Certificate of trust

Started by JackS15 • 12 replies • 400 views

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JackS15 (Massachusetts)
Posts: 84

Posted:

We are switching managment companies. The bank says we need to get a certificate of trust in order to take the bank accounts over. Do any of you know where I can get a free template? I saw online we just need a notary to sign it and we are good. Another option is to get a lawyer to draft one but I am not sure that would be expensive. Thanks

MelissaP1 (Alabama)
Posts: 13,836

Posted:

You may contact a legal service that may provide the service. A notary may be able to direct you as well.

Former HOA President

JohnC77 (California)
Posts: 562

Posted:

I have a certificate of trust, but its for my Living Trust. I have handled transfers of bank accounts for many years with many association and this is a new one on me.

TimB4 (Tennessee)
Posts: 21,062

Posted:

I would ask why the bank accounts are not already in the name of the Association.

If a bank account is in the name of the Association, the Association owns it and should be able to simply remove and add individuals as needed.

It sounds like the MC is setting up a trust for the Association with the MC as trustee.
I'd find a new MC.

See:

Certificate of Trust and the difference between what a bank may request and what it actually needs

Deposit Account Certification of Trust

Protecting Your Association Funds - What you need to know

Protecting Your HOA from Fraud and Embezzlement

CathyA3 (Ohio)
Posts: 6,299

Posted:

I agree with others' comments, especially Tim's. A trust is a legal entity with specific legal requirements, and I've never encountered one used in conjunction with an HOA (also a legal entity with specific requirements). Homeowners may own their homes in trust, but that's a whole different issue.

My community has switched management companies twice while I've lived here, and there was no trust involved. I second others' recommendations to look for a new PM because these guys don't sound like they know what they're doing (or they do know, which is worse).

GeorgeS21 (Florida)
Posts: 3,808

Posted:

This sounds like the previous management company issue registered the account inaccurately?

And, now it sounds like the bank wants to fix it?

Can you excerpt the account names - previous and desired - without the name of the association - and post?

JackS15 (Massachusetts)
Posts: 84

Posted:

Quote:

Posted By GeorgeS21 on 12/10/2020 7:36 AM
This sounds like the previous management company issue registered the account inaccurately?

And, now it sounds like the bank wants to fix it?

Can you excerpt the account names - previous and desired - without the name of the association - and post?

https://ibb.co/Q8H6Bwg

JackS15 (Massachusetts)
Posts: 84

Posted:

for some reason Massachusetts sets up Trusts instead of regular HOA's

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By JackS15 on 12/10/2020 4:24 PM
for some reason Massachusetts sets up Trusts instead of regular HOA's

Interesting.

Learn something new every day.

TimB4 (Tennessee)
Posts: 21,062

Posted:

My suggestion, ask the bank if they have a standardized form to use.
If they don't, you may need to contact the Associations attorney.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Jack,

Is the bank account name exactly the same as the association name?

JackS15 (Massachusetts)
Posts: 84

Posted:

Yes

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