Asset Protection tip with questions!! Pennsylvania

[Garrett M.]

I need to learn more about asset protection in regards to real estate in PA. I have a small portfolio of single family rentals and I'm moving toward an asset protection plan. I am also in the process of doing estate planning.

I have read that in Pennsylvania, spouses who share ownership of property under "tenants by the entireties" language have asset protection from creditors and that it is a rare state specific protection.

Here’s an article that goes into it:

https://lynchlaw-group.com/married-business-owners-have-asset-protection-option-under-pa-law/

The article states:

Where property is held by spouses as part of a tenancy by the entireties, the two do not own separate interests in the property; their interests are jointly held. Pennsylvania law provides that an individual’s creditors cannot pursue assets that are jointly owned by that individual and his/her spouse as tenants by the entireties. In other words, property held in this way is generally not available to the creditors of only one of the two spouses.

There are limited exceptions to this rule. The Pennsylvania courts have determined that in order for a creditor to have access to property that is held by the entireties, there must be some action performed by both spouses, i.e., a joint action of sorts. This is true because the very notion of the tenancy is founded upon the principle of unity that exists in the marital relationship. Ultimately, a tenancy by the entireties can be terminated: (1) upon the death of one co-tenant spouse; (2) divorce; (3) a joint conveyance; or (4) through an express or implied agreement.

I'd like to hear from any knowledgeable folks about how this type of protection differs from asset protection provided by taking title in my LLC. I understand that there may be limited protection provided by a single member LLC vs a partnership LLC. But LLC partnerships have higher costs for tax filing and higher rate financing options with worse terms 5 and 7 year balloons.

Ideally, I'd like to take the "tenants by the entireties" route if it affords sufficient protection. Anyone have experience in this area? Thanks in advance.