savings bank trust
Noun: A savings bank trust is a specific type of bank account, typically a savings account, established under a trust agreement. In this arrangement, the person who creates and funds the account (the depositor) names themselves as the trustee, giving them control over the account during their lifetime. They also designate a beneficiary who will receive the remaining balance in the account upon the depositor's death. This mechanism is often used as a simple, non-probate method to transfer assets.
This term is used in the context of personal finance, estate planning, and banking. It refers to the legal structure of the account itself. - She set up a savings bank trust for her grandson, ensuring the money would go directly to him without going through probate court. - The key feature of a savings bank trust is that the depositor retains full access to the funds while they are alive.
- Also known informally as a Totten trust or a payable-on-death (POD) account. These are not compound words of "savings bank trust" but common alternative names for the same concept.
- For ease of transfer, many people opt for a Totten trust, which is simply a savings bank trust.
- Trust Account: A broader term for any account held by a trustee for the benefit of a beneficiary. A savings bank trust is one type of trust account.
- Payable-on-Death (POD) Designation: The legal instruction that creates the transfer feature of a savings bank trust.
- Totten trust (specific synonym)
- Payable-on-death account (functional synonym)
No specific idioms or phrasal verbs are commonly associated with this precise financial/legal term.
- a savings account deposited by someone who makes themselves the trustee for a beneficiary and who controls it during their lifetime; afterward the balance is payable to the previously named beneficiary