Certificate of Trust in Utah: What It Says and When to Use It
A certificate of trust is a short document in which a trustee confirms that a trust exists and states what the trustee is authorized to do, so a bank, brokerage or title company can deal with the trustee without reading the trust itself. Utah's statute calls it a certification of trust. Under Utah Code § 75B-2-1013, any trustee may sign it, and it does not have to reveal who inherits, how much, or when.
At Legacy Peak Estate Planning Law, a certificate of trust is included with every trust-based estate plan. This guide covers what it must say, who signs it, whether it needs a notary, and what to do when an institution asks for more.
What a Utah certificate of trust must say
The statute lets a trustee give a certification instead of a copy of the trust instrument. The certification covers seven points: that the trust exists and the date the trust instrument was signed; the identity of the settlor, the person who created the trust; the identity and address of the currently acting trustee; the trustee's powers for the transaction at hand; whether the trust is revocable and who holds the power to revoke it; how co-trustees sign and whether all of them must act or fewer than all may; and the name in which title to trust property may be taken.
The certificate must also state that the trust has not been revoked, modified or amended in a way that makes those statements incorrect (§ 75B-2-1013(3)). That sentence is why a certificate should be kept current, as explained below.
Why use a certificate instead of the trust
A trust agreement usually holds the private parts of an estate plan: who receives property, in what amounts, at what ages, which trusts are set aside for children, and instructions shaped by a family's circumstances. A bank teller or title officer needs none of that. The statute says a certification need not include the trust's dispositive terms (§ 75B-2-1013(4)), so a trustee can prove authority and keep the plan private.
The trust agreement remains the governing document. The certificate summarizes the facts a third party needs and replaces nothing in the trust.
When banks, brokers and title companies ask for one
A bank asks for a certificate when you open or retitle an account in the name of the trust, because it needs to confirm that the trust exists and who may sign. A brokerage asks for the same thing, and often wants to know whether co-trustees must act together. Institutions also request one when assets move into a revocable trust, which is why we prepare it with the trust. Our guide to funding a trust in Utah explains that step.
Real estate is different because a certificate is usually only part of the paperwork. When real property is titled in a trust, § 75B-2-816 addresses the recitals, and § 75B-2-814(3) provides that recorded documents affecting real property must show the trustee's name and address and the trust's name and date. A title company or lender may ask for a certificate on top of that when a trustee buys, sells or refinances.
A certificate is also how a successor trustee takes over. After a death or incapacity, the successor signs a new certification that names the successor as the currently acting trustee. Expect the institution to ask for proof that the change happened, such as a death certificate.
Who signs it, and does it need a notary
Any trustee may sign or authenticate a certification (§ 75B-2-1013(2)). The statute does not require a notary. Institutions and county recorders have their own rules, though, and a certificate that will be recorded or handed to a title company is often notarized. If yours will be used in a real estate transaction, tell us at signing so we can handle it then.
When a trust has co-trustees, the certificate must say whether all of them must act or fewer than all may. One co-trustee can sign it, but the statement about how they act has to match the trust.
What to do when a bank asks for the whole trust
A recipient may require copies of the excerpts that name the trustee and give the power to act in the transaction (§ 75B-2-1013(5)). That is the limit. A person who demands the entire trust instrument in addition to a certification is liable for costs, expenses, attorney fees and damages if a court finds the demand was not made in good faith (§ 75B-2-1013(8)).
Start by asking the institution what it actually needs to verify. It is usually the trustee's identity, the trustee's authority, or whether co-trustees must act together, and the certificate already answers all three. Offer the excerpt pages, cite the statute politely, and ask what else it needs that those pages do not cover. If the institution still refuses, call us before you hand over the full trust, because a copy of the whole plan can travel further than you intend.
What a certificate of trust does not do
It does not show the beneficiaries. The statute does not require the certificate to name them, divide property or state distribution ages.
It does not prove that the trust owns an asset either. Ownership is shown by a deed, the account title or an assignment. The certificate supports the trustee's authority to act for the trust.
It does not have to be recorded for a bank to accept it. Whether a certificate is recorded in a real estate transaction depends on the transaction and the title company.
When to update it, and whether it expires
Utah's statute sets no expiration date, but institutions may want a recent one, and an old certificate can become wrong. Update it when a trustee resigns, dies or becomes unable to serve, when a successor takes over, when the trust is amended or restated, when the trust's name changes, when the trustee's powers or the co-trustees' authority change, or whenever any stated fact is no longer true. Because the certificate must state that the trust has not been changed in a way that makes it incorrect, do not sign or present one that no longer matches the trust.
Who is protected when they rely on it
A person who relies on a certification without knowing it is incorrect is not liable for acting on it, and may assume the stated facts are true without further inquiry (§ 75B-2-1013(6)). A person who deals with a trustee in good faith and for value is protected and does not have to inquire into the extent of the trustee's powers (§ 75B-2-1012). A good-faith transaction made in reliance on a certification can be enforced against trust property as if the certification were correct (§ 75B-2-1013(7)). Those protections are the reason a bank can accept a certificate safely, and they are worth citing when one hesitates.
What a certificate of trust costs
At Legacy Peak Estate Planning Law, the certificate of trust is included in our trust-based estate plans, which start at $1,500 for one person and $2,000 for two. The plan includes the revocable living trust, a will, a financial power of attorney, a health care directive, the certificate of trust, supporting documents, and preparation and recording of one property deed when applicable. See our pricing page, or read more about the revocable living trust in Utah.
Frequently asked questions
Is a certificate of trust the same as a certification of trust?
Yes. Utah Code § 75B-2-1013 uses the term certification of trust. Certificate of trust is the common name for the same document.
Who signs a certificate of trust in Utah?
Any trustee may sign or authenticate it (§ 75B-2-1013(2)). If the trust has co-trustees, the certificate must state whether all of them must act or fewer than all may.
Does a certificate of trust list successor trustees?
No. It identifies the currently acting trustee (§ 75B-2-1013(1)). When a successor takes over, the successor signs a new certification.
Can a bank ask for part of my trust?
Yes. A recipient may require the excerpts that name the trustee and grant the power to act in the transaction (§ 75B-2-1013(5)). A demand for the entire trust in addition to a certification can expose the requester to liability if a court finds it was not made in good faith (§ 75B-2-1013(8)).
Does a certificate of trust expire?
Not under Utah law. The statute sets no expiration date. An institution may still ask for a recent one, and you should replace any certificate whose statements are no longer accurate.
Put a plan in place
A certificate of trust is one of the documents that makes a trust usable in daily life. If you are ready to put a plan in place, schedule a free consultation with Legacy Peak Estate Planning Law. We meet clients at our Draper and Kaysville offices and serve families across Utah. You can also call (801) 823-0010.
This article is general information about Utah law and is not legal advice for your situation. Reading it does not create an attorney-client relationship.