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In Re Kappler Estate

Michigan Supreme Court
418 Mich. 237, 341 N.W.2d 113 (1983)
ELI5:

Rule of Law:

A conveyance of real property to two unmarried individuals as 'husband and wife, as tenants by the entireties' creates a tenancy in common, as such language is not an express declaration of a joint tenancy sufficient to overcome the statutory presumption in favor of tenancies in common.


Facts:

  • In August 1975, a parcel of real estate was deeded to Violet Kappler and Arthur Slone.
  • The deed identified the grantees as 'Arthur Slone and Violet Slone, husband and wife, as tenants by the entireties'.
  • Violet Kappler and Arthur Slone were never married to each other.
  • Violet Kappler died on April 21, 1979.
  • Kappler's will devised her entire estate to her son, William J. Inman.

Procedural Posture:

  • The issue of property title was submitted on stipulated facts to the probate court during the administration of Violet Kappler's estate.
  • The probate court entered an order determining that the conveyance created a tenancy in common.
  • Arthur Slone appealed the probate court's order to the Michigan Court of Appeals.
  • The Court of Appeals reversed the probate court, holding that the deed was ambiguous and remanded the case to allow for extrinsic evidence of intent.
  • The Estate of Violet Kappler then sought review from the Supreme Court of Michigan.

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Issue:

Does a conveyance of real property to two unmarried individuals as 'husband and wife, as tenants by the entireties' create a joint tenancy with right of survivorship, thereby overcoming the statutory presumption in favor of a tenancy in common?


Opinions:

Majority - Per Curiam

No. A conveyance of real property to two unmarried individuals as 'husband and wife, as tenants by the entireties' creates a tenancy in common. Michigan statute MCL 554.44 establishes a presumption that conveyances to two or more people create estates in common, 'unless expressly declared to be in joint tenancy.' Since a tenancy by the entirety can only be created between a married couple, the attempt to do so here failed. The court held that the language 'as tenants by the entireties' does not constitute an 'express declaration' of a joint tenancy. Therefore, the statutory presumption was not overcome, and the conveyance resulted in a tenancy in common, meaning Ms. Kappler's interest passes to her estate.



Analysis:

This decision reinforces Michigan's strong statutory presumption favoring tenancies in common over joint tenancies. It clarifies that merely using language associated with a right of survivorship, such as 'tenants by the entireties,' is insufficient to create a joint tenancy between unmarried co-owners. The ruling emphasizes the need for drafters of conveyances to use explicit language, such as 'as joint tenants' or 'with right of survivorship,' to overcome the statutory default. This holding promotes certainty in property law by discouraging courts from inferring intent for survivorship from ambiguous or legally ineffective terms.

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