The Estate and Trust Tax Planning Committee sought to clarify the creation of a joint tenancy with right of survivorship, or tenancy by the entireties
in certain personal property, without the traditional straw man third-person transfer, studying other states' allowing a statutory community property trust, conversion of nontrust property into community property, evaluating whether clarification is necessary for certain fiduciary elections and tax disclosures, including technical advice for what was approved as CS/CS/CS/SB 540, and pursuing enactment of the last provisions of the Family Trust Company Act, Ch.
(110) In interpreting this language, the court recognized a Tennessee bankruptcy court's holding that a limited personal guaranty could fall under the exception under the Florida tenancy by the entireties
law being applied, (111) yet the court distinguished the Tennessee decision from the facts at bar on the grounds that the wife's guaranty in the present case was unlimited, determining that to include it within the exception would be too broad a "relinquishment of rights.
(20) Part III considers the threshold issues of how and when a debtor receives the benefit of homestead to decide whether married debtors exempting a residence under the law of tenancy by the entireties
may also claim the $4,000 wildcard exemption.
The FRB failed to include the NACM request that Regulation B be clarified to add tenancy by the entireties
states to the provisions of the Act in order to eliminate inconsistent treatment.
* Estate taxes were not apportioned to property passing to a surviving spouse under tenancy by the entireties
Begin with the checking and savings accounts (although a joint bank account and, in some states, real estate owned jointly or by tenancy by the entireties
are two major items that pass outside a will); certificates of deposit; stocks and bonds; money market and mutual funds; the face value of group and personal life-insurance policies; IRA and Keogh plans; interests in thrift accounts at work.
The 2008 statutory revision addresses tenancy by the entireties
, but does not address other forms of ownership, such as tenants in common or joint tenants with the right of survivorship.
In addition to community property states, numerous states have adopted the common law principle of tenancy by the entireties
. The tenancy by the entireties
principle, dating back prior to the Magna Carta in England, provides that the creditor of one spouse may not reach assets of both spouses that are held as tenants by the entireties.1 Since the effect of community property, which is created by statute, and tenancy by the entireties
are very much the same, creditor grantors who deal in states that have tenancy by the entireties
are placed at a disadvantage since they run the risk of violating the ECOA if they seek a spousal guaranty without the appropriate credit inquiry which would be permissible in a community property state.
Because married women could own property in their individual name, the original reason for the development of tenancy by the entireties
, that the wife lacked capacity to hold title, no longer existed.
For an in-depth analysis of these issues and the current state of Florida law, please read our article, "Florida Supreme Court Cases Confirm Tenancy by Entireties in Personal Property and Ability of One Spouse to Transfer Assets to Tenancy by the Entireties
," available at the following website: Floridatenancybytheentiretiesjurisprudence/gassmanlawassociates.com.
The court noted that while former [section] 61.075(5)(a)(5) presumed a gift was established when a tenancy by the entireties
was created as regards to real property, the statute created no such presumption in so far as personal property was concerned.
Like Michigan and Florida, approximately 25 states recognize tenancy by the entireties
ownership, and historically do not allow a creditor with a judgment against an individual owner to seize or encumber property that belongs to the individual as tenants by the entireties.