Certificate of Trust in Utah
A Certificate of Trust is a short document that confirms a trust exists and establishes a trustee's authority without requiring the trustee to disclose the entire trust agreement.
Banks, title companies, brokerage firms, lenders, and other institutions may request proof that a trustee has authority to act for a trust. Utah law allows a trustee to provide a Certification of Trust containing specified information instead of automatically providing the complete trust agreement. Utah Code 75B-2
Legacy Peak Estate Planning Law includes a Certificate of Trust with our trust-based estate planning packages.
What Is a Certificate of Trust?
A Certificate of Trust summarizes the information another person or institution reasonably needs to verify a trust and the trustee's authority.
Under Utah Code § 75B-2-1013, a certification may state:
that the trust exists and the date the trust was executed;
the identity of the settlor;
the identity and address of the currently acting trustee;
the trustee's authority for the particular transaction;
whether the trust is revocable or irrevocable;
who holds any power to revoke the trust;
how co-trustees are authorized to act; and
the name in which title to trust property may be taken. Utah Code 75B-2
The certification must also state that the trust has not been revoked, modified, or amended in a way that makes the statements in the certification incorrect. Utah Code 75B-2
Why Use a Certificate Instead of the Entire Trust?
A revocable living trust may contain information that a bank, title company, or other third party does not need to see.
For example, the full trust may disclose:
who will inherit;
how much each beneficiary receives;
when distributions will be made;
trusts created for children or other beneficiaries; and
other private estate-planning instructions.
Utah's certification statute allows the trustee to provide the information relevant to the transaction without automatically turning over the trust's dispositive provisions. The statute specifically provides that a certification need not contain the dispositive terms of the trust. Utah Code 75B-2
This allows the trustee to establish authority while limiting unnecessary disclosure of the family's estate plan.
Certificate of Trust vs. Trust Agreement
The trust agreement is the complete legal document creating and governing the trust.
The Certificate of Trust is a summary used to establish selected facts about the trust and the trustee's authority.
The trust agreement may contain dozens of provisions concerning beneficiaries, distributions, incapacity, trustee succession, taxes, and administration. A certificate generally contains only the information needed to confirm that the trustee has authority to complete a particular transaction.
The certificate does not replace the trust agreement. It provides a more limited way to prove the trust and the trustee's authority to people who do not need the entire document.
When Is a Certificate of Trust Used?
A Certificate of Trust is commonly used when a trustee needs to deal with a third party on behalf of the trust.
Common situations include:
Opening or Retitling Bank Accounts
A bank may request documentation showing that the trust exists and identifying the person authorized to manage the account.
A Certificate of Trust can provide that information without disclosing the trust's inheritance provisions.
Investment and Brokerage Accounts
A brokerage firm or investment custodian may request proof of trustee authority before opening, transferring, or managing an account in the trust's name.
Buying, Selling, or Refinancing Real Estate
A title company, lender, or closing agent may need information concerning the trust and the trustee's authority to buy, sell, mortgage, or otherwise deal with real property.
Utah law separately contains requirements concerning how trust ownership of real property is reflected in the public land records. Utah Code 75B-2-816
Trust Funding
Financial institutions may request a Certificate of Trust when accounts or other assets are transferred into a revocable living trust.
Learn How to Fund a Trust in Utah
Successor Trustee Administration
When a successor trustee begins serving after a prior trustee's death, incapacity, resignation, or removal, an updated certification can establish who is currently serving.
The institution may also request supporting evidence establishing that the event triggering the successor trustee's authority occurred.
Does a Utah Certificate of Trust Have to Be Notarized?
Utah Code § 75B-2-1013 does not itself require a Certificate of Trust to be notarized.
The statute provides that a certification may be signed or otherwise authenticated by any trustee. Utah Code 75B-2
That is different from saying notarization is never useful or required for a particular transaction.
For example, if a certification or related document will be recorded in the real-property records, separate recording requirements may apply. A bank, title company, or other institution may also have execution requirements associated with the transaction.
We prepare the Certificate of Trust in the form appropriate for its intended use.
Can a Bank Require the Entire Trust Agreement?
Utah law provides a statutory alternative to automatically providing the entire trust.
After receiving a Certification of Trust, however, a recipient may request limited excerpts from the original trust and later amendments that:
designate the trustee; and
give the trustee the power necessary for the pending transaction. Utah Code 75B-2
That is an important distinction.
A bank or title company is not necessarily limited to the certificate alone. But Utah law does not give an institution unrestricted justification to demand the entire estate plan whenever it wants more documentation.
If a person demands the complete trust instrument in addition to the certification or permitted excerpts, the person can be liable for costs, expenses, attorney fees, and damages if a court determines that the demand was not made in good faith. Utah Code 75B-2
What If the Bank Says Its Policy Requires the Entire Trust?
First, determine what information the institution actually needs.
The institution may legitimately need an excerpt showing that:
you are the trustee;
you have authority to perform the transaction; or
multiple trustees may act independently or must act together.
Utah law expressly permits those limited excerpts. Utah Code 75B-2
If the institution instead insists on the entire trust agreement, it may be helpful to provide the applicable Utah statute and ask what specific information beyond the certification and permitted excerpts is necessary.
Many disputes can be resolved by determining what authority the institution is actually trying to verify.
How Do Co-Trustees Sign?
The Certificate of Trust should explain whether multiple trustees must act together or whether fewer than all trustees may exercise the relevant authority.
Utah's certification statute specifically requires information concerning:
the authority of co-trustees to sign or otherwise authenticate; and
whether all or fewer than all co-trustees are required to exercise the trustee's powers. Utah Code 75B-2
This can be particularly useful when a trust permits each co-trustee to act independently.
Rather than requiring an institution to interpret the complete trust agreement, the certification can state the applicable signing authority directly.
Does a Certificate of Trust Show the Beneficiaries?
Generally, it does not need to.
Utah's statutory list of certification information does not require the trustee to disclose the trust's dispositive terms. Utah Code 75B-2
That means the certification ordinarily does not need to reveal who ultimately inherits the trust property, percentages of distribution, ages for inheritance, or other private distribution instructions.
This is one of the primary practical benefits of using a certification.
Does a Certificate of Trust Prove That I Own the Property?
Not by itself.
A Certificate of Trust establishes information about the trust and trustee authority. It does not substitute for the document actually transferring ownership of an asset.
For example:
real estate ownership is generally established through the deed and land records;
a bank account is owned according to the financial institution's account records; and
an LLC interest may require an assignment or other transfer documentation.
The certificate supports the transaction by establishing the trustee's authority to act.
Learn About Transferring Property Into a Trust
Does a Certificate of Trust Need to Be Recorded?
Not necessarily.
A Certificate of Trust is frequently used with banks and financial institutions without being recorded in the county land records.
Real estate transactions are different. Utah has separate statutory rules concerning trust ownership of real property and the information disclosed in the deed or another recorded instrument. Utah Code 75B-2-816
Whether a certification or another trust-related document should be recorded therefore depends on the particular real-estate transaction.
When Should a Certificate of Trust Be Updated?
A Certificate of Trust should accurately reflect the trust when it is presented to a third party.
An updated certificate may be appropriate after:
a trustee resigns or dies;
a successor trustee begins serving;
the trust is amended or restated;
the trust's name changes;
trustee powers are changed;
co-trustee signing authority changes; or
another fact stated in the existing certification is no longer accurate.
Utah law requires the certification to state that the trust has not been revoked, modified, or amended in a way that makes its representations incorrect. Utah Code 75B-2
That makes accuracy more important than simply keeping the same certificate indefinitely.
Does a Certificate of Trust Expire?
Utah's certification statute does not establish a fixed expiration date.
But an institution may want a recent certification before completing a transaction, particularly when significant time has passed since the certificate was signed.
An older certificate can also become inaccurate if the trust has been amended or the serving trustee has changed.
If there is any question, preparing an updated certification is usually straightforward.
What Happens If Someone Relies on an Incorrect Certificate?
Utah law protects a person who acts in reliance on a Certification of Trust without knowledge that its representations are incorrect.
Such a person generally may assume the facts in the certification are true without independently investigating the entire trust. Utah Code 75B-2
A person who enters a transaction in good faith in reliance on the certification may generally enforce the transaction against the trust property as though the representations in the certification were correct. Utah Code 75B-2
That is another reason the trustee should make sure the certification is accurate when it is signed and presented.
Is a Certificate of Trust Included With a Revocable Trust?
Yes. We include a Certificate of Trust with our trust-based estate planning packages.
Our trust-based estate plan includes:
One person: Starting at $1,500
Two people: Starting at $2,000
The package includes the revocable living trust, Last Will and Testament, financial power of attorney, health care directive, Certificate of Trust, supporting estate-planning documents, and preparation and recording of one property deed when applicable.
View Estate Planning Services and Pricing
Frequently Asked Questions
What is another name for a Certificate of Trust?
Utah's statute uses the term “Certification of Trust.”
People and institutions sometimes use “Certificate of Trust” or “trust certificate” to describe the same type of summary document.
Who signs a Certificate of Trust in Utah?
Utah law permits any trustee to sign or otherwise authenticate the certification. Utah Code 75B-2
The certification should accurately identify the currently acting trustee and the authority relevant to the transaction.
Does the certificate list successor trustees?
Utah's statute requires the certification to identify the currently acting trustee. It does not require a certification to list every potential successor trustee. Utah Code 75B-2
When a successor later begins serving, an updated certification can identify that person as the current trustee.
Can a bank ask for part of my trust?
Yes.
A recipient of a Certification of Trust may require excerpts of the trust and later amendments that identify the trustee and establish the trustee's authority for the pending transaction. Utah Code 75B-2
That is different from automatically requiring the complete trust agreement.
Can a bank rely on my Certificate of Trust?
Yes, if the statutory requirements are satisfied.
Utah law protects a person who acts in reliance on a certification without knowledge that its representations are incorrect. Utah Code 75B-2
Should I give someone my entire trust if they only need proof of authority?
Usually, start by determining what information the recipient actually needs.
A Certification of Trust is specifically designed to establish the trust and trustee's authority without unnecessarily disclosing dispositive terms.
If additional authority needs to be shown, Utah law allows the recipient to request the relevant excerpts.
Use a Certificate Without Disclosing Your Entire Estate Plan
A Certificate of Trust gives banks, title companies, lenders, and other third parties the information they need to verify a trustee's authority while limiting unnecessary disclosure of the full trust agreement.
Legacy Peak Estate Planning Law includes a Certificate of Trust with our trust-based estate planning packages and can also help existing trust owners determine whether a certification should be prepared or updated.