Anna Farrell, a confined incompetent at the time of this suit, had a savings bank deposit in her own name, "in trust for my daughter Lucy Farrell." Just prior to Anna's admission to the hospital, while still of sound mind, she handed a sealed envelope to Lucy and told Lucy to hold it for her. The envelope contained, among other papers, the pass book to the bank deposit. Thereafter, Lucy claimed the money in the account on the ground that she had, over the years, delivered the money in the account to her mother for safekeeping. Anna's guardian petitioned for an order allowing him to pay Lucy's claim against the estate. The trial court found that Anna had merely turned the book over to Lucy for safekeeping, intending a mere bailment; on this ground the petition was denied. Held, order modified, three judges dissenting. " . . . [D]elivery of that passbook transformed the tentative trust created by the deposit into an irrevocable trust . . . terminating upon the death of Anna Farrell." In re Farrell, 298 N.Y. 129, 81 N.E. (2d) 51 (1948).
Alan P. Goldstein,
TRUSTS-TENTATIVE TRUSTS-EFFECT OF DELIVERY OF PASSBOOK,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol47/iss5/22