How can a Totten Trust be revoked or modified?

• A. By the will disposing of part or the whole of the trust
• B. By a codicil to the will
• C. By a separate instrument not in the will
• D. By revoking the bank account

Answer: (A)

Totten trusts are revocable during the depositor’s lifetime because the depositor retains ownership and control of the funds, with the beneficiary merely having a contingent interest that takes effect on death. The clearest way to revoke or modify that arrangement is to express the change in the depositor’s will—dispos­ing of part or all of the trust through testamentary disposition. When the will directs a different outcome for the trust property, the existing trust designation is effectively revoked or altered as to that portion, and the funds pass according to the will or to the new beneficiary named in the will. This is the standard and straightforward mechanism for changing a Totten trust, which is why it’s the best answer here. (Note that other methods can be used in some contexts, but the will is the primary, authoritative means contemplated in this scenario.)