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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
(149) Under the Restatement, Totten trusts would be subject to the spouse's elective share.
(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.
More sophisticated parties may make future transfers with vehicles such as the Totten trust or the life reservation with remainder, which although relatively accessible are still limited.
Neither the life reservation nor the Totten trust would be able to effectuate the proposed future gift form with a specific delay of 1 to 5 years.