Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1896-12-31
Trust FuNys IN SAVINGS BANKS
They Are Guarded by the Law Tor the
GenehciarN,s HaneHt.

They Are Guarded by the Law Tor the
Benehciary's Benefit.
The trust funds placed IN savings
banks cause a great deal Of trouble
sometimes. The ease Of Charles Is.
Palmer. the late con tractor Of 1onkers,
brings this subject up anew. Mr.. Palm
CT in 1886 placed in the Peoples savings
bank Of Ionilers the sum Of $1,000 in
trust for his wife; also certain amounts
for two of his children. From time 10
time as he needed money he drew from
these trust funds without the consent
of the benehc;aries. Upon the death ct
Mr.. Palmer the beneticiarieS Of these
trust funds brought an action against
The executors of the estate TO recover
the full amount IF money deposited by
Mr.. Palmer in trust for them. Justice
Martin Z. Keogh, of the supreme court.
handed down a decision holding that
the several deposits vested in the henc-
1iciaries the money so deposited. and
that the executors must turn over the
original trust money, notwithstanding
the fact that Palmer used Il during his
life.
john =. Townsend, president of the
Bowery savings bank of this city. in
speaking of this case told a Tribune re-
porter that he considered the decision
good law. He said that in the Bowery
savings bank, which had at the present
time about 900 open accounts. there
were at least / ,000 placed there in trust.
In dealingwith these accounts the banks
knew only the trustee. The beneficiary
could not draw the money during the
life of the trustee. Mr.. Townsend
said that the trust accounts were usu-
ally restricted to members Of the same
family. The bank did not encourage
prOmiscuous OF miscellaneous trust de-
posts, and it would accept such only in
exceptional eases. The motive for Gre
ating trust deposits differed with the
circumstances governing the case
Sometimes a father at the birth Of a
child would start trust account for
the baby, so that when it grew to its
majority it would have 4 little sum OF
money to help it in getting married or
starting in business. 4 case was men
toned where a fond mother, at the birth
OF her first baby girl, had started max
ing a deposit each year OF ten dollars
to the baby's credit, so that when the
time came for her TO get married she
would have something to buy her
trousseau with. When the girl was
/ well il her teens she found cut in some
way that this money had been deposit
ed for her. One day she stole the bank
book ard went to the bank tO draw the
! money, but was chagrined to find that
the bank refused to pay to any one ex.
cept her mother
Sometimes. Mr., Townsend said, a
husband who was making money would
deposit sum in trust for his wife, with.
out her knowledge, SO that at his death
she would be sure Of that amount out
side Of anything that his estate might
be worth when he died. At his death
this money would at once be paid to
| her by the bank. without waiting fol
| legal settlement of the estate. and there
was saving Of surTogate's fees. The
! arGCunt of money deposited in trust ran
! all the way from ten dollars up to So,
Geo, the limit fixed by law regulating
The amount a savings bank may accept
| from any one Gepositor.
Upon the death Of trustee the bank
lays the money at once to the henef,
ciary unless it has been notified of some
! legal transfer Of the same into some
other channel. When there is l;tiga.
ticn over such accounts, the bank has
| only TO make a statement IF the ac.
count aud then ask the court what shall:
lee done with ii. This let's the banE
out Of the affair and leaves the benef.
ciary and trustee or his executor tc
! fight it out between therl.--N. Y. Trib