Definition - What does Totten Trust mean?
A totten trust is a trust that a person sets up and names himself or herself as the trustee. Upon the death of the grantor/trustee, the assets in the trust will go to the beneficiary.
Totten trusts are revocable, meaning that the grantor can take money out of the trust at any time.
Justipedia explains Totten Trust
Totten trusts are usually made by putting money into a savings account after setting up the trust. If the grantor/trustee has any outstanding debts upon their death, then their debtors could be entitled to collect funds from the trust before the rest of the money is given to the beneficiary.
Totten trusts are often used as an alternative to a will. This is because many people find them simpler to arrange, and they can still pass along assets to a beneficiary upon the death of the grantor.