What is an Affidavit of Trust for a Revocable Living Trust?

Affidavit of Trust for a Revocable Living Trust: Overview and Usage

An affidavit of trust is a legal document that summarizes key details about a revocable living trust without disclosing the entire trust document. It is typically used to provide evidence of the trust's existence and essential terms when dealing with financial institutions, title companies, or other parties. This document allows for privacy while ensuring the trust's legitimacy is established.

Key Information in an Affidavit of Trust

The affidavit usually contains the following details:

1. Trust's Name: The formal name of the trust.
2. Date of Creation: The date the trust was established.
3. Grantor(s) and Trustee(s): Identification of the trust's creator(s) (grantor) and the person(s) managing the trust (trustee).
4. Successor Trustees: Information on who will take over as trustee if the current trustee is unable to serve.
5. Powers of the Trustee: A general statement about the trustee's authority to manage trust assets.
6. Revocability: Confirmation that the trust is revocable and may be amended or revoked by the grantor(s).
7. Certification: A declaration that the trust is valid and currently active under state law.

How It Is Used for Funding a Trust

Funding a trust involves transferring ownership of assets into the trust. The affidavit of trust facilitates this process in several ways:

1. Real Estate Transfers:

   • When transferring real estate into a trust, an affidavit of trust may be required by the title company or county recorder to confirm the trust's validity.
   • This ensures the title is correctly transferred to the trust without needing to disclose the entire trust document.

2. Bank Accounts and Investments:

   • Banks and financial institutions often request an affidavit to verify the trustee's authority before allowing accounts or investments to be retitled in the trust's name.

3. Motor Vehicles:

   • Some states require an affidavit of trust to transfer vehicle titles into a trust.

4. Other Assets:

   • For other assets like life insurance policies, brokerage accounts, or business interests, the affidavit helps confirm that the trust exists and outlines the trustee's role.

Privacy and Practicality

The affidavit of trust serves as a practical tool to streamline trust funding while maintaining the privacy of the full trust document. It reassures third parties that the trust is legally binding and provides trustees with the authority to act.