Typically, the duties of a trustee involve a series of complex tasks, especially during the transition period following the death of the grantor (i.e., the person who established the trust). At that time, a new (successor) trustee will take control of bank accounts and make financial decisions on behalf of the trust. It is inconvenient—and not required legally—for the trustee to carry and produce a 100-page estate plan for everyone financial institution all over town. A certification of trust can put all the most crucial trust information on one or two pages.
Administer your trust with ease by retaining our legal team at Anderson Estate Planning to draft a certification of trust.
What Is a Certification of Trust in Texas?
A certification of trust is an estate planning document that proves the creation of a valid trust and supplies only the information that financial institutions and title companies need to allow the trustee to act.
The certification of trust excludes information that does not pertain to the trustee’s authorization to administer the trust. A certification of trust includes:
- Name and date of the trust
- The names and addresses of the grantors and trustees
- Excerpts from the trust that cover trustee powers
- Details regarding the revocability or irrevocability of the trust
- Trust tax identification number
To maintain the privacy of the grantor, some of the trust provisions a trust certification does not contain are:
- Personal details of the beneficiaries
- Specific gifts made to beneficiaries
- Names of individuals to be disinherited
- Provisions to deal with beneficiaries who have special needs
- Ages and conditions required for distribution of an inheritance from the trust
- Nature and location of assets
- Division of property upon death
What Are the Benefits of a Certification of Trust?
A certification of trust provides trustees with several benefits as they carry out their duties. It offers exceptional privacy, ease of use, and reinforced validity. Discover some of the most significant benefits of a trust certification below.
One of the best perks a certification of trust offers is enhanced privacy. If a trustee wants to take control of the grantor’s bank account, the bank does not need to know about specific gifts to beneficiaries, other assets the trust holds, or other private provisions in the trust. A trust certification provides the bare minimum information necessary for the trustee to fulfill their obligations under the trust.
Ease of Use
Depending on the size of an estate, some trusts may contain several hundred pages. Generally, trustees don’t want to deal with these large documents daily and it is difficult for financial institutions to ascertain the provisions in the trust giving the trustee power to act. With a certification of trust, the trustee has all the relevant information on one or two pages.
When the primary trust document and the trust certification are executed on the same day, they reinforce the validity of one another, and financial institutions are more likely to accept the certification of trust.
Anderson Estate Planning: Your Wills & Trusts Attorneys in the Dallas-Fort Worth, Texas, Area
Make life easy for your trustee by signing a valid certification of trust. At Anderson Estate Planning, we include a trust certification in every trust-based estate plan we create. If you have an existing trust, but cannot locate your certification of trust, call us at (469) 207-1529 in McKinney, Texas. We can help you create a current certification of trust.