Also known as: bank account trust · bank-account trusts · bank account trusts · trust account
Written by attorneys — see sources 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.
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.
Fanny A. Lattan died intestate in March 1900. Beginning in 1886 she and her sister Angelica Lattan each maintained numerous accounts at the Irving Savings Institution, some in their individual names and others titled in trust for named beneficiaries. It was her practice to draw from all these accounts at will, whether they were kept in her name as trustee or otherwise, and to close them and open others as she saw fit. She kept the pass books and no beneficiary named in any account ever drew therefrom except upon drafts signed by her. On January 2, 1886 she opened account number 42,728 by depositing $355, the entry reading "Fanny A. Lattan, trustee for Emile R. Lattan, depositor." Two further deposits were made in this account. Twelve drafts were drawn against it between January 1886 and July 1898. The account was closed by her individual draft on July 8, 1898 and the proceeds used to open two new accounts, one of which was titled in trust for Emile R. Lattan. On September 19, 1890 she opened account number 51,556 titled in trust for Emile R. Lattan with a $462.03 deposit drawn largely from other trustee accounts. She later added two more deposits before closing the account in November 1894 and transferring the balance to an account in trust for Lewis H. Lattan. Emile R. Lattan was the son of Lewis H. Lattan, who in 1884 had turned over property worth about $20,000 to his sisters Angelica and Fanny for management without instructions. No accounting was ever rendered to Lewis. Fanny never informed Emile of any of the accounts on which he later relied, and he learned of them only more than a year after her death. Of the thirty-one accounts she maintained across seven banks, she paid the closing balances to the named beneficiaries in only two instances; in all others, including the accounts involving Emile, she treated the funds as her own. Angelica Lattan was appointed administratrix of Fanny's estate and died on April 10, 1901, leaving the present administrator as sole representative. The personal property was inventoried at $32,950.08 and exceeded $40,000 at final distribution. Emile R. Lattan filed a claim against the estate asserting an interest in the trust accounts; the surrogate dismissed the claim on the merits. The Appellate Division reversed and allowed the claim, after which the Court of Appeals granted review.
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.
Fanny A. Lattan died intestate in March 1900. Beginning in 1886 she and her sister Angelica Lattan each maintained numerous accounts at the Irving Savings Institution, some in their individual names and others titled in trust for named beneficiaries. It was her practice to draw from all these accounts at will, whether they were kept in her name as trustee or otherwise, and to close them and open others as she saw fit. She kept the pass books and no beneficiary named in any account ever drew therefrom except upon drafts signed by her. On January 2, 1886 she opened account number 42,728 by depositing $355, the entry reading "Fanny A. Lattan, trustee for Emile R. Lattan, depositor." Two further deposits were made in this account. Twelve drafts were drawn against it between January 1886 and July 1898. The account was closed by her individual draft on July 8, 1898 and the proceeds used to open two new accounts, one of which was titled in trust for Emile R. Lattan. On September 19, 1890 she opened account number 51,556 titled in trust for Emile R. Lattan with a $462.03 deposit drawn largely from other trustee accounts. She later added two more deposits before closing the account in November 1894 and transferring the balance to an account in trust for Lewis H. Lattan. Emile R. Lattan was the son of Lewis H. Lattan, who in 1884 had turned over property worth about $20,000 to his sisters Angelica and Fanny for management without instructions. No accounting was ever rendered to Lewis. Fanny never informed Emile of any of the accounts on which he later relied, and he learned of them only more than a year after her death. Of the thirty-one accounts she maintained across seven banks, she paid the closing balances to the named beneficiaries in only two instances; in all others, including the accounts involving Emile, she treated the funds as her own. Angelica Lattan was appointed administratrix of Fanny's estate and died on April 10, 1901, leaving the present administrator as sole representative. The personal property was inventoried at $32,950.08 and exceeded $40,000 at final distribution. Emile R. Lattan filed a claim against the estate asserting an interest in the trust accounts; the surrogate dismissed the claim on the merits. The Appellate Division reversed and allowed the claim, after which the Court of Appeals granted review.
View caseBruce 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.
Fanny A. Lattan died intestate in March 1900. Beginning in 1886 she and her sister Angelica Lattan each maintained numerous accounts at the Irving Savings Institution, some in their individual names and others titled in trust for named beneficiaries. It was her practice to draw from all these accounts at will, whether they were kept in her name as trustee or otherwise, and to close them and open others as she saw fit. She kept the pass books and no beneficiary named in any account ever drew therefrom except upon drafts signed by her. On January 2, 1886 she opened account number 42,728 by depositing $355, the entry reading "Fanny A. Lattan, trustee for Emile R. Lattan, depositor." Two further deposits were made in this account. Twelve drafts were drawn against it between January 1886 and July 1898. The account was closed by her individual draft on July 8, 1898 and the proceeds used to open two new accounts, one of which was titled in trust for Emile R. Lattan. On September 19, 1890 she opened account number 51,556 titled in trust for Emile R. Lattan with a $462.03 deposit drawn largely from other trustee accounts. She later added two more deposits before closing the account in November 1894 and transferring the balance to an account in trust for Lewis H. Lattan. Emile R. Lattan was the son of Lewis H. Lattan, who in 1884 had turned over property worth about $20,000 to his sisters Angelica and Fanny for management without instructions. No accounting was ever rendered to Lewis. Fanny never informed Emile of any of the accounts on which he later relied, and he learned of them only more than a year after her death. Of the thirty-one accounts she maintained across seven banks, she paid the closing balances to the named beneficiaries in only two instances; in all others, including the accounts involving Emile, she treated the funds as her own. Angelica Lattan was appointed administratrix of Fanny's estate and died on April 10, 1901, leaving the present administrator as sole representative. The personal property was inventoried at $32,950.08 and exceeded $40,000 at final distribution. Emile R. Lattan filed a claim against the estate asserting an interest in the trust accounts; the surrogate dismissed the claim on the merits. The Appellate Division reversed and allowed the claim, after which the Court of Appeals granted review.
View caseA 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…