Free Trust Letter to Bank or Broker

If the stock to be transferred is not publicly traded, in other words, it is owned by a relatively small, controlled group of investors, send the Letter to the Secretary of the corporation and ask that new stock certificates be issued in the name of the trust.

If the account or security to be transferred into the Trust is jointly owned by two or more persons, it is necessary for all owners to sign this letter, authorizing the bank, broker or corporation to transfer the asset. If the account or security is co-owned but it will not be transferred to a Joint Living Trust for those co-owners, an attorney should be consulted with regard to possible compliance with gift tax law.

The bank or broker will require a Federal Identification Number for the trust for tax purposes, which is usually the Social Security Number(s) of the owner(s) if the owner(s) is/are also the trustee(s). If the owner of the account or security is not the trustee (nor one of several co-trustees), the trust will usually be required to obtain its own Federal Identification Number for tax purposes rather than using the Social Security Number of the Owner.

Some banks or brokers may require that the Letter be signed in the presence of a medallion signature guarantor, who will then imprint the Letter with its medallion imprint. Unless you are aware that the letter recipient will require a medallion guarantee, or unless you simply wish to provide the medallion guarantee in order to save time in case the recipient requires it, it is suggested that you ignore this step until asked to provide the guarantee. When it is necessary to provide the guarantee, most banks and stock brokerages have employees who are authorized to affix the medallion signature guarantee.

The Trust Letter to Bank or Broker should be signed by the account or security owner(s) (and by the trustee(s) if there are any non-owner, currently-acting trustees). Retain a copy of the Letter for your records.

1. Attach to the Letter photocopies of pages from your revocable living trust which include the following:
   

   Declaration of trust (first page);

   Identity of the trustees (first page, plus any other page which describes alternate and/or successor trustees);

   Powers of the trustees; and

   Signature page (and notary page, if any).

   
   
2. The Letter should be signed in the presence of a notary public.

3. Some banks or brokers may require that the Letter be signed in the presence of a medallion signature guarantor, who will then imprint the Letter with its medallion imprint. Unless you are aware that the letter recipient will require a medallion guarantee, or unless you simply wish to provide the medallion guarantee in order to save time in case the recipient requires it, it is suggested that you ignore this step until asked to provide the guarantee. When it is necessary to provide the guarantee, most banks and stock brokerages have employees who are authorized to affix the medallion signature guarantee.

Whether you own individual stocks and bonds in certificate form, or you own a brokerage account which has title to the securities, it is best to work with a stock broker in order to transfer the securities to your living trust. In order to verify (a) that the trust is in existence, (b) who are the authorized trustees, and (c) what powers the trustees enjoy, the brokerage company may ask for a copy of the original trust agreement. As a substitute, most brokerage companies will accept a "certification of trust" which provides the broker with this key information about the trust. The simplest way to do this, in turn, is to provide the broker with this Trust Letter to Bank or Broker, certified and signed as true, to which is attached photocopies of selected pages of the trust.

Closely-Held Stock
If the stock to be transferred is not publicly traded, in other words, it is owned by a relatively small, controlled group of investors, send the Letter to the Secretary of the corporation and ask that new stock certificates be issued in the name of the trust.

In order to properly re-title the account, the bank will need to know the name of the trust (and the name of the trustee(s), in some cases). The bank will also require a Federal Identification Number for the trust for tax purposes, which is usually the Social Security Number of the owner, as long as the owner is also the trustee. Furthermore, the bank will usually want to satisfy itself that the trust is in existence, learn the identity of the current and any successor trustees, and verify that those trustees have the authority under the trust document to open and maintain the bank account. In order to provide the bank with this information, you can provide the bank with the original, or a photocopy, of the trust agreement itself. However, if you are concerned about keeping the trust provisions private, you can instead supply the bank with only the selected information from the trust that is needed by the bank. The simplest way to do this, in turn, is to provide the bank with this Trust Letter to Bank or Broker, certified and signed as true, to which is attached photocopies of selected pages of the Trust.

At any time after creating and signing a Living Trust document, assets must be transferred into the Trust. A Living Trust only applies to the assets that are actually transferred into the Trust. This letter is used to request the transfer of your bank account, brokerage account or individual securities to your revocable Living Trust.

If the owner(s) of the account or security are not the currently-acting trustee(s) of the trust, the trustee(s) must usually sign this letter so that the bank or broker is satisfied that the trustees (a) accept the account or security, and (b) attest to the accuracy of the representations regarding the trust.

Bank Accounts
It is usually recommended that your regular checking account and your automobiles not be transferred into your revocable living trust. Instead, these two assets can be held in joint tenancy form and still avoid probate upon your death. However, if you maintain large balances in your checking account, it, and all other types of bank accounts -- savings accounts and certificates of deposit -- should typically be transferred into the name of your trust. If you are unsure what assets to transfer to your trust, consult an attorney.

Certificates of Deposit
If you intend to transfer a Certificate of Deposit, or some other similar investment vehicle, to your trust, you should determine from the bank that the transfer will not adversely affect the interest being paid on the investment, for example, a penalty for early withdrawal. Most banks are willing to re-title the investment without any loss of interest when there is no substantive change of owner, such as in this case where one or two individuals transfer the investment to a trust controlled by, and established for, the owner(s).

Stocks and Bonds
Whether you own individual stocks and bonds in certificate form, or you own a brokerage account which has title to the securities, it is best to work with a stock broker in order to transfer the securities to your living trust. In order to verify (a) that the trust is in existence, (b) who are the authorized trustees, and (c) what powers the trustees enjoy, the brokerage company may ask for a copy of the original trust agreement. As a substitute, most brokerage companies will accept a "certification of trust" which provides the broker with this key information about the trust. The simplest way to do this, in turn, is to provide the broker with this Trust Letter to Bank or Broker, certified and signed as true, to which is attached photocopies of selected pages of the trust.