Can Named Payee Cash Check?

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Question:

Can a check with a payee: John Doe TTEE Jane Doe Rev Tr be cashed by the named payee?

Answer:

No. The payee in your example is the trustee of the trust, not the individual. In general, cashing a check payable to a fiduciary puts your bank on notice of a breach of trust; you would likely be found liable for facilitating that breach.

First published on BankersOnline.com 10/8/12