Plaintiff brought this bill in equity to compel the receiver of an insolvent bank to set off a deposit against the plaintiff's liability as an indorser on a note, the maker of which was unable to discharge the debt. The account was opened by the plaintiff as "trustee" for his minor son. He had exercised complete control over the account and had made numerous withdrawals for his own purposes. Held, set-off denied. The deposit created a tentative trust; and until revocation the son was the equitable owner thereof. Since the right of set-off is determined by the state of affairs at the time of insolvency, the subsequent revocation of the trust (by bringing this bill) would not inure to the plaintiff's advantage for set-off purposes. Kardon v. Willing, (D. C. Pa. 1937) 20 F. Supp. 471.
TRUSTS - TENTATIVE TRUSTS - RIGHT OF SETTLOR TO SET-OFF AGAINST INSOLVENT BANK,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol36/iss3/28