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 North Carolina, a Totten trust, commonly referred to as a Payable on Death (POD) account, is a type of nonprobate asset that allows an account owner to designate a beneficiary to receive the funds remaining in the account upon the owner's death. This designation bypasses the probate process, allowing for a direct transfer to the beneficiary. The account owner retains full control over the funds during their lifetime and can change or revoke the beneficiary designation at any time before death. The beneficiary has no ownership interest in the account while the owner is alive. North Carolina's banking laws and estate statutes govern the creation and operation of POD accounts, ensuring that these accounts are a straightforward way to pass on assets to beneficiaries without the need for probate court proceedings.