What Is a Certificate of Trust

A certificate of trust is a brief legal document that proves your trust exists and clarifies who can manage it. The trust certificate summarizes essential information, including the trust’s name, date, and acting trustee. It provides banks and other third parties with the information they need, while protecting private details.

How Does a Certification of Trust Work?

A certification of trust is a simple alternative to handing over your entire trust agreement. Instead of revealing all the details of your estate plan, you can give your trust certification to a bank, escrow officer, or other third party who requests it. The document shows that the trust exists, identifies the current trustee, and confirms their authority to handle specific tasks, such as selling a house, transferring investment accounts, or taking out a loan in the trust’s name.

Most states make it easy for businesses to accept these certificates by protecting them under the law. If a financial institution relies on a valid certification of trust and has no reason to believe it’s inaccurate, the institution won’t be liable for any actions it takes under it. (To find your state’s law, see below.)

What’s Included in a Trust Certification?

For a trust certificate to work smoothly with banks and other financial institutions, it must include the details required by state law. The exact requirements can differ depending on where you live or which company you’re dealing with, but most trust certificates include:

• the name of the trust and date it was created
• the name and address of the grantor (the person who set up the trust)
• the name and address of the current trustee
• confirmation that the trust is currently active and has not been revoked or amended in a way that affects the information provided
• a statement about whether the trust is revocable or irrevocable, and who has the power to amend or revoke it
• a statement about how the trustee is authorized to act (for example, whether the trustee can act alone or must act with others)
• a summary of the trustee’s powers, such as the ability to sell property, open or manage accounts, invest assets, or take out loans on behalf of the trust
• a declaration that the trust meets state law requirements and that the certificate is accurate, and
• the signature of the trustee, typically in front of a notary public.

Remember, a trust certificate omits private information, such as beneficiary names, asset distribution plans, and other confidential terms. One thing you should not include is the grantor’s Social Security number (SSN). Most institutions do not require it, and leaving it out helps protect privacy and prevent identity theft.

You can find a sample certificate of trust at the end of this article.

When Do You Need a Certificate of Trust?

Any time you or a future trustee needs to deal with a bank, title company, or other organization about property held in your living trust, you’ll probably be asked for a certificate of trust. Some of the most common situations include:

Opening bank accounts in the trust’s name. Most financial institutions require a certificate before allowing you to open a checking, savings, or investment account for the trust.

Buying, selling, or refinancing real estate. Title companies, lenders, and escrow officers will request a certificate confirming that you have the authority to transfer or mortgage property owned by the trust.

Managing or moving investments. Brokerage firms and investment advisors typically request the certificate when you want to buy, sell, or transfer stocks or other securities held by the trust.

Naming the trust as a beneficiary. Insurance companies and annuity providers might need a certificate if you’re making the trust the beneficiary of a life insurance policy or similar account.

Establishing the successor trustee. If the original trustee passes away or is no longer able to serve, the new trustee will use the certificate to demonstrate they have the legal authority to access and manage trust accounts and property.

Handling legal matters. If the trust is involved in a lawsuit or court case, attorneys or the court may request the certificate to verify the trustee’s authority.

Distributing trust assets. When it’s time to pass trust property or funds to beneficiaries, banks and other institutions often require a certificate as proof that the trustee can make these distributions.

State Requirements for a Trust Certificate

Your state likely has a law outlining what a certification of trust must include. If your document meets these requirements, banks and other institutions are generally required to accept it. In many states, if a financial institution unreasonably refuses to honor a valid certificate, it could be held liable for any resulting losses. Imagine a trustee trying to close a real estate deal, but the bank holds things up by rejecting a perfectly valid certificate. If the delay causes the whole sale to fall through, that bank could actually be on the hook for the financial losses.

Here’s where you can find the relevant laws for your state:

How to Get a Certificate of Trust

Making a certificate of trust is simple. You can usually prepare it at the same time as your other estate planning paperwork. Here’s how to go about it:

Step 1. Find Your Trust Agreement

Have your signed, original trust document available so you can copy important details such as the trust’s official name, the date you signed it, and the exact language describing the trustee’s powers.

Step 2. Decide How to Draft the Certificate

You can most likely prepare a trust certificate yourself using a template or software from a reputable source, while double-checking to make sure it complies with your state's laws. If you’re working with an estate planning lawyer, they can easily make a trust certification for you.

Step 3. Enter All Required Details

Fill out all the required facts. Make sure everything (especially the trustee’s power over real estate and financial accounts) exactly matches your trust’s language.

Step 4. Sign and Notarize

The current trustee (or co-trustees) must sign the document in front of a notary public, who verifies their identity and affixes an official stamp or seal.

Step 5. Store and share copies.

Keep the notarized original with your important estate planning documents, and provide copies to any bank, lender, or title company that requests proof of your trust.

Certificate of Trust Sample

Below is a sample trust certification. Use it to get a sense of what a typical document covers and how it might be structured. When you get your own certification, read it carefully to ensure it accurately reflects your trust and circumstances.

Certification of Trust

This trust certification is provided pursuant to [statute].

The trust certified by this document has not been revoked, modified, or amended in any way that would cause this certification to be incorrect, and the trust remains in full force and effect.

1. Name of trust: Selma Andrews Revocable Living Trust, signed and dated May 25, 20xx.
2. Name of sole grantor: Selma Andrews
3. Name and address of currently acting sole trustee: Selma Andrews, 1275 Maple Ridge Drive, Ann Arbor, MI 48104
4. Trustee’s powers relevant to the request for certification: [list of relevant powers]
5. Amendment and revocation: This trust may be amended or revoked by Selma Andrews.
6. Manner in which title is taken: The name of the trust for the purpose of titling assets relevant to this certification is “Selma Andrews, trustee of the Selma Andrews Revocable Living Trust, dated August 15, 20XX.”

This Certification of Trust is accurate and meets the requirements of [statute].

_____________________________________ Dated: ______________

Selma Andrews, Grantor and Current Acting Trustee

[Attach: Notary's Certificate of Acknowledgment]

Learn More About Making a Living Trust

A certificate of trust is a simple tool that helps you manage and protect your assets while maintaining your family’s privacy. By sharing only the information required by law, you can work with banks, title companies, and other institutions without exposing the details of your estate plan.

For more information about trusts, see the following articles:

• How to Sign and Notarize Your Living Trust
• What Property Should You Put in Your Living Trust?
• How to Set Up a Living Trust
• Alternatives to Making a Living Trust

You can find out about making WillMaker’s living trust in WillMaker’s Legal Manual.