What Is a Totten Trust Account?

A Totten trust is a form of trust in the United States in which one party places money in a bank account or security with instructions that upon the settlor's death, whatever is in that account will pass to a named beneficiary.

How does a Totten trust work?

A Totten trust (also referred to as a "Payable on Death" account) is a form of trust in the United States in which one party (the settlor or "grantor" of the trust) places money in a bank account or security with instructions that upon the settlor's death, whatever is in that account will pass to a named beneficiary.

What is the difference between a Totten trust and pod?

There is no difference between a Totten trust and a payable on death (POD) account. The Totten trust originally received its name from the 1904 court case. In modern times, however, the term “payable on death” account is more widely used.