Tenants By Entireties Of Money Held In Third Party Escrow Account

I came across an interesting case involving Florida tenants by entireties. A husband and wife had an entireties account at their bank. They wanted to buy a parcel of real estate and title the property in the wife’s name. Normally, such transfer would not be a fraudulent transfer against either the husband’s or the wife’s individual creditors as the T by E account is exempt. The couple wrote a check from the entireties account to an escrow agent who was handling the real estate closing. They instructed the agent to hold the escrow as tenants by entireties money. The sale closed, and the escrow agent transferred the money to the seller. A creditor of the husband challenged the transaction as a fraudulent conveyance arguing that the money lost its entireties status when it was deposited in the bank account owned by the escrow agent.

The appellate court ruled there was no fraudulent conveyance. The money remained an entireties asset in the bank even though the interim bank account was owned by the escrow agent and not by the husband and wife. The court ruled that the husband and wife through their instructions to the escrow agent clearly intended the money to remain their entireties money when it left their entireties account to be held by the closing escrow agent. The case was decided by the 2nd DCA and is styled Snyder v. Dinardo.

Last updated on May 22, 2020

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