Certificate of Trust: Estate Planning

Mark Henricks   Fri, September 24, 2021

When trusts are used as estate planning tools, financial institutions such as banks and brokerages may require written documentation of the trust’s existence before transferring assets into a trust or naming it as a beneficiary. However, they don’t need to see all the details of the trust, such as identities of the beneficiaries. When financial institutions need trust documentation, a signed and notarized certificate of trust can fulfill this requirement while keeping other information about the trust private.

A financial advisor can analyze your estate planning needs, including what documents you need. The certificate of trust’s primary job is to attest that the trustor actually has control of the assets being placed in the trust. The certificate of trust is a legal document that may also be called a trust certificate, memorandum of trust or abstract of trust.

The trust certificate can be considered an outline or summary of the primary documents describing the trust. Trust documents can be complex and lengthy, more than 100 pages in some cases. The trust certificate is preferred as a concise and convenient way to give financial institutions the information they need while omitting the unnecessary details.

Filing a certificate of trust is often a one-time event. However, sometimes you may need to update a certificate of trust. This could be the case if the trust sells or acquires any real property. If a trustee dies, the trust certificate will need updating. If the trust has been altered since it was created, the trust certificate will provide the date the changes were made.

Trust Certificate Contents

There is no standard universal certificate of trust document or format. Most states have their own statutes describing the requirements for a valid trust certificate. However, generally, a certificate of trust will contain the following information:

Name of the trust

Name and address of the person creating the trust, known as the trustor, grantor or settlor. If more than one person, such as a married couple, are creating the trust, they should both be identified.

Identity and specific powers of the trustee - Date the trust was created  -  Legal description of any real estate included in the trust  -  Whether the trust is irrevocable or revocable  -  If revocable, who is able to revoke it - The trust’s tax identification number - Signatures of the trustors, including both members of a married couple - A stamp and signature of a notary

Depending on the state, the certificate may also have to have other information.

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