Question 1

What is a memorandum of trust in Florida?

Accepted Answer

A memorandum of trust (also called a certificate of trust) is a summary document that provides essential information about a trust without disclosing the full trust terms. Under Section 736.1017, a Florida trustee may present a memorandum of trust (instead of the full trust document) to: title companies, banks, real estate agents, and other third parties who need to verify the trust’s existence and the trustee’s authority. The memorandum includes: the trust name and date of creation, the trustee’s name and powers, the trust’s tax identification number, a statement that the trust has not been revoked or amended in a way that would affect the powers listed, and in real estate transactions, the legal description of the property held in trust.

Question 2

Why use a memorandum of trust instead of the full trust document?

Accepted Answer

Privacy: the full trust document contains sensitive information: the beneficiaries’ names, the distribution provisions (who gets what and when), asset valuations, and family relationships. The memorandum provides only the information needed for the specific transaction (the trustee’s identity and authority) without disclosing these private details. Additionally: the full trust can be lengthy (20-50+ pages), and third parties do not need to review the entire document. The memorandum simplifies transactions by providing only the relevant information. Under Section 736.1017, a third party who receives a memorandum of trust in good faith may rely on the information in the memorandum without requiring the full trust document.

Question 3

Is a memorandum of trust recorded in Florida?

Accepted Answer

Recording: a memorandum of trust is sometimes recorded in the county public records when: real property is held in the trust (recording provides constructive notice of the trust’s ownership), the trustee is conveying real property (the memorandum is recorded with the deed to establish the trustee’s authority), or the title company requires it (some title companies require a recorded memorandum as a condition of insuring title). The memorandum should not include the full trust terms (only the information specified in Section 736.1017). Recording the full trust document is generally not recommended because it becomes a public record (losing the privacy advantage of using a trust). The memorandum should be updated if the trustee changes or the trust is amended in a way that affects the trustee’s powers.

Memorandum of Trust

Memorandum of Trust in Florida

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Recording

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