Totten trust
- noun
- /ˈtɒtən trʌst/
- Formal
:
fideicomiso Totten
- He set up a Totten trust so his granddaughter would receive the funds automatically.
Examples
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The money in the Totten trust went directly to her son after she passed away.
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Have you considered setting up a Totten trust for your children?
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Banks often recommend a Totten trust as a simple estate planning tool.
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A Totten trust can simplify the transfer of assets.
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To ensure that my grandchildren inherit my savings, I opened a Totten trust at the local bank.
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When I die, the funds in my Totten trust will go directly to my daughter without going through probate.
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Creating a Totten trust is a simple way to pass on your money to a beneficiary upon your death.
Synonyms
3
4.4
A bank account where one person holds and manages money for another person who will get it later
A bank savings account you control now that gives the money to a named person after your death
A bank account where one person keeps and controls money for a named person who receives it after their death
A savings account where one person manages money for someone who gets it when the account holder dies
Surface Forms
Morphology
Totten + trust
Totten is a proper name with no lexical meaning to a learner, and while 'trust' is a familiar legal word, the compound refers to a specific eponymous legal arrangement (a particular kind of account) that cannot be predicted from the parts. This specialised, culture- and law-specific term is not compositionally derivable by a B1 learner who merely knows the constituents.
Etymology
Totten trust is named after a man called Totten who used a bank account called a trust to hold money for another person and arranged that the funds would go to them when he died. So a Totten trust means a simple bank account set up to pass money straight to the chosen person 'on death'.