Dyste v. Farmers' & Mechanics' Sav. Bank
| Decision Date | 28 February 1930 |
| Docket Number | No. 27723.,No. 27725.,No. 27724.,27723.,27724.,27725. |
| Parties | DYSTE v. FARMERS' & MECHANICS' SAV. BANK OF MINNEAPOLIS et al. |
| Court | Minnesota Supreme Court |
Appeal from District Court, Hennepin County; Frank E. Reed, Judge.
Actions by Berntene G. Dyste, as executrix of the last will and testament of Louis B. Knudsen, deceased, against the Farmers' & Mechanics' Savings Bank of Minneapolis and another, against the Minneapolis Savings & Loan Association and another, and against the Hennepin Savings & Loan Association and another. Judgment for plaintiff in each case, and from such judgments, and from orders denying motions for amended findings and for a new trial, defendants appeal.
Reversed.
Elias Rachie and K. T. Dahlen, both of Minneapolis, for appellants.
Sam J. Levy, of Minneapolis, for respondent.
Louis B. Knudsen died in the city of Minneapolis, November 23, 1927. The plaintiff, as administratrix under his will, brought three actions — the first against the Farmers' & Mechanics' Savings Bank of Minneapolis and Olina Langmo; the second against the Minneapolis Savings & Loan Association and Olina Langmo; and the third against the Hennepin Savings & Loan Association and Esther C. Langmo. In each of the cases it was conceded that the corporation defendant therein was a mere stakeholder ready and willing to pay the money in controversy to the one entitled thereto, and it took no part in the trial. Defendant Olina Langmo is a daughter of the decedent born out of wedlock, and defendant Esther C. Langmo is a daughter of Olina Langmo and a granddaughter of the decedent.
Section 7711, G. S. 1923, provides:
In July, 1924, Louis Knudsen made a written application to the Farmers' & Mechanics' Savings Bank to open a trust account in his name as trustee in trust for his daughter Olina Langmo. At the same time he deposited in the bank the sum of $2,000 and received a pass book which contained the provision of the statute above quoted, and in which the deposit was entered in the name of "Louis Knudsen in trust for Olina Langmo." The first action was brought to determine whether the money in this trust fund belongs to the estate of Louis Knudsen or to Olina Langmo as the cestui que trust.
In July, 1924, Louis Knudsen, under the name of Lars Knudsen, opened an account with the Minneapolis Savings & Loan Association in the name of "Lars Knudsen or Olina Langmo or survivor." The signature card as well as the pass book were in this form, and the signature card was signed by both Louis Knudsen and Olina Langmo. The deposits in this account aggregated $2,700. The second action was brought to determine whether this money belongs to the estate or to Olina Langmo.
In March, 1925, Louis Knudsen opened an account with the Hennepin Savings & Loan Association in the name of "Louis B. Knudsen or Esther C. Langmo," as shown by the pass book. He took Miss Langmo to the bank where a signature card was prepared containing this statement, "You are hereby authorized to recognize either signature below in the payment of funds or the transaction of any other business for my account," and was signed by both. The deposits in this account aggregated the sum of $1,600. The third action was brought to determine whether this money belongs to the estate or to Esther C. Langmo.
Louis Knudsen kept the pass books in a drawer in a desk or table at his home. He gave Olina Langmo a key to the drawer. He made all the deposits in all three of the accounts. He withdrew a few small amounts from each account, but the full amount of the principal still remained therein at his death. Both Olina Langmo and Esther Langmo say that they understood that he had the right to make withdrawals, but that whatever remained in the respective accounts would belong to them respectively at his death.
The plaintiff contended in each case that the action taken by Louis Knudsen was an attempt on his part to make a testamentary disposition of the fund, and that the failure to comply with the statute regulating the execution of wills rendered such action of no effect. The court so held, and directed judgment for plaintiff in each case. Motions for amended findings or for a new trial were denied in each case, and defendants appeal from the several orders.
The record shows beyond question that Louis Knudsen intended that the money placed in the Farmers' & Mechanics' Savings Bank and the money placed in the Minneapolis Savings & Loan Association should go to his daughter Olina Langmo, and that the money placed in the Hennepin Savings & Loan Association should go to his granddaughter Esther C. Langmo. The question presented is whether the steps which he took to carry his intention into effect were sufficient under the law to accomplish his purpose. The record shows that he had been told by the bankers that money deposited in trust as in the first case would go to the cestui que trust at his death, and that money deposited as in the second and third cases would go to the surviving depositor at the death of the other; and that he created these accounts and made the deposits therein in reliance upon such information and in the belief that the fund in each account would go to the beneficiary named therein.
The deposit in trust involved in the first case is similar to the deposit in trust in this same bank considered in Walso v. Latterner, 140 Minn. 455, 168 N. W. 353; and in Walso v. Latterner, 143 Minn. 364, 173 N. W. 711. In those cases it was held that the statute of trusts permitted the creation of such a trust. It was also held in accordance with the great weight of authority that, where a depositor deposits his own money in his own name in trust for another, he thereby creates a valid trust if it appears that he in fact intended the money to go to the other. It was further held that, where he makes such a deposit and dies before the beneficiary without having taken any action to disaffirm the trust, the presumption is that an absolute trust was created as to the balance remaining on deposit at his death. In the present case the fact that Mr. Knudsen intended the money to go to Olina Langmo is...
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