Most people count on the money in a bank account to pay their bills. When you pass away, your loved ones may need to access that money so they can take care of some urgent expenses. It’s imperative that you take the time to ensure they’ll be able to do this.
One of the easiest ways to pass along your bank accounts is to establish a Totten trust or each one. Unlike many other trusts, you do this right at the financial institution. You’ve probably heard it called a payable on death designation.
Totten trusts are only one part of an estate plan
The Totten trust enables the designee to access the funds in the bank account without having to go through the probate process. This allows them to pay for things that can’t wait until the estate goes through probate.
Since these accounts are handled through the terms of the Totten trust, they don’t need to be covered in the estate plan. You do still have to use your will and other trusts to distribute other assets to your loved ones. The estate plan should also cover your end-of-life plans so your family members don’t have to guess those.
Anyone who’s creating an estate plan should ensure that their loved ones get the assets intended with as little stress as possible. Getting this together as quickly as possible can help to give you peace of mind because you’ll know that you’ve provided for your family as best as possible. There are many options for estate planning, not just trusts, so guidance from someone with experience in these issues is a huge benefit.