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 New Jersey, a Totten trust, also known as a Payable on Death (POD) account, is a convenient method for an individual to designate a beneficiary to receive the funds in a bank account upon the account owner's death, bypassing the probate process. This means that the designated beneficiary can claim the funds directly from the financial institution without the need for court intervention, making it a nonprobate asset. The account owner retains full control over the funds during their lifetime and can change or revoke the beneficiary designation at any time before their death. The beneficiary has no rights to the funds until the death of the account owner. New Jersey statutes and banking regulations govern the creation and operation of POD accounts, ensuring that these accounts serve as a simple and effective estate planning tool.