Section 384-D:1 Deposits by One Person in Trust for Another.
I. Whenever any deposit shall be made in a bank in the name of an individual depositor in trust for or as trustee for a named beneficiary, including a minor, and no other or further notice of the existence and terms of a legal and valid trust shall have been given in writing to the bank, it shall be conclusively presumed that the individual depositor intends to declare and create a trust of the moneys at any time standing to the credit of such account, for the named beneficiary, with the depositor as trustee, upon the following terms:
(a) The trust shall be revocable at will by the individual depositor, but only to the extent of withdrawals of, charges against or pledges of, the moneys to the credit of the trust, made or authorized by the individual depositor during his life. Each such withdrawal or charge and each such pledge to the extent not subsequently redeemed, shall constitute a pro tanto revocation of such trust.
(b) If the individual depositor survives the named beneficiary, the named beneficiary's death shall terminate the trust and title to the moneys to the credit of such account shall vest in the individual depositor free and clear of the trust.
(c) If the named beneficiary survives the individual depositor, the individual depositor's death shall terminate the trust and any moneys to the credit of such account, less all proper set-offs or reductions pursuant to any pledge, shall vest solely and indefeasibly in the named beneficiary free and clear of the trust, notwithstanding any evidence of a contrary intent on the part of the individual depositor.
(d) The rights of the named beneficiary to the moneys to the credit of such account arising from the foregoing presumption shall not be denied, abridged or in any way affected because such rights have not been created by a writing executed in accordance with the laws of this state prescribing the requirements to effect a valid testamentary disposition of property or because of any absence of delivery or compliance with other requirements to effect a valid gift or transfer in trust.
II. A bank which makes any payment in accordance with paragraph I of this section shall, to the extent of each payment so made, be released from all claims of the individual depositor, the named beneficiary, their respective legal representatives, and all others claiming under or through them.
Source. 1975, 199:2, eff. Aug. 1, 1975.