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Question: The IBAT White Paper mentions that the Trust Code was amended this last session to include a certificate of trust form that is similar to the one in the Banking Code. Both are permissible alternatives to obtaining the entire trust instrument. Which one do we accept?
Answer: Practical answer - the Trust Code one! Estate planning attorneys are much more likely to provide that document. Furthermore, later law generally trumps earlier law on the same subject. Also, the Banking Code only applied to banks, leaving a gap as to documentation with other financial institutions. Note, however, that the Trust Code certificate of trust does not include a description of the successor trustees. In any event, do NOT request a copy of the entire trust document. If you have the entire instrument rather than the certificate, you have the burden of trying to read the document to figure out its terms, plus you need to protect the confidentiality of the trust agreement.
Question: So how do we handle a successor?
Answer: If a person comes in to change the account because (s)he is the successor trustee, require a new certificate of trust.
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