Bay Area Estate And Tax Planning Law Firm

The basics of a certificate of trust

On Behalf of | Oct 1, 2021 | Trusts |

Instilling trust is important to anyone who becomes the administrator of an estate. A trustor needs a certificate of trust to prove the existence of a trust and reveal its specific terms. This certificate is an essential document to include as part of your estate planning in California.

What is a certificate of trust?

A certification of trust is a document that states the terms and conditions of a trust. The private details, such as the names and ages of the beneficiaries, are not revealed during the transfer of assets. A trust must be written, signed and notarized to show proof of its validity to banks and other financial institutions. It is an essential tool to use when planning an estate.

The purpose of a trust is to designate the person who is the authority over its assets. A trust certificate provides a summary of the numerous documents that are needed to manage an estate. Reviewing the trust certificate is the simple and straightforward method of providing only the most important details to financial institutions.

Problems with a trust certificate

Trusts are legal documents that are invalidated if they are created and signed because of deceptive practices. This includes a certificate of trust that was signed by a trustor who was mentally ill or incapacitated. This also includes a trust that was made by force or intimidation.

A certificate of trust is part of any good plan

A trust could consist of hundreds of legal documents. Anyone who wants to avoid browsing through a stack of paperwork should review a shortened version of a trust known as a certificate of trust. Every estate planner must know the right types of documents to create and sign when planning an estate.