Opinion ID: 2451452
Heading Depth: 1
Heading Rank: 4

Heading: the certificates of deposit

Text: In connection with the discovery of estate assets, the trial court found that proceeds of the certificates of deposit jointly titled in the names of Faye V. Smith and Melvin L. Haer properly vested in Melvin at the time of his mother's death with the exception of the interest accumulated and undistributed at the date of Mrs. Smith's death which the court found to be an asset of the estate. Although the trial court found that there was no fraud or undue influence involved in the titling of the certificates of deposit, it ordered the accumulated interest to be inventoried and added to the estate's assets. In so doing, the court misapplied the law. Section 362.470, RSMo 1986, provides that when an account is established in the name of the depositor and any one or more other persons, the account becomes the property of these persons as joint tenants. It further provides: The making of a deposit in such form, and the making of additions thereto, in the absence of fraud or undue influence, shall be conclusive evidence in any action or proceeding to which ... any survivor is a party of the intention of all the parties to the account to vest title to the account and the additions thereto and all interest thereon in the survivor. § 362.470. Once it was conclusively established that the jointly held certificates of deposit vested in Melvin, all interest thereon vested in Melvin as well. See Estate of Ferling, 670 S.W.2d 109, 112-13 (Mo. App.1984). Therefore, the judgment of the trial court must be reversed insofar as it declares the accumulated interest to be an asset of the estate and orders the accumulated interest to be inventoried and included in the estate. On their cross-appeal, plaintiffs claim that a constructive trust should have been imposed on the certificates of deposit. They contend that substantial evidence demonstrates that Melvin understood that his mother wished to have the proceeds from the jointly titled certificates of deposit equally divided among her sons, and that Melvin violated the confidence and trust placed in him by his mother by keeping the certificates of deposit for himself. They further charge that it was error for the trial court to refuse to consider the issue of constructive trust on the grounds that the issue was not timely pleaded because evidence bearing on that issue was admitted without objection, thereby impliedly amending the pleadings. Assuming it was error by the trial court to rule that the issue of a constructive trust was not timely pleaded, the ultimate disposition of that issue is controlled by the operation of section 362.470. The language of the statute is clear and unequivocal. Absent a finding of fraud or undue influence, the joint titling of the certificates of deposit was conclusive evidence of Mrs. Smith's intention to vest title to the accounts in Melvin upon her death. See Estate of Ferling, 670 S.W.2d at 112-13. Plaintiffs contend that constructive trust was proper because they proved Melvin breached a confidential relationship with his mother which is, in itself, constructive fraud. Thompson v. Williams, 671 S.W.2d 442 (Mo.App.1984). The trial court found a confidential relationship existed, but that no evidence was presented that Melvin exerted any influence to induce his mother to jointly title the certificates of deposit with him or that she directed him to distribute the proceeds to anyone.