Totten Trust Lawyer

In Florida, a “Totten trust” usually refers to a payable-on-death (POD) or “in trust for” (ITF) designation on a bank account. It’s a simple way to name who receives the account at the account owner’s death, and it typically transfers outside of probate.

Totten trust/POD designations are a simple, low-cost way to pass certain financial accounts (most commonly bank accounts) to beneficiaries while generally avoiding probate.

You create a Totten trust by titling a bank account or other assets in your name as trustee for a beneficiary, typically using a bank form or legal documentation.

You “fund” a Totten trust/POD account by putting money into the designated account (for example, deposits into the POD/ITF bank account).

Upon the death of the account holder, assets pass directly to the named beneficiaries, bypassing the probate process.

In Florida, POD/ITF bank accounts are governed primarily by Florida statutes on the disposition of deposit accounts at death (often addressed in Chapter 655). Different rules may apply to brokerage accounts/securities with TOD-style designations, and each financial institution’s account agreement also matters.

Benefits can include simplicity, low cost, and probate avoidance. Because the account may pass outside probate, it can also offer more privacy than a probate filing, although institutions still require documentation and disputes can still lead to court proceedings.

Yes. In general, the owner can revoke or change a Totten trust/POD designation during life by changing the beneficiary designation with the institution, withdrawing the funds, or closing the account—subject to the account’s terms.

Beneficiaries are named when creating the account or trust, and changes can typically be made through the financial institution’s forms or by legal amendment.

Assets in a Totten trust pass directly to beneficiaries upon death, eliminating the need for court-supervised probate, which can save time and costs.

Typically, a POD/ITF account does not create a separate tax entity during life; interest or other income is generally reported under the owner’s SSN. Florida has no state inheritance tax. For larger estates, the account’s value may still be included in the owner’s federal taxable estate for federal estate tax purposes.

Yes, you can designate primary and contingent beneficiaries to ensure assets pass according to your wishes if the primary beneficiary is unable to inherit.

They’re most commonly used for bank accounts. Some brokerage accounts may allow similar beneficiary designations (often called TOD), but availability depends on the institution and the type of account.

With a Totten trust/POD account, the account owner keeps full control during life. The beneficiary generally has no rights until the owner’s death, and there usually isn’t a separate, ongoing “trustee” role like there is with a formal trust.

The Florida Estate Firm ensures the trust is properly structured, complies with Florida law, coordinates with your estate plan, and helps avoid errors that could impact your beneficiaries.