With the notable exception of retirement plans, IRA and life insurance, joint tenancy ownership can be used on almost all types of property.  When considering holding property jointly, note that there are several types of joint ownership:

A.        Tenancy in Common.  Under this type of ownership, each joint owner owns an undivided fractional interest in the property.  Each owner may own the same or a different percentage of the property, but have use of the entire property (also known as Unity of Possession).  Unless they create an agreement to the contrary, each joint owner may do as he or she wishes with respect to his or interest, such gift it, sell it, or mortgage it without the consent or even knowledge of the other owners.  Real estate owned in tenancy in common can be partitioned or encumbered by creditors.  Upon the death of a joint owner, his or her interest in the property passes to his or her heirs or beneficiaries as provided in the Will, Trust or by the laws of intestacy.  Under this type of joint ownership, a probate proceeding is possible. Some states, such as Illinois, presume that if property owned by two or more individuals is not clearly titled (such as without mention of a survivorship provision - see joint ownership with survivorship below), it is owned in tenancy in common.  There is an exception to this rule in Illinois where a residence is held as husband and wife, then the presumption is that it is owned in tenancy by entirety (see below).

B.        Tenancy by the Entirety.  This form ownership is reserved for married couples.  In most states, it is also reserved for a couple’s primary residence.  Upon the death of the first spouse, title to the property passes to the surviving spouse outside of the probate process.

Owning property in tenancy by the entirety also has the benefit of creditor protection against joint creditors of a husband and wife.  Non-joint creditors (with the exception of the IRS) are barred from partitioning, selling or encumbering the property without permission from both husband and wife.  Unlike other types of joint ownership, the property cannot be conveyed by one spouse without the consent of the other.  A tenancy by entirety may be terminated by a court ordered sale to satisfy a joint creditor, by the death of a spouse, by divorce, or by agreement between the co-owners.  In Illinois, in order to title property in tenancy by the entirety, specific terminology to that effect must be used.