What trust certification means

A California trust certification is a signed and notarized document prepared by the trustee under California Probate Code Section 18100.5. It summarizes the key authority provisions of a trust without disclosing the private distribution terms, beneficiary identities, or other sensitive information contained in the full trust document. Lenders, title companies, financial institutions, and other third parties are authorized to rely on a properly executed trust certification as proof of the trustee's identity and powers.

A trust certification must contain specific information under Probate Code Section 18100.5. This includes the date the trust was created, the grantor's name, the trustee's name and address, a statement that the trust is currently in existence, and the relevant powers granted to the trustee, particularly borrowing authority and the power to encumber real property. If the trustee is acting as successor trustee following the grantor's death or incapacity, the certification must also explain why the successor trustee has authority to act, typically by stating that the original trustee has died or become incapacitated.

The trust certification is one of the most important documents in any California trust loan transaction. It is what the lender reviews to confirm that the trustee can legally borrow against the trust property. An experienced trust attorney can prepare the certification quickly, often within a day or two, once they have the trust document in hand. The certification is signed by the trustee, notarized, and provided to the lender as part of the loan application package.

Why it matters for trust and probate loans

Trust certifications are the standard document used in California trust loan transactions. They confirm the trustee's identity, authority, and powers without disclosing the private distribution terms of the trust. This serves two important purposes: it protects the trust's private information, and it gives the lender the assurance it needs without requiring review of a potentially lengthy and complex trust document.

When North Coast Financial receives a trust certification, we review it to verify the trustee's borrowing authority, check for any restrictions or conditions on encumbering real property, and identify whether a trust protector or co-trustee approval is required. A certification that is properly prepared and complete allows us to move forward efficiently. Incomplete or deficient certifications can delay the loan process, so working with a trust attorney who is familiar with lending transactions is valuable. Rates on California trust loans run from 9.5% to 10.95% with origination of 1.25 to 1.95 points.

Related terms

See also: Irrevocable trust, Revocable living trust, Trust protector, and our main article on trust loans in California.

Frequently Asked Questions

Can a lender request the full trust document instead of a certification?
Some lenders do request the full trust document, but under California Probate Code Section 18100.5, the trustee is not required to provide it. The trustee can satisfy a lender's documentation request by providing a trust certification that contains all the required information. A well-represented trustee will typically offer a certification rather than the full document to protect beneficiary privacy. Lenders who are experienced with California trust loans understand and accept certifications.
Who prepares a trust certification in California?
The trust certification is prepared by or for the trustee, typically with assistance from a trust attorney. The trustee must sign the certification and have the signature notarized. Many trust attorneys can prepare a certification quickly once they have the trust document to work from. If the trustee does not have a trust attorney, they should obtain one before proceeding with any trust loan transaction, as the attorney will also be needed to review the loan documents.
What happens if information in the trust certification is incorrect?
Under California Probate Code Section 18100.5, a trustee who provides false information in a trust certification is liable for any loss suffered by the lender as a result. A lender who relies in good faith on a trust certification is protected from claims that the certification was inaccurate, so long as the lender did not have actual knowledge of the inaccuracy. This liability framework gives lenders strong protection and provides an additional incentive for trustees to ensure that certifications are accurate.