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Depositing Check from Trust Account

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Question: 
We have a check made out to the estate of a customer that recently died. The account is set up with us as a trust account. Can we still deposit this check into this style of an account?
Answer: 

A trust and an estate are two separate entities with their own TINs. If a creditor of the decedant has a claim against the estate that they cannot collect because you allowed the check to be deposited to the trust, the creditor could sue you for conversion. If the will directs the proceeds of the estate go to the trust, the personal representative of the estate should deposit the check into the estate account, and then write a check payable to the trust from the estate.

First published on 05/18/2015

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