Totten Trust
A Totten trust, commonly known as a payable on death account, is simply a bank account for which the settlor has specified a beneficiary who will receive the proceeds of the account upon the settlor’s death. Although Totten trusts generally avoid probate, they do not provide the asset protection that other irrevocable trusts can provide, e.g. testamentary trusts. A Totten trust is revocable up until the death of the settlor and, in Arizona, cannot be revoked by the settlor’s will.
This brief overview of some important considerations associated with totten trusts is by no means comprehensive. Always seek the advice of a competent professional when making important financial and legal decisions.