and reduces legal costs during an already difficult time.
Marital Property Rights
Neither spouse can make significant decisions about the property (like selling or refinancing) without the other’s consent. This mutual agreement requirement ensures that both spouses’ interests are protected.
Estate Planning Advantages
Holding your home as Tenants by the Entirety can streamline estate planning. By avoiding probate and securing asset protection, you can focus on preserving your legacy while potentially minimizing estate taxes.
Limitations of Tenancy by the Entirety
While this form of ownership offers valuable protections, it’s important to understand its limits.
Divorce Impact
If you and your spouse divorce, the ownership automatically converts to Tenancy in Common, removing the creditor protections and survivorship benefits.
Joint Debts
While individual creditors can’t seize the home, debts incurred jointly by both spouses remain a risk.
Single Property Limitation
In Illinois, Tenants by the Entirety can only be applied to one property—your primary residence. Secondary homes or investment properties aren’t eligible.
Creditor Attachment of Other Assets
This form of ownership protects only the designated property. Other assets remain vulnerable to creditors.
How do you Establish Tenancy by the Entirety?
Setting up this form of ownership involves several key steps:
- Legal Marriage: You must be legally married to use this option.
- Primary Residence: The property must be your main home.
- Explicit Declaration: The deed must clearly state the ownership as Tenants by the Entirety. Example language might read:
“John Doe and Jane Doe, husband and wife, as tenants by the entirety.” - Mutual Signing: Both spouses must sign the deed to finalize the arrangement.
Tip: When purchasing a new home or refinancing, confirm with your attorney that the deed includes the necessary language.
Keep Your Home Secure in Illinois with Woods & Bates, P.C.
Your home is more than just property—it’s part of your family’s legacy. Properly titling it can protect against creditors, support Medicaid planning, and secure your future. Tenants by the Entirety offers valuable protections for married couples in Illinois.
At Woods & Bates, P.C., we help families make informed estate planning decisions. We offer both virtual and in-person consultations to fit your needs.
Don’t leave your home’s future to chance. Call us at 217-735-1234 to learn how Tenants by the Entirety can safeguard what matters most.