Skip to content

Missing the Word "And" (Check Made Out to Trustee)

Answered by: 

Question: 
If a check is made out to a trustee and the trust but the word and is not there, is this treated as an "or" situation allowing the trustee to cash the check or must the check go through an account in the name of the trust?
Answer: 

If the check is payable to an individual in his capacity as trustee, it's payable to the trust, not to the individual. UCC 3-110(c)(2)(i):

(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;...

When the UCC says the check is payable to the trustee, it means the trustee in that capacity, not to the person himself or herself (or itself) who is the trustee.

First published on BankersOnline.com 6/11/12

First published on 06/11/2012

Filed under: 
Filed under compliance as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics