Many states, including Missouri (see Stat. § 456.10-1013), have passed laws to protect trust privacy and discourage requests for full copies of trust instruments by individuals who enter into contracts or other agreements with trusts. The articles do this by allowing the agent to provide a trust certificate (which may contain selected trust extracts necessary to facilitate an ongoing transaction) instead of a copy of the full trust instrument and to protect the person who relies in good faith on such a certificate of trust. Although this article focuses on the use of trusted certificates by lenders in connection with financial transactions, the articles generally apply to any transaction involving a trust. Banks and brokerage firms require you to provide a copy of the trust when opening a new account. It is also requested by fiduciary investments when you buy real estate. Some do not wish to provide a copy of the trust because it contains private information containing the names of their children. The Inter vivo Trust certificate contains the information necessary to facilitate a transfer from the trust to your bank, transfer agents or any other third party. Evidence of such power would be found in the trust instrument, but it may be lengthy and contain instrumental provisions and other provisions that the trustee and beneficiaries of the trust may prefer to remain private.
A due diligence process that, in this case, would require a review of the entire fiduciary instrument, would be a batch offer – the lender must spend time and money verifying a long-term fiduciary instrument, which may have been modified repeatedly, and trustees and beneficiaries must disclose private information. Another reason why banks often tell their customers that they must make all fiduciary securities available to the bank is that banks are in a ”regulated” business environment where the bank must collect a considerable amount of personal data. So banks are meant to ask for just about anything they can get their hands on it, and then snipp through such information on their site in order to find what they actually need.