Some people decide to add Totten trusts to their comprehensive estate plans. It’s a wise strategy for many with beneficiaries who may not be traditional or legally-protected heirs.
As Totten trusts are not actually trusts, but payable-on-death accounts, beneficiaries will receive the funds far sooner from a Totten trust than they would if the funds had to pass through probate. Learn more about beneficiaries below.
Special relatives and friends
From favorite cousins and godchildren to undisclosed family members, Totten trust beneficiaries run the full spectrum of possibilities.
Designating a lifelong best friend as beneficiary might also resonate. Payable-on-death accounts are good ways to honor a loyal friend, employee, co-worker or anyone else whom the account owner held in high esteem.
These designations are private
Because Totten trusts are not part of the probated estate, the designated beneficiary remains private. This may give some estate planners the peace of mind they are seeking regarding drafting their comprehensive estate plan.
Totten trusts are revocable
Another advantage of payable-on-death accounts is that they are completely revocable and under the control of the account holder up until they pass on. Account funders are always free to change beneficiaries, too.
Curious about other options?
Most people will need more than a Totten trust, but these accounts can round out well-crafted estate plans. If you are curious about all the options that are available to you, now is a good time to learn more.
Taking care of these estate planning tasks now allows you freedom later to do the things you want to do with the loved ones in your life.