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 York, a Totten trust, also known as a Payable on Death (POD) account, is a form of revocable trust account offered by banks that allows account owners to designate a beneficiary to receive the funds remaining in the account upon the owner's death, bypassing the probate process. The account owner retains full control over the funds during their lifetime and can change the beneficiary or close the account at any time. The beneficiary has no rights to the funds until the death of the account owner. This type of account is recognized under New York banking law and is a convenient tool for estate planning, ensuring that the designated assets are transferred directly to the beneficiary without the need for probate court proceedings. The origin of the Totten trust concept is rooted in New York case law, specifically a 1904 court case that established the legal precedent for these types of accounts.