Totten Trust (Noun)
Meaning
A savings account deposited by someone who makes themselves the trustee for a beneficiary and who controls it during their lifetime; afterward the balance is payable to the previously named beneficiary.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The grandmother set up a Totten trust for her granddaughter's education expenses, managing the account herself until she passed away.
- After reviewing her will, the executor discovered a Totten trust had been established in her grandson's name, dated several years prior.
- The Totten trust my parents created for me has been growing for years, accumulating interest for my future use.
- A Totten trust is a convenient way to leave a sum of money for a loved one without having to probate a will.
- By setting up a Totten trust in her son's name, the mother ensured he would receive the money without having to deal with the complexity of the estate.