Section 384-D:2 Deposits in Names of 2 Individual Depositors in Trust for Another.
I. Whenever any deposit shall be made in a bank in the names of 2 individual depositors, payable to either and to the survivor of them, in trust for or as trustees 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, each such individual depositor shall conclusively be presumed to intend 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 individual depositors or the survivor of them as trustees or trustee, upon the following terms:
(a) The trust shall be revocable at will by each of the individual depositors or the survivor of them, but only to the extent of withdrawals of, charges against or pledges of the moneys to the credit of the account made or authorized by the individual depositors or either of them during their respective lives. 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 either of the individual depositors predeceases the named beneficiary, the trust shall not terminate, but the surviving individual depositor shall continue as trustee of the moneys to the credit of the account from time to time, free of any claim by the personal representatives or other persons claiming under or through the deceased individual depositor, and, from and after the death of the deceased individual depositor, the rights of the surviving individual depositor and of the named beneficiary shall in all respects be the same as if the account were, at the death of the deceased individual depositor, a deposit maintained in the bank in the sole name of the surviving individual depositor in trust for or as trustee for the named beneficiary pursuant to RSA 384-D:1.
(c) If the named beneficiary predeceases either of the individual depositors, his death shall terminate the trust, and
(1) If both of the individual depositors survive the named beneficiary, title to the moneys in the account shall, at the death of the named beneficiary, vest in the individual depositors free and clear of the trust, and thereafter such account shall be treated as a joint account or deposit and distribution thereof shall be as provided in RSA 384:28-31; or
(2) If only one of the individual depositors survives the named beneficiary, title to the moneys in the account shall, at the death of the named beneficiary, vest in the surviving individual depositor, free and clear of the trust.
(d) If the named beneficiary survives both the individual depositors, the death of the individual depositors, or if they die at different times, the death of the survivor of them shall terminate the trust, and any moneys to the credit of the 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 depositors or either of them.
(e) The rights of the named beneficiary to the moneys to the credit of the 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. Paragraph I of this section shall apply to all deposits when made in a bank in the names of 2 individual depositors in trust for or as trustees for a named beneficiary, regardless of whether the names of the 2 individual depositors are stated in the conjunctive or disjunctive and regardless of whether mention is made of any right of survivorship.
III. 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 2 individual depositors and each of them, the named beneficiary, their respective legal representatives, and all others claiming through or under them.
Source. 1975, 199:2, eff. Aug. 1, 1975.