Tenancy by the entirety is a form of property ownership recognized in some jurisdictions, available exclusively to legally married couples. It provides that each spouse owns the entire interest in the property, and neither spouse can transfer their interest without the consent of the other. Upon the death of one spouse, the entire interest automatically vests in the surviving spouse. Applying this form of ownership to a Vanguard account is a complex process dependent upon state law and Vanguard’s specific policies.
Establishing this type of ownership can offer certain advantages, particularly in creditor protection. Because neither spouse individually owns a divisible share, the property may be shielded from the individual debts of one spouse. Furthermore, this ownership structure simplifies estate planning, ensuring the seamless transfer of assets to the surviving spouse upon death, bypassing probate in many instances. The historical development of this tenancy reflects societal values surrounding marriage and property rights, aiming to safeguard marital assets.
