What is A Certificate of Trust?

We are now talking about a certificate of trust or affidavit of trustee or a trust certification. They’re all basically the same document, and what basically happens when you make a trust. 

When you make a trust, you have created a legal entity. Now, no one in the world really knows about this legal entity, and they don’t know if it’s actually true. When you make an LLC, if you go online, you could find it. You could say, “Oh, there’s, “it’s an actual legal formation.” 

But with a trust, it’s kind of more hidden, and people don’t know who they’re dealing with when there’s a trust. So, they usually ask for a certificate of trust, and that gives that legality to that entity, that trust entity itself. 

It’s a two- or three-page document usually. It just says who the trustee is, that it’s in existence, it’s lawful, who has the power to do what they need to do. And that trust, I mean, the banks usually can rely on that document when they open up an account. 

Escrow likes it, wants to see it when they are switching title over to a trust, or when you buy a property. So it’s a very important document to have, and if you don’t have one, it’s very easy to make. And it’s really the legality of a trust, so it’s very important.

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