By Chris Meyer
When you or your attorney are funding your trust, you may find that some financial institutions require a copy of your entire trust. Most of us don't want to share the entire trust with these institutions. In order to avoid giving financial institutions the entire trust document, attorneys prepare an affidavit – also known as a memorandum – of trust.
An Affidavit of Trust is a legal document that provides critical information to these institutions such as the legal name of the trust, who set up the trust, who has the authority to act on behalf of the trust (the trustee) and what they can (and can't) do on behalf of the trust. Common elements that are included in an Affidavit of Trust are: the settlors of the trust, the name of the trust, the date the Trust was established, and Trustees of the Trust. An Affidavit of trust generally contains a list of trustee powers.
In addition to funding, there are other times that an Affidavit of Trust is needed. An Affidavit of Trust is prepared to update information when one or more Trustees of the Trust has changed. The trustee may change due to incapacity or death or the trustee may choose not to continue in that role. In this sense, the Affidavit of Trust provides a history of what has happened to those important to the trust.
If you have any further questions about an Affidavit or Memorandum of Trust or would like to learn more about any and all aspects of estate planning, please give our office a call at 1-800-798-5297. Also, be sure to Like us on Facebook to keep up to date with the latest blogs related to Trusts and other Elder Law associated topics.