Totten Trusts in Florida

A Totten trust, sometimes referred to as a "payable upon death" account, is a tentative trust that is revocable at will until the depositor completes the gift during his lifetime by some unequivocal act or declaration or subsequently dies. Totten Trust were first recognized in the 1904 New York case of  Matter of Totten. Since depositor has complete control over the funds during his lifetime, he is still regarded as the owner of the account. The Court in Matter of Totten ruled as follows:

            A deposit by one person of his own money, in his own name as trustee for another, standing alone,               does not establish an irrevocable trust during the lifetime of the depositor. It is a tentative trust                       merely, revocable at will, until the depositor dies or completes the gift in his lifetime by some                         unequivocal act or declaration, such as delivery of the pass book or notice to the beneficiary. In case             the depositor dies before the beneficiary without revocation, or some decisive act or declaration of               disaffirmance, the presumption arises that an absolute trust was created as to the balance on hand at             the death of the depositor. 
The Totten trust doctrine has been accepted in Florida.   The totten trust doctrine provides that the deposit by one person of his money in his own name as trustee for another is not a irrevocable trust during the lifetime of the depositor. "It is a tentative trust merely, revocable at will, until the depositor dies or completes the gift in his lifetime by some unequivocal act or declaration, such as delivery of the passbook or notice to the beneficiary." Where the depositor dies before the beneficiary without revocation, it is presumed that an absolute trust is created as to the balance on hand at the death of the depositor.

Totten trusts may be revoked. There are no specific formalities required to evidence the revocation of a Totten trust. Any decisive act or declaration of disaffirmance during the lifetime of the owner will generally suffice.

Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankruptcy Cases and Mortgage Modifications (305) 891-4055