Banks That Allow Tenants by Entirety Accounts: What to Know

Some married couples choose Tenants by Entirety (TBE) accounts to protect jointly held funds from certain creditors. This type of account offers legal benefits in states that recognize it, making it an appealing option for those seeking extra asset protection. However, not all banks offer TBE accounts, and requirements to open one can vary.

State Recognition of TBE for Bank Accounts

Not all states allow TBE ownership for bank accounts, as asset protection laws vary. While TBE is commonly recognized for real estate, fewer states extend the same protections to financial accounts. As of 2024, states such as Florida, Maryland, and Tennessee explicitly permit TBE for bank deposits, while others do not recognize it or have unclear legal precedent. The level of protection depends on whether the state upholds this form of ownership for financial assets.

Even in states that recognize TBE, protections differ. Some offer full immunity from creditors pursuing one spouse’s debts, while others impose limitations. In Florida, a TBE account is generally shielded unless both spouses are jointly liable for the debt. In contrast, Pennsylvania does not extend TBE protections to bank accounts, leaving joint funds vulnerable to individual creditor claims.

Bank Criteria for TBE Accounts

Banks that offer TBE accounts have specific requirements to ensure compliance with state laws and internal policies. A key requirement is proof of marriage, such as a certified marriage certificate, since TBE accounts treat both spouses as a single entity.

Some banks impose residency requirements or restrict TBE protections to specific deposit accounts, such as savings or money market accounts. Brokerage accounts or certificates of deposit may not qualify. Couples consolidating financial assets under TBE may need separate accounts for funds that do not meet the criteria.

Banks also consider how TBE accounts interact with existing agreements and beneficiary designations. These accounts provide survivorship rights, meaning ownership automatically transfers to the surviving spouse. Some banks require both account holders to consent to withdrawals, modifications, and overdraft liability to prevent unilateral actions that could undermine protections.

Steps to Open a TBE Account

Opening a TBE account involves submitting documentation, completing an application, and passing verification checks.

Application

The first step is completing the bank’s application form, which typically requires both spouses to be present. Some banks allow remote applications with notarized documents. The form asks for personal details, including full legal names, Social Security numbers, and residential addresses.

Applicants must specify the type of account they wish to open under TBE ownership. Some banks provide a specific designation for TBE accounts, while others require applicants to request this status explicitly. Couples should confirm with a bank representative that the account will be designated as TBE, not a standard joint account.

Documentation

Banks require documents to verify eligibility. A certified marriage certificate confirms the legal relationship, while government-issued identification, such as driver’s licenses or passports, verifies identity and residency.

Proof of address, such as a utility bill or mortgage statement, may be needed to confirm residency in a state that recognizes TBE. If the couple recently moved, additional documents like a lease agreement or voter registration may be required.

Some banks also require applicants to sign a TBE-specific agreement outlining ownership terms, survivorship rights, withdrawal limitations, and creditor protections. Reviewing this agreement carefully is essential.

Verification

Once the application and documentation are submitted, the bank verifies eligibility, reviewing marital status, residency, and banking history. Some institutions conduct a soft credit check, which does not impact credit scores.

If discrepancies arise, such as mismatched identification details or incomplete documentation, processing may be delayed. Ensuring all documents are accurate and up to date helps avoid complications.

Once verification is complete, the bank finalizes the account setup and provides confirmation of the TBE designation. Requesting written confirmation, either in the form of an account agreement or a statement reflecting ownership status, is advisable for future reference.

Switching an Existing Joint Account to TBE

Converting a standard joint account into a TBE account requires more than a simple name change. Some banks allow a seamless transition, while others require closing the existing account and transferring funds into a newly designated TBE account.

A key concern during conversion is ensuring that existing account terms, such as direct deposits, automatic withdrawals, and linked financial products, transfer without interruption. If a new account is required, account holders must manually update recurring transactions, which can temporarily disrupt bill payments or payroll deposits. Reviewing linked financial obligations before initiating the switch can prevent missed payments.

Reading TBE Account Statements

Once a TBE account is established, reviewing statements regularly ensures the account maintains its designated status and that transactions align with expectations. Banks indicate ownership type on statements, but the format varies. Some explicitly label the account as “Tenants by Entirety,” while others use abbreviations like “TBE” or include ownership details in the account agreement rather than on monthly statements. If the designation is unclear, requesting written confirmation from the bank can help avoid disputes.

Monitoring statements also ensures both account holders remain equally involved. Since TBE accounts function as a unified legal entity, unilateral changes, such as adding an authorized signer or modifying withdrawal permissions, could alter protections. Reviewing statements for unexpected fees, unauthorized transactions, or changes in account terms helps maintain the account’s legal standing. If discrepancies arise, addressing them promptly with the bank can prevent issues.