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#1186733 - 05/19/09 08:29 PM Receivership - How should they be titled?
KerryVBC Offline
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KerryVBC
Joined: Oct 2007
Posts: 151
Colorado
How should a receivership account be opened and whose TIN/SSN should be used? Does it need to be "The ABC Receivership, by John Doe Receiver" and have its own TIN, or can we open it up as "John Doe, Receiver for the ABC Receivership" & use John Doe's SSN? I have a customer that would like to do the latter.
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#1186840 - 05/19/09 11:02 PM Re: Receivership - How should they be titled? KerryVBC
Curious Banker Offline
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Joined: May 2004
Posts: 184
Midwest
Just my opinion but, if the court order doesn't specify then the TIN used is the EIN of the legal entity. If this has something to do with a bankruptcy, then use the EIN number of the bankrupt estate. You should NOT use John Doe's SS# as he doesn't own the funds; he only controls them.

I would title it as either "ABC Company, John Doe Receiver in Receivership" or "ABC Company Receivership, John Doe Receiver." I would not put John Doe's name first.

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#1186842 - 05/19/09 11:10 PM Re: Receivership - How should they be titled? Curious Banker
KerryVBC Offline
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KerryVBC
Joined: Oct 2007
Posts: 151
Colorado
Thanks Curious...I was thinking along the same lines. It's not a bankruptcy, but you're right...John Doe doesn't own the funds, he is a court-appointed controller. I rather suspect that the reason the new accounts rep wants to open the account under John Doe's name & SSN is because the customer doesn't have a TIN for the receivership at all.
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#1187031 - 05/20/09 01:43 PM Re: Receivership - How should they be titled? KerryVBC
Curious Banker Offline
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Joined: May 2004
Posts: 184
Midwest
If it's not a bankruptcy and no receivership TIN was granted, then I would set it up like a court-appointed personal fiduciary account: using the customer's TIN (he/she owns the funds) and only the fiduciary (in this case Receiver) may transact business as dictated by the courts.

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#1187047 - 05/20/09 01:52 PM Re: Receivership - How should they be titled? Curious Banker
KerryVBC Offline
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KerryVBC
Joined: Oct 2007
Posts: 151
Colorado
Thanks!
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