Totten Trust Accounts

The account can be held individually, or jointly with one or more other owners/trustees, such as a spouse. As account owners, you retain full ownership and use of the account during your lifetime. Make deposits and withdrawals, borrow against the account, or even close it, as you wish.

You can designate one or more beneficiaries, such as children or parent, and you can change that designation at any time. You don't even have to inform the beneficiaries the account exists. Upon your death (or that of the last joint owner, if any) the remaining account balance will automatically pass to your designated beneficiaries, if still living, or to your estate.

Totten Trusts are considered testamentary accounts and are federally insured by the National Credit Union Administration (NCUA) as a form of individual account for the first named owner/trustee. If your beneficiary is your spouse, child or grandchild, the funds in the account are insured up to a total of $100,00 for each beneficiary, separate from any of your other individual accounts. If the beneficiary is other than a spouse, child or grandchild, the funds in the account are, for NCUA insurance purposes, added to your individual accounts and insured to a total of $100,000.

A Totten Trust Account applies only to savings balances. It does not apply to securities, such as stocks, bonds or mutual funds.