Surrogate Edward McCarty III
Respondent moved to dismiss this proceeding under Surrogate's Court Procedure Act §2103, arguing lack of subject matter jurisdiction. The petition alleged decedent created a joint account with respondent which was a convenience account, thus the funds on deposit after his death were estate assets. Respondent argued the account was a joint account in respondent's and decedent's name, in trust for respondent and two others. The executor was allegedly unaware of the creation of a Totten trust. Respondent alleged that even if there was a defect in the designation of the joint tenant, the property passed by operation of law to the trust beneficiaries, claiming the court lacked jurisdiction to determine a controversy related to non-testamentary assets, specifically a Totten trust. The court noted that for a Surrogate's Court to decline jurisdiction it should be evident the matter in controversy in no way affected the affairs of a decedent or the administration of the estate. The executor alleged the designation of a joint tenant and the creation of a Totten trust did not reflect the intention of decedent and the funds were estate assets. The court ruled executor was entitled to conduct an inquiry regarding the account, finding it had subject matter jurisdiction, and denied dismissal.
