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#1998001 - 02/24/15 09:36 PM Payee question
Ric30 Offline
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Joined: Apr 2005
Posts: 186
IN
We have a client that issued an official check to John Doe Trustee of Jack Doe IRREV Trust. The question is, is this payable to the individual or to the trust?

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#1998003 - 02/24/15 09:37 PM Re: Payee question Ric30
John Burnett Offline
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John Burnett
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Cape Cod
To the trustee in that capacity. Not to the individual. In other words, it needs to be deposited to an account in the name of the trust.
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#1998087 - 02/25/15 02:47 PM Re: Payee question Ric30
Ric30 Offline
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Joined: Apr 2005
Posts: 186
IN
That's what we thought. The argument was made that because it had the trustee first and not the trust that it was okay to deposit into the trustee's personal account. Thank you.

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#1998103 - 02/25/15 03:28 PM Re: Payee question Ric30
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Source for you to use when confronted by those arguing the check belongs to the trustee as an individual: Your state's version of UCC section 3-110, specifically 3-110(c)(2)(i), which will probably read something like this (from the "model" code):

(2) If an instrument is payable to:
(i) a trust, an estate, or a person described as trustee or representative of a trust or estate, the instrument is payable to the trustee, the representative, or a successor of either, whether or not the beneficiary or estate is also named; [emphasis added]

"payable to the trustee" means it's payable to that person in his/her capacity as trustee, not as an individual.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
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