Is a Totten Trust taxable in Illinois (federal or state)?
Totten trusts are accounts with revocable death beneficiary designations. As such, they are no different than any other account with regard to taxation. There is no federal tax on accounts. You'll have to check state law to know whether Illinois taxes them.
Whether or not the transfer of ownership to the beneficiary on the owner's death is a taxable event will depend on the dollar value of the account and tax law at the time. No one can say for certain what laws will be effective on a future date, but for information on current tax laws, contact a qualified tax adviser.
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Totten trusts are 