Joint account nomenclature

[Docbeans]

Very basic question... In opening a taxable account with my husband, I need to choose one of the following options:

1) Joint tenants with right of survivorship: Each tenant owns an undivided interest in the account. Upon the death of one tenant, ownership of the account passes to the survivors without going through probate.

2) Tenants in common: Each tenant owns a proportional interest in the account. There are no survivorship provisions with this type of registration. Upon the death of one owner, his or her share of the account passes to his or her estate.

3) Tenants by the entirety with right of survivorship: In this tenancy between a husband and wife, each spouse has an undivided interest in the account. Upon the death of one spouse, the surviving spouse assumes complete ownership of the account without court proceedings.

Which of them is the best route? I think (3), but I got confused since it said it was less commonly used ...

Thanks in advance!

 

[jfoxcpacfp]

TBE, which is available only in some states and only for married couples, offers greater protection from creditors and thus is what you should choose.

[Docbeans]

Thanks, Johanna, appreciate it!!

[TheGipper]

Or if you set up a living revocable trust, you can title the account under the trust.

[Wood]

Bump!

I am setting up my brokerage account at Vanguard (joint with spouse) and given a similar choice. Unfortunately, to tenants by entirety here in Wisconsin.

Our choices:
1. Joint tenants with right of survivorship
2. Tenants in common

"Less common types for married owners only"
3. Community property
4. Community property with right of survivorship
5. Marital property
6. Marital property with right of survivorship

Thanks.

[Wood]

Wondering if anyone has some advice on this?