Furjanick's Estate, In re

• Decision Date: 09 November 1953
• Citation: 375 Pa. 484,100 A.2d 85
• Parties: In re FURJANICK'S ESTATE.
• Court: Pennsylvania Supreme Court

Page 85

100 A.2d 85

375 Pa. 484

In re FURJANICK'S ESTATE.

Supreme Court of Pennsylvania.

Nov. 9, 1953.

Paul N. Barna, Donora, for appellant.

D. M. Anderson, Jr., and Geo. O. Frazier, Donora, for appellee.

Before STERN, C. J., and STEARNE, JONES, BELL, CHIDSEY, MUSMANNO, and ARNOLD, JJ.

BELL, Justice.

Peter (Pit) Furjanick, an unmarried man 83 years of age, and his niece, Susan (Sue) Furjanick, resided together in a property of the decedent situated in Donora, Pennsylvania. On December 13, 1945 they went together to his bank where he had a savings account and a checking account which were carried in his name only. At Peter's request, which will be hereinafter discussed at length, these accounts were closed and a new savings account and checking account carrying the same balances were created in their joint names, the signature cards reading as follows:

'Pit Furjanic or Sue Furjanic Joint Savings

Account ¹

* * *

* * *

(Signed) Pit Furjanic

(Signed) Sue Furjanic, Niece'

At that time each of them signed the following agreement which was on the reverse side of said signature card:

'The undersigned do hereby open a

joint account with

Union National Bank, Donora, Pa.

(Hereinafter called the Bank)

and agree each with the other ² and with the said bank that all sums heretofore or hereafter deposited by either or both of said joint depositors, with the said bank to their credit as such joint depositors, with all accumulations thereon, are and shall be owned by them jointly, with the right of survivorship and not as tenants in common, and be subject, in whole or in part, at any time and from time to time, during the life of both, to the check or order of withdrawal of both or either of them; and that upon the death of either the balance in said account shall belong to the survivor of them, and payment thereof to or on the check of the survivor shall be valid and discharge the said bank from all liability. Each of the undersigned appoints the other his or her Attorney-in-fact to endorse any check, draft, note, or other instrument payable to his or her order or to the order of both, and to deposit the same or any other moneys to said joint account.

'It is further stipulated that this agreement is not revocable except, by written notice to the said bank signed by both depositors, and that such notice shall not affect transactions theretofore made.

'Witness our hands and seals this day of Dec 13 '45 A.D. 19__.

(Signed) Pit Furjanic (Seal)

(Signed) Sue Furjanic (Seal)

Witness (Signed) Ben G. Binns'

The Court below found:

'It is also undisputed that at time the transfer was made there was to the credit of testator [Peter] in the savings account the sum of $6,071.50--the exact amount in checking account at such time was not disclosed by the testimony of the witnesses, but from signature card appears to have been $4,743.79.

'It is also undisputed that at date of death of decedent there was a balance in the joint savings account of $21,907.67, and in the joint checking account there was a balance of $1,325.46, and that from the date of the creation of such joint accounts, to date of death of the testator, all additional deposits to such accounts were made by him with his own funds and all withdrawals were likewise made by or for him; that no withdrawal was made by the niece during decedent's lifetime, but that subsequent to the death of the testator, the balances in both accounts had been withdrawn by his niece, and held by her for her own benefit.'

Peter Furjanick died testate June 3, 1949 leaving a balance of personal estate, excluding the aforesaid savings and checking accounts, of $6,192.87. By his last will dated February 26, 1949, he specifically devised two houses and lots to Sue and all of his other real estate to collateral heirs; he gave Sue a cash legacy of $3,000, and Sue's son a cash legacy of $3,000; he also made cash bequests to other nephews and nieces in amounts totaling $15,500. He made Sue his sole executrix. These contesting nephews and nieces contend and the Auditing Judge held (1) that the testimony of Mr. Binns, who was president of the bank at the time of the creation of the joint accounts, was admissible in evidence; (2) that his testimony was sufficiently clear, precise and indubitable to prove that decedent never intended to make an irrevocable gift to his niece Sue; (3) that the testator's testamentary bequests totaling several times the estate he possessed, constituted a bequest of the aforesaid savings account and checking account; and (4) that these bank accounts were a part of Peter's estate.

There are two theories under which Binns' evidence might be admissible: (1) mistake, and (2) lack of donative intent, which is the usual contention in these cases and is the one which is relied on by these contestants.

Mr. Binns testified--on behalf of the contesting nephews and nieces--and the lower Court found the following facts: The decedent wanted to change his accounts in order to enable Sue to pay his food, household and medical expenses. Binns refused to permit the bank to take that responsibility, and suggested, not a power of attorney, but a joint account with the niece. Furjanick was at first reluctant to do this, but after lengthy discussion with Binns, agreed to do so because he had confidence that Sue would do the right thing. The decedent knew what he was doing when he directed him (Binns) to change his accounts and created the joint accounts in question, and when he executed the signature cards and the written agreements, all of which Binns had explained to him carefully and in great detail.

In other words, the contestants proved that Furjanick clearly and unquestionably knew exactly what he was doing as well as the practical effects and legal consequences of his acts in opening the savings and checking accounts in the joint names, and executing with his niece Sue the agreement which clearly provided that the money in the accounts are and shall be owned by them (him and Sue) jointly with the right of survivorship; and that either (or both) had the right in his lifetime to withdraw the funds without any strings or conditions; and that upon his death the balance shall belong to his niece (the survivor), and that the agreement was not revocable except by written notice signed by both of them. The fact that these may not have been Furjanick's original desires, or that he was confident Sue would do the right thing--whatever that means--is immaterial and is utterly insufficient to prove 'mistake'.

That brings us to the next question: Was Binns' aforesaid testimony admissible and if so was it sufficient to prove lack of donative intent?

A statement of the applicable principles of law will aid us in answering these questions.

The deposit of cash in a savings account or checking account in the name of the depositor in trust for 'X', creates presumptively a tentative or revocable trust, but since it is incomplete there is ambiguity or doubt as to whether depositor intended a revocable trust or an irrevocable trust or absolute gift, or no trust at all, and consequently parol evidence is admissible in such cases to show what the actual intention of the depositor or donor was; and this intention can be shown by the statements, declarations, admissions, acts and conduct of the parties, at the time of as well as after and before the deposit. In re Ingels' Estate, 372 Pa. 171, 183, 92 A.2d 881; In re Rodgers' Estate, 374 Pa. 246, 97 A.2d 789; In re Scanlon's Estate, 313 Pa. 424, 169 A. 106; Matter of Totten, 179 N.Y. 112, 71 N.E. 748, 70 L.R.A. 711.

When a depositor creates a joint savings or...