## Facts

- Louis P. Hermann was physically and financially dependent on his sister, Rose B. Boone.
- Boone kept two bank accounts in her own name at Brighton German Bank Company.
- Boone went to the bank and asked to deposit money for her brother.
- The bank opened a savings account titled “Rose B. Boone for L. P. Hermann.”
- The funds deposited into the “for Hermann” account came from Boone’s money, and she occasionally added more from her own funds.
- Boone kept the account passbook in her own safe-deposit box and retained practical control over the account during her life.
- Boone never withdrew money from the “for Hermann” account while she was alive.
- Hermann did not possess the passbook and did not withdraw funds during Boone’s life.
- Boone later became ill and died.
- Boone’s estate lacked enough remaining assets to pay all debts and funeral expenses.
- A dispute arose whether the balance in the “for Hermann” savings account belonged to Hermann or instead was Boone’s property subject to administration and creditor claims.

## Issues

1. Did Boone’s deposit of her own money into a savings account labeled “Rose B. Boone for L. P. Hermann,” while she retained the passbook and control, complete an inter vivos gift to Hermann?
2. If not a gift, did the account arrangement constitute a valid, executed trust for Hermann that removed the funds from Boone’s estate and her creditors?

## Decision

- The court held the arrangement did not constitute a completed inter vivos gift to Hermann.
- The court held the arrangement did not create a valid, executed trust in Hermann’s favor.
- The court concluded the account remained Boone’s property and was part of her estate at death, available to pay estate debts and funeral expenses.

## Legal Principles

- An inter vivos gift requires present donative intent and delivery sufficient to transfer control and to divest the donor of dominion; for a savings account, retention of the passbook and continued ability to control withdrawals defeats delivery.
- The account wording “A for B,” standing alone, is not enough to show a present transfer of ownership to B when A keeps exclusive control of the account.
- A valid, executed trust requires a clear, present manifestation that the depositor holds identified property as trustee for the beneficiary, creating an enforceable beneficial interest during the depositor’s life; continued treatment of the account as the depositor’s own weighs against finding such a trust.
- An arrangement that functions only as a transfer at death is testamentary in character and cannot defeat estate administration and creditor rights without compliance with will formalities.

## Conclusion

Because Boone funded the “Rose B. Boone for L. P. Hermann” account with her own money, retained the passbook in her safe-deposit box, and kept effective control over the deposit during her lifetime, the court found neither a completed gift nor a presently effective executed trust; the balance therefore belonged to Boone’s estate and could be reached to satisfy funeral expenses and creditor claims.


Hermann v. Brighton German Bank Co., 16 Ohio N.P. (n.s.) 47 (1914)