The trust memorandum is considered one of the useful ways to simplify your estate plans. It is a brief version of the entire trust document. This abbreviated version allows for the transfer of assets into the trust while preserving the identities of the grantor and beneficiaries.
Understanding Revocable Living Trusts
All revocable trusts are living trusts by the manner of their creation. Living trusts are created during the lifetime of the grantor and are sometimes referred to as inter vivos trusts. A person or entity, such as a bank, is designated as a successor beneficiary who will oversee and manage the trust on your behalf after your death. Living trusts do not protect the included assets from being seized or claimed in a legal proceeding.
How to Use a Trust Certificate or Trust Memorandum
When you go to a financial institution to direct ownership of an asset owned by you that must be transferred to the trust – and here’s to you as a beneficiary – it’s almost certain that the institution will want a copy of the trust agreement for its records. You may not want to hand over a copy of your trust agreement and leave it on file with the institution. The document outlines all of your assets and property and who will ultimately receive them upon your death.
You can keep this provision of your revocable living trust private by asking your attorney to prepare a short trust certificate or trust memorandum instead. This document will contain the abbreviated information that in most cases is all the financial institution needs to know.
What Most Trust Memoranda Include
Who established the trust and when the name of the trust is used the fact that the trust is revocable and can be changed at any time by the grantor who is designated to serve as the beneficiary or beneficiaries to take over when the initial trustee dies or becomes unable to perform his duties what powers the trustee may exercise over the trust assets and who signed the trust agreement.
Requirements for Recording a Trust Memorandum
You may also want to fund your trust with real estate like your home. This will require the preparation and recording of a new deed transferring ownership from you as an individual to yourself as trustee. Your state or county may also require a copy of your trust agreement for this purpose.
The trust certificate or memorandum may also be recorded instead of the full trust agreement in the public records of the states or counties that require the recording of trust documents along with the papers transferring ownership.
Source: https://www.thebalancemoney.com/your-affidavit-or-memoradum-of-trust-3505188
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