§ 7-5.2 — Terms of a trust account

New York § 7-5.2

• Jurisdiction: New York
• Law EPT: Estates, Powers & Trusts
• Part 5: Bank Accounts In Trust Form
• Art. 7: Trusts

Text

§ 7-5.2 Terms of a trust account\n The funds in a trust account, which shall include any dividends or\ninterest thereon, shall be trust funds subject to the following terms:\n (1) The trust can be revoked, terminated or modified by the depositor\nduring his lifetime only by means of, and to the extent of, withdrawals\nfrom or charges against the trust account made or authorized by the\ndepositor or by a writing which specifically names the beneficiary and\nthe financial institution. The writing shall be acknowledged or proved\nin the manner required to entitle conveyances of real property to be\nrecorded, and shall be filed with the financial institution wherein the\naccount is maintained.\n (2) A trust can be revoked, terminated or modified by the depositor's\nwill only by means of, and to the extent of, an express direction\nconcerning such trust account, which must be described in the will as\nbeing in trust for a named beneficiary in a named financial institution.\nWhere the depositor has more than one trust account for a particular\nbeneficiary in a particular financial institution, such a direction will\naffect all such accounts, unless the direction is limited to one or more\naccounts specifically identified by account number in addition to the\nforegoing requirements. A testamentary revocation, termination or\nmodification under this paragraph can be effected by express words of\nrevocation, termination or modification, or by a specific bequest of the\ntrust account, or any part of it, to someone other than the beneficiary.\nA bequest of part of a trust account shall operate as a pro tanto\nrevocation to the extent of the bequest.\n (3) If the depositor survives the beneficiary, the trust shall\nterminate and title to the funds shall continue in the depositor free\nand clear of the trust.\n (4) If the beneficiary survives the depositor, and the depositor's\nwill contains no provision revoking, terminating or modifying the trust\naccount under paragraph (2), the trust shall terminate and title to the\nfunds shall vest in the beneficiary free and clear of the trust.\n (5) If the beneficiary survives the depositor and the depositor's will\ncontains language sufficient under paragraph two of this section, to\nrevoke, terminate or modify the trust, in whole or in part, that part of\nthe trust which is affected shall terminate and title to the funds shall\nbe subject to disposition by the depositor's will, free and clear of the\ntrust.\n