Certificate of Trust in Texas: What Banks Ask For
A certification of trust is a short, signed document that proves a trust exists, identifies the trustee and states the trustee's powers, without revealing who the beneficiaries are or how assets are divided. Texas law authorizes it, and banks, brokerages and title companies commonly accept it in place of the full trust. It protects your privacy and saves the trouble of sending an entire document to every institution.
What it contains
- The name of the trust and the date it was signed
- The identity of the current trustee or trustees
- The trustee's powers relevant to the transaction, such as buying, selling and borrowing
- Whether the trust is revocable and who can revoke it
- The trust's tax identification number or a statement of how the trust is taxed
- A statement that the trust has not been revoked, modified or amended in a way that makes the certification wrong
The certification is signed by the trustee and typically notarized.
Why use it
A full trust document often includes private details: who gets what, when and in what amounts. A bank or title company does not need that, and you may not want it passed around. A certification gives the institution what it needs to deal with the trustee and keeps the rest private. Texas law allows a person who relies on a properly signed certification to treat its facts as true, which gives the bank or buyer comfort.
When you need one
| Situation | What the other side wants |
|---|---|
| Opening or retitling a bank or brokerage account | Proof of the trustee's authority |
| Selling or refinancing trust real estate | Proof the trustee can sell or borrow, for the title company and lender |
| After a death | Proof the successor trustee has taken over, with a death certificate |
| Assigning an LLC interest to the trust | Evidence of who signs for the trust |
What if an institution demands the full document
Some institutions still ask for the complete trust, or want to review just the pages on trustee powers. You can often offer the certification first, then excerpts such as the title page, the trustee-powers sections and the signature page. Your attorney can help you respond if an institution refuses a valid certification, since Texas law generally lets one who acts in reliance on it rely on its statements.
Keep it current
If the trustee changes, a new certification is needed. Prepare a fresh one when a successor takes over, and keep several signed copies with the trust. When a title company or lender asks for one, ask your attorney to confirm it covers the specific power being used. See what a successor trustee does.
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Book Free ConsultationFrequently asked questions
Is a certificate of trust the same as a certification of trust?
The names are used interchangeably. Texas law uses the term certification of trust.
Does a certificate of trust reveal my beneficiaries?
No. A well-drafted one omits beneficiaries and the distribution terms.
Does it need to be notarized?
Notarization is the usual practice and many institutions require it, even if the statute does not.
Can a bank refuse it?
Some ask for more. A valid certification should be enough under Texas law, and your attorney can help if an institution pushes back.