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#2079031 - 05/17/16 07:17 PM Estate Check Cashing Rights
traininggirl Offline
Junior Member
Joined: May 2008
Posts: 25
Ohio
A customer presented a check payable to his deceased wife's estate and wanted to deposit to his personal account. He first claimed there was no estate and later claimed to be the executor. We explained that we would require that to be deposited to an account for that estate. After a manager explained why to the client's attorney (long story), he cited ORC 5815.08 stating that we would not have any potential liability if we cashed that check for the client. I will post the code below. Has anyone encountered this?

5815.08 Deposit to personal credit of fiduciary.
If a fiduciary makes a deposit in a bank to the fiduciary's personal credit of checks drawn by the fiduciary upon an account in the fiduciary's own name as fiduciary, checks payable to the fiduciary as fiduciary, checks drawn by the fiduciary upon an account in the name of the principal if the fiduciary is empowered to draw checks thereon, checks payable to the principal and indorsed by the fiduciary if the fiduciary is empowered to indorse the checks, or if the fiduciary otherwise makes a deposit of funds held by the fiduciary as fiduciary, the bank receiving the deposit is not bound to inquire whether the fiduciary is committing a breach of the obligation as fiduciary.
The bank may pay the amount of the deposit or any part thereof upon the personal check of the fiduciary without being liable to the principal, unless the bank receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of the obligation as fiduciary in making the deposit or in drawing the check, or with knowledge of such facts that the action of the bank in receiving the deposit or paying the check amounts to bad faith.
Effective Date: 01-01-2007
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#2079278 - 05/19/16 02:16 AM Re: Estate Check Cashing Rights traininggirl
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Tell the lawyer to go take a hike. First, there is no deposit involved - the guy is trying to cash a check. Second, there is nothing in this law that says a bank must accept such a deposit or negotiate a check. The bank can and has, just said no.
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#2079290 - 05/19/16 12:40 PM Re: Estate Check Cashing Rights rlcarey
traininggirl Offline
Junior Member
Joined: May 2008
Posts: 25
Ohio
The lawyer claimed to specialize in estates and stated he had never encountered a bank that required this in his 50 years of practicing law. He also stated that we were breaking the law by not allowing his client to deposit the check, which is obviously not accurate. Thanks for your response.
_________________________
"An investment in knowledge pays the best interest." ~ Benjamin Franklin

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