N.Y. Estates, Powers & Trusts Law § 7-5.2: Terms of a trust account

§ 7-5.2 Terms of a trust account

The funds in a trust account, which shall include any dividends or

interest thereon, shall be trust funds subject to the following terms:

(1) The trust can be revoked, terminated or modified by the depositor

during his lifetime only by means of, and to the extent of, withdrawals

from or charges against the trust account made or authorized by the

depositor or by a writing which specifically names the beneficiary and

the financial institution. The writing shall be acknowledged or proved

in the manner required to entitle conveyances of real property to be

recorded, and shall be filed with the financial institution wherein the

account is maintained.

(2) A trust can be revoked, terminated or modified by the depositor's

will only by means of, and to the extent of, an express direction

concerning such trust account, which must be described in the will as

being in trust for a named beneficiary in a named financial institution.

Where the depositor has more than one trust account for a particular

beneficiary in a particular financial institution, such a direction will

affect all such accounts, unless the direction is limited to one or more

accounts specifically identified by account number in addition to the

foregoing requirements. A testamentary revocation, termination or

modification under this paragraph can be effected by express words of

revocation, termination or modification, or by a specific bequest of the

trust account, or any part of it, to someone other than the beneficiary.

A bequest of part of a trust account shall operate as a pro tanto

revocation to the extent of the bequest.

(3) 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.

(4) If the beneficiary survives the depositor, and the depositor's

will contains no provision revoking, terminating or modifying the trust

account under paragraph (2), the trust shall terminate and title to the

funds shall vest in the beneficiary free and clear of the trust.

(5) If the beneficiary survives the depositor and the depositor's will

contains language sufficient under paragraph two of this section, to

revoke, terminate or modify the trust, in whole or in part, that part of

the trust which is affected shall terminate and title to the funds shall

be subject to disposition by the depositor's will, free and clear of the

trust.