I want to set up a Totten Trust and designate my son and daughter as the beneficiaries. If I should pass away at the same time as one of the beneficiaries, would the proceeds then transfer to the surviving beneficiary 100%, or just the 50% and the deceased beneficiary's share go to their heirs or back to my estate?
Totten trusts and Payable on Death accounts are established under the provisions of state laws. Those laws vary from state to state, and state laws dealing with how simultaneous deaths affect the subsequent ownership of property add to the complexity of your question. Some states have not yet adopted legislation addressing payable on death account designations.
Contact an attorney in your state for assistance. If state law would force a result that differs from your goals in setting up the account, the attorney may be able to suggest tools you can use to achieve exactly what you want.
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Totten trusts and Payable on Death accounts are established under the provisions of state laws. Those laws vary from state to state, and state laws dealing with how simultaneous deaths affect the subsequent ownership of property add to the complexity of your question. Some states have not yet adopted legislation addressing payable on death account designations.