The Estate of Noel C. Hunt, III, H. Wayne Grant, Executor v. Trisha L. Jolley Hunt

Appellant Estate sought declaratory judgment against Appellee widow for return of proceeds from the widow and Decedent’s jointly filed federal and state tax returns. The Estate contends that, under an Antenuptial Agreement entered by and between Decedent and Appellee, the income tax refunds were Decedent’s separate property, which thus belong to the Estate. Appellee widow contends that the filing of a joint tax return transmuted the separate property into marital property and, in the alternative, that a tenancy by the entirety was created in the tax refunds. The trial court found that, although the tax refunds were Decedent’s separate property under the Antenuptial Agreement, part of those proceeds should, nonetheless, pass to the wife. We conclude that the filing of a joint tax return does not create a property right, and that a tenancy by the entirety was not established. Consequently, as Decedent’s separate property, the tax refunds should have been awarded to the Estate. Reversed and remanded.