What is a Totten Trust?
A Totten Trust is a revocable trust created by one’s deposit of money in one’s own name as a Trustee for another. A Totten Trust is commonly used to indicate a success of to the account without having to create a will. Setting up a Totten Trust is as simple someone going to a bank and opening a Trust account by himself. A Totten Trust is best for amounts of about $20,000 or less. Larger amounts could present problems in payment of estate taxes at the depositors’ death, since the assets in these accounts are added to his taxable estate. A Totten Trust can be paid out quickly after death with a minimum of formalities. Because the money transfers directly, there is no need to choose a third-party Trustee. As with any other Trust, a Totten Trust keeps assets out of probate. A Totten Trust can be revoked at any time during the grantor’s lifetime, and the beneficiary cannot withdraw the money from the Trust account until the grantor’s death. Question: What is a Testamentary Trust? Answer: A
