A Totten trust is a bank account in which the owner designates a beneficiary of the balance of the account (funds) that is payable on death (POD) of the account owner—also known as a POD account. POD accounts are widely used because they are an easy way to transfer assets at the death of the owner without going through probate proceedings—in other words, the beneficiary designation on the POD account makes the account a nonprobate asset, as it passes outside of probate.

The beneficiary designation made by a POD account owner is revocable and may be changed at any time before the death of the owner. The beneficiary designation confers no ownership interest in the account during the lifetime of the account owner.

The name Totten trust for what are now widely known as POD accounts came from a 1904 court case in New York in which the court approved the transfer of a bank account balance (through designation of a beneficiary) at the death of the owner. The court referred to the account with a beneficiary designation as a tentative trust—now known as a revocable trust.

In Kentucky, a Totten trust, also known as a Payable on Death (POD) account, is a type of bank account where the account owner designates a beneficiary to receive the funds remaining in the account upon the owner's death, bypassing the probate process. This designation is revocable, meaning the account owner can change the beneficiary at any time before their death. The beneficiary has no rights to the funds while the account owner is alive. Kentucky law recognizes POD accounts as a simple and effective estate planning tool to ensure assets are transferred directly to a named beneficiary, thus avoiding the time and expense associated with probate. The use of POD accounts in Kentucky is governed by the Kentucky Revised Statutes, which provide the legal framework for establishing and recognizing these accounts.