One of the most important decisions that’s made during the estate planning process is determining who’s going to receive which assets. Some of these assets might include bank accounts, such as checking and savings accounts.
Totten trusts, which are a type of revocable trust, are one option that’s available for getting bank accounts to the intended beneficiaries. This type of trust is commonly referred to as a payable-on-death designation.
What are the benefits of a Totten trust?
A Totten trust makes it easier and faster for the beneficiary to get the funds in the account than what’s possible if they have to go through the probate process. It’s important to note that they can’t access the account before your death. You still have complete control and use of the account while you’re living. In order to access the funds, they have to provide an acceptable form of identification and the death certificate.
How do you establish a Totten trust?
Setting up a Totten trust is simple. You can set the designation when you open the account, and you can change it as you desire. All you have to do is fill out the payable on death designation form. Once you have the account covered by the Totten trust, you shouldn’t include the account in the estate plan since it will be handled under the terms of the payable-on-death designation.
The Totten trust is only one component of a comprehensive estate plan. It’s critical that you consider every aspect of your estate plan to ensure it accurately reflects your wishes. Working with someone familiar with these matters may be beneficial to help you get this