Totten trust

Okay, imagine you have a special piggy bank where you put your money. But, instead of just keeping the money for yourself, you want to make sure it will go to someone specific after you've put money in it.

That's what a Totten Trust is like. It's a special kind of bank account where you, the owner, can put money in for someone else - called the beneficiary. The person you want to give the money to (the beneficiary) just needs to be named on the account.

For example, if you want to save some money for your little sister's birthday gifts, you can open a Totten Trust account and name your sister as the beneficiary. That way, when you put money into the account, your sister will be able to get it later on.

The neat thing about a Totten Trust is that you, the owner of the account, can still use the money in it anytime you want. But, if something were to happen to you, the money in the account will automatically belong to the person you named as the beneficiary.

And that, my dear, is how a Totten Trust works.