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 Iowa, a Totten trust, commonly referred to as a Payable on Death (POD) account, is a mechanism by which an individual can designate a beneficiary to receive the funds in a bank account upon the account owner's death, bypassing the probate process. This designation is revocable, meaning the account owner can change the beneficiary at any time before their death. The beneficiary has no rights to the funds while the account owner is alive. Iowa law recognizes the use of POD accounts as a simple estate planning tool to ensure assets are transferred directly to the named beneficiary, thus avoiding the time and expense associated with probate. The legal framework for POD accounts in Iowa is consistent with the principles established by the Totten trust case, allowing individuals to create a revocable trust by naming a beneficiary on their bank accounts.