Totten trust


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Related to Totten trust: spendthrift trust

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 ?
It should be noted that although this is not exactly the same question as whether a Totten trust should be subject to the elective share, the case was argued on the theory that a surviving spouse should be treated as a creditor and as a spouse in a marital dissolution, id.
Lawrence, (61) decedent established two Totten trusts in favor of his children from his first marriage.
For instance, the Totten trust requires opening a bank account.