That is, the Totten trust account is a relatively simple way to pass assets at death while simultaneously avoiding probate. You deposit money into a bank account in your own name, but you designate that the account is payable upon your death to a named person. A revocable living trust––sometimes simply called a living trust––is a legal entity created to hold ownership of an individual's assets. Tag: Is a Totten trust revocable? When a revocable trust owner designates five or fewer beneficiaries, the owner's share of each trust account is added together and the owner receives up to $250,000 in insurance coverage for each unique beneficiary. A Totten’s Trust (also known as a poor man’s trust) was an early means of setting up a type of trust without going through the legalities of a trust. One disadvantage of a Totten trust is that cash is the only asset that it can store. Lastly, because it is a revocable trust, it is easy to modify. Both Totten trusts and payable-on-death accounts are deposit accounts held at a bank, credit union, savings and loan or other financial institution, that transfer to designated beneficiaries upon the account owner's death. A POD account is very similar to a totten trust. Also called a payable on death account, a Totten trust is a revocable device that holds property for a specific account or item of wealth. The person who forms the trust is called the grantor or the trustmaker, and they also serve as the trustee of this type of trust in most cases, controlling and managing the assets they've placed there. Totten Trust. Posted on January 14, 2018 January 14, 2018 Author Inna Fershteyn Comments Off on Breaking Down the Totten Trust. Further, rather than setting up Totten trusts in addition to a will, some individuals may establish Totten trusts as “will substitutes.” If you want to bypass probate with property other than cash, a living trust might be a better option.. A living trust is a legal framework that you can establish and then transfer property and assets into. A Totten trust is a tentative trust, revocable at will, until the depositor dies or completes the gift in his or her lifetime by some unequivocal act or declaration, such as delivery of the pass-book or notice to the beneficiary. Now, a revocable trust may be more beneficial. Breaking Down the Totten Trust. It is similar to creating a bank account; slightly more forms are involved. A Totten trust keeps covered assets out of probate. A written trust document is typically not needed, and it often costs you nothing to establish the trust. Disadvantages of Totten Trusts. A Totten trust is one that is created during the lifetime of the grantor by depositing money into an account at a financial institution in his or her name as the trustee for another. The terms “Totten trusts” and “payable-on-death account” represent different names for the same thing: an informal revocable trust. 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