In a Totten Trust, who has a vested right to the trust upon death?

• A. The named beneficiary has a vested right
• B. The beneficiary has no vested right, only an expectancy
• C. The bank holds the right to revoke
• D. The decedent has no control

Answer: (B)

In a Totten trust, the depositor retains full control over the funds during life and can revoke or amend the arrangement at any time. The named beneficiary merely holds a future interest that becomes effective only at the depositor’s death. Because that interest is contingent on death and revocable at any time, the beneficiary does not have a vested right; they have only an expectancy to receive the funds. The bank doesn’t have a revocation power, and the decedent’s control over the account persists until death. That’s why the correct view is that the beneficiary has no vested right, only an expectancy.