TITLE 
Wednesday, September 11, 2013, 02:48 PM
Posted by Administrator
Today...for the other business....I transferred title to a new motor vehicle to the subchapter "S" company in which my wife and I are the sole stockholders, Layse, Inc. (dba iScootPalmBeach). (Note that we are not "partners" in our other business....we own all of the stock in the corporation. The corporation, Layse, Inc., has registered "iscootpalmbeach" as the name it is going business under. It appears that doing business with a fictitious name that isn't registered with the Secretary Of State is a CRIME here in Florida. Likely, though, it is a crime that nobody has ever been arrested for.) The seller's title said "John Smith" OR "Jane Smith. Only John had signed the title to transfer it to the corporation. That was fine.

And, if Jane had been unhappy with John, the "OR" in the title would have let her sell..even if the vehicle were the car he drove. Had the title said "John Smith" and "Jane Smith", a transfer would have required both signatures. The DMV (Tax Collector) will only do "and" if you ask.

They'll also do the title as "Jane Smith and John Smith as tenants by the entirety" and....since they are married...John and Jane would each own 100% of the vehicle subject to the other's 100% ownership. So, a creditor of one of them couldn't seize the car.....because the other one owned it too. Most states don't recognize "tenancys by the entireties" but Florida does.

Deeds for land which recite "John Smith and Jane Smith, husband and wife" create that same-each-owns-100% entireties interest. A creditor of both John and Jane could (after obtaining a judgment) seize the property (unless it is "homestead" property) but a creditor of only one would be helpless.....until one of them died. Bank accounts can be titled this way, too. For a long-time married couple, their couch and TV are probably "entireties property" though couches and TVs do not have titles.

None of the above matters until there is a death, divorce, bankruptcy, judgment....then, suddenly, it matters a lot.
add comment ( 27 views )   |  0 trackbacks   |   ( 3 / 71 )


<Back | 1 | Next> >>