Certificate of Trust

A certificate of trust is a legal document that provides essential information about a trust without disclosing its entire contents, helping to safeguard privacy while enabling trustees to demonstrate the trust’s existence and their authority over it.

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.

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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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