Derek Moran
TOTTEN TRUST: (1931) A revocable trust created by one's deposit of money, typically in a savings account, in the depositor's name as trustee for another. - A Totten trust is an early form of"pay on death" account, since it creates no interest in the beneficiary unless the account remained at the depositor's death. Its name derives from the earliest decision in which the court approved the concept, even though the formalities of will execution were not satisfied: In re Totten, 71 N.E. 748 (N.Y. 1904). A Totten trust is commonly used to indicate a successor to the account without having to create a will, and thus it is a will substitute. Also termed tentative trust; bank-account trust; savings-account trust; savings-bank trust; trustee bank account. [Cases: Trusts C'=:'34(l).]
"A deposit by one person of his own money, in his own name as trustee for another, standing alone, does not establish an irrevocable trust during the lifetime of the depositor. It is a tentative trust merely, revocable at will, until the depositor dies or completes the gift in his lifetime by some unequivocal act or declaration, such as delivery of the pass book or notice to the beneficiary. In case the depositor dies before the beneficiary without revocation, or some decisive act or declaration of disaffirmance, the presumption arises that an absolute trust was created as to the balance on hand at the death of the depositor." In re Totten, 179 N.Y. 112, 125-26 (1904) (Vann,J.). Black's 9th.
Printed copy · Anthology Volume 3, page 545 · cut by a page break
