A trustee in bankruptcy petitioned the referee to order a bank to tum over certain United States Series ''E" Savings Bonds as assets of the bankrupt's estate. The bonds were payable to the bankrupt "or" his wife and had been pledged to the bank by the bankrupt, with his wife's consent, as collateral for a personal loan. The referee denied the petition. On appeal, held, affirmed. Since the bonds were payable to persons who were husband and wife, a tenancy by the entirety was created, with each tenant holding an interest in the whole of the bond property. Neither tenant could alienate his own interest, and thus destroy the interest of the other, without the other's consent. Since the wife's consent to the pledging was held not to be consent to alienation, the bankrupt's estate could not use bonds to pay his creditors. In re Smulyan, (D.C. Pa. 1951) 98 F. Supp. 618.
William E. Beringer,
PERSONAL PROPERTY-TENANCY BY THE ENTIRETY IN UNITED STATES SERIES "E" SAVINGS BONDS,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol50/iss6/16