savings account trust
Noun: A savings account trust is a specific type of trust arrangement. It is a savings account where the person who deposits the money (the grantor) also names themselves as the trustee, giving them control over the account during their lifetime. Upon the grantor's death, the remaining balance in the account is transferred directly to a previously designated person (the beneficiary), typically without going through the probate court process.
This term is used in the context of personal finance, estate planning, and banking. It describes a legal mechanism for managing and transferring assets.
Examples: * To simplify her estate, she set up a savings account trust naming her grandson as the beneficiary. * The savings account trust allowed him to retain full access to his funds while ensuring a smooth transfer to his daughter. * A key feature of a savings account trust is that it avoids probate for the assets held in the account.
- Formal/Technical Context: In legal and financial documents, this term specifies the exact nature of the account ownership and succession rights. It is often contrasted with other devices like a "payable-on-death" (POD) account or a formal living trust.
- The will stipulated that the savings account trust was to remain outside the residue of the estate.
- Totten Trust: This is a common synonym for a savings account trust in many jurisdictions. The terms are often used interchangeably.
- Trust Account: A broader term for any account held in a fiduciary capacity by a trustee.
- Payable-on-Death (POD) Account: A very similar concept for bank accounts, though "savings account trust" or "Totten trust" is the more traditional legal term for this specific arrangement.
- Totten Trust
- Tentative Trust
- Bank Account Trust (less common)
- "To establish a savings account trust": The act of creating this arrangement.
- He went to the bank to establish a savings account trust for his niece.
- "Funds held in a savings account trust": Describes the assets contained within this structure.
- The funds held in the savings account trust were distributed immediately after her passing.
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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
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