Salvio v. Salvio

441 A.2d 190, 186 Conn. 311, 1982 Conn. LEXIS 462
CourtSupreme Court of Connecticut
DecidedFebruary 23, 1982
StatusPublished
Cited by42 cases

This text of 441 A.2d 190 (Salvio v. Salvio) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salvio v. Salvio, 441 A.2d 190, 186 Conn. 311, 1982 Conn. LEXIS 462 (Colo. 1982).

Opinion

Peters, J.

The principal issue in this case is whether savings accounts held by one or both parents in trust for their children may be included by the trial court in its division of marital property accompanying the parents’ divorce. The trial court divided six savings accounts issued in the name of the defendant wife, Sophie K. Salvio, in trust for Gerald and Deborah Salvio, children of the parties, equally between the defendant and the plaintiff husband, Fred E. Salvio, co-trustee of one account. The defendant appeals that decision and certain other orders arising out of the marital dissolution.

Fred and Sophie Salvio were married in 1959 and had two children, Gerald, born in 1960, and Deborah, bom in 1962. In 1978 the plaintiff, Fred Salvio, brought an action for divorce. The defendant counterclaimed, seeking dissolution of the marriage, custody of Deborah, at that time still a minor, and various financial benefits. At a protracted series of hearings the parties testified to the existence of twelve savings accounts, eight at the Berlin Savings Bank and four at the American Savings Bank of Newington. The latter accounts, two issued to the defendant as tmstee for Gerald and two as trustee for Deborah, contained at the time of trial approximately $50,000. They were not included by the trial court in its decision and are not at issue in *313 this appeal. Of the eight accounts at the Berlin Savings Bank, two were conceded to be irrevocable trusts and hence unavailable to either party; those accounts contained approximately $200. The six remaining Berlin Savings Bank accounts, containing approximately $25,000, are the focus of this appeal. Three accounts were in trust for Gferald and three for Deborah; Sophie Salvio was named trustee in five, Sophie or Fred Salvio in one.

At trial both parties agreed that these accounts were established by the defendant as a fund for the children’s college education. 1 Although the defendant retained possession of the bank books and the plaintiff made only one deposit, the plaintiff knew of the existence of these accounts and of their purpose. The defendant testified to withdrawing funds from the accounts on one occasion to purchase a car and later replacing the amount withdrawn. 2 All other withdrawals were for the purpose of opening new accounts in trust for the children. The sources of the funds deposited included the earnings of both parties, the defendant’s inheritance, and gifts to the children.

In its memorandum of decision the trial court ordered that the funds in the six accounts at the Berlin Savings Bank be divided equally between the parties. The court further ordered that $3000 of the plaintiff’s share be held in escrow until resolution of certain disputed claims under a previous court order. After awarding custody of the minor child *314 to the defendant, ordering the plaintiff to pay $175 per week in alimony, denying child support, and dividing other assets of the marriage, the court denied counsel fees to both parties.

On appeal to this court, the defendant’s principal claim of error is the inclusion by the trial court of the six Berlin Savings Bank accounts in its division of marital property. The defendant also claims error in the court’s order placing $3000 of the plaintiff’s share in escrow; in the court’s failure to act on the defendant’s motion for contempt against the plaintiff; in the amount of the court’s award of alimony and its denial of child support; in the allocation of the parties’ assets; and in the denial of counsel fees.

I

The defendant claims that the disputed accounts at the Berlin Savings Bank were beyond the trial court’s jurisdiction to allocate because they were irrevocable trusts owned by the beneficiaries, Gerald and Deborah. Since the beneficiaries, the true owners of the property, were not made parties to the dissolution action, she argues, the trial court could not order the disposition of a trust corpus based merely on the parties’ status as trustees. The first issue before us, then, is the determination of the rights of trustees and beneficiaries in savings bank trust accounts. Such a determination is a prerequisite to adjudication of the Superior Court’s jurisdiction to allocate such property in a marital dissolution action.

Because the issue before us is one of first impression in this state, it is important to put the savings account trust, now statutory, into its historical context. A savings account trust arises when a bank *315 depositor establishes an account in trust for a named beneficiary while reserving to himself, as trustee, the right to withdraw the funds in that account at any time. Upon the trustee’s death, ownership of the funds remaining on deposit passes automatically to the beneficiary. Originally such trusts were viewed as enforceable only if they could be found to be irrevocable. Minor v. Rogers, 40 Conn. 512, 521 (1873); McCaffrey v. North Adams Savings Bank, 244 Mass. 396, 398, 138 N.E. 393 (1923). Revocable trusts were often held ineffective as testamentary dispositions violative of the Statute of Wills. Day Trust Co. v. Malden Savings Bank, 328 Mass. 576, 579, 105 N.E.2d 363 (1952); HogarthSwann v. Steele, 294 Mass. 396, 398, 2 N.E.2d 446 (1936). New York courts, however, early in this century validated such trusts, often called Totten trusts after the leading case, as tentative trusts capable of transmitting a legal interest in the funds on deposit at the depositor’s death. In re Totten, 179 N.Y. 112, 125-26, 71 N.E. 748 (1904). This is the view endorsed by the Restatement (Second), Trusts § 58 (1959) and by I Scott, Trusts (3d Ed. 1967) § 58.

Each of these analyses of savings bank trust accounts proved in some sense unsatisfactory. As this court recognized in Driscoll v. Norwich Savings Society, 139 Conn. 346, 350, 93 A.2d 925 (1952), savings accounts that purport to transfer ownership of deposits are so hybrid in concept that they call out for a sui generis treatment by statute.

The earliest Connecticut statute to address this need provided procedures for the creation of savings account trusts and absolved banks from any liability for payment of funds on deposit at the *316 depositor’s death, to the named beneficiary. General Statutes §5829 (1949 Rev.). 3 After this court declared such payments to be in violation of the Statute of Wills; Fasano v. Meliso, 146 Conn. 496, 500, 152 A.2d 512 (1959); the legislature responded with a more elaborate statute validating these death transfers. 4 The court’s concern in Fasano

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Marzaro v. Marzaro
231 Conn. App. 85 (Connecticut Appellate Court, 2025)
Perry v. Perry
Supreme Court of Connecticut, 2014
Fennelly v. Norton
985 A.2d 1026 (Supreme Court of Connecticut, 2010)
DiCerto v. Jones
947 A.2d 409 (Connecticut Appellate Court, 2008)
MacIolek v. Firer (In Re Firer)
317 B.R. 457 (D. Connecticut, 2004)
Carrubba v. Moskowitz
840 A.2d 557 (Connecticut Appellate Court, 2004)
Ragin v. Lee
829 A.2d 93 (Connecticut Appellate Court, 2003)
Velez v. Torres, No. Fa96-0621680 (Dec. 27, 2002)
2002 Conn. Super. Ct. 16613-i (Connecticut Superior Court, 2002)
Rivera v. Gonzalez, No. Fa91-0609209 (Aug. 11, 2002)
2002 Conn. Super. Ct. 11543 (Connecticut Superior Court, 2002)
Walton v. Douglas, No. Fa00-630851 (Jun. 3, 2002)
2002 Conn. Super. Ct. 7171 (Connecticut Superior Court, 2002)
Smith v. Johnson, No. Fa00-0631359 (May 31, 2002)
2002 Conn. Super. Ct. 7044 (Connecticut Superior Court, 2002)
Martin v. Harrell, No. Fa95-0618397 (May 24, 2002)
2002 Conn. Super. Ct. 6995 (Connecticut Superior Court, 2002)
McAuley v. Southington Savings Bank
796 A.2d 1250 (Connecticut Appellate Court, 2002)
Hjarne v. Martin, No. Fa00-0631333 (Apr. 21, 2002)
2002 Conn. Super. Ct. 5521-aa (Connecticut Superior Court, 2002)
MacKey v. Moore, No. Fa01-0631951 (Apr. 14, 2002)
2002 Conn. Super. Ct. 4653 (Connecticut Superior Court, 2002)
Cruz v. Hudson, No. Fa97-0622309 (Mar. 14, 2002)
2002 Conn. Super. Ct. 4027 (Connecticut Superior Court, 2002)
Gonzalez v. Gonzalez, No. Fa 00-0081287s (Nov. 19, 2001)
2001 Conn. Super. Ct. 15401 (Connecticut Superior Court, 2001)
Drakeford v. Ward, No. Fa97-0623106 (Nov. 7, 2001)
2001 Conn. Super. Ct. 15865 (Connecticut Superior Court, 2001)
Morales v. Rios, No. Fa00-0631089 (Jan. 21, 2001)
2001 Conn. Super. Ct. 1380 (Connecticut Superior Court, 2001)
McAuley v. Southington Savings Bank, No. Cv-99-0493357 S (Nov. 27, 2000)
2000 Conn. Super. Ct. 14853 (Connecticut Superior Court, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
441 A.2d 190, 186 Conn. 311, 1982 Conn. LEXIS 462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salvio-v-salvio-conn-1982.