What is a Certificate of Trust?

A Michigan Certificate of Trust Existence is not always required, but I always prepare them for clients who set up a Trust. If you set up a Trust, you will want to “fund” it with certain accounts or assets into the name of the Trust. A Certificate of Trust gives the banking institution, brokerage firm, transfer agent or any third party with the necessary information regarding the Trust to help facilitate the transfer. The Certificate of Trust also lists most of the Trustee’s powers that are specifically listed in the Trust document – it helps confirm to the bank that the Trustee has the required authority to act on behalf of the Trust. Why not show the bank the entire Trust? Well, the bank does not need to see the dispositive provisions of the Trust and most people would prefer to keep that private. The Trust document can also be quite long. All the bank really needs to see is who the Trustee and Successor Trustees are, the name and date of the Trust, and the specific powers that the Trustee have.

Therefore, when I create a Trust for you in Michigan, I always include a Certificate of Trust. If you have any questions, please do not hesitate to contact me. Or perhaps you already have a Trust in place but you do not have a Certificate of Trust and you need one prepared, I would be happy to help with this.




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