Which type of trust is commonly created to pass funds to a named beneficiary on death via a bank account?

• A. Totten trust
• B. Express trust
• C. Honorary trust
• D. Pet trust

Answer: (A)

A Totten trust is a payable-on-death arrangement created by designating a beneficiary on a bank account. The depositor retains control of the funds during life and can withdraw or revoke the designation, but upon the depositor’s death the account balance passes to the named beneficiary automatically, avoiding probate. This setup is exactly about using a bank account to pass funds to a named recipient after death, which is why it’s the best fit.

The other options don’t fit this specific bank‑account, pass-on-death mechanism: an express trust requires an explicit trust instrument with terms; an honorary trust is a trust for a non-beneficiary (often a non-human or non-charitable purpose) and isn’t the typical bank-account designation; pet trusts are designed to provide for pets, not to pass funds to a named beneficiary on the account holder’s death.