What Is a Certificate of Trust?

    A certificate of trust serves as proof that a trust is in place and outlines the trustee’s powers without revealing sensitive details, such as the identity of the beneficiaries or specific assets held within the trust. 

    Contents of a Certificate of Trust

    A certificate of trust typically includes:

    • Name of the Trust: Clear identification of the trust involved.
    • Creation Date: When the trust was established, confirming its validity.
    • Trustees' Names: Which individuals have authority to act on behalf of the trust.
    • Powers of the Trustees: Which actions trustees are permitted to perform.
    • Trust’s Tax Identification Number: Used for reporting and transactions. Often, but not always, the grantor’s social security number. 
    • Revocability Status: Whether the grantor can alter or revoke the trust.

    For confidentiality purposes, certificates of trust do not typically include:

    • Specific reference to properties, assets, or investments in the trust
    • Names, social security numbers, or addresses of the trust beneficiaries
    • Distribution instructions for how the trust will be divided amongst beneficiaries
    • Clauses, conditions, or special instructions in the trust, except as required by law for a valid certificate of trust
    • Rights or powers of the beneficiaries
    • Trustee compensation arrangements

    Purpose and Usage

    Allowing trustees to perform their duties without exposing the full trust document can be particularly useful in situations such as:

    • Making financial transactions: Banks and financial institutions often require proof of the trust before opening accounts or authorizing transactions.
    • Handling property transactions: Similarly, title companies and other parties to a real estate transaction need to verify the authority of a trustee to manage sales and acquisitions.
    • Satisfying legal requirements: A certificate of trust helps satisfy legal requirements required by parties such as tax authorities, real estate firms and insurers. 

    Legal Standing and Efficiency

    A certificate of trust is recognized by most institutions as valid proof of a trust's existence and the trustee's authority. However, it is important to note that state laws may vary, and the requirements for a certificate of trust can differ accordingly. Further, certain transactions may have more stringent policies, such as transactions related to real estate.

    Preparing a Certificate of Trust

    Preparing a certificate of trust involves extracting key information from the full trust document and summarizing it concisely. This process should be approached with care to include all necessary elements while omitting private details. 

    An experienced estate planning attorney can help you prepare this document in compliance with legal requirements and according to your wishes.

    At EP Wealth, we guide you through all the complexities of estate planning, helping you navigate legal requirements and make informed decisions. If you’re ready to explore the benefits of a certificate of trust in your estate planning strategy, contact an advisor here.

    DISCLOSURES:

    • Private Trustee services are delivered exclusively by National Trust Company doing business as EP Wealth Private Trust ("NAT"). Each EP Wealth Advisors client that elects to engage NAT for these services must enter into a separate servicing agreement with NAT that specifies services that will be delivered and the fees that will be charged by NAT. EP Wealth Advisors is not a Trust Company, is not in the business of serving as a trustee or providing trustee services.
    • EP Wealth Advisors LLC is a Trust Representative Office of National Advisors Trust Company* (national charter) and National Advisors Trust of South Dakota, Inc.* doing business as EP Wealth Private Trust (state charter)
    • National Advisor Trust (“NAT”), and any of its subsidiary businesses including any of its DBAs, is an independent entity and in no way under common ownership, control or otherwise affiliated with EP Wealth Advisors, LLC (“EPWA”). All services described herein will be exclusively furnished by NAT Doing Business As (“DBA”) EP Wealth Private Trust. Clients of EPWA will be referred to NAT DBA EP Wealth Private Trust if it is believed that the Trust Services offered by this entity can be of value to clients of EPWA. These clients will meet with NAT DBA EP Wealth Private Trust and would be presented with their service agreement. Clients of EPWA would independently review NAT’s Service Agreement and determine if they would like to engage them for their Trustee Services. EPWA is not a Trust Company and is not in the business of delivering Trustee Services to any of its clients. Clients of EPWA that elect to hire NAT will do so using their individual discretion and assuming all risks of that decision. EPWA makes no representations, guarantees or warranties to the suitability, performance, or satisfaction with the services offered by NAT.
    • EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability
    • Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings / checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.
    • Hiring a qualified advisor and/or financial planner does not guarantee investment success, and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made that any direct or implied results or projections being represented here will be met or sustained.
    • The need for a financial advisor or financial planner and/or the type of services required are specific to the uniqueness of each individual’s circumstances. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC will satisfy your specific financial services requirements. Services offered by other advisors may align more to your specific needs.
    • Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice.
    • An estate plan is a helpful tool that can assist individuals in managing and arranging affairs in the event of death or incapacity. However, the scope and extent of the plan varies depending on the unique circumstances and desires of the individual client. It is for this reason, that the analysis encompassed herein is not intended to be comprehensive in nature nor should it be interpreted as legal advice. Please consult a legal professional to determine the extent, scope, and the drafting and creation of the appropriate estate documents. EP Wealth Advisors is not in the business of providing legal advice or preparing legal documents. Our review is limited to and in association with Financial Planning only.
    • Laws vary by state. The information presented herein is intended to be general in nature and may not apply to your state of domicile. Please consult local legal counsel to determine the best practices for your state.

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