Our bank does not have a trust department. Though, we do open deposit accounts for trusts. Is this only impacting us when it comes to requiring trust documentation?? We can no longer ask for trust documents and are required to use the "certificate of trust" correct?

Anything else I'm missing?

To me the verbage isn't saying you can no longer accept trust documents. It says the trustee COULD give the person a certificate of trust containing specified information. It also says the recipient of said certificate COULD require trustee to furnish copies of excerpts from original trust instrument and amendments. It sounds like another "loose" guideline area to me. Either party can choose to give/take whatever they like. Any other thoughts on how this is stated?

Interesting...I thought that under the new Trust Code banks will be able to obtain and rely on a new form of Certificate of Trust but we will no longer be able to demand a copy of a complete trust agreement. Such demands have been prohibited in order to protect the privacy of persons creating trusts and trust beneficiaries. MCL 700.7913(8)provides that banks may be liable for certain damages if they require a copy of a complete trust agreement in addition to the properly completed Certificate of Trust.

I understand the liability, but the option still exists, if needed. To me, 700.7913 simply states that consumers no longer need to provide complete trust instrument, instead a certificate would suffice. This does not mean you cannot accept the old way, just that you cannot Require the old way. Am I misinterpreting the language? I'm almost cross-eyed from exhaustion, and should probably not be trying to communicate anything at the moment! I think I was focusing too much on the vagaries of the new bill, and not your statements.

This is what I created to communicate the changes to folks here at my bank. Maybe this will help.

Effective April 1, 2010, you will no longer be able to demand to review and/or retain a copy of a complete trust agreement. Such demands are prohibited in order to protect the privacy of persons creating trusts and trust beneficiaries. You are allowed to require that the trustee furnish copies of excerpts from the original trust instrument that designate the trustee and that grant upon the trustee the power to act in the transaction.

You may:
~ Obtain and/or request a copy of the first page, the signature page and the successor trustee(s) page – OR
~ Obtain a Certificate of Trust (this is new) – The Certificate of Trust is proof of the power of a representative of a trust to enter into all kinds of transactions.

The Certificate of Trust must contain ALL of the following:
The name of the trust and the date of the trust instruments and all amendments;
~ The name and address of the currently acting trustee;
~ The powers of the trustee relating to the purposes for which the certificate is being offered;
~ The revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust; and
~ The authority of co-trustees to sign or otherwise authenticate and whether all or less than all is required in order to exercise powers of the trustee.

The Certificate of Trust must be in the form of an affidavit (notarized) and be signed by any of the following:
~ The settler;
~ Any trustee; or
~ Any attorney for the settler or any trustee.

The Certificate of Trust provides a “layer of protection” for the bank. If we act in reliance upon the certificate without knowledge that the representations listed in the certificate are incorrect, we can assume the existence of the facts listed in the certificate and we will not be liable to any other person for actions we take in relying on the certificate.

For mortgage related transactions, you can continue to accept the Certificate of Trust Existence and Authority.

Thanks Flair and Patsy Cline this makes much more sense!!

Thanks to both of you! I understand it much clearer now. Patsy Cline-thanks for the "breakdown". I'm passing it on.

Is the Certificate of Trust affidavit something that would be drafted by the trustee's attorney or is the bank expected to create this form and have it be completed by trustee?