Totten Trust Accounts
What happens to your bank accounts when you pass away? One way to deal with bank accounts is to create a Totten trust. A Totten trust is also called a "payable upon death" account. The account holder, known as the settlor of the Totten trust, deposits money in the bank account along with instructions that upon the settlor's death the funds in the account what will pass to a named beneficiary.
Although Totten trusts were originally created in New York, they are widely accepted in California. In fact, Totten trust accounts were included in the California Multiple-Party Accounts Law. California Probate Code sections 5100-5407. This law allows the settlor to circumvent the probate court by using a totten trust. Therefore, the money in the Totten trust is automatically paid to the beneficiary without having to go through probate. If you have more questions about Totten trusts or estate planning you should consult with an experienced Los Angeles estate planning attorney.