Section 1.62 “Totten” Trusts

• Library: Trusts and Powers 2013 Supp

C. (§1.62) “Totten” Trusts

One kind of trust that may be considered testamentary is the “Totten” or tentative trust. The name is derived from In re Totten, 71 N.E. 748 (N.Y. 1904). See Restatement (Third) of Trusts § 26 (2003). Totten trusts are purported trusts in which a depositor in a financial institution declares in writing that the depositor is the trustee of a savings account for another person, typically retains the passbook and makes deposits and withdrawals from the account, but does no other acts manifesting an intent to create a trust with the account. Hence they are tentative trusts. The common use of Totten trusts is as a will substitute to indicate the succession to the account on the death of the depositor without the formalities of a will. The...