One of the biggest advantages of having a trust is the privacy it offers. Unlike a will, which becomes public after death, a trust allows you to keep your personal information and asset distribution details private during your lifetime. However, there may be times when you need to provide proof that a trust exists and that the trustee has authority, especially when dealing with financial institutions, real estate
transactions, or insurance policies. This is where a Certificate of Trust (also known as an affidavit of trust) comes in handy.
What is a Certificate of Trust?
A certification of trust is a simple document, authorized by Missouri statute (§456.10-1013), that contains all of the bare-bones information about your trust that a third party would ever need to title an asset to your trust. It leaves out all private information like distribution and family details. The certificate typically contains:
- The name of the trust;
- The identify of the trustee(s);
- The date when the trust was created;
- A statement confirming that the trust is in effect; and
- Trustee powers.
Importantly, it does not contain private details such as how assets will be distributed or the identities of the beneficiaries, preserving your privacy.
When you open a new bank account, purchase real estate, or obtain a new life insurance policy and wish for your trust to be named as the beneficiary—or if you want to title the asset in the name of your trust—you will likely be required to provide proof of the trust’s existence. Depending on the institution or third party involved, you may need to submit the entire trust document, or they may only request the first and last pages. In some cases, they might also ask you to complete a specific form they have for such purposes.
Regardless, it’s a good idea to get your trust certification done before you need it. This way, you won’t waste time filling out paperwork at the financial institution or risk disclosing sensitive details that should remain private.
To sum up, a Certificate of Trust is an important tool for anyone with a trust who needs to provide proof of its existence to third parties while maintaining privacy. It’s a simple, straightforward document that protects your confidential information and helps you manage your trust-related transactions with ease.
For personalized guidance on your specific situation, consider consulting with a Missouri estate planning attorney.
This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between True Estate Planning and the reader.
