Did you know that there are two ways which married couples can establish a joint bank account? They are called “tenancy by the entirety” and “joint tenancy with right of survivorship.” Whether or not a married couple establishes a bank account as a tenancy by the entirety account or as a joint tenancy with right of survivorship account is critically important when it comes to Florida estate planning and Florida estate administration.
For purposes of Florida probate law, there are a few main distinctions to note:
- If a bank account is a tenancy by the entirety account, one spouse may not withdraw money from the account without the consent of the other spouse.
- It’s important to note here though that the consent does not have to be verbal or explicit.
- In contrast, if a bank account is joint tenancy with right of survivorship, either joint owner can transfer funds out.
- Further, when a joint owner withdraws funds from a joint tenancy bank account, the withdrawal terminates the joint tenancy relationship with respect to the money that was withdrawn.
You may be asking, “What happens to my Florida bank accounts if I die?” If you and your spouse are creating a joint bank account in Florida, make sure you are informed about the differences between a tenancy by the entireties account and a joint tenancy with right of survivorship account. The bank does not have to explain it or even discuss the differences with you, but they must provide you correct information about their accounts if you request it.
Palm beach probate litigation attorneys know that if there is some ambiguity about the type of joint account you had with your spouse upon your death, the Florida probate court will look to the forms that were filed by the bank when the account was created to determine the nature of the account. Boca Raton estate planning lawyers know that, without other evidence, a presumption that the bank account was held as a tenancy by the entiretiesaccount will usually exist.
See http://www.pankauskilawfirm.com/ for videos and information on Wills in Florida, Florida Trust Law, Estate Planning, and Estate Administration in Florida.