Salvio v. SalvioSalvio v. Salvio
The principal issue in this case is whether savings accounts held by one or both parents in trust for their children may be included by the trial court in its division of marital property accompanying the parents’ divorce. The trial court divided six savings accounts issued in the name of the defendant wife, Sophie K. Salvio, in trust for Gerald and Deborah Salvio, children of the parties, equally between the defendant and the plaintiff husband, Fred E. Salvio, co-trustee of one account. The defendant appeals that decision and certain other orders arising out of the marital dissolution.
Fred and Sophie Salvio were married in 1959 and had two children, Gerald, born in 1960, and Deborah, bom in 1962. In 1978 the plaintiff, Fred Salvio, brought an action for divorce. The defendant counterclaimed, seeking dissolution of the marriage, custody of Deborah, at that time still a minor, and various financial benefits. At a protracted series of hearings the parties testified to the existence of twelve savings accounts, eight at the Berlin Savings Bank and four at the American Savings Bank of Newington. The latter accounts, two issued to the defendant as tmstee for Gerald and two as trustee for Deborah, contained at the time of trial approximately $50,000. They were not included by the trial court in its decision and are not at issue in
At trial both parties agreed that these accounts were established by the defendant as a fund for the children’s college education. 1 Although the defendant retained possession of the bank books and the plaintiff made only one deposit, the plaintiff knew of the existence of these accounts and of their purpose. The defendant testified to withdrawing funds from the accounts on one occasion to purchase a car and later replacing the amount withdrawn. 2 All other withdrawals were for the purpose of opening new accounts in trust for the children. The sources of the funds deposited included the earnings of both parties, the defendant’s inheritance, and gifts to the children.
In its memorandum of decision the trial court ordered that the funds in the six accounts at the Berlin Savings Bank be divided equally between the parties. The court further ordered that $3000 of the plaintiff’s share be held in escrow until resolution of certain disputed claims under a previous court order. After awarding custody of the minor child
On appeal to this court, the defendant’s principal claim of error is the inclusion by the trial court of the six Berlin Savings Bank accounts in its division of marital property. The defendant also claims error in the court’s order placing $3000 of the plaintiff’s share in escrow; in the court’s failure to act on the defendant’s motion for contempt against the plaintiff; in the amount of the court’s award of alimony and its denial of child support; in the allocation of the parties’ assets; and in the denial of counsel fees.
I
The defendant claims that the disputed accounts at the Berlin Savings Bank were beyond the trial court’s jurisdiction to allocate because they were irrevocable trusts owned by the beneficiaries, Gerald and Deborah. Since the beneficiaries, the true owners of the property, were not made parties to the dissolution action, she argues, the trial court could not order the disposition of a trust corpus based merely on the parties’ status as trustees. The first issue before us, then, is the determination of the rights of trustees and beneficiaries in savings bank trust accounts. Such a determination is a prerequisite to adjudication of the Superior Court’s jurisdiction to allocate such property in a marital dissolution action.
Because the issue before us is one of first impression in this state, it is important to put the savings account trust, now statutory, into its historical context. A savings account trust arises when a bank
Each of these analyses of savings bank trust accounts proved in some sense unsatisfactory. As this court recognized in
Driscoll
v.
Norwich Savings Society,
The earliest Connecticut statute to address this need provided procedures for the creation of savings account trusts and absolved banks from any liability for payment of funds on deposit at the
The defendant claims that a trust established under the provisions of
An examination of the legislative history for
Under the present statute it is perfectly clear, as we stated in
Manulik
v.
Devitt,
The question of when a beneficiary’s interest in a savings account trust actually arises is a crucial and troublesome one that has long exercised courts and commentators. See I Scott, Trusts (3d Ed. 1967) §§ 58.4A, 330.3; “Savings Account Trusts: A Critical Examination,” 49 Notre Dame Lawyer 686, 694 (1974); “Bank Account Trusts,” 49 Va. L. Rev. 1189, 1192-94 (1963). With celebrated ambivalence, the savings account trust seems to gaze at once in opposite directions. As a revocable trust, it suggests that the beneficiary gains some interest, however impermanent, in the funds deposited at the time the trust is created. As a tentative trust, however, it suggests that the beneficiary gains no interest until the tentative quality of the trust is extinguished by the depositor’s death. The two characterizations are not always used with precision; the Bestatement asserts that “[a] tentative trust of a savings deposit can be revoked by the depositor at any time during his lifetime”; Bestatement (Second), Trusts § 58, p. 157 (1959); effectively blurring any distinction between revocable and tentative trusts. See
United States
v.
State National Bank of Connecticut,
In some areas, however, the rights and obligations created by savings account trusts have been clarified. It is generally accepted that the funds on deposit may be reached by the depositor’s creditors during his lifetime and, if he dies insolvent, after his death. See
In re Chaikowsky, 94
Misc. 2d 70, 71,
The unresolved issue before us, then, is whether the parties’ children as beneficiaries of the savings account trusts established by their parents presently have a beneficial interest in those accounts sufficient to require their participation in the dissolution action before the trial court can take jurisdiction of the funds on deposit. In addressing that issue, we look first to the language of § 36-110 and then to this court’s interpretation of that provision.
Section 36-110 requires a depositor establishing a trust account to furnish a signed statement giving the beneficiary’s name and residence. It also, however, provides that “[s]uch statement may also specify the terms of the trust thereby created.” Only in the absence of any statement to the contrary does the statute’s conclusive presumption come into being. It is undisputed that the six Berlin Savings Bank accounts at issue were opened by the defendant without the addition of any terms limit
This court had occasion most recently to construe § 36-110 in
Manulik
v.
Devitt,
Courts in other jurisdictions have approved trial court decisions both including savings account trusts for the parties’ children among divisible marital assets;
Meinders
v.
Meinders,
Since Gerald and Deborah had acquired no legal interest in the funds on deposit, they were not necessary parties for the purpose of establishing the trial court’s jurisdiction over those accounts.
11
See Nelson, Divorce and Annulment (2d Ed. 1961) § 22.06. The fact that Deborah was a minor at the time of trial in no way distinguishes her situation from that of her brother. Although it was within the trial court’s discretion to appoint counsel for her;
II
The defendant also claims that the trial court erred in two respects by ordering that $3000 of the plaintiff’s share of the savings account trusts be placed in escrow for payment of bills owing under a January 19, 1979 pendente lite order. First, the defendant reiterates her position that those funds were not available to the trial court for distribution to the plaintiff; we have already resolved that question against the defendant. Second, she argues that since the final judgment erased the pendente lite order under which the plaintiff had been directed to pay certain of the defendant’s expenses, the trial court erred in rendering that judgment before the plaintiff’s duties under the January 19 order were resolved by either payment of sums due or a finding of civil contempt.
The defendant is correct that the January 19,1979 pendente lite order was “interlocutory in nature and terminate [d] with the rendition of the final judgment.”
Rodearmel
v.
Rodearmel,
Ill
The defendant next challenges the trial court’s award of $175 per week in alimony to the defendant, its denial of child support for the parties’ one minor child, and its division of the parties’ assets. These decisions all rest within the trial court’s discretion, guided by the statutory criteria provided by
The record amply supports the trial court’s decision. Although the court found that the defendant had no income and was effectively unemployable, it also found both parties to be in very poor health and the plaintiff unable to maintain the level of his prior earnings. The plaintiff was not ordered by the March decision to pay child support for the parties’ minor child “because she will be eighteen years of age in September and there is available for
IV
Finally, the defendant claims error in the trial court’s denial of counsel fees because she has no resources from which to pay her legal expenses. This claim is rooted in her earlier contention, rejected by us, that the $25,000 savings account trusts were not available for distribution to the parties.
The standards guiding the trial court’s grant or denial of counsel fees are set forth at
There is no error.
In this opinion the other judges concurred.
Notes
At trial the plaintiff’s attorney stipulated that the defendant opened all of the accounts at issue.
The transcript does not indicate whether the funds for the car were withdrawn from the Berlin Savings Bank or the American Savings Bank. The defendant testified that she withdrew $5000 “[fjrom one of the children’s” accounts.
General Statutes (1949 Rev.) provides as follows: “See. 5829. deposits in trust. No savings bank or the savings department of a state bank and trust company shall accept any deposit made by one person in trust for another unless the same shall be accompanied by a statement signed by the depositor giving the name and residence of the beneficiary and setting forth to whom the principal and interest of such deposit belong. Unless provision shall be made to the contrary in such statement, such deposit may, upon the death of the trustee, be paid to the beneficiary, and any savings bank or savings department of a state bank and trust company shall be fully protected in making such payment. In the case of a trust created by deed, will or other instrument, a certified copy of the instrument establishing such trust shall be filed by the depositor if at any time requested by such bank.”
For a history of Totten trusts in this state prior to
Fasano
v.
Meliso,
Public Acts 1961, No. 306, §1 provides as follows: “(1) No savings bank and no savings department of a state bank and trust company shall accept any deposit made by one person in trust for another unless the same is accompanied by a statement signed by the depositor giving the name and residence of the beneficiary. Such statement may also specify the terms of the trust thereby created.
“[General Statutes] Sec. 36-110. deposits in trust. (1) (a) No savings bank, state bank and trust company or national banking association shall accept any deposit made by one person in trust for another unless the same is accompanied by a statement signed by the depositor giving the name and residence of the beneficiary. Such statement may also specify the terms of the trust thereby created. Unless sueh statement specifies to the contrary, it shall be conclusively presumed that the depositor intends to create a trust of the moneys at any time standing to the credit of such account upon the following terms: 1. The depositor during his life may withdraw, or authorize charges against, the moneys to the credit of the trust; 2. if the depositor survives the named beneficiary, the named beneficiary’s death shall terminate- the trust and title to the moneys to the credit of the trust shall vest in the depositor free and clear of the trust; 3. if the named beneficiary survives the depositor, the depositor’s death shall terminate the trust and the moneys to the credit of the trust shall vest in the named beneficiary free and clear of the trust . . . .”
One situation roughly analogous to a marital dissolution suggests the uncertainty over the point at which the trust arises. The Bestatement asserts that “[i]f the depositor becomes insane, his guardian can apply to the court for permission to revoke the trust and the court will grant such permission if, but only if and to the extent that, the use of the deposit is necessary for the welfare of the depositor.” Bestatement (Second), Trusts § 58, p. 157 (1959); see I Scott, Trusts (3d Ed. 1967) § 58.4, pp. 539-40. There is also authority for the view that a beneficiary may sue a third party who has wrongfully withdrawn funds, but only after the death of the depositor. I Scott, Trusts (3d Ed. 1967) $ 58.4, pp. 540-41.
New York, for example, by statute includes savings account trusts in the decedent spouse’s estate. See I Scott, Trusts (3d Ed. 1967) J58.5, pp. 547-48; see Nortell, “Illinois’ Tottering Totten Trusts,” 63 Ill. B.J., 306, 309 (1975); “Bank Account Trusts,” 49 Va. L. Rev. 1189, 1202-1205 (1963). The issue has not yet been squarely addressed in Connecticut, although it is clear that “neither husband nor wife acquires, by virtue of the marriage, any interest in the real or personal property of the other during that other’s lifetime,” and “either spouse may, in his lifetime, without the consent or knowledge of the other, make a valid gift or otherwise dispose of his property, to a third party.”
Cherniack
v.
Some National Bank Trust Co.,
We note the unusual circumstances of
Fruchtman
v.
Manning,
Other courts have recently enlarged their definitions of marital property to include such financial interests as professional licenses and pension rights. See, e.g.,
In re Marriage of Brown,
Had either the children themselves or one of the original parties to the dissolution action filed a timely motion to make the children parties, such a motion for permissive joinder might well have been granted. A trial court generally has broad discretion to permit intervention, pursuant to our statutes;
The trial court of course has broad discretion, on its own initiative, to appoint counsel for any minor child, where it deems it to be in the best interests of the child to do so. See
At a hearing on January 18, 1980, the trial court observed that “I don’t see any reason to hear this motion for contempt at this point. That can be taken as part of the testimony of what is owed to the defendant.” The court then instructed the defendant’s counsel to “bring it up in your testimony of your case to indicate, so that the court can make a decision on what kind of an order to make.”
“[General Statutes] See. 46b-82. (Formerly Sec. 46-52). alimony. At the time of entering the decree, the superior court may order either of the parties to pay alimony to the other, in addition to or in lieu of an award pursuant to