Totten trust

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Totten Trust

A trust into which the grantor places banking assets such as savings accounts and certificates of deposit while maintaining control of them. That is, the grantor maintains the ability to invest, profit from, or otherwise use the assets in the Totten trust. The assets in the Totten trust pass on to the beneficiary following the death of the grantor. However, because the grantor maintains the rights of ownership (though not ownership itself), the trust is subject to the estate tax.

Totten trust

A trust in which the assets are deposited for a beneficiary but the grantor has complete control of the trust, including the right to reclaim the assets. The assets pass to the beneficiary upon the death of the grantor but are taxed as part of the grantor's estate.
References in periodicals archive ?
149) por cases ruling that Totten trusts are not subject to the spouse's elective share, see Dalia v.
67) In the Totten trust cases, the fact that a Totten trust is a judicial creation has caused confusion by the court in evaluating the issue.
For instance, the Totten trust requires opening a bank account.