Should You Use a Totten Trust?

Totten Trusts can eliminate the need to probate a Will. You can create this type of trust with a bank account. In a Totten Trust, the bank account owner names a beneficiary who becomes the owner of the account only when the primary owner dies. The Totten Trust is revocable: the primary owner can amend or revoke the trust during his or her lifetime. The beneficiary has no rights to the account before the owner dies.

When a joint tenancy is used instead of a Totten Trust, the joint owner receives an immediate interest in the account, including the right to withdraw some or all of the funds. This immediate right to obtain funds can cause problems if the new joint owner is not completely trustworthy. Also, it may be impossible to eliminate a joint owner from the account if your desires change.

I have helped many clients deal with issues concerning Totten Trusts.

Regardless of the size of an estate, most adults — young and old — and their families benefit greatly from having a well-prepared estate plan consisting of documents such as a: Last Will, Health Care Proxy, Power of Attorney, Living Will and maybe even totten trusts. I can help you decide if a totten trust is best for you. I have many years of experience working with and advising clients in the creation and implementation of plans that effectively express the clients’ personal desires regarding the disposition and protection of assets while providing potential tax advantages and security for family and beneficiaries.

I graduated in the top 10% of my class at The New England School of Law in Boston and served on the prestigious “Law Review.”

Please come in to my office for a free consultation and meet with me to discuss your options. To contact me in Manhattan call (212) 355-2575.