Also known as: bank account trust · bank-account trusts · bank account trusts · trust account
Written by attorneys · grounded in primary & secondary sources — see below
A revocable trust created when a depositor opens a bank account titled in the depositor's name as trustee for a named beneficiary, with the depositor retaining full control and the right to revoke until death.
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Alice Adams opens a savings account titled in her name in trust for her daughter. She retains the passbook, adds deposits over several years, and pays the daughter's college tuition directly from the account. The bank treats Alice as sole owner during her lifetime.
Charles Clark titles a certificate of deposit in trust for his brother. He keeps full control, makes interest withdrawals, and never notifies the brother. Upon Charles's death the bank pays the balance directly to the brother under the Totten trust designation.
Bruce Baldwin opens a savings account titled in his name in trust for his nephew. He keeps the passbook, makes additional deposits, and later changes the title back to his own name alone after the nephew moves away. Upon Bruce's death the funds pass through his estate rather than directly to the nephew.
A bank-account trust keeps legal title in the depositor as trustee and creates no present interest in the beneficiary until the depositor dies or revokes the arrangement. A joint account gives each party immediate ownership rights and withdrawal authority during life.
…the bank book and failing to notify the beneficiary, creates a trust if the depositor dies before the beneficiary, leaving the trust account open and unexplained.” ( Cunningham v. Davenport , 147 N. Y. 43, 47.) When a deposit is made in trust and the depositor dies intestate leaving it undisturbed, in the absence of other…