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Simple English definitions for legal terms
tentative trust
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A quick definition of tentative trust:
Tentative trust: A type of bank account where the money goes to someone else after the person who opened the account dies. This is a good option because it's faster than going through a court process. The person who opened the account can also change or cancel it easily. It's sometimes called a Totten trust because of a court case in New York a long time ago.
A more thorough explanation:
Tentative trust, also known as a Totten trust, is a type of bank account where the assets in the account are transferred to a beneficiary after the account holder's death. This type of trust is often chosen because it allows for a quick transfer of assets to the beneficiary without having to go through a lengthy probate court process.
For example, let's say that John has a tentative trust bank account with $50,000 in it. He has named his daughter, Sarah, as the beneficiary of the account. If John were to pass away, the $50,000 in the account would be transferred directly to Sarah without having to go through probate court.
Tentative trusts are also easy to change or terminate by the account holder. This is different from other types of trusts, which can be more difficult to change or terminate.
The name "Totten trust" comes from a 1904 case in New York that allowed for this type of trust.