Totten Trust

"Pay on Death" Financial Account
(Totten Trust)

When a person sets up a savings account, share account or certificate of deposit for the benefit of another person or a charitable interest at his or her death, the balance of the account passes outside the provisions of the will. The individual retains the right to withdraw funds as may be needed. Thus, there are no federal income tax savings allowed even when the beneficiary is a charitable interest.

At death, the assets passing from a financial account to qualified charitable interests are fully deductible from the federal estate taxes, if applicable.