Byrd v. Lanahan

Thomas Lanahan executed a will in 1966, naming his wife, Irene Lanahan (defendant), as his sole beneficiary and executrix. In 1983, Thomas opened a savings account in his name only and funded the account with $50,000. In 1986, Thomas returned to the bank and signed a bank card titled “Change of Ownership.” The card contained a written declaration of trust and instructions for the bank to change the ownership of Thomas’s savings account from Thomas only to Thomas as trustee for Susan T. Lanaham Byrd (plaintiff), Thomas’s daughter from a previous marriage. The card stated that Thomas could revoke the account at any time and that at Thomas’s death, Susan would receive the proceeds of the account. Thomas did not tell Susan or Irene about the account before he died in 1987. After Thomas’s death, Irene and Susan disputed ownership of the account proceeds. The bank filed an interpleader action. At trial, Irene argued that Thomas’s designation of Susan as the account beneficiary did not grant an interest in the account to Susan. Susan argued that when Thomas changed the ownership of the account, he created a Totten trust that he did not revoke before his death. The trial court held that Nevada law did not recognize the creation of Totten trusts and thus awarded the proceeds of the account to Irene as executrix. Susan appealed, arguing that Nevada recognized the creation of Totten trusts and that she was the beneficiary of the Totten trust that Thomas created.