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Joint accounts passed outside the estate through a trust for all children.
Appeal in estate litigation concerning whether funds in joint bank accounts with right of survivorship formed part of the deceased's estate or were held for the benefit of all five children.
Applying the framework in Pecore, the court held the presumption of resulting trust was rebutted by evidence that the deceased intended an immediate inter vivos gift of the beneficial right of survivorship to all of his children, with the legal holders of the accounts holding that right in trust for them equally.
The court declined to entertain a new secret trust argument raised for the first time on appeal.
On the cross-appeal, the court held the trial judge erred in refusing estate indemnification, because the litigation was required for the proper administration of the estate and was caused by the testator's own arrangements.
A blended costs order was appropriate.
Joint bank accounts passed outside the estate as valid inter vivos gifts.
A dispute arose during a passing of accounts over whether funds held in joint bank accounts between a deceased parent and two adult children formed part of the estate.
The accounts were opened with rights of survivorship and funded exclusively by the deceased.
Applying the principles in Pecore v. Pecore, the court considered evidence of intention, bank documentation, control of funds, tax treatment, and surrounding circumstances.
The court held that the presumption of resulting trust was rebutted because the deceased intended to gift the beneficial interest in the joint accounts inter vivos.
The evidence further supported that the surviving joint account holders were to distribute the funds equally among all siblings, either as direct beneficiaries or through a bare trust.
The funds therefore did not form part of the estate.
