How to Cash Checks Made Out to Revocable Living Trusts

Treat checks made out to a revocable trust as a check made out to a business account for cashing purposes.

Revocable living trusts generally open bank accounts to handle any cash assets controlled by the trust, as well as to provide an account for handling any administrative costs of the trust. This account is controlled by the trustees, with one or more of the trustees established with the bank account as possessing check-signing authority. Only those trustees with this authority can handle any transaction that involves removal of funds from the account, including cashing checks made out to the account. As long as signing authority is present, though, the trustee can cash the check by deposit and withdrawal, removing cash from the account as authorized.

Step 1

Take the check to the bank handling the trust's bank account.

Step 2

Have a trustee with checking authorization to the account endorse and deposit the check with the bank into the revocable living trust's account.

Step 3

Have the trustee withdraw from the trust account, in cash, the amount of the check deposited to the trust. The trustee will need to sign for the withdrawal and will have the responsibility for determining that the withdrawal is in keeping with the parameters of the trust agreement.

Warning

As trustee, you’re legally liable for any unauthorized withdrawals made from the account. Review the trust documents before cashing checks made out to the trust to ensure that the proceeds are used for authorized trust purposes, and make certain the check's funds are available to cover the withdrawal from the trust account.

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