totten trust: meaning, definition, pronunciation and examples
Very LowLegal/Financial/Technical
Quick answer
What does “totten trust” mean?
A trust arrangement created by one person depositing money in a bank account in their own name, but 'in trust for' another beneficiary, which becomes irrevocable only upon the depositor's death.
Audio
Pronunciation
Definition
Meaning and Definition
A trust arrangement created by one person depositing money in a bank account in their own name, but 'in trust for' another beneficiary, which becomes irrevocable only upon the depositor's death.
A simple, informal method of creating a testamentary trust solely through a bank account designation, also known as a 'payable-on-death' account or revocable trust account, used to transfer assets without probate.
Dialectal Variation
British vs American Usage
Differences
The term is primarily an American legal concept, stemming from New York case law. In the UK, similar functions are achieved through 'bank accounts in trust' or specific 'trust declarations,' but the precise 'Totten trust' terminology is not used.
Connotations
American: Specific legal device. British: Not a standard term; the concept would be described functionally.
Frequency
Very rare in UK English; used almost exclusively in American legal and estate planning contexts.
Grammar
How to Use “totten trust” in a Sentence
[Depositor] established a Totten trust for [Beneficiary] at [Bank].The [Account] was held as a Totten trust.Vocabulary
Collocations
Examples
Examples of “totten trust” in a Sentence
verb
British English
- N/A – Totten trust is exclusively a noun.
American English
- N/A – Totten trust is exclusively a noun.
adverb
British English
- N/A
American English
- N/A
adjective
British English
- N/A
American English
- N/A
Usage
Meaning in Context
Business
Used in banking and estate planning to describe a specific account type for client asset transfer.
Academic
Studied in law schools within trusts, estates, and property law courses.
Everyday
Virtually never used in everyday conversation outside of specific legal/financial advice contexts.
Technical
Precise term in American estate law and financial services documentation.
Vocabulary
Synonyms of “totten trust”
Strong
Neutral
Weak
Vocabulary
Antonyms of “totten trust”
Watch out
Common Mistakes When Using “totten trust”
- Using it as a general term for any trust (it's very specific).
- Assuming it is irrevocable during the depositor's lifetime (it is fully revocable).
- Misspelling as 'Toton trust' or 'Totten trust'.
FAQ
Frequently Asked Questions
No. A Totten trust is a 'will substitute' for a specific asset (a bank account). It avoids probate for that account, whereas a will governs the distribution of all probate assets.
Yes. During your lifetime, you can revoke or change a Totten trust simply by withdrawing the funds, closing the account, or changing the account's 'in trust for' designation.
Primarily yes, it applies to bank accounts (savings, checking, certificates of deposit). The concept is less commonly applied to other financial instruments.
It is named after the 1904 New York Court of Appeals case 'In re Totten', which formally recognized and established the legal principles for this type of account.
A trust arrangement created by one person depositing money in a bank account in their own name, but 'in trust for' another beneficiary, which becomes irrevocable only upon the depositor's death.
Totten trust is usually legal/financial/technical in register.
Totten trust: in British English it is pronounced /ˈtɒt.ən trʌst/, and in American English it is pronounced /ˈtɑː.t̬ən trʌst/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “It's not a formal will, just a Totten trust.”
Learning
Memory Aids
Mnemonic
Think: 'TOTten' trust = 'Transfer On Termination' trust. It only takes full effect when the owner's life TOTally ends.
Conceptual Metaphor
A 'post-mortem piggy bank' – money is set aside now, but the box can only be opened by the named person after the owner's death.
Practice
Quiz
What is a defining characteristic of a Totten trust?