HOUSE BILL NO. 490
AS AMENDED BY HOUSE AMENDMENT NO. 1
AN ACT TO AMEND CHAPTER 9, TITLE 5, DELAWARE CODE TO PROVIDE FOR A MORE COMPREHENSIVE AUTHORITY FOR BANKING ORGANIZATIONS TO ACCEPT DEPOSITS IN TRUST.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Chapter 9, Title 5, Delaware Code by repealing Section 924 of Subchapter 1 thereof and by substituting therefor a new Section 924 to read as follows:
§924. BANK DEPOSIT ACCOUNTS IN TRUST FORM
(a) The following terms shall have the following definitions for the purposes of this Sections 924.
(1) A " beneficiary" is a natural person who is described by a depositor as a person for whom a trust account is established or maintained. There shall be no more than one beneficiary per trust account, unless otherwise provided by the respective banking organization's agreements, rules or regulations.
(2) A "depositor" is a natural person in whose name a trust account subject to this part is established or maintained. There shall be no more than two depositors per trust account, unless other-wise provided by the respective banking organization's agreements, rules or regulations.
(1) A "trust account" Includes all deposits In savings account, interest or nonlnterest bearing transaction account, time deposit whether or not evidenced by a certificate, or any similar deposit account in a banking organization which is established by a depositor as trustee for another, other than a depositor describing himself as acting under a will, trust instrument or other document. court order or decree.
(b) All funds in a trust account, including any Interest or additions thereto.
shall be trust funds subject to the following terms:
(1) Except as otherwise provided by the respective banking organization's agreements, rules or regulations, the trust can be revoked, terminated or modified in whole or In part by any depositor during his lifetime by means of, and to the extent of, partial or total withdrawals from or charges against the trust account made or authorized by the depositor or by a writing, other than a will or other similar testamentary disposition, received by the banking organization wherein the account Is maintained during the lifetime of the depositor.
(1) The trust account cannot be revoked, terminated or modified In whole or in part by any depositor by will or other similar testamentary disposition.
(2) If the depositor survives the beneficiary, the trust shall terminate and title to the funds shall continue in the depositor free and clear of the trust.
(3) If the beneficiary survives the depositor, the trust shall terminate and title to the funds shall vest In the beneficiary free and clear of the trust.
(4) If the depositor and beneficiary die under circumstances where it is impossible to determine which survived the other, it shall be conclusively presumed that the depositor was the survivor and title to the funds shall vest in the depositor's estate, free and clear of the trust.
(c) If the beneficiary survives the depositor under the circumstances provided in paragraph (4) of Sub-section <b). the funds shall be paid to the beneficiary upon his order, If, at the time of his demand for payment of all or part of the funds, he is eighteen or more years of age. If the beneficiary survives the depositor under the circumstances provided In paragraph (4) of Sub-section (b) and if the beneficiary is under eighteen years of age at the time demand for payment of any part or all of the funds Is made, the funds may be paid to the order of the parent or parents of the beneficiary to be held for the use and benefit of such minor beneficiary or to the order of the duly appointed guardian of the property of the beneficiary.
(d) banking organization which, upon the death of a depositor and prior to service upon it of a restraining order, induction or other appropriate process from a court of competent jurisdiction prohibiting payment, makes payment to a beneficiary or, if the beneficiary is under eighteen years of age, to the guardian of the property or to the parent or parents of the minor beneficiary pursuant to Sub-section (c) of this Section, shall, to the extent of such payment, be released from liability to any person claiming a right to the funds and the receipt or acquittance of the person to whom payment is made shall be a valid and sufficient release and discharge of the banking organization.
(e)If a trust account Is established in the names of more than one depositor, in form to be paid or delivered to any or the survivor of them, in trust for another, such account shall be subject to the terms of this Section 924, except that the title to the funds on deposit and any additions and accruals thereon, as between the depositors, shall be the property of such depositors as joint tenants; and the property, together with all additions and accruals thereon, may be paid or delivered to any of such depositors during the lifetime of such depositors subject to the terms of Section 923 of this Title, and, after the death of one of them, title to the property, together with all additions and accruals thereon, shall become the property of the surviving depositor or surviving depositors, subject to the trust which may be revoked, terminated or modified by the surviving depositor or depositors, as the case may be, in accordance with the terms of this Section 924."
Section 2. The provisions of this Act shall be effective upon adoption and shall be
deemed to apply to all existing trust accounts as well as all trust accounts created subsequent to the effective date hereof.
Approved June 15, 1988