Although not in issue, in a footnote the district court stated, "There is no dispute that the effect of this transfer to the trustee destroyed any tenancy by the entireties that may have existed in the property pre-transfer.
Appellants suggested that Rollins stands for the proposition that a transfer to a trustee of entireties property in and of itself terminates the entireties.
The trial court found that the bank account in question was not held as an estate by the entireties, but as joint tenants with right of survivorship, because either of the joint depositors had the power to alienate the account by closing it out and could achieve this alienation individually and without consent of the other.
Another reason for the distinction is that the application of entireties concepts to personalty becomes exceedingly complex as the nature of the personalty increases in sophistication, and the judicial mind seeks to require greater safeguards lest the tenancy be abused.
Perhaps the most important Florida case involving tenancies by the entireties in personal property is Beal Bank, SB v.
Accordingly, the court held that as between the debtor and a third-party creditor (other than the financial institution into which the deposits are made), if the signature card or account does not expressly disclaim a TBE form of ownership, a presumption arises that a bank account titled in the names of both spouses is held as tenants by the entireties as long as the account is established by both spouses in accordance with the unities of possession, interest, title, and time and with right of survivorship.
However, if the debtor establishes that the financial institution did not offer a TBE form of account ownership or expressly precluded that form of ownership, then the debtor may prove by other evidence the intent by which the debtor and spouse held the account as tenants by the entireties.
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.
The present interests provided the husband with "a substantial degree of control over the entireties property" as found by the court and therefore were subject to the federal tax lien.
The court expressed its concern that if it did not identify present "sticks" for the tax lien to attach to, that entireties property would belong to no one for [section] 6321 purposes.
The court found that the husband's present rights gave him a substantial degree of control over the property and, therefore, such rights were sufficient to subject his entireties interest to the federal tax lien.
Thus, in the Southern District, if your case is heard by Judge Cristol, all creditors of the estate may share in the proceeds from the sale of entireties property if a small joint claim exists.
18] By limiting the destruction of the entireties doctrine in bankruptcy situations to only those states with a homestead exemption, Congress could feel secure that the state legislature has made provisions to protect a potential debtor's real estate.
21] More specifically, the entireties doctrine has been deemed an "ancient and archaic form of property ownership.
Thus, the conflicting principles between the homestead exemption and the tenancies by the entireties exemption would be eliminated.