Question Regarding Tenants by Entirety

[Politico]

What is the name of your state (only U.S. law)? PA

I'm a senior who recently remarried.

I own a home in my name only with a fair amount of equity. I also have a daughter who I would like to leave at least a portion of my home equity to. My dh is a disabled vet who is eligible for free property taxes if I add him to the title as Tenants by the Entirerty. My taxes are high, and I am having trouble paying them, so I could benefit from this. My problem is this would disinherit my daughter. I am her only living parent and she is single with low income. If I would pass away first I am not sure my dh would give my daughter anything. He refuses to add me to his bank accounts, because he wants his daughter to inherit any money he has. By law, I believe he gets 1/3 of my estate. I will not inherit anything from my dh. He owns no real estate. My state does not have Transfer on Death. Anything I can do to insure my daughter inherits something if I change the Deed to Tenants by Entirety?

 

[FlyingRon]

If you have a will, the will determines how that is left of your estate after the debts and taxes are dealt with are distributed. If you don't have a will, your daughter would get half and your husband would get house.

If you put the house into tenancy by the entirety, yes if you die your husband gets the it outside of your estate.

As for your husband squirrelling away marital funds, you will have to deal with him separately on that. You really should figure out if you guys are really in a marriage to each other or are greedily trying to funnel your marital funds to your respective children.

 

[Politico]

I am under the impression that if I die first and Deed reads Tenants by Entirety, my dh inherits the whole property, and then is free to do with it whatever he wishes, and a Will will not supercede this. Am I right? I am not upset that my dh will not add me to his bank acct, but if he is not willing to do this, I don't feel comfortable with putting Tenants by the Entirety on my Deed.

 

[FlyingRon]

I am under the impression that if I die first and Deed reads Tenants by Entirety, my dh inherits the whole property, and then is free to do with it whatever he wishes, and a Will will not supercede this. Am I right?

That is true. The property is ***NOT*** part of the estate to be inherited or not by your spawn.

I am not upset that my dh will not add me to his bank acct, but if he is not willing to do this, I don't feel comfortable with putting Tenants by the Entirety on my Deed.

Again, you can't have it both ways. Either you guys are married and the property is a marital asset and you can take his tax exlcusion, or you're keeping your lives and assets separate.
You need to do some soul searching before your estate planning.

 

[Politico]

Could we sign a Joint Will after I make the Deed Tenants by the Entirety, that states if I die first, my husband must give at least half of the equity to my daughter? Would this be valid and binding?

 

[anteater]

Could you? Yes.

Would it be binding on him? That would require reading into PA law on joint wills. But, generally, courts disfavor enforcing joint wills unless there is clear and convincing evidence that the joint testators intended to form a contract.

 

[anteater]

For example, see Estate of Kester:

http://law.justia.com/cases/pennsylvania/supreme-court/1978/477-pa-243-0.html

When it is claimed that someone has contractually limited his testamentary freedom, our standard of proof is a demanding one. In the case of a joint will in which extrinsic evidence is relied upon to prove the existence of a contract, we have held that the proof must be "clear and convincing." Rhodes Estate, supra. Likewise, in cases not involving joint wills, but involving the issue of whether there existed a contract to make a will or not to revoke a will, the rule has been that evidence of the existence of a contract must be clear and convincing. Nakoneczny Estate, 456 Pa. 327, 319 A.2d 893 (1974); Vanjentic Estate, 453 Pa. 1, 306 A.2d 300 (1973); Fahringer v. Strine, 420 Pa. 48, 216 A.2d 82 (1966).

I would suggest that you visit an experienced PA estate lawyer.

 

[Politico]

Thank you for your replies.

 

[LdiJ]

Personally, I would NEVER add a new spouse's name to a premarital asset...so I don't get the snark about either you are married or not.

 

[FlyingRon]

Personally, I would NEVER add a new spouse's name to a premarital asset...so I don't get the snark about either you are married or not.

The snark is she wants to make use of her husbands disability to make use of a property tax exemption by claiming it is a marital asset and half of it belongs to him but she doesn't want him to actually own any of it (either now or upon her death).
You can't have it both ways. Either it's a marital asset in which case his part is exempt from taxes or it's her asset. You can't have a marital asset of convenience.

 

[FarmerJ]

Have you looked into property tax reductions based on you being a senior citizen ?