Certificate of Trust — Massachusetts UTC Adopted
State-specific requirements for a Certificate of Trust in Massachusetts.Create yours now →
Statutory Citation
Massachusetts General Laws Chapter 203E (Massachusetts Uniform Trust Code), enacted effective March 31, 2012. Certification of trust at MGL c. 203E, §1013. Business/voluntary association trusts at MGL c. 182. Rule against perpetuities at MGL c. 184A (Uniform Statutory Rule Against Perpetuities).
Certification Requirements
MGL c. 203E, §1013 provides that instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish a certification of trust containing the following information: (1) that the trust exists and the date the trust instrument was executed; (2) the identity of the settlor; (3) the identity and address of the currently acting trustee; (4) the powers of the trustee; (5) the revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust; (6) the authority of cotrustees to sign or otherwise authenticate and whether all or less than all are required to exercise powers of the trustee; (7) the trust's taxpayer identification number; (8) the manner of taking title to trust property. The certification may be signed or otherwise authenticated by any trustee. It must state that the trust has not been revoked, modified, or amended in any manner that would cause the representations to be incorrect. It need not contain the dispositive terms. A recipient may require the trustee to furnish copies of excerpts from the original trust instrument and later amendments which designate the trustee and confer powers for the pending transaction. A person acting in reliance without knowledge of incorrectness shall not be liable and may assume the facts. Good-faith reliance allows enforcement against trust property. Bad-faith demands for the trust instrument shall be liable for damages. The section does not limit the right to obtain a copy in judicial proceedings.
Execution Requirements
Massachusetts does not require a notary or witnesses for a trust under the Massachusetts Uniform Trust Code (MGL c. 203E). The trust is validly created if the settlor has capacity, indicates intention to create the trust, there is a definite beneficiary (or charitable/animal/purpose trust), the trustee has duties, and the same person is not sole trustee and sole beneficiary. Notarization is not required by statute for trust instruments but is recommended for practical purposes (bank acceptance, real estate recording). For recording real property held in trust, deeds must be acknowledged/notarized under Massachusetts deed recording statutes. Massachusetts recognizes remote online notarization (RON). No witness requirement for trust instruments under the MUTC.
Business Trust Treatment
Massachusetts is the original home of the 'Massachusetts business trust' (also called 'Massachusetts trust' or 'voluntary association'), one of the oldest business trust forms in the United States. MGL c. 182 (Voluntary Associations and Certain Trusts) governs these entities. Under MGL c. 182, §2, trustees of an association or trust must file a copy of the written instrument or declaration of trust with the Secretary of State and with the clerk of every city or town where the trust has a usual place of business. Massachusetts business trusts have historically been treated as entities with limited liability similar to corporations, and they can sue and be sued in the name of the trustees. MGL c. 182, §2A addresses name restrictions, §2B addresses investment company trusts. Business trusts may consolidate or merge with LLCs. The Massachusetts business trust is recognized as a distinct legal entity for most purposes including taxation and liability. This form was historically important for mutual funds and investment companies.
Favorable Trust Laws
Massachusetts adopted the Uniform Statutory Rule Against Perpetuities (MGL c. 184A), which provides that a nonvested property interest is invalid unless it vests or terminates within 21 years after a life in being, OR within 90 years after creation. Massachusetts has NOT abolished the rule against perpetuities, so dynasty trust duration is limited to 90 years maximum. Massachusetts does not have a self-settled asset protection trust (DAPT) statute. Massachusetts offers spendthrift trust protections under the MUTC. Massachusetts has a state income tax on trust income (flat rate) for Massachusetts-resident fiduciaries, making it less favorable for trust taxation. Massachusetts has no state estate or inheritance tax. Massachusetts does not have favorable dynasty trust or asset protection trust statutes compared to DAPT or abolished-perpetuities states.
Unique Factors
Massachusetts is the birthplace of the 'Massachusetts business trust' (MGL c. 182), one of the most historically significant business trust forms in American law, widely used for mutual funds and investment companies. Massachusetts adopted the MUTC relatively late (2012) despite being a major financial center. Massachusetts has the Boston Bar Association and REBA (Real Estate Bar Association) that publish model trust certificate forms. Massachusetts retains the 90-year USRAP perpetuities limit, preventing perpetual dynasty trusts. Massachusetts has a flat state income tax on trust income that applies broadly. The MUPC (Massachusetts Uniform Probate Code) and MUTC work together, with procedural advisory commentary issued by the MUPC Procedures Committee. Massachusetts does not recognize electronic wills for trust creation (but does recognize RON). Article 9 of the MUTC has been reserved for future use.