Entireties Account Protected Even Though Money Deposited By Debtor Spouse
As a general rule if spouse one, the debtor spouse, owns a non-exempt asset and conveys the asset to both spouses as tenants by entireties the transfer could be a fraudulent conveyance by the debtor spouse. A bankruptcy case dealt with the question in terms of the deposit into an entireties account of a tax refund when most of the refund was on account of income earned by the debtor spouse. The court said that the tax refund payable to both spouses is protected entireties money once it is deposited into the joint bank account
The court further explained that when only one spouse works and regularly deposits checks into an entireties account the money is exempt entireties funds when deposited. The court said, " the same would be true if one spouse received a gift, won the lottery, or, here, possbily has a superior interest in a portion of a federal tax refund." 378 B.R. 371
posted by Jonathan Alper, asset protection and bankruptcy attorney, Orlando, Florida
In Florida some banks require CD's to be tiled as and/or when purchased by a husband and wife. Would these be considered as tenants by entireties?
ALso, are Florida living trusts for husband and wife considered tenants by entireties?
Thanks,
Mike