hi lee phillips here i want to talk to you for a minute about what we call a certification of trust
or a summary of the trust the question is when you go to the brokerage house when you go to the
bank account the the bank they want to see the trust and [Applause] what do they need
what should you give them that's the question i always get and it depends upon the bank actually
make sure you get my ebook on how to use a trust i'm going to explain stuff like this
in that so you can can see that but when i first started what 40 years ago doing these trust things
the banks didn't know anything about the trust and i would have to go down to the bank and say bank
i've done a trust for this client they need to change their bank account to the name of the trust
so that we don't go through probate you know all that but the trust has to be there at the bank
because when the bank opens the checking account in the name of the trust they are agreeing
that they will govern that account by the terms of this trust this document
and if you amend the document if you restate the document whatever you need to go down to the bank
and say hey bank we're not dealing with that copy of the trust anymore we're dealing with a new copy
of the trust so how does the bank know what this trust is and when i'd first try and get clients in
try and get the bank account in the name of the trust the bank would say okay
we need a copy of the trust and this is back way before internet way before computers almost
that's ugly but they would take a xerox copy of the entire trust
and over the years the bank's got a lot of paper and when it became
harder for him to store all his paper they said well time out time out wait a minute
we don't want a full copy of the trust anymore give us a summary of the trust what the bank
needs to know is the name of the trust the date of the trust and who the trustees are
they also need to know who the successor trustees are going to be so that when your kid shows up
at the bank after you die and says mom's dead dad's dead we got to get into the bank account
the bank will go in the back and they will get their copy of the trust and they will read on it
that johnny is the successor trustee they'll come back out and say johnny you got any id sign here
because they've agreed that they're going to govern that account by the terms of that trust
they didn't want all the paper they started to say give us a summary and it's called a certification
of trust in many circles or a summary of the trust or whatever you want to call it whatever
the bank calls it and they also so they need the name the date the trustees the co-trustees and the
other piece they need is what are the powers of the trustees what can they do can they open bank
accounts can they borrow can they do this can they do that how do they interact with the bank
so bank had too much paper they went to okay give us a summary of the trust give us the
certification of trust and that's three four pages they take a copy of that it gives them what they
need they don't care about how you divide it up frankly it's none of their business they're
not going to look at it anyway and now the certification of trust still works and i still
make out certifications of trust for everybody you sign it and say this is a a summary of my trust
and the i think i've got long covered i don't know i keep coughing but the
bank now says some of them are saying i want a full copy of the trust because what they're doing
is they're scanning it and they don't need the paper anymore so they can store it so whether the
bank asks for a summary the certification of trust or today they're asking for the full trust again
give them whatever they want the bank isn't going to violate your privacy or they shouldn't be
anyway and they need to know at least some of the stuff that's in the trust and frankly as i tell
many clients he who has the money makes the rules so if your bank is saying i've got to have a copy
of the trust fine give them a copy of the trust if they say i want a certification i want a summary
of the trust fine give them a summary of the trust what you want to do is just do your banking under
the name of the trust the checking account the savings account the safe deposit box all the rest
of this stuff okay now don't forget to subscribe and ring the bell and toot the horn and get your
copy of how to use a trust uh we don't sell your information it's it's your copy and and that's
as far as we go any rate good to talk to you and we're talking about the certification of trusts