I fielded this question from a reader. It's not my area of expertise, so I thought I'd share the inquiry with the collective minds that gather here:
"I'm opening up my taxable account and I'm given these options:
1. Joint tenants with right of survivorship
2. Tenants in common
3. Tenants by the entirety with right of survivorship (for married couples only)
it appears that the 3rd option provides some protection against lawsuits so that if I were sued they couldn't go after my taxable account funds as they belong to both me and my wife as a single entity and cannot be broken up. Am I missing anything with this? Would you recommend option 3 when setting up my account?"
"I'm opening up my taxable account and I'm given these options:
1. Joint tenants with right of survivorship
2. Tenants in common
3. Tenants by the entirety with right of survivorship (for married couples only)
it appears that the 3rd option provides some protection against lawsuits so that if I were sued they couldn't go after my taxable account funds as they belong to both me and my wife as a single entity and cannot be broken up. Am I missing anything with this? Would you recommend option 3 when setting up my account?"
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