How Do Totten Trusts Work With an Estate Plan?

Getting your estate plan in order can be a major undertaking, especially if you have considerable assets. Many people who are in this position will focus on writing out a will, but that’s not the only tool that can accomplish handing down assets to beneficiaries.

Assets that are making their way to beneficiaries through the will have to go through the probate process. This can take considerable time and can become costly. The issue with this is that there might be a need for money before the estate goes through probate. A Totten trust may be the answer to this problem.

What is a Totten trust?

A Totten trust is an easy way for you to get checking or savings accounts to your beneficiaries. Making this happen is as easy as filling out a payable on death designation form when you start the account. That form is what establishes the Totten trust.

Establishing a Totten trust doesn’t allow the person to access your financial accounts before your death, so you maintain full control over the account. Once you die, they must provide the financial institution with a copy of the death certificate and photo identification to gain access to the funds.

Your estate plan should take your circumstances and your beneficiaries’ needs into account. Working with a professional who can assist with getting a comprehensive plan together is critical. Doing this sooner rather than later may provide you with the peace of mind in knowing that your loved ones are going to be cared for when you pass away.