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1. Meet Carla and Amanda: A Family Example

Carla, an elderly Florida resident, wants to share her financial good fortune with her niece, Amanda. To make matters easier if something happens to her, Carla decides to add Amanda as a co-owner of her certificate of deposit (CD) at the local bank. Carla envisions two benefits: (1) Amanda will have the right to use funds if Carla needs help managing her bills, and (2) if Carla passes away, Amanda automatically inherits the account, avoiding a lengthy probate. But is this straightforward addition of Amanda’s name to the CD truly a valid “gift” creating a joint tenancy or tenancy by the entireties (if spouses were involved)? Florida courts say it depends on a few key requirements.

2. The Core Ingredients of a Valid Gift

Florida courts have long held that three elements are crucial to forming any valid gift—whether it’s an outright gift or one that creates a joint interest. In Chase Federal Savings & Loan Ass’n v. Sullivan, 127 So. 2d 112 (Fla. 1961), the court reaffirmed these requirements:

• Present Donative Intent: The donor (Carla) must intend to pass an immediate ownership interest to the donee (Amanda).
• Delivery: Carla must transfer control of the property (or something symbolic of it) to Amanda in a way that surrenders Carla’s exclusive dominion.
• Acceptance: Amanda must accept the gift—though this is usually presumed if the transfer benefits her.

If any of these three elements is lacking, the gift fails. Let’s walk through how they apply to Carla and Amanda’s situation.

3. Present Donative Intent: More Than a Future Wish

Carla tells Amanda, “I want you on this account so you can pay any bills if I’m ill, and eventually have the rest after I’m gone.” Is that enough? Under Florida law, Carla must have a present intent to transfer some ownership now. If she’s merely saying, “You’ll get this after I die,” that is a future gift—more akin to a will. As the Florida Supreme Court held in In re Slawson’s Estate, 41 So. 2d 324 (Fla. 1949), a “mere intention to give in the future” is not enforceable.

• Scenario Check: Carla’s words should clearly reflect that Amanda immediately owns an interest in the CD. If Carla’s statements or the bank documents show she only intended for Amanda to inherit upon Carla’s death, the transfer might be deemed testamentary. In that case, it would need to meet the formalities of a will (e.g., witnessed, signed, etc.)—and the attempt to create a “joint interest” would fail.

4. Delivery: Relaxed Standards for Joint Accounts

Typically, a donor must physically hand over the gift or sign over title. For intangible assets like a bank account, Florida courts have eased this requirement. In Spark v. Canny, 88 So. 2d 307 (Fla. 1956), the Supreme Court recognized that where a donor and donee share a joint account, the “thing given” is not the specific money in the account but rather the right to withdraw. Consequently, Carla could keep making withdrawals for herself and still validly gift a present interest to Amanda.

• Scenario Check: Carla and Amanda visit the bank together. The bank officer retitles the CD as “Carla andAmanda, joint tenants with right of survivorship,” and issues a new account card that both Carla and Amanda sign. This act typically satisfies the delivery requirement—Carla has relinquished sole dominion and given Amanda co-ownership rights.

5. Acceptance: Usually Automatic

Acceptance of a beneficial gift—like a share in a CD—is usually presumed. Rarely would Amanda reject this financial benefit. In the (unlikely) event Amanda refused or never knew about the joint account, the validity of the gift might be questioned. But in Florida, courts typically assume acceptance when the gift has clear financial value. As confirmed in Naylor v. U.S. Trust Company of Florida, 711 So. 2d 1350 (Fla. 2d DCA 1998), acceptance can be inferred from the donee’s conduct and the nature of the asset.

• Scenario Check: Amanda signs the joint account documents at the bank without objection. This action cements her acceptance. Even if Amanda never withdraws a dime, her signature indicates she agreed to the gift.

6. Gifts Inter Vivos vs. Gifts Causa Mortis

Carla’s intention is to provide for Amanda during Carla’s life (and beyond). This setup is a gift inter vivos—an unconditional, immediate transfer of interest. If Carla were gifting the account because she believed she was on her deathbed, hoping that Amanda would own it if she succumbed to her illness, it might be a gift causa mortis. Florida law imposes stricter rules on gifts causa mortis (see Leonard v. Campbell, 138 Fla. 405, 189 So. 839 (1939)), because they can be revoked if the donor recovers.

• Scenario Check: Carla is healthy and simply preparing for future contingencies, so this is an inter vivos gift. Amanda’s right in the account is not contingent on Carla’s death or any illness.

7. What If the Gift Is Challenged?

The mere presence of Amanda’s name on the account typically raises a rebuttable presumption (meaning it be challenged) that Carla made a gift. As Florida courts note in cases like Varela v. Bernachea, 917 So. 2d 295 (Fla. 3d DCA 2005), the burden shifts to anyone challenging the gift (for example, Carla’s other relatives) to prove Carla did not intend a present transfer. If Carla’s estate, after her death, claimed that “Carla only put Amanda on the account for convenience,” they would need clear and convincing evidence—such as statements from Carla disclaiming Amanda’s ownership or proof that Carla forbid Amanda from withdrawing funds.

• Scenario Check: Suppose Carla’s nephew, who is not a beneficiary, insists Carla only added Amanda as a “signer” but never meant to give her a joint interest. Florida law says the nephew must present strong evidence (beyond hearsay or speculation) to overcome the presumption of a gift arising from the joint account designation.

8. The Final Outcome for Carla and Amanda

If Carla has done everything correctly:

• 1. She clearly communicated to the bank (and Amanda) her present intent for Amanda to share ownership.
• 2. She delivered the interest by signing the new account forms, effectively transferring co-ownership.
• 3. Amanda accepted by adding her signature and subsequently having the right to withdraw funds.

Assuming none of Carla’s heirs can convincingly rebut that intent, Amanda stands to inherit the entire account automatically when Carla passes away—without the asset going through probate. This convenience is one of the main reasons many Floridians choose to create joint interests by gift for bank accounts, CDs, and other financial assets.

9. Key Takeaways and Best Practices

• 1. Get the Wording Right: Specify “joint tenants with right of survivorship” (or equivalent language) to confirm the present intent to share ownership.
• 2. Document the Donative Intent: Keep records or even a simple letter describing why you’re adding a name. If disputes arise, having this evidence helps.
• 3. Be Clear About “Convenience” vs. “Ownership”: If the donor truly wants help with check-writing or bill-paying but does not wish to give an ownership stake, it’s safer to use a power of attorney or a “convenience account” that does not legally vest joint title.
• 4. Consult an Attorney: Joint accounts or gifts can serve estate planning goals but can also create unexpected results if not done properly—particularly in blended families or where multiple heirs may challenge the arrangement.

Conclusion

Creating a joint interest by gift in Florida hinges on present intent, delivery, and acceptance—elements often examined under a more flexible standard when it comes to joint bank accounts. The story of Carla and Amanda shows how a clearly documented, intentional process can give the donee real ownership now, and a straightforward right of survivorship later. But it also highlights the pitfalls if you’re not explicit: future promises, unclear account titles, or half-executed transfers can derail even well-meaning plans.

By understanding the legal framework and planning carefully—preferably with guidance from a qualified Florida attorney—individuals like Carla can ensure their gifts stand on firm ground. In doing so, they help prevent family feuds and guarantee that their generosity benefits their chosen loved ones in the way they truly intend.