Asked by Kaylee Greydanus on Apr 24, 2024
Verified
A Totten trust creates a revocable living trust.
Totten Trust
is a form of revocable trust created by depositing funds into a bank account with a designated beneficiary, who inherits the account contents upon the depositor's death.
Revocable Living Trust
A legal document that allows an individual to specify how their assets should be managed and distributed during their life and after death, which can be altered or canceled by the grantor.
- Identify the characteristics and validity conditions of different trust forms and wills.
Verified Answer
KY
Katerina YanushefskiMay 02, 2024
Final Answer :
True
Explanation :
A Totten trust is a deposit of money in a bank or other financial institution in the name of the depositor as trustee for a named beneficiary.For example,Bliss deposits money in First Bank in trust for his daughter,Bessie.The Totten trust creates a revocable living trust.At Bliss's death,if he has not revoked this trust,the money in the account will belong to Bessie.
Learning Objectives
- Identify the characteristics and validity conditions of different trust forms and wills.