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People who are creating an estate plan should make a list of all their assets so they can ensure they have them all named in the plan. You have several options for doing this. Some choose to write a will and others may opt for trusts. One specific type that you might consider if you’re setting up an estate is a Totten trust.

A Totten trust is another term for a payable-on-death account, such as a checking or savings account. This is something that you set up at the financial institution. There, you designate someone who can access the funds in your account when you pass away.

Can the designee access funds while you’re living?

The person you name as the designee can’t access the funds in the account while you’re living. Instead, they have to bring a copy of your death certificate and their photo identification to the bank. Once those are verified, they can access the money.

Should you put these accounts in your will?

Accounts that are governed by a Totten trust don’t need to be placed anywhere else in the estate plan. The issue with putting it into your estate plan is that it can lead to a discrepancy if you change either the estate plan or the bank designation without changing the other.

Getting a comprehensive estate plan together is a critical task for all adults. Working with someone familiar with this process is beneficial so you can ensure that you get everything set up so your loved ones can follow the plan when you pass away.