Entirety Vs. Joint Tenants With Right Of Survivorship Are Considerations If You Want Your Assets To

By Author: Tom Povinelli
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South Florida Estate planning mainly revolves around the entire notion of asset protection. A key in estate planning is insulating your assets from liabilities that could result from civil money judgements or creditor claims. For many South Floridians, the home is the largest asset. The biggest significance is that the way you own it will decide how protected it is. It is fairly common that real estate is in joint ownership. They joint tenants by the entirety In Florida [TBE], recognized by married couples is a type of joint tenancy. The great benefit is that if one spouse is encumbered with an individual debt or judgment against him or her, the property cannot be partitioned or subject to forced sale without the permission of both spouses. The justification in this approach is that it would be unfair for a non-debtor spouse to lose his or her primary residence in order to satisfy a debt which is not the product of his or her own doing. Also, neither husband or wife may convey an interest in a property without the proper consent from the other party. Finally, when one spouse dies, the ...
... surviving spouse will take title to the entire property while avoiding probate. Another way to jointly own title is through joint tenants with right of survivorship [JTWROS]. Like TBE, this approach to holding real estate avoids probate. Unlike TBE, other creditors however may have the ability to force partition and sale if it interests the debtor. The aforementioned approach does not adequately protect the titleholder's claim to the home. A creditor has the power to seize the debtor's interest which may cause unfortunate financial woe to the non debtor. You might be asking for a lot of trouble if you own assets with anyone other than a bona fide spouse, so this is best avoided.In South Florida, TBE is a very effective asset protection plan for a married couple. Florida is a little bit different compared to other states in terms of property as real, tangible and even intangible assets can be classified as TBE. However, there are still drawbacks that must be considered, therefore; it would be wise to seek legal counsel. However, if you eventually end up getting divorced, or if your spouse passes away, you may find that creditors are not going to be stopped because of this security. The issues of estate tax and the affects of TBE needs to be reviewed. Your South Florida attorney can assist you through the implementation of estate planning techniques that can achieve optimal estate tax planning. For more information, visit a licensed South Florida lawyer. The time to structure your estate is now. Because really, we need to get ourselves in gear quickly to handle our estate planning.Michael D. Wild is a Florida estate attorney and managing partner of a Fort Lauderdale law firm, Wild Felice and Partners, P.A. that specializes in estate planning, asset protection and probate administration. He has provided legal representation to the Broward and Dade Counties since 2006.