(a) The agent may present a certificate of confidence to a person instead of providing a copy of the trust instrument to determine the existence or terms of the trust; Proof of trust may be carried out by the agent on a voluntary basis or at the request of the person with whom the agent is dealing. One of the advantages of a certificate of trust is that it contains no information that you want to keep in private. It will not give your beneficiaries a list of what they will inherit or when they will receive them. This allows you or your trustee to do business without disclosing the information you want to keep in private. The use of a trusted certification can avoid these problems. A certificate of trust (or “certificate of trust”) is a short document signed by the agent that indicates only the essential terms of the trust and attests to the trust`s authority, without revealing the private details of trust that are not relevant to the current transaction. It bridges the gap between what a lender needs to know and what an agent wants to reveal — a win-win situation. Banks and brokerages require that a copy of the trust be provided when opening a new account. It is also requested by trustees when you buy real estate. Some do not want to provide a copy of the position of trust, as it contains private information containing the names of their children.
The Inter vivos Trust certificate will provide the necessary information to facilitate a transfer of Treuhand to your bank, transfer agent or other third party. 1. The existence of trust and the date of execution of the instrument of trust. (g) a person`s failure to require a certificate of trust does not affect protection, provided that the person, pursuant to Section 18100, and that it is not possible to determine whether that person acted in good faith by not seeking proof of trust. Nothing in this section should justify the consequence of a person`s responsibility to rely on a trust certification if the requirements of this section are not met. (6) The trust identification number, whether it is a social security number or an employer identification number. The statute specifies that a trust certificate must not necessarily contain the statutory terms of the trust, but it allows the lender or any other beneficiary of trust certificates to require the agent to provide it with excerpts from the original trust instrument and subsequent amendments that designate the agent and give the agent the power to act in the future transaction. , which, in turn, the lender`s need to know about privacy is balanced. (h) Unless a beneficiary or in the context of a trust dispute sought and subject to the provisions of the subdivision, any person who, in addition to a certificate of trust, applies for a fiduciary document to prove the facts set out in the certificate of trust acceptable to the third party, is liable for damages, including legal fees , resulting from the refusal to accept the certificate of confidence in place of the requested documents. if the court finds that the person acted in bad faith when applying for the trust documents. Evidence of such power would be found in the trust instrument, but it can be lengthy and includes provisions and other provisions that the agent and agents might prefer to remain private.
A due diligence process that, in such a case, would require a review of the entire fiduciary instrument would be a loss-loss proposal – the lender must devote time and money to the overhaul of a long-term fiduciary instrument, which may have been amended several times, and agents and beneficiaries must otherwise disclose private information.