Opinion ID: 4660028
Heading Depth: 3
Heading Rank: 2

Heading: Severance of a Tenancy by the Entirety

Text: Even if a tenancy by the entirety had been created, Radiance argues it was “severed” by certain actions taken after the Fidelity account was opened. First, it argues that withdrawals from the account by Annabelle Marvin and Jeff Marvin severed the tenancy. Second, Radiance argues that when the Crows entered a stipulation to allow Carol Crow access to a part of the Fidelity account to pay for her husband’s nursing care expenses, the tenancy was severed. We hold the tenancy by the entirety was not severed. -13- Radiance characterizes the Marvins as treating the Fidelity account as a sort of slush fund, withdrawing proceeds on a whim for their own personal benefit. Even accepting this characterization as true, Radiance cites only a single bankruptcy case from Florida in support of their argument that the Marvins’ withdrawals severed the tenancy. In that case, the court stated that if any of the five unities are destroyed, “there is no entireties estate.” In re Pierre, 468 B.R. 419, 426 (Bankr. M.D. Fla. 2012). As discussed above, however, the parties all agree that the required unities are lacking, so it is not clear why Pierre is relevant. In addition, in making the withdrawals, Annabelle Marvin was exercising her power of attorney on behalf of both her parents. The Crows, as the owners of the Fidelity Account, had the right to determine its subsequent disposition, and they did so by granting Annabelle Marvin power of attorney and ratifying each subsequent transfer. Radiance also argues the stipulation in the bankruptcy court to allow Carol Crow to access a portion of the Fidelity funds severed the tenancy. As the BAP noted in this case, however, a debtor’s right to an exemption is determined on the petition date. White v. Stump, 266 U.S. 310, 313 (1924). And the language of § 522(b)(3)(B) refers to “interests of the debtor in property as of the commencement of the case.” Any subsequent agreement concerning the Fidelity account therefore has no bearing on the status of the exemption. -14-